The Professional Insurance Agents of New York State Inc. applauded the New York State Senate for passing a bill, S.3084-A/A.3107-B, on Wednesday, which has long been advocated by the association. The bill now moves to the New York State Assembly.
PIANY said the bill, introduced by Senator James Seward (R/C/I-Oneonta) and Assemblyman Joseph Morelle (D-Rochester) in January, would clarify that a certificate of insurance does not confer any new or additional rights beyond what the referenced policy of insurance expressly provides.
Additionally, the bill would make clear that no person will be allowed to request or require that a certificate of insurance form contain additional terms, conditions, or language of any kind not found in the insurance policy to which the certificate makes reference or to an endorsement to such policy. This would prevent certificate holders from requiring that a certificate of insurance contain references to a contract other than the insurance policy, or warrant that the insurance policies referenced in the certificate comply with the requirements of a particular contract.
“We commend Senate Insurance Committee Chairman James Seward and Assembly Majority Leader Joseph Morelle, for their recognition of the untenable position insurance producers face when they are asked to modify certificates to misrepresent that coverage exists when it does not,” said PIANY President Michael Skeele.
“Often this coverage is impossible to obtain and by passing this bill, the Senate has taken an essential step to protect all parties involved.”
“PIANY implores the Assembly to pass this bill now, as the construction industry is in its busy season, with the knowledge that our lawmakers want to help build New York state’s economy and ensure our businesses are covered properly, and know what their insurance entails.” Skeele said.
PIANY said it has been working aggressively with trade organizations from several industries — including attorneys, producers, general contractors, commercial lenders and carriers — to address the growing certificates issue with this proposal. PIANY is a trade association representing independent insurance agencies, brokerages and their employees throughout the state.
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