The Independent Insurance Agents Association of New York urged state legislators to take quick and decisive action in response to the growing number of complaints lodged by automobile insurance policyholders angered by greatly increased premiums.
The IIAANY said the problem is growing “as increasingly fewer companies offer narrower coverages.” Patrick C. Moore, CPCU of beacon N.Y., President of the IIAANY stated that, “Our members have communicated compelling examples to us, where their clients face outrageous price increases with fewer and fewer alternatives.”
Moore wants legislative action to extend current laws which enable insurance companies to exercise greater flexibility in setting rates, and gives them greater control over their selection of insureds. “These extensions will provide some help to carriers who are besieged with problems stemming from organized fraud rings, the terrorist attacks and the recession,” Moore indicated.
Police recently broke up a multi-million dollar auto insurance fraud ring in New York City (See IJ Website Dec. 6), but the problems persist. Paul W Babbitt of Buffalo, the IIAANY’s Public Policy Chairman said in the announcement that extending two provisions – “flex-rating and the 2% rule-” were short term measures that “will stop the immediate pain our customers are feeling in their pocketbooks.”
Babbitt said that the long-term solution is “to attack the ‘cost drivers’ in the system with a concerted regulatory and legislative assault on fraud, organized scams, uninsured motorists and other, deeper problems that send costs skyrocketing.”|”iiaany, warns, on, consumer, auto, rate, complaints
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