News
Report: Homeowners insurance costs driven up
The Insurance Information Institute has issued a press release on the rising U.S. homeowners insurance on July 16, 2024. The recent rise in U.S. homeowners insurance costs have been driven by a combination of increasing natural catastrophe losses and extraordinary inflation coming out of the COVID-19 pandemic, according to the Triple I’s latest Issues Brief. Even more, Triple-I noted that legal system abuse also is proliferating the cost increases. The Issues Brief, Trends and Insights: Drivers of Homeowners Insurance Rate Increase, examines the dynamics underlying these price shifts and why insurers must be forward-looking in their approach to pricing these policies.
U.S. senators press FTC to investigate automakers
Sens. Edward J. Markey, D-Mass., and Ron Wyden, D-Ore., issued a letter to Federal Trade Commission Chair Lina S. Khan on July 26, 2024, urging the FTC to investigate automakers selling the information of drivers to data brokers. The letter highlights a recent oversight investigation into these automakers, as well as the recent related stories from the New York Times. Wyden’s office conducted follow-up oversight investigation into three auto manufacturers—GM, Honda and Hyundai—that shared data with the data broker Verisk Analytics. Each of these automakers confirmed their disclosure of drivers’ data to Verisk, such as acceleration and braking data.
N.J.: Program established to attract AI investment; generative AI survey created
Gov. Phil Murphy signed S-3432/A-4558 on July 25, 2024, to establish the Next New Jersey Program that will attract new investment into the state’s artificial intelligence industry. The program purports that it will unlock access to capital for New Jersey’s innovators and entrepreneurs and ensure they have access to the infrastructure necessary to make new, cutting-edge developments to position the state as a national leader in the industry. In addition, the state has issued a survey for workers to get input on what they think of generative AI.
N.Y.: Judge blocks outside-income ban for legislators
In a significant legal development, Suffolk County state Supreme Court Judge Alison Napolitano temporarily halted a law that would limit the outside income of New York state lawmakers. This decision, which was rendered on July 17, 2024, marks a notable victory for Republican lawmakers who seek to overturn the cap as the law is set become effective on Wednesday, Jan. 1, 2025. While the state attorney general may appeal the decision, the ruling highlights the ongoing debate over balancing public service with private income, as well as the ongoing debate of citizen legislators versus career politicians. PIA will continue to monitor the developments of this case as it progresses.
N.Y.: Grant money released for climate community projects
Gov. Kathy Hochul announced that more than $7.3 million will be given to municipalities across the state as part of New York state’s Climate Smart Communities grant program. The projects help New York advance the emission-reduction targets under the Climate Leadership and Community Protection Act and support local projects to reduce flood risk, increase resilience and improve critical infrastructure.
N.Y.: Funds awarded for public broadband infrastructure
The governor announced the release of $70 million in awards through ConnectALL’s Municipal Infrastructure Grant Program, which is part of a $228 million federal investment to help connect New Yorkers to high-speed broadband internet. The projects include multimillion-dollar commitments to transform public broadband infrastructure in the Central New York, Southern Tier, Finger Lakes and North Country regions, offering symmetric service options—where the download and upload speeds are the same—at price points below local averages.
Vt.: Applications encouraged for digital equity program
The Vermont Community Broadband Board encourages organizations in Vermont to apply for the Digital Equity Competitive Program to fund programs that ensure communities have the access to devices and the skills needed to fully participate in the digital world. Under the Notice of Funding Opportunity recently released, a variety of organizations can apply to Department of Commerce’s National Telecommunications and Information Administration on a competitive basis for funding.
Vermont announces availability of flood recovery and resilience resources for residents
Vermont’s Agency of Natural Resources has issued a press release highlighting the resources the state has made available to its communities, homeowners and businesses to help them with flood recovery. This comes in light of the recent flooding Vermont has endured. The resources include a guide for cleaning up debris, managing hazardous spills and recovery work for rivers. Make sure your clients are prepared: Have you explained to your clients that flooding isn’t covered by a standard homeowners insurance policy? For PIA Northeast members who are looking for help on how to answer their clients’ questions about flood insurance, they can access the PIA Flood Insurance Tool Kit.
Compliance
N.Y.: Legislation to support New Yorkers with disabilities signed
Gov. Kathy Hochul signed legislation to support New Yorkers with disabilities on July 25, 2024, ahead of the anniversary of the Americans with Disabilities Act. Legislation S.9699A/A.10457 allows the Access to Home and Access to Home for Heroes programs to cover the cost of important home repairs that accompany accessibility modifications for low- and moderate-income households with disabilities. Legislation S.8903/A.9948 expands the real property tax exemption for people with disabilities. Legislation S.1900A/A.2487A makes it easier for New Yorkers with disabilities to apply for parking permit renewals.
Advocacy
PIA in the news: Adirondack announcement
Earlier this month, Adirondack Insurance Exchange announced that it was departing from the New York insurance market. PIA Northeast has monitored the company’s actions, reached out to the New York State Department of Financial Services, and put together numerous resources to help its members prepare their clients for their loss of coverage. PIANY President Gary Slavin, CIC, LUTCF, CLTC, recently issued a letter to PIANY members about this issue. Additionally, this consumer-facing issue has garnered media attention. PIA Northeast’s Director of Government & Industry Affairs Brad Lachut, Esq., was featured in recent related news articles in Albany’s Times Union and subscription-based AM Best.
PIA releases issues of focus for Advocacy Day
PIA National has released the five Issues of Focus in preparation for its upcoming 2024 Advocacy Day scheduled for Wednesday, Sept. 18, 2024: read about all the issues here. PIA members will highlight these issues during their meetings with their elected representatives on Advocacy Day. While these issues are the focus for Advocacy Day in 2024, PIA always works to promote the interests of its independent agent members, whatever those interests be. PIA Northeast members who are interested in participating should contact PIA Northeast at (800) 424-4244 or resourcecenter@pia.org.
Technical
Get reacquainted with cyber insurance
As the 2024 CrowdStrike incident clearly shows, businesses can be brought to their knees when internet-technology applications, databases or computer systems are impacted adversely. Most businesses utilize automation to some degree, whether its organizing digital files or managing digital invoices. Don’t let your clients get caught off guard. For more information, PIA Northeast members can access Cyber insurance in the PIA QuickSource library.
NYSIF updates its FEIN
The New York State Insurance Fund has updated its Federal Employee Identification Number, effective July 26, 2024. Please update your files to the name and FEIN below for tax purposes, regardless of whether it is for workers’ compensation or disability benefits/paid family leave. The new FEIN is: 13-3098552. If you require an updated W-9, email the NYSIF’s finance team.
In memoriam
PIANY remembers Sen. James L. Seward
Former New York state Sen. James L. Seward, a prominent leader in New York state Legislature, passed away on July 27, 2024, at the age of 72, after a long battle with cancer. Seward’s distinguished career in public service spanned over three decades, during which he made significant contributions to the insurance sector. Sen. Seward’s leadership and dedication earned him respect across the political spectrum. His legacy in the insurance industry and impact on public policy will be remembered for years to come.
Accolades
PIA National calls for award nominations
PIA National has announced a call for nominations for three insurance awards in its 2024 Fall Awards program. Nominations now are being accepted for the association’s 2024 Company Award of Excellence, Managing General Agency of the Year and Excellence in Technology and Social Media awards. The deadline for nominations is Wednesday, Aug. 21, 2024. Nomination forms, and an explanation of each award are available here.
Educating insurance agents
Emerging E&O issues and recent court cases
Errors-and-omissions claims often occur because it can be challenging for agents to prove that they haven’t done anything wrong. Steven D. Lyon, CPCU, CIC, CRM, CRIS, AAI, ARM, AIS, MLIS, AFIS, will be leading an online course Emerging E&O Issues and Recent Court Cases^FF^UN on Thursday, Aug. 15, 2024, from 9 a.m.-12 p.m. The class will explore particularly troublesome coverage issues that create significant exposures for insurance producers and provide answers and risk-control techniques to help keep their agency out of court. This class has been approved for continuing-education credits in Connecticut (3 PC), New Hampshire (3 Producer PROD), New Jersey (3 GEN) and New York (3 BR, C3, PA, PC). ^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.
Events
CTYIP Summer Connections: Meet new friends, catch up with old ones
Get ready for summer fun and networking! The CTYIP Summer Connections will be held at Dockside Brewery, Wednesday, Aug. 14, 2024, in Milford, Conn., from 5-8 p.m. There, you’ll have the opportunity to establish new connections and bask in the wonderful summer weather. Make sure to enjoy Dockside Brewery’s fantastic food and cool cocktails: why not enter one of the raffles while you’re there, too? Don’t miss out, register now! Sponsorship opportunities also are available.
Register now
Monday, Aug. 5, 2024: NY-YIP Golf Open
Wednesday, Aug. 14, 2024: CTYIP Summer Connections
Thursday, Aug. 29, 2024: New Hampshire Symposium—sponsorship opportunities
Tuesday, Sept. 10, 2024: NY-YIP Albany Fall Soiree
Monday, Sept. 23, 2024: PIANJ Golf Classic
Save the date
Thursday, Oct. 3, 2024: CTYIP Golden Gala Awards
Friday, Oct. 30, 2024: Connecticut General Membership Meeting
Wednesday, Nov. 6, 2024: Hudson Valley RAP
Tuesday, Dec. 3, 2024: NJYIP Holiday Social
