NORTHEAST REGIONAL NEWS
In September, New York Governor George Pataki signed legislation that sets guidelines for drawing up contracts with insurance producers to identify the producers as independent contractors for purposes of New York's workers compensation and unemployment insurance systems.
Another recently signed law allows New York drivers to sue their spouses and collect damages under their joint auto insurance liability coverage. The National Association of Independent Insurers (NAII) objects to the new law, both because of its substance and its offer requirements, which require insurers to notify policyholders of their new ability to sue by January 1, 2003. "If insurers started mailing out offers today, they wouldn't be able to comply with the law," says Gerald L. Zimmerman, NAII senior counsel. He says that NAII is seeking a chapter amendment to the new law, which would give insurers more time in which to meet notification standards.
In October, a New York state appellate court upheld the authority of the state insurance department to modify the no-fault auto insurance law, known as Regulation 68. The changes to Regulation 68, which governs the state's no-fault auto insurance system, give motorists 30 days rather than the previous 90 days to report accidents to their insurance companies and
45 days rather 180 days to submit accident-related medical bills.
According to John R. Costello, CIC, chairman of the Independent Insurance Agents Association of New York (IIAANY), the association hopes that the court will reject any further legal challenges and allow continued enforcement of the current deadlines. He says that the old deadlines gave criminals more time to file fraudulent claims, and investigators inadequate time to review suspicious claims. According to the IIAANY, such claims contribute to fraud that is estimated to cost New York's insured drivers more than $1 billion a year in extra premium payments and averages out to about $124 per vehicle.
New Jersey
Physician-owned medical professional liability insurance company approved
In September, the New Jersey Department of Banking and Insurance approved National Insurance Programs' (NIP) plan to form the Conventus Inter-Insurance Exchange, a physician-owned and governed medical professional liability insurance company, and granted permission for Conventus to solicit applications and capital for its formation. According to founding member Steven P. Shikiar, MD, FACS, "Many colleagues ... [are] being declined for coverage or watching their premiums increase by 50% or more. Unlike a stockholder-owned company, Conventus will be a nonprofit venture, enabling it to keep rates below those now commonplace in the commercial market."
Massachusetts
Emission standards adopted
In September, the state's Registry of Motor Vehicles (RMV) announced the adoption of California Emission Standards for model year 2003 medium-duty vehicles. Beginning with model year 2003, medium-duty gasoline and diesel fueled vehicles must be certified as meeting California motor vehicle emission standards prior to being sold or registered in Massachusetts. This applies to all vehicles with 7,500 miles or less on the odometer. Medium-duty vehicles are vehicles weighing 6,001-14,000 lbs. This standard currently applies to model year 1995 and newer gasoline and diesel fueled passenger cars, light-duty trucks and sport utility vehicles weighing up to 6,000 lbs.
New York
Metropolitan Regional Awareness Program
On January 23, 2003, the Professional Insurance Agents of New York (PIANY) will host its annual Metropolitan Regional Awareness Program at the New York Marriott Brooklyn. For more information, contact the PIANY Education and Conference Department at (800) 424-4244 or by e-mail: conferences@piaonline.org.
Young agents recognized
The NeXt Generation Insurance Professionals Committee of the Independent Insurance Agents Association of New York was awarded the 2002 Outstanding State Committee Project Award at the Independent Insurance Agents and Brokers of America's (IIABA) young agents conference in September. (See page 100 for photo.) *
Online Readership Survey
Rough Notes' staff would like to know what aspects of the magazine are most helpful to your agency, as well as any topics that you would like to see covered in the future. For a limited time, a readership survey will be posted on www.roughnotes.com. Please take a few minutes and complete the survey. Thanks for your feedback.