By Jim Lombardo, CPCU, AAI, AIM, MBA, AVP of Learning & Development
Hello! This week we will be sharing some updates from the Department of Financial Services to reinforce Big I NY’s attempts to keep you informed and up to date with important information. Be sure to check our website out at www.biginy.org for a whole bunch more.
Extenstion of Expirations
The New York State Department of Financial Services announced that it was extending the expiration of individual insurance agent and broker licenses through July 8. The move grants producers an additional 45 days to renew their licenses.
On March 25, the department announced that it was suspending the expiration of producers’ licenses for 60 days, through May 24, due to anticipated difficulty for producers to meet continuing education requirements during the current pandemic. All licenses with expiration dates between those dates were automatically extended to expire on May 25. Today’s announcement pushes that expiration date back to July 9. For example, a license scheduled to expire on May 22 will now expire on July 9.
Deadline to File Certification of Compliance
Insurance agencies and brokerages must file the Certification of Compliance required by New York’s cybersecurity regulation for financial services companies. You have until Monday, June 1.
In the past, the deadline for filing the certification was Feb. 15. However, in late 2019 the New York State Department of Financial Services announced that it would propose a change to the regulation, moving the deadline to April 15. When the COVID-19 pandemic hit, the department announced that it was giving all financial services companies an extra 45 days to file. The department’s website now states that the deadline is June 1.
You can file the certification on the department’s cybersecurity portal. Step-by-step instructions are available for download from the Compliance Resources page within the Cybersecurity section of the Big I New York website.
Workers’ Compensation Rates
The New York Compensation Insurance Rating Board (NYCIRB) today announced that employers who are paying employees sidelined by the COVID-19 pandemic will pay a less-expensive rate for Workers’ Compensation insurance. Big I New York had asked the NYCIRB to make this change.
Many employers have taken advantage of the federal Paycheck Protection Program, which provides them with short term loans to cover payroll for two months during stay-at-home orders. Other employers are simply paying employees even though they are prohibited from operating.
Workers’ Compensation rating rules require premiums to be calculated based on the amount of the employer’s payroll. While idled employees are still on the payroll, they have no exposure to being injured on the job. This results in an employer paying insurance premiums for a non-existent risk.
Here are some CE webinars that are sure to be of interest to your staff.
Homeowner’s Policy Coverage Concerns for the Modern Family
ABEN Understanding the Insurance Industry