NY Fair Plan To Send Cancel Notices Thursday

By Daniel Hays

NU Online News Service, May 12, 10:47 a.m.EDT?New York's Fair Plan pool, which saw its operatingauthority expire April 30, said that if the legislature doesn'trenew that authority, it will begin mailing out policy non-renewalnotices this coming Thursday.

Officially titled the New York Property Insurance UnderwritingAssociation, NYPIUA has been caught in the crossfire of a disputebetween the Democrat-controlled Assembly and Republican-led StateSenate.

The Senate Insurance Committee Chairman James Seward, R-Milford, is unwilling to approve a measure reestablishing NYPIUA,unless it includes a provision making it easier for changes in autopremium rates without prior regulatory approval. Mr. Seward objectsto "piecemeal" insurance legislation, a spokesperson said.

In the Assembly Insurance Committee Chairman Alexander "Pete"Grannnis, D-Manhattan, has said the auto insurance provision is"intolerable" because it would increase rates.

NYPIUA, which provides coverage for 56,000 homes and businessesthat can't get coverage in the private market said this comingThursday it will begin issuing about 225 non-renewal notices perday, beginning with those policies due to expire after midnightJune 29.

The agency, since April 30, has stopped binding new business andalso taking Coastal Market Assistance Program applications issuedwith voluntary market wrap-around endorsement policies.

Insurers, who voluntarily participate in C-MAP, are offeredrisks on a rotation basis and must accept at least one infour-writing either a "wraparound" to a NYPIUA property policy(providing liability and theft) or full homeowners coverage.

Robin Pollack, NYPIUA vice president, in answer to an e-mailinquiry that said she had no statistics on "the number of callscoming from people unable to procure insurance for closings versusinquiries on existing business.

"I do know that some brokers are holding onto applications inanticipation of our extension, thereby leaving somehomeowners/businessowners temporarily without coverage," shewrote.