N.Y. FAIR PLAN AGAIN IN LIMBO:

Operations of the New York Property Insurance Underwriting Association, or FAIR Plan, have once again been suspended due to the failure of lawmakers to pass legislation renewing the program. More than 50,000 businesses and homes are currently insured through the plan that was barred from writing new policies after April 30 as a result of the legislature’s inaction. The situation is not new. This is the fifth time since 1995 that lawmakers have deadlocked over the bill to continue the plan. Democrats and Republicans have squabbled for years over whether to make the program permanent or have it sunset and renew periodically. NYPIUA President Joseph Calvo advised agents and insureds of the suspension in a memo. The plan stopped writing new policies after April 30 and it will not issue any renewal policies with effective dates on or after June 29 based on the practice of issuing renewals within at least 45 days, but not more than 60 days in advance. The suspension of operations also stalls further writing under the voluntary Coastal Market Assistance Program. All policies issued prior to April 30 will continue to be serviced.