N.Y. FAIR Plan Expires?Again

By Mark E. Ruquet

NU Online News Service, April 30, 4:40 p.m. EDT?Once again, property owners needing insurance through New York state?s insurance pool will have to wait because legislative authorization for the plan has expired.[@@]

The plan went through a similar fate last year, when it was caught in a political squabble between state Senate Republicans and Assembly Democrats.

"It is a major issue for our members and it has us concerned," said J. B. McCampbell, communications manager for the Independent Insurance Agents Association of New York, Inc. "We want to see it made permanent."

When the legislature passed authorization last year, the New York Property Insurance Underwriting Association was given one year to exist?it was forced to close down shop today.

A call to the association found a recorded message saying that if enabling legislation was not passed, the association would not be writing new coverage or renewing policies.

Duncan Davie, chief of staff for Senate Insurance Committee Chairman James Seward, R-Milford, said legislation was passed in the Senate extending NYPIUA for two months (S07181). He said the legislature extended the life of the plan for two months because it needed to get past passing a budget before it could tackle this issue.

The bill was passed by the Senate on April 27. The Assembly's version of the bill (A11037), dated April 28, would extend NYPIUA for one year. The bill, however, appears to be sitting in committee.

Assembly Insurance Committee Alexander B. Pete Grannis, D-Manhattan, said he wants to see NYPIUA become permanent, but blamed the Senate for allowing short term extensions. He said the Assembly will be meeting Monday to pass its version.

He added that more than 41,000 policy holders in New York City and Long Island depend on NYPIUA for coverage out of a total of more than 57,000 policies.

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