Final legislation has been approved in New York that aims to enable insurance agents to better serve workers’ compensation clients if signed into law by Governor Andrew Cuomo.
The legislation was developed by the Independent Insurance Agents & Brokers of New York (IIABNY) to ensure policyholders receive timely notice when their insurance premiums are substantially increased at renewal. The legislation passed the State Senate and Assembly this week but still requires Governor Andrew Cuomo’s signature.
IIABNY took action on this legislation when it began hearing from its members that their workers’ compensation clients were often receiving renewal premium notices just days before the effective policy date and finding their premiums were increasing substantially, the organization outlined in a press release. The organization stated the increases were occurring most frequently when the renewal was being offered by an insurer that was an affiliate of the insurer providing the expiring policy.
This legislation developed by IIABNY (A.1620/S.1005) and sponsored by Assemblyman Andrew Hevesi (D-Queens) and Sen. Joseph Robach (R-Rochester) seeks to provide workers’ compensation policyholders with 30 days’ notice when their premiums are due to increase by more than 10 percent upon renewal in cases where the policy is being renewed by an affiliated insurer that is under common control with the insurer that wrote the expiring policy.
Source: The Independent Insurance Agents & Brokers of New York Inc.
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