'Gap' Coverage For Leased Vehicles Enacted In N.Y. As Part Of Renewed Banking Bill; IIAANY Members Get News At 'L-Day' Session In Albany.

• Author: Morris, Barbara A.
• Position: [LOOKING BACK]

ALBANY. N.Y. -- Just minutes before the state's banking law was scheduled to sunset. New York lawmakers enacted the comprehensive banking legislation with some revisions, which included language authorizing insurers to offer "gap" insurance--a key feature the Independent Insurance Agents Association of New York (IIAANY) had been lobbying for.

The announcement of the legislation was made during a briefing session attended by more than 200 IIAANY members, who were in Albany to meet with their legislators.

In remarks to the agents. IIAANY's legislative representative. Michael V. Barrett, said enactment of the legislation--at 11:55 p.m.. January 31. just five minutes before the midnight deadline of the existing law--"brings to the marketplace an important new product which also includes some significant consumer protection provisions on leased items."

As explained by Barrett, many consumers have not had a full understand of their obligations under a leasing contract in the event the automobile is stolen and never recovered or somehow destroyed. He pointed to the potentially serious financial exposure faced by the consumer whose obligation under the lease contract exceeds the value of the car and there is no coverage.

The legislation, by authorizing insurers to offer gap insurance to consumers for automobiles and other leased items, will enable insurance agents to help their clients address this significant exposure. Barrett said.

W.C. Task Force

Also announced at the briefing session was the formation of an IIAANY Task Force on Workers Compensation Reform, which will act as a coalition builder among representatives from business, labor, medical, and other sectors that play a role within the W.C. system.

Bruce Wichmann. CIC. IIAANY president who created the task force, observed that the industry has seen huge W.C. rate increases which has fueled the exodus of some businesses from the state. "There are a lot of efforts to achieve reforms, but they are coming in all directions." said Wichmann. "One of the roles of the task force will be to bring these various interests together in the hope of achieving some common ground."

According to Lawrence T. Gilroy. III. ARM. IIAANY regional director named to chair the new task force, the W.C. reforms enacted late last year represent "a great first step." But, he said, much improvement remains to be made and the task force will work to "get beyond simply opening the door."

Among the specific issues of...