Legislation to renew the plan has been snagged between the Republican-led Senate the Democrat-controlled Assembly. Senate insurance legislation, in addition to extension of the plan, includes provisions to reinstate auto insurance "flex rating." Flex rating permits rate changes, within certain parameters, without prior regulatory approval. Democrats have balked at approving flex rating.

Assemblyman Pete Grannis, D- Manhattan, the chairman of the Assembly Insurance Committee announced yesterday that since its enabling legislation lapsed NYPIUA reported that 3,500 customers with expiring policies had not been able to renew.

Mr. Grannis also said that NYPIUA was receiving 400 calls a day from people "upset by the loss of the insurance safety net it provides for the investments of people in urban rural and coastal areas of the state who cannot find the coverage they need in the private insurance market."

A call to NYPIUA to confirm Mr. Grannis' figures was not returned. The plan serves 50,000 homeowners and 7,000 businesses.

Mr. Grannis said that under the flex rating formula drivers could see increases as high as 30 percent. The Senate majority position, according to a spokesman for the Senate Insurance Committee, is that a competitive marketplace that would lower auto rates needs to be encouraged with flex rating.

The current impasse over extension of NYPIUA is not unique and has happened several times in the past when the program has expired.

John Cucci, regional vice president for the Alliance of American Insurers, said traditionally the program becomes "a political football and a vehicle for tradeoffs."

Mr. Cucci said the program will undoubtedly be reinstated, the only question being whether it is approved for three or five years.

He estimated that approval would come within two-and-a-half to three weeks after the legislature clears its plate of other more pressing issues.

State Sen. Bill Larkin, R-New Windsor, said the current focus is on measures dealing with rent control in New York City and installation of gambling machines.