The annual rite of crisis for more than 57,000 home and business owners in New York is about to unfold again as the state's FAIR plan is set to expire at the end of the month.
The New York Property Insurance Underwriting Association, the state's residual market plan for homeowners, is set to expire on June 30 if the legislature does not take action before then to renew its operating authority.
According to the office of Assemblyman Alexander "Pete" Grannis, D-Manhattan, who has advocated permanent authorization of NYPIUA in the past, more than half of the plan's policyholders, over 30,000, are home and business owners in New York City, while 25 percent, over 14,000, are property owners on Long Island. The remainder cover properties throughout the rest of the state, with 12 percent in six major counties or cities.
This would not be the first time NYPIUA was placed in limbo. As recently as last year, there was a legislative stand-off over the program that lasted close to two months before it was renewed. The program has been captive to political squabbling for years between the Democratic-controlled Assembly and Republican-controlled State Senate.
The current bill to make the program permanent, A750, passed the Assembly back in February and is awaiting Senate action.
In a letter dated June 10, New York Superintendent of Insurance Howard Mills said that while he is concerned about the expiration of NYPIUA, it is more important that legislators come to an agreement to keep the program running than whether the program is made permanent or not.
"Given the difference of opinion between the Senate and Assembly on the permanency of NYPIUA, we don't see how a Governor's Program Bill or Departmental Bill would make any difference until the Senate and Assembly reach agreement," Mr. Mills said in his letter to Mr. Grannis.
Mr. Grannis said that Alabama is the only other state in the U.S. that does not have a permanent residual program for homeowners.
According to the State Senate's Web site, the insurance committee is not scheduled to meet.
A request for comment from New York Gov. George E. Pataki's office was not returned.
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