Weekly Dispatch: May 18, 2023

May 18, 2023


FEMA: Nearly $4B in flood insurance payments reach policyholders after Hurricane Ian

Months after Hurricane Ian swept across the southeast United States in 2022, the Federal Emergency Management Agency’s National Flood Insurance Program has paid over $3.9 billion to more than 48,000 policyholders. The amount includes more than $3.4 billion to repair or rebuild property and $445 million to replace damaged contents, with an average payment of more than $104,000. Hurricane season will begin June 1. Now is the time to start talking to your clients about the importance of flood insurance, PIA members can access Hurricane Info Central.

Security fix hasn’t stopped Hyundai and Kia thefts

Hyundai and Kia released a software patch to fix the well-publicized security flaw in mid-February. The flaw was originally announced on TikTok and other social-media platforms. However, the security fix hasn’t decreased the number of thefts that are occurring. For example, in New York state, it has been reported that 966 Hyundai and Kia cars were stolen (as of April 30)—nearly seven times the number of cars stolen in the same period in 2022. Recently, the City of Buffalo announced that it was suing the car companies.

N.J. governor conditionally vetoes flood notification bill

Gov. Phil Murphy conditionally vetoed a bill that would require property sellers and landlords to make certain notifications to buyers if a property is located in an area designated by FEMA as a Special Flood Hazard Area (known as the 100-year flood plain) or Moderate Risk Flood Hazard Area (known as the 500-year flood plain), and if the property has suffered flood damage in the past to the owner’s knowledge. While the governor supports the bill, he wants to make sure there are real consequences for landowners who fail to comply with the bill requirements. In the statement of his conditional veto of S-3110/A-4783, he stated: “I therefore cannot support the provision of the bill that would require a tenant to suffer damage to their personal property equal to five times the amount of their monthly rent before they could terminate a lease based on a landlord’s failure to make required disclosures.” He also listed his recommendations for changes to the bill.


Cannabis Safe Harbor legislation reintroduced

PIA helped develop and supports two bills, both of which were reintroduced in the 118th Congress, which would provide protection for those engaging in insurance-related transactions associated with cannabis businesses that are otherwise legal under state law. H.R.2984/S.1359, the Clarifying Law Around Insurance of Marijuana Act is an insurance-specific bill introduced by Rep. Nydia Velazquez, D-N.Y., Rep. Warren Davidson, R-Ohio, and Sen. Bob Menendez, D-N.J., and Sen. Rand Paul, R-Ky., Sen. Jon Tester, D-Mo., Sen. Steve Daines, R-Mo., and Sen. Jeff Merkley, D-Ore. The CLAIM Act provides protections for the insurance industry to conduct business with cannabis-related businesses in states in which such entities are legal. The second bill is the bipartisan Secure And Fair Enforcement Banking Act, S.1323/H.R.2891, introduced by Rep. Earl Blumenauer, D-Ore., Rep. Dave Joyce, R-Ohio, and Sen. Jeff Merkley, D-Ore., and Sen. Steve Daines, R-Mo. Initially conceived as a banking-specific bill, the current SAFE Banking Act includes key insurance provisions from the CLAIM Act meant to protect agents, brokers, and insurers.

PIACT priority: Surplus-lines bill passes state House

As the days tick by to the end of the Connecticut legislative session, PIACT advocated for passage of the association’s top priority, H.B.6621, which makes small, but important changes to the current process of placing risks in the nonadmitted marketplace. The work has paid off—the legislation passed the state House of Representatives without opposition last week. The bill changes how surplus-lines brokers and insureds must document surplus-lines insurance policies. Now, the bill will go to the state Senate for consideration in that chamber.

Governor issues statement on the future of legalized marijuana use in N.H.

New Hampshire is the only state in New England that has not legalized recreational cannabis for adult use. Last week, Gov. Chris Sununu issued a statement, which includes the following: “Knowing that a majority of our residents support legalization, it is reasonable to assume change is inevitable. To ignore this reality would be shortsighted and harmful. That is why, with the right policy and framework in place, I stand ready to sign a legalization bill that puts the State of NH in the drivers seat, focusing on harm reduction — not profits.” He also outlined “the right path” that New Hampshire needs to take to legalized cannabis use in the state. It includes: allowing the state to control distribution and access; keeping marijuana away from kids and schools; controlling the marketing and messaging; prohibiting marijuana miles; empowering towns to keep out if they choose; reducing access to poly-drugs; and keeping it tax free to undercut the cartels that continue to drive the state’s illicit drug market. PIA Northeast offers various resources to help members stay updated on this budding issue.

PIANY-priority windstorm definition bill passes Assembly

The New York Legislature certainly has been active on PIANY priority-issues. PIANY’s top priority photo inspection bill passed the Legislature late last month. This week, another PIANY priority passed the state Assembly, which deals specifically with windstorm definitions. A.2866 would require the New York Department of Financial Services to create a standard definition of windstorm for homeowners insurance policies. 


Triple-I/Milliman report: Inflation, catastrophes contribute to 2022 underwriting loss for p/c industry

According to the latest underwriting projections by actuaries at the Insurance Information Institute and Milliman, the 2022 net combined ratio for the property/casualty insurance industry was 102.4, with underwriting losses for personal lines partially offset by underwriting gains for commercial lines. The divergence in performance was particularly stark, with personal lines logging a combined ratio of 109.9 versus 94.8 for commercial lines—the largest difference in at least 15 years. Looking ahead, the 2023 net combined ratio is forecast to be 101.5.

NCCI: Workers’ compensation performance remains healthy

The performance of the U.S. workers’ compensation system remains healthy according to the 2022 metrics that the National Council on Compensation Insurance released earlier this month in its State of the Line Report. Workers’ compensation premium increased 11% in 2022, highlighting a return to a similar level of premium as 2019, $47.5 billion. Private carriers produced their ninth consecutive year of underwriting profitability with a Calendar Year 2022 combined ratio of 84. It is the sixth consecutive year with a combined ratio below 90 for the workers’ compensation insurance market.

NYCIRB loss cost filing posted

The New York Compensation Insurance Rating Board filed its annual loss cost indication with the New York State Department of Financial Services, requesting a decrease of 2.6% in the overall loss cost level in New York state. This filing, with the explanatory memorandum and supporting exhibits, is available here.

Educating insurance agents

N.Y.: New classes that meet the New York State Department of Financial Services’ new CE requirements are available online and in private on-site sessions.

Annual Conference: Earn up to 11 CE credits

When you think continuing-education credits, you naturally think Atlantic City and the PIA Annual Conference hosted by PIANJ and PIANY, June 4-6, 2023, at the Hard Rock. When you attend, you’ll have access to Surviving a Cyber Attack: A Mock Cyber Event, presented by TAG Solutions. This session will point out any gaps you have in your current cyber program, as well as ensure what you’re doing today is protecting you. Cathy Trischan, CPCU, CIC, CRM, AU, ARM, AAI, CRIS, MLIS, TRIP, will teach Contractors: CGL Coverage Issues, which will delve into the complexities of commercial general liability policies and how they respond to various liability exposures encountered by contractors. And, Steve Lyon, CPCU, CIC, CRM, AAI, ARM, AIS, CRIS, will teach 21st Century Insurance Exposures, which will focus on some of the evolving issues in the insurance industry today; and The Ins and Outs of Errors & Omissions^UN^FF, which will discuss exposure identification and analysis, marketing, proposals, policy issuance, binders, certificates, ID cards, endorsements, payments, audits, claims handling, renewal reviews, account rounding, effective loss control, checklists and self-audits, proper documentation, and recent court decisions for and against agents and brokers. Register today.

Meet N.Y.’s new CE requirements in one, four-hour class

Mishell Magnusson, CIC, CISR, CPIA, AAI, FIPC, will lead the webinar New York Law 2022, Wednesday, May 24, 2023, from 9 a.m.-1 p.m. This class meets the DFS’s new CE requirements in flood insurance; insurance law; ethics and professionalism; and diversity, inclusion and the elimination of bias. The class will start with an hour discussion on ethics and professionalism, and will answer the questions: What is the right thing to do? How does it affect the actions of agents and brokers every day? The second hour will discuss insurance law and those licenses held by brokers, agents and consultants including who needs to be licensed and transacting insurance. The third hour will discuss diversity—including and elimination of bias in our work environment. The last hour will focus on the basics of flood insurance. Register today.


NJYIP Golf Open raises $2,300 for pancreatic cancer research

NJYIP 32nd annual Golf Open was held May 1, 2023, at Galloping Hill Golf Club. During the event, 130 golfers played the 18-hole scramble tournament and raised over $2,300 for the Jo-Ann Danzis Foundation, which works to advance pancreatic cancer research and awareness through charitable giving. Golf winners this year included: First place winners: Roger Naut, Nicolas Donzuso, Fred Monte Jr. Second place winners: Chris Rein, Trevor Menzi, Matt Mesorole, Anthony Schillizi. Third place winners: Brad Roberts, Jeff Kroeger, Matt Kent, Sean O’Beirne. Longest Drive for Women: Danielle Bain. Longest Drive for Men: Michael Funk. Closest to the Pin: Ben Keyser, Tyler Micchelli. See photos from the event here.

Register now

Tonight: PIWA Spring Reception—Register at the door

June 4-6, 2023: Annual Conference hosted by PIANJ and PIANYWant to sponsor, exhibit or advertise?

Tuesday, June 6, 2023: NJYIP Fun Run

Tuesday, June 13, 2013: YIP Webinar: From Bud to Table: The Insurance of Cannabis Conn. | N.J. | N.Y.

Tuesday, June 20, 2023: CTYIP Golf Outing

Monday, Oct. 2, 2023: PIANJ Golf Classic—40th Anniversary

Save the date

Thursday, June 29, 2023: PIANJ Women’s Leadership Alliance Pickleball Tournament

Monday, Aug. 7, 2023: NY-YIP Annual Golf Open

Thursday, Nov. 2, 2023: Capital RAP

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