IIABNY ANNOUNCES LEG. PRIORITIES:

The Independent Insurance Agents & Brokers of New York Inc. want the state’s lawmakers to work harder to fight fraud and free up the construction industry from a severe crisis created by obsolete provisions in labor laws. In its annual Legislation Position Paper for 2004 the Syracuse-based trade association cited for the third consecutive year the legislature’s failure to reach agreements on fighting auto insurance fraud and the lack of affordable commercial general liability coverage for building contractors as the most pressing problems. IIABNY, which represents 19,000 agents, brokers and their employees, believes that missed opportunities in 2003 are now major factors working against New York’s continued economic recovery. Ongoing auto fraud costs the state’s drivers around $124 annually per vehicle. The IIABNY wants harsher sentences meted out, a “runners” bill and more time for insurance companies to investigate suspicious claims, as well as a mechanism to decertify medical providers found guilty of no-fault fraud and the implementation of medical protocols for no-fault injuries. It also wants the “absolute liability” language in Sections 240 and 241 of New York Labor Law replaced with a “reasonable standard.” The current law imposes strict liability, which results in depriving employers in New York’s construction industry of their right of defense against such claims. As a result, insurance on construction projects has become prohibitively expensive and the market for such coverage is severely restricted. A recent ruling by the New York Court of Appeals reaffirmed the original intent of the legislature by narrowing the scope of the standard when absolute liability applies. Copies of IIABNY’s Legislative Position Paper are available by contacting its Legislative Office at (518) 465-5340, or can be downloaded from the Web site at: www.iiabny.org.

Topics New York Fraud