Ask Tim; Carriers; Industry News

​[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…

​New York based insurer Adirondack Insurance Exchange (AIE) and its affiliate Mountain Valley Indemnity Co. (Mountain Valley) have reported financial trouble. They have advised policyholders to seek replacement coverage immediately.AIE's financial strength rating from rating firm Demotech was withdrawn on May 28. The carrier told its agents at the time that: It was suffering from a surplus shortage and deteriorating capital. Their premium rates had not kept pace with rising loss costs. Mountain Valley's Demotech rating was withdrawn on July 18. On July 11, AIE informed its agents that its financial condition had worsened. They advised agents to begin replacing their AIE policies immediately. Last…

Big I New York members have been calling to ask what we know about the situation with Florida-based insurer UPC. Based on publicly available information, this is what we know for certain right now.UPC is the brand name for the companies in the group United Insurance Holdings Corp. The group includes Interboro Insurance Company​, which is domiciled in New York. United Property & Casualty Insurance Company, domiciled in Florida, is licensed to write personal and commercial property insurance in seven states, including Florida and New York. The other five are on either the Atlantic or Gulf coasts.UPC has incurred losses exceeding $35 million in each year going…