Panel At Downstate N.Y. Meeting Ranges Over Wide Area Of Dilemmas; Homeowners Availability In Coastal Areas Seen Difficult But Solvable.

• Author: Morris, Barbara A.
• Position: INSURANCE ADVOCATE - 25 YEARS AGO [LOOKING BACK]

HAUPPAUGE, N.Y. -- Continuing insurance availability problems plaguing insureds living in Long Island's coastal communities was among the issues examined by a panel of insurance representatives and legislators held during the annual regional meeting of the Downstate insurance Associations Council.

John D. LaValle, executive vice president. Independent Insurance Agents Association of New York (IIAANY). said homeowners' insurance availability problems for coastal properties remained "a very serious problem." He also expressed the concern that in some instances, a "knee-jerk" reaction of insurers has extended even further out, affecting insureds throughout the Long Island area.

Mary A. Ciacco Griffin, assistant vice president, American Insurance Association (AIA), called the availability problems "a very difficult issue," stressing that the problem extends both to consumers having difficulty obtaining coverage and agents working on their behalf.

Griffin, however, did not believe the problem was as widespread as depicted by several of the panelists. According to Griffin, there are still a number of companies writing coastal properties "even up to the shoreline... although they are doing it within their normal underwriting guidelines and only through agents that they have had a relationship with for a number of years." She also pointed out thai while some insurers have certainly "cut back" on their new (coastal) business writings, they are continuing to write renewals.

Nevertheless, Griffin conceded there are definitely a number of companies that were heavily over-exposed on Long Island and who "just could not continue to write new business at their same rate." She said the AIA is committed to working with the New York Department of Insurance on several solutions to the problem, including a Market Assistance Program, so that agents "cm find coverage for all people who need it."

Also commenting on the problem, Wendy E. Cooper, First Deputy Superintendent of Insurance, noted the Department's concent for those insureds having coverage difficulties, stressing there is "no question there is a market disruption." She advised agents experiencing difficulties to call a department "hot line" for assistance.

"We are here to try to help you place business for your clients," Cooper said. She also cautioned that insurers must work to solve coastal property coverage problems, warning that if the situation is not resolved through voluntary actions, the...