News
NFIP paying interest on Treasury debt
The National Flood Insurance Program continues to fulfill its obligations to the U.S. Treasury to satisfy debt obligations totaling $20.5 billion. Because the NFIP cannot fully pay back the debt it incurred paying claims for previous catastrophic flood disasters post Hurricane Katrina, it must be refinanced at current interest rates. This amounts to the program accruing $1.7 million in interest per day. The NFIP debt carries an average interest rate of 3.02%. This results in $619 million annually that is paid to the Treasury. In news related to the NFIP, the program is set to expire on Friday, Nov. 17, 2023, if Congress does not pass another extension.
President Biden issues Executive Order on AI standards
President Biden issued a landmark Executive Order on Oct. 30, to ensure that America leads the way in seizing the promise and managing the risks of artificial intelligence. The Executive Order establishes new standards for AI safety and security, protects Americans’ privacy, advances equity, civil rights and more. See the related article on PIA Northeast News & Media.
Smash, grab and go: Insurance and surging retail theft
As the rise in retail theft continues to plague businesses nationwide, the impact on the retail landscape is clear. The COVID-19 pandemic has created a unique set of circumstances that have contributed to the surge in retail thefts—affecting both large and small retailers. Besides inconveniencing consumers, organized retail theft—shoplifting, smash-and-grab robberies, and other larcenies—has significant effects on businesses’ insurance policies.
Umbrella insurance keeps you and your clients dry!
Independent agents are raised to sell umbrella liability insurance policies, but why? They are told to sell umbrellas because people can get sued for an auto accident or a slip-and-fall and other extreme scenarios. In a recent article, PIANJ Treasurer Aaron Levine, CIC, MBA, explains how umbrella policies help insureds if they make mistakes and cause harm because they are protected for a higher level of liability. Most agents never had a claim breach the umbrella level—but when it does, it’s bad.
Triple I: Inflation has impacted auto insurance claims
The Insurance Information Institute released a study showing the impact of economic and social inflation on personal and commercial auto liability insurance. This third study reaffirmed an increasingly alarming trend that is plaguing property/casualty insurers and consumers alike—increasing inflationary factors are driving record-high insurance premiums.
NHID promotes new deputy insurance commissioner
The New Hampshire Insurance Department announced the promotion of Keith Nyhan as the deputy commissioner of the department on Oct. 26. Deputy Commissioner Nyhan has served as director of the Consumer Services unit since 2007. Nyhan brings over 28 years of expertise in the financial services and insurance sectors to his new role in the NHID.
New Jersey launches resilience projects
Last week, New Jersey Environmental Protection Commissioner Shawn M. LaTourette joined with state and local officials to mark the beginning of construction of the landmark Rebuild by Design projects. These projects will increase climate resilience for Hudson River communities and the Meadowlands, two highly populated areas of the state that were devastated by Superstorm Sandy.
Compliance
N.Y.: DFS releases final cyber regulations, PIA offers guidance
The New York State Department of Financial Services released the official second amendment to the cyber security regulation (23 NYCRR 500) on Wednesday. The amendment makes multi-factor authentication mandatory for all covered entities, increase the thresholds for entities to qualify for the limited exemption, and creates a category for larger corporations, Class A entities. PIA submitted comments on both the unofficial proposal and the official proposal—and PIA Northeast members can view it’s updated section-by-section guidance to the changes in the PIA QuickSource library.
N.Y.: What is it like to obtain a photo inspection?
After switching insurance providers, Theophilus Alexander, PIA Northeast’s government & industry affairs specialist, received a notice in the mail to obtain a photo inspection for his 2017 Hyundai Sonata. He was informed that: failure to comply would result in the cancellation of his physical damage coverage—leaving any damage to his vehicle uninsured. He documents his recent photo inspection experience here.
Technical
Verisk announces updated BOP program
Verisk has announced the launch of its latest update to the Insurance Service Offices Businessowners Program. Major coverage and actuarial enhancements include: nearly 160 new classifications and updated 2022 NAICS codes and new rules and advisory prospective loss costs, such as for hired and non-owned autos and drones. It also collapsed 140 classes into 56 and discontinued over 20 classes, introduced classifications that complement Micro-BOP and a review of Property Rate Number and Liability Class grouping in the Class Tables. Finally, these enhancements made additional reinforcement to the base coverage form to exclude coverage related to ransomware and increased coverage radius from 100 feet to 1,000 feet.
Conn./N.H./Vt.: NCCI issues third-quarter reports
The National Council on Compensation Insurance has released its Connecticut, New Hampshire and Vermont Residual Market State Activity Reports Third Quarter 2023. These reports include charts illustrating the total number of policy counts and/or premium volume over the past four years for the same quarter each year; tables listing the top 10 classification codes by policy count and premium volume. These show which class codes have top ranking, and the percent of policies and percent of premiums. Also included are charts with loss ratio, ultimate net written premium, incurred losses and estimated net operating gain/loss information. These show premiums, gains and losses during a period.
Accolades
CTYIP honors individuals at its Awards Gala
CTYIP held its Annual Gala last month, at Anthony’s Ocean View, New Haven, Conn. The association rolled out the red carpet and brought the paparazzi for a fun-filled evening of networking, dinner, raffles and awards. During the event, CTYIP recognized top industry professionals: Lifetime Achievement Award: Jonathan Black of Curtis Black Insurance; CTYIP of the Year: Jackie Meeker of the Russell Agency; CTYIP Director of the Year: Robyn Ricciardone of RPS; CTYIP Industry Advocate of the Year: Ryan Vivenzio of CNA Insurance; CTYIP Supporter of the Year: Christine DeFelice of CorRisk Solutions, a Ryan Specialty; and MGA of the Year: Anthony DeSalva of Georgetown Financial. View pictures from the event in the online photo album. Congratulations to this year’s winners.
Educating insurance agents
N.Y.: Classes that meet the New York State Department of Financial Services’ most recent CE requirements are available online and in private on-site sessions.
PIA Northeast offers members access to on-site attorneys, new video series
Did you know that PIA Northeast has two on-site attorneys who can help you get answers to salient insurance topics? These knowledgeable insurance-industry attorneys answer your legal-related questions, via phone, or in a new video series: Ask the Attorney. In its launch, view videos on state-specific questions on premium increases (Connecticut, New Hampshire, New Jersey and New York); carriers withdrawing from markets; and commission cuts. If you have a question, contact the PIA Industry Resource Center via phone at (800) 424-4244, or via email resourcecenter@pia.org. You’ll get an answer to your question, and it might even be featured in an upcoming Ask the Attorney video.
Conn./N.J./N.Y.: 2023 CISR AO: What do you know about agency and operations?
Join Mishell K. Magnusson, CIC, CISR, CPIA, AAI, FIPC, in her webinar, 2023 CISR AO: Agency Operations,^FF^UN on Nov. 7–8, 2023. When agents work with colleagues and customers, they need self-assurance and a greater understanding of the dynamics within insurance organizations. This two-day course will help any agent become an indispensable team player across the insurance industry. It also will help agents understand how agencies operate. This course has been approved for continuing-education credits in New Jersey (1 ETH, 6 GEN, with 12 CE for each full year of good standing) and New York (7 BR, C1, C3, LA, LB, LSB, PA, PC, with one additional NYCE credit with a passing grade). The class has been submitted for CE credits in Connecticut. ^FF^UN–This course has been approved for E&O loss-prevention credit by Fireman’s Fund and Utica National. Call the PIA E&O Department for details.
Register now
Tuesday, Nov. 28, 2023: NJYIP Holiday Reception
Save the date
Thursday, Feb. 1, 2024: PIANY MetroRAP—Interested in sponsoring, exhibiting or advertising?
March 27-28, 2024: Connecticut Convention
Wednesday, May 8, 2024: NJYIP Golf Open
June 2-4, 2024: PIA New Jersey | PIA New York Annual Conference
Tuesday, June 4, 2024: NJYIP Fun Run to benefit Special Olympics New Jersey
