News
PIA Northeast is thankful for your support
At this time of year—just like all year—PIA thinks about you. Together, we make the insurance industry better. Thank you for your continued support. Happy Thanksgiving. We wish you and your loved ones a happy and safe holiday season. The PIA Northeast office will be closed on Thursday and Friday to observe the Thanksgiving holiday. It will reopen Monday, Dec. 2, 2024. The Weekly Dispatch will resume on Thursday, Dec. 5, 2024.
Reuters: US judge strikes down Biden overtime pay rule
The news agency Reuters reports that on Nov. 15, 2024, U.S. District Judge Sean Jordan moved to permanently block a Biden Administration rule that would have required employers to pay overtime premiums to salaried workers who earn less than $1,128 (or $58,600 per year) when they work over 40 hours a week, beginning Wednesday, Jan. 1, 2025. Per Reuters the “state of Texas and business groups representing a range of industries had filed lawsuits challenging the rule, which had been consolidated.” PIA Northeast News & Media had previously reported on the U.S. Department of Labor’s overtime protections rule under the Fair Labor Standards of Act.
Liberty Mutual: Safeco to transfer personal-lines business
Safeco Insurance, a Liberty Mutual company and a personal-lines insurance provider, has entered into a book transfer agreement with Main Street America Insurance, a property/casualty carrier currently offering commercial and farm and ranch products, as well as fidelity and surety bonds nationwide. The eligible renewal book represents auto, home, renters, condo, umbrella, landlord, motorcycle, RV and watercraft policies. The deal enables Safeco to grow its personal-lines presence in 22 states as Main Street America Insurance shifts to focusing exclusively on commercial lines, a move the carrier announced in late August.
Allstate sues Hyundai, Kia, for failing to recall cars
Insurance agents should pay close attention to Allstate’s recent lawsuit against auto manufacturers, Hyundai and Kia. The lawsuit by Allstate alleges that the manufactures failed to recall millions of defective vehicles, putting drivers and passengers at risk since 2006. The complaint specified a defect in the braking system, which would trigger fires even if the vehicles are parked: a forensic engineer found that the cause behind these fires was the moisture in the braking system would trigger a short circuit then spark a fire. Keep your insureds informed of this lawsuit, as their safety may be at risk.
Northeastern US drought persists
The contiguous United States and Hawaii are experiencing widespread drought conditions. In the Northeast, we currently are experiencing an extremely dry fall, elevating the fire danger in the region. Connecticut declared a Stage 2 Drought Advisory on Nov. 9, 2024, which it is still following. Shortly after that, New Jersey issued a statewide Drought Warning on Nov. 13. Most recently, on Nov. 18, New York state also announced a statewide drought watch, and elevated 15 counties to drought warning status. Officials across the affected region have stated that climate change is the reason behind the drought and increased fire risk. To read more about how wildfires may affect the Northeast, see The year-round wildfire season in the September issue of PIA Magazine, which can be found in PIA Northeast News & Media’s Media Gallery.
N.Y.: Fire grant secured from FEMA
Gov. Kathy Hochul announced that the state had secured a Fire Management Assistance Grant Declaration from the Federal Emergency Management Agency. This declaration triggers an expedited review process that can lead to FEMA grant assistance based on an ongoing uncontrolled fire creating a significant threat of destruction. Funding from the grant would reimburse the state and local governments for some of the costs related to fighting this fire ranging from labor costs to mutual aid operations. Currently, there are 13 wildfires in New York state encompassing over 5,000 acres.
Compliance
NHID announces updates to consumer guaranty contract law
The New Hampshire Insurance Department announced on Nov. 15, 2024, significant changes to the regulation of consumer guaranty contracts, which will take effect on Wednesday, Jan. 1, 2025. These updates, driven by an increase in consumer complaints, were developed in collaboration with industry stakeholders and passed into law through S.B.515. The changes expand protections for consumers purchasing service contracts related to homes, automobiles and other products. Insurance agents who do business in New Hampshire should notify clients who may be affected by this change.
Advocacy
N.Y.: Windstorm bill called to governor’s desk
Last week marked an exciting chapter for PIANY’s windstorm advocacy efforts. After years of lobbying, A.2866/S.4199, better known as the windstorm bill, has reached Gov. Hochul’s desk and is now waiting for her signature. This has been a top legislative priority for PIANY. We hope that the governor signs the bill into law and finally provide clarity by compelling the superintendent of the Department of Financial Services to create a uniform definition for hurricane windstorm deductibles with respect to the triggering event.
N.Y.: Enhanced safety and insurance for horse-drawn buggies
Horse-drawn buggies are a familiar sight on New York state’s rural roads: they’re a direct link to the state’s Amish and Mennonite heritage. However, a recent spate of incidents has highlighted growing concerns about road safety and the adequacy of insurance coverage for these vehicles and their operators. To address rising accidents, Assemblymember Carrie Woerner, D-113, introduced A.8419, which would amend Section 1264 of the Vehicle and Traffic Law. This legislation would require horse-drawn buggies to be equipped with headlights, taillights and reflectors to improve visibility, particularly at night. We encourage agents to contact Gov. Hochul’s office to express their support for this critical legislation and emphasize its importance to the insurance industry and policyholders alike: make your voice hear here.
Technical
Fueling company growth, even in adverse market conditions
The hard market and general market turbulence present a daunting challenge for all independent insurance agents. How do insurance agents keep themselves afloat during an extended period of poor market conditions? For more information, PIA Northeast members can access Three effective strategies to fuel growth during these turbulent market conditions in the PIA QuickSource library. Additional resources can be found on PIA Northeast News & Media, by clicking on the “Hard market” tag.
Conn.: NCCI 2025 WC loss cost decrease of 6.1% approved
The Connecticut Insurance Department approved the proposed workers’ compensation loss cost filing made by the National Council on Compensation Insurance, consisting of an overall 6.1% decrease. Also approved is an overall assigned risk rate reduction of 6.2%. These loss costs and rates will take effect Wednesday, Jan. 1, 2025. For more on the CID approval, see its online Memorandum and Order.
N.Y.: 2025 PFL rates
New York state’s DFS has announced new paid family leave premium rates for 2025. Starting Wednesday, Jan. 1, 2025, the maximum PFL contribution rate will change from 0.373% to 0.388% of an employee’s gross annualized wages. This translates to a maximum annual premium contribution of $354.53 (up slightly from the 2024 rate of $333.25) that an employer can withhold for PFL per employee. PFL premiums are fully funded by employees through after-tax payroll deductions.
Educating insurance agents
N.Y.: Three NY CE insurance law topics—in one session
Prepare for an in-depth review of some of the most pressing issues facing New York state insurance professionals, including broker and agent licensing issues, laws and regulations and the many items that may be overlooked or misunderstood by the everyday agent. Register now for the webinar NY CE Insurance Law—Addressing 3 Topics in One Session. It will be held on Tuesday, Dec. 3, 2024, from 9 a.m.-12 p.m., and be taught by Mishell K. Magnusson, CIC, CISR, CPIA, AAI, FIPC. This class has been approved for continuing-education credits in New York (3 BR, C1, C3, LA, LB, LSB, PA, PC).
Events
Introducing NYSIF’s climate action premium credit program
Climate change threatens health and worker safety: even though the health care industry is combatting the dangerous effects of climate change, it still produces a significant amount of greenhouse gas emissions. To encourage a reduction in emissions, enhance system resilience and improve worker safety, the New York State Insurance Fund has launched a voluntary program for hospital system policyholders that pledge to develop and implement a climate action plan. The program features a workers’ compensation premium credit, an ongoing premium credit to reward hospitals for the progress they make with the plan and access to NYSIF’s risk control services. To discuss the benefits of the program, join the Friday, Dec. 6, 2024, webinar from 12-1 p.m.
Register now
Tuesday, Dec. 3, 2024: NJYIP Holiday Social
Wednesday, Jan. 15, 2025: CTYIP Holiday Social
Tuesday, Jan. 28, 2025: NY-YIP Welcome Reception
Wednesday, Jan. 29, 2025: MetroRAP—Interested in sponsoring, advertising or exhibiting?
Wednesday, March 19, 2025: Connecticut Convention Welcome Reception
Save the date
March 20-21, 2025: Connecticut Convention—Sponsor, advertise or exhibit here
Tuesday, March 25, 2025: NY-YIP Pre I-Day Happy Hour
June 8-10, 2025: PIANJ | PIANY Annual Conference
Monday, Aug. 11, 2025: NY-YIP Annual Golf Outing
