The issues surrounding NYPIUA's continued operation drew comment from Thomas J. Derella, president of the Professional Insurance Agents of New York.

Mr. Derella said, "NYPIUA's recurrent sunsets are the result of the legislators' inability to agree and are symptomatic of a dysfunctional process.

"Lawmakers need to come together and pass meaningful legislation that will allow New York property owners access to this ?market of last resort' when insureds cannot find insurance coverage anywhere else. When NYPIUA is allowed to sunset, property owners are left in the lurch, closings cannot go forward, and some properties may lack insurance for a loss."

NYPIUA, which was briefly allowed to expire last year as well, is caught up in a long-running struggle between the Democratic-controlled Assembly and Republican-controlled Senate. The two houses are frequently at loggerheads with different philosophies for regulating insurance.

Currently there are two pieces of NYPIUA legislation that have passed the State Assembly. One measure, A4527, would permanently authorize the program. The second, A11037, authorizes the program to be extended for another year.

The State Senate passed S07181, which extends the life of the NYPIUA for two months.

Neither chamber has acted on the others bill.

"We don't understand why the Senate wants a two-month extender instead of something longer," said Christine Olli, a spokeswoman for Assembly Insurance Committee Chairman Alexander B. Pete Grannis, D-Manhattan. "It is my understanding that the Senate is not interested in anything but a two-month extender."

Duncan Davie, chief of staff for Senate Insurance Committee Chairman James Seward, R-Milford, when asked what the next step in the process would be, responded, "I don't think there is a next step. We feel that the two-month extension makes sense to get us past the [approval of the state] budget and some other issues, until the Senate decides where we want to proceed with NYPIUA. We don't feel it makes sense right now to do a basic one-year extender. We are taking this one day at a time."

He said there are no plans for any action on NYPIUA when the Senate reconvenes Monday.

The program insures more than 57,000 homes and businesses throughout the state, primarily in New York City and Long Island. It is currently not accepting new policies or renewal business.