NYAIP Reminds Producers To Verify Insureds’ Identities

​The New York Auto Insurance Plan (NYAIP, also known as “the Plan") is reminding insurance producers to take precautions when transacting business with Plan insureds by phone or email.The Plan's Special Investigations Unit (SIU) became aware of instances where producers took NYAIP applications, endorsement requests, and credit card transactions by phone. Some of them did not verify the applicant's or card holder's identity. They then falsely certified that they met the NYAIP identity verification requirement. The result was: Issues regarding applicant information.Disputed, unauthorized and questionable credit card transactions. The Plan reminds producers that when conducting business virtually, they must visually verify their insureds' identities. They…

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What is a Carrier Required To Do When It’s Pulling Out of a Market?

​A national insurance carrier announced yesterday afternoon that it is exiting the personal lines insurance markets countrywide. To find out what the carrier's legal obligations are under New York law, download our Carrier Market Action Questions & Answers document.This and other helpful resources are available for download at any time from the Frequently Asked Questions page in the Answer Center​ of our website.Source

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NYSIR’s A.M. Best Rating Withdrawn

​[UPDATE: Since we posted this news item, we have learned that NYSIR is a "municipal reciprocal insurer," as New York Insurance Law Section 6102 defines that term. That same section of the law permits a municipal reciprocal insurer to opt out of having its policies covered by the New York Property Casualty Insurance Security Fund​ (also known as "the guaranty fund.") According to NYSIR's website, they have chosen not to participate in the NYPCISF. Therefore, should the carrier run into difficulty paying claims, they may assess each one of their policyholders (referred to as "subscribers") for the shortfall. It is possible that some school districts may…

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