Ask Tim; Industry News

​As we previously reported, on May 28 the financial strength rating of Adirondack Insurance Exchange (AIE) on the website of insurance carrier financial ratings agency Demotech was withdrawn. AIE, a subsidiary of Allstate Insurance Group headquartered in Western New York, posted the news on its website, as did Demotech. AIE sent an email on May 28 to its agents about the action; Demotech has not publicly commented.Over the last several days, many Big I New York members have contacted us with questions and concerns about this development. We will attempt to answer them here, but our information is limited. The best sources of information, should…

​The latest insurance disciplinary action report from the New York State Department of Financial Services is out. As usual, it contains interesting information about what DFS is focusing its enforcement efforts on. Here are some raw numbers:Total number of reported disciplinary actions: 27.Total number of actions against carriers: 1 ($577,250 fine against a life insurance carrier for disclosure failures.)Total number of actions against agents and brokers: 23.Total number of actions against other licensees: 3 (an adjuster, a life settlement broker, and a title insurance agent.)Total number of actions against NY licensees: 10.Total number of actions against out-of-state licensees: 16 in 10 states.Number of licenses revoked:…

​A magnitude 4.8 earthquake centered west of Manhattan struck the northeastern U.S. this morning. We at Big I New York hope that all of you, your families, friends, and clients are safe and suffered no injuries. However, it is possible that some of your clients suffered property damage. Your phones may ring with calls asking whether homeowners and commercial property insurance covers the damage. Here is what you and they need to know:Standard homeowners and commercial property insurance policies typically do not insure against damage caused by earthquakes or other types of earth movement. The ISO Homeowners 3 – Special Form states that the insurer…