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2022 Issues - The E&O Report

It has been several years since we have written about the importance of using insurance coverage checklists. Recently, we have received a number of questions from various insurance agencies and brokerages about the use of insurance coverage checklists. Accordingly, in this issue of The E&O Report, we will review how insurance coverage checklists should be used by an insurance agency or brokerage and the many benefits that they provide when they are used on a regular basis. [more]
As you may recall from several of our prior E&O Reports, for the past four years Big I NY has been fighting a legal challenge against the New York Department of Financial Services (“DFS”) concerning Amended Insurance Regulation 187. Unfortunately, on October 20, 2022, the legal challenge came to an end when the New York Court of Appeals issued its ruling in favor of the DFS. [more]
As many long-time Big I NY members know, there is a “hotline” that you can use to contact our law firm with legal questions that you may have. Each year we receive hundreds of these calls from Big I NY members. One of the most frequently asked question that we receive in connection with these NY hotline calls is if, when, and how, they can fire a difficult customer. In this issue of the E&O Report, we will discuss this question and, also, provide some guidance on how to deal with this issue if you should happen to face it. [more]
As we reported to you previously, in November 2018, an Article 78 legal proceeding was filed in the Albany County Supreme Court jointly by both Big I NY and PIA NY, acting together, to challenge the First Amendment to NY Insurance Regulation 187. The title of the amended regulation that is the subject of the legal challenge is Suitability and Best Interests in Life Insurance and Annuity Transactions. An Article 78 proceeding is a legal action that is brought to challenge the activities of an administrative agency. The purpose of the Article 78 legal proceeding was to have the court declare that the First Amendment to the Regulation that was promulgated by the New York Department of Financial Services (“NYDFS”) was invalid and should be stricken. The First Amendment to Regulation 187 was approved by NYDFS Superintendent Maria T. Vullo on July 17, 2018, and it took effect on August 1, 2019. [more]
One of the areas that we frequently see New York insurance agencies, brokerages, and individual producers run into regulatory problems with, is when they use an assumed name (also referred to as a DBA, fictitious name, or trade name) in connection with their business, without having followed the correct procedures to have that assumed name approved for use by both the Department of Financial Services (DFS) and the New York Secretary of State. In this issue of the E&O Report, we will discuss how the use of an assumed name should be handled by licensed New York insurance agencies, brokerages, and individual producers, so that they do not run afoul of the New York Law. [more]
In this issue of The E&O Report, we will discuss some things that every insurance agency or brokerage should be doing in preparation for this year’s hurricane season. [more]
In our office we have vintage insurance policies decorating our walls. Referred to “ephemera”, (collectible paper), they are the embodiment of the history of your profession. We have many policies that are beautifully printed with ornate calligraphy and art. But the center of the “Dec. Page” on these policies is often a blank rectangle. Why? The answer leads to a practical and legal problem that can give rise to a serious E&O problem. In this issue of the E&O Report we will address what controls in a situation where there are quotes, binders and an issued policy that does not conform to either. [more]
It is hard to believe, but this year marks the 35th anniversary of the Big I NY annual E&O seminars. The very first of what would ultimately become the annual E&O seminars, was presented for Big I NY (which at that time was known as IIAANY) on March 6, 1987, by our good friend Herb Lustig. During the thirty-five years that has passed since the first seminar was presented, approximately 50,000 New York insurance agents and brokers have attended the Big I NY annual E&O loss control seminars. [more]
This month’s topic is not so much about E&O claims and how to prevent them, but instead making sure you have that E&O coverage in place to respond if, and when, a claim is made and/or a lawsuit is commenced against your agency or brokerage. The following is a hypothetical that we will use to illustrate. [more]
As we reported in the February 2022 E&O Report, on December 31, 2021, New York Governor Hochul signed into law Senate Bill 7052, called the “Comprehensive Insurance Disclosure Act”, (“CIDA”). It amends the rules that apply to civil litigation in New York as to the production by a party in a lawsuit of its insurance information. Although the Governor signed the Bill as drafted, she requested that various changes be made to the law. Those changes have now been made. In this issue of The E&O Report we will review the elements of this newly changed law and also provide recommendations regarding how agencies or brokerages should deal with any requests that they may receive for information related to the disclosure of insurance information under the law. [more]
There is an old English proverb that says: 'You don't know where you're going until you know where you've been.' On the afternoon of December 31, 2021, New York Governor Hochul signed into law New York Senate Bill “7052.' Called the “Comprehensive Insurance Disclosure Act,' (“CIDA'), it amends the rules that apply to civil litigation in New York as to the production of insurance information by a party in lawsuit. At the time when she signed the Bill, the Governor made clear that she was only signing it on the condition that the legislature would quickly make various changes to it. Some of these changes came about as a result of the lobbying efforts of BIG I NY, and various other interested parties. In this issue of The E&O Report we will review the elements of this new law (based upon both the amendment and the changes that are being made to it) and the potential impact it may have for New York insurance agencies and brokerages. [more]
It has been twenty-four long months Since our last Holiday rhyme Because two years have now passed We thought it was again time So, in this Holiday E&O Report We will take the following lines To summarize last year’s E&O reports We hope you enjoy the rhymes [more]