New Seasons, Innovations and the Rules They Provoke

I’ve always seen Spring as the season of rebirth. As I write this article, I’m sit- ting at home: The tulips are about four inches above the ground and I’m watching the same birds come back and attempt to nest in the automatic awning over my deck, where they have been for the last two years. But, they are really starting to ruin the canvas and I have to get rid of them before they give birth. So, they bring in the branches and debris to build their nest and I pull them out—hoping that my persist- ence will get them to go away. I even built a platform over one of the eaves on my house with the hope that they will build their nest there, but they are too persistent and they won’t.  I think they may be rein- carnated insurance agents, because they just won’t take no for an answer.

The same persistence that the birds are using to build their nest reminds me of the persistence of my fellow agents at PIA when we discuss New York State’s Labor Law 240/241(a). It’s been an uphill battle for years and a major road block always included Assembly leadership. Like Spring, we now have a change and we see many positive things coming from the office of Carl E. Heastie, the new Assembly speaker. Hopefully, there will be a rebirth of the New York State Assembly with the new leadership. We know from extensive reports that the new Tappan Zee Bridge has a workers compensation bill of more than $400 million, which we, the taxpayers are funding. We know that the governor wants more affordable housing in both the state and New York City, and with some changes to the labor law, the cost of afford- able housing might be attainable.

PIA of New York is a member of the Lawsuit Reform Alliance of New York, which is fighting to improve the business climate of our state by changing the unique labor law.  Hopefully, we will see some changes in an upcoming session. I know it’s too soon to expect sweeping change before the current session ends in June, but perhaps groundwork will be set for us to see change in the near future. After all, I have reason to be hopeful, not just because it’s the season of rebirth, but because PIA has had some significant vic- tories in the legislative and regulatory are- nas recently.

July 28 will mark one of these: I know many agents who are excited to see the cer- tificates of insurance law that PIA made possible take effect on that day. Many peo- ple worked very hard to get this bill passed. PIA staff, New York State Assembly Majority Leader Joseph D. Morelle , D- 136, and Senate Insurance Committee Chair James L. Seward, R-51, and Assembly Insurance Committee Chair Kevin Cahill , R-103, all took measures to see this measure through to the governor’s office. And Gov. Cuomo recognized the changes PIA made to the previous bill and finally signed the bill into law. Hopefully now, the abuses and bullying by major contractors and municipalities will stop, as there is a provision for penalties in the law preventing anyone, including an agent, from being required to issue a false cer- tificate. PIA has been working since the law was passed to arm agents with infor- mation they can use.

Another major victory giving agents spring in our step this season is the easing of auto photo inspection rules that helps prevent lapses in physical damage cover- ages. Thanks to PIA, the Department of Financial Services has increased the time policyholders have to obtain inspection photos to 14 days. This is a welcome achievement and PIA is to be applauded for working with CarCo and regulators to make this change.

In fact, it seems like the season is ripe for addressing auto insurance and PIA has been stirred to action from its recent suc- cesses and already is working with the Department of Motor Vehicles to get things done.  The new electronic ID card regulation that took effect last month will authorize agents to issue electronic IDs if their carriers allow, thanks to PIA’s request to the department.

And of course, there are always new issues. Ridesharing is a hot new topic with companies like Uber driving on to the scene with little regard to insurance. PIANY, of course, has been meeting with lawmakers to discuss proposals about ridesharing in the Senate and Assembly, including concern about insurance gaps between the personal auto policy and transportation network company when policyholders log on to an app. The issue is receiving increased attention as groups push for the approval of ride-hailing serv- ices in areas outside of New York City. Benjamin J. Lawsky , the Superintendent of the New York State Department of Financial Services, told State of Politics recently that he has some “real issues” with the current proposals. As a result, his office is reportedly working on its own legisla- tion.

In addition to ridesharing, I note some problems with auto insurance that we still could address.  One example comes from a good friend of mine on Long Island, who called me this month to complain about an automobile dealer on the North Shore that is telling clients they are unable to reach the owners’ existing agent. In order to expedite the purchase of a new vehicle, the dealer is steering customers to a des- ignated carrier, issuing ID cards so they can pick up new cars and customer-be- damned when the underwriting takes place and customers find they are paying far more for their coverage than they were quoted at the dealership. Auto dealers are interested in getting the car off the lot and they couldn’t care less about the insurance needs and concerns of the drivers, which by the way, are mostly direct writers.

So much springing up this season as technology evolves and we develop policies and laws to address them. Having been around for a few seasons, I am confident we’ll deal with these issues and have many more to come.