2004-06-25 / Front Page

NYPIUA Extender Passes Legislature

NYPIUA Extender Passes Legislature

Residents who received their annual insurance cancellation notices from New York Property Insurance Underwriting Association (NYPIUA) can breathe a short sigh of relief: the State Legislature has passed another one-year extension which is expected to be signed by the governor immediately.

Assemblywoman Audrey Pheffer announced the agreement to extend the NYPIUA on Wednesday afternoon. About 5,000 policyholders, including many in Rockaway and Broad Channel, have received non-renewal notices since NYPIUA’s authorization to write and renew policies expired on April 30, according to Pheffer.

Each year, NYPIUA’s lapse disrupts property transfers, mortgage proceedings, new business loans and exposes people to unrecoverable losses, Pheffer said. The blame, she added, rests on the shoulders of the State Senate.

"The Senate’s refusal to make this program permanent means that the more than 60,000 New York home and business owners across the state who have been forced to turn to NYPIUA for basic property insurance will again next year, as they have for the past 36 years, face concerns over the renewal of the program," said Pheffer.

"NYPIUA has wasted resources sending drop notices to a growing number of its policyholders, causing needless alarm," said Pheffer. "I hope that in the 2005 Legislative Session the Senate realizes the impact that these lapses have on people’s lives, and works with the Assembly to pass permanent authorization for NYPIUA."

Last year, legislative authority for NYPIUA lapsed for 56 days when the Senate linked its reauthorization with a bill to let insurance companies hike up insurance rates. The Senate tactic failed and NYPIUA was reinstated. The assembly has passed legislation to make the program permanent for the last six years in a row.

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