News
Main Street America moves toward commercial lines
Main Street America, which has been operating in the United States for over 100 years, has announced that it is shifting its focus toward the commercial-lines market, and it is exiting the personal-lines segment. In a press release, the company announced it reached this decision because of “the tremendous opportunity we believe exists in the commercial lines space” and it needs to allocate as many resources as possible to support this realignment. If you have clients who have personal-lines policies with Main Street America, be sure to review: When carriers withdraw from a market.
Bloomberg: Extreme rain threatens the Northeast
Over this past summer, residents in the Northeast have been inundated with multiple extreme storms, often occurring back-to-back. For example, on Aug. 18, 2024, a storm system from the Great Lakes and the remnants of Hurricane Ernesto moved slowly across the region, drenching it in rain and triggering flooding. Bloomberg has released an article covering these extreme rain events in the Northeast, how climate change is fueling these disasters and its impact on the insurance industry.
Heading to college: What’s covered by what policy
As college students have started to head back to school, their parents’ homeowners insurance policies should cover their belongings. However, what about the students who are choosing to live off campus in condos or apartments. Do they know they need renters insurance? To help them understand the importance of this type of insurance, PIA Northeast members can send their clients the Q&A: Affordable insurance for renters, which can be found in the PIA QuickSource library.
Conn.: Update on historic rainfall, flooding
Gov. Ned Lamont provided an update about the state’s recovery efforts on Aug. 30, 2024, from historic rainfall earlier in the month. He announced that the state is working with the Federal Emergency Management Agency and the U.S. Small Business Administration to determine whether the thresholds have been met that would enable homeowners and business owners to receive federal reimbursements to aid in the recovery process for damaged infrastructure. He also is launching a state-funded program to help small businesses with the costs of rebuilding and reopening. In addition, the Connecticut Insurance Department issued a notice to all property/casualty insurers to report all covered and denied claims associated with this event, including private flood claims.
NHID launches weather catastrophe response team
The New Hampshire Insurance Department announced on Aug. 28, 2024, that it is launching a dedicated Weather Catastrophe Response Team; this is a coordinated, departmentwide effort designed to support consumers in the aftermath of severe weather incidents. This new team was established in response to recent weather-related incidents, including last year’s significant flooding in Cheshire County and ongoing flooding and microburst events throughout New Hampshire. These events have left many consumers facing substantial property damage and uncertainty about their insurance coverage.
Vt.: USDA approves disaster designation
Secretary of Agriculture Tom Vilsack has approved Gov. Phil Scott’s request for a Secretarial Disaster Designation for six Vermont counties in response to this July’s rain and flooding events on Aug. 29. Caledonia, Essex, Orange, Chittenden, Lamoille and Washington counties were recognized as part of the declaration. This designation from the USDA makes farm operators across Vermont eligible to be considered for Farm Service Agency emergency loans, provided eligibility requirements are met. Farmers in eligible counties have eight months from the date of the declaration to apply for emergency loans.
Advocacy
PIA action alert: Reauthorize the NFIP
The National Flood Insurance Program will expire after Monday, Sept. 30, 2024. In a letter to congressional leadership last week, PIA urged Congress to prevent a lapse and extend the program for as long as possible. PIA has endorsed S.4772, the NFIP Extension Act of 2024, which was introduced by Sen. John Kennedy, R-La. This would provide for a clean, one-year extension of the NFIP. If Congress allows the NFIP to lapse, consumers and agencies will be inundated with a whole host of issues, which would disrupt the flood insurance market.
Technical
NYC’s largest taxi insurer reported as insolvent
Bloomberg is reporting that American Transit Insurance Co.—which is responsible for insuring roughly 60% of New York City’s commercial taxis, livery cabs, black cars and rideshare vehicles—has been found insolvent. In a filing with the National Association of Insurance Commissioners, the company posted that it had more that $700 million losses in its second quarter. A loss of this size is with few precedents, though industry analysts noticed the warning signs of ATIC’s insolvency. A failure of the company would lead to tens of thousands of taxi drivers without insurance and throwing New York City’s transportation ecosystem into chaos. More information on carrier insolvency is available to PIA members in the PIA QuickSource library, like this article on producer responsibility. For New York specific issues, members can access New York insolvency procedures and Summary of New York insolvency guaranty mechanisms. Additional articles are available on PIA Northeast News & Media, including: What to know: The N.Y. insurance guaranty fund and Do carrier ratings really matter?
A guide for agents on proper documentation
Documentation is an important part of an insurance agent’s defense against errors-and-omissions claims. Not only will having your records properly organized save you from operational headaches, you can produce a trail that will help you and your agency in its defense from E&O claims. For more information about the best way to organize your documents, PIA Northeast members can read The good, bad, and in-between of documentation in the PIA QuickSource library.
Educating insurance agents
Take an in-depth look at commercial policies
If you’re looking to become more familiar with commercial policies, be sure to attend 2024 CIC CC | Commercial Casualty Institute Webinar, sponsored by Selective Insurance. This two-day course will detail the coverage, limitations and exclusions of the commercial general liability policy, the business auto policy and the workers’ compensation and employers’ liability insurance policy. This webinar will be led by the instructors John M. Dismukes, CIC, CPCU, AAI, AIS; Douglas J. Fleming, LUTCF; and Steven D. Lyon, CPCU, CIC, CRM, CRIS, AAI, ARM, AIS, MLIS, AFIS. It will be held on Sept. 18-19, 2024. This class has been approved for CE credits in Connecticut (16 PC), New Jersey (16 GEN) and New York (15 BR, C3, PA, PC).
Events
PIA’s Annual Leadership Conference & Advocacy Day: register now for four-day event
In just two weeks, PIA members will head to Virginia and Washington, D.C., from Sept. 16-19, 2024, to chart the future of the association and advocate for the issues it considers most important. For Advocacy Day, these issues include the repeal or reform of the Federal Insurance Office, the reinstation of inflation adjustment for crop insurance agents, urging the introduction of a bill to protect independent agents in the NFIP, make permanent the tax deduction for qualifying passthrough entities and advocate for insurance industry carveout in any legislation that would create a federal standard for data privacy. There is still time to register for this four-day event; please note, if you plan to attend Advocacy Day only, please do not select any other sessions.
N.Y.: Come join the Albany Fall Soiree
The NY-YIP Albany Fall Soiree will provide insurance agents with the perfect opportunity to meet with emerging leaders in the industry and enjoy a fun-filled evening. The Fall Soiree will be held on Tuesday, Sept. 10, 2024, at the City Beer Hall in Albany, N.Y., from 4:30-7:30 p.m. Registration includes two drinks and light appetizers for the duration of the event; test your knowledge at the free trivia event, too. Don’t miss out on having a fun evening with your industry peers. Register now.
ICYMI
N.Y.: Major disaster declaration approved for storm
President Joe Biden declared that a major disaster exists in New York state. On Aug. 29, 2024, he ordered federal assistance to supplement state, tribal and local recovery efforts in the areas affected by a severe storm, tornadoes and flooding from July 10-11, 2024. Federal funding is available to state, tribal and eligible local governments and certain private nonprofit organizations on a cost-sharing basis for emergency work and the repair or replacement of facilities damaged by the severe storm, tornadoes and flooding in the counties of Cortland, Essex, Hamilton, Lewis and St. Lawrence.
Register now
Tuesday, Sept. 10, 2024: NY-YIP Albany Fall Soiree
Sept. 16-19, 2024: 2024 Annual Leadership Conference & Advocacy Day
Monday, Sept. 23, 2024: PIANJ Golf Classic
Thursday, Oct. 3, 2024: CTYIP Golden Gala Awards
Monday, Oct. 21, 2024: Disaster at your Doorstep: Disaster Planning and Continuity Strategies for the Personal and Commercial Lines Client—Free webinar to YIP members in Connecticut, New Jersey and New York; $25 PIA Northeast members; $50 nonmembers
Wednesday, Nov. 6, 2024: Hudson Valley RAP—Sponsor, exhibit or advertise
Tuesday, Dec. 3, 2024: NJYIP Holiday Social
Save the date
Thursday, Oct. 17, 2024: PIANJ Women’s Leadership Alliance Presents: An Afternoon with Meg McKeen
Tuesday, Oct. 29, 2024: New Jersey Deep Drive: The Perfect E&O Storm
