N.Y. LEAVES ISSUES UNRESOLVED:

The Legislature in Albany adjourned for the summer without passing a state budget and without addressing a slew of insurance and other key issues. Political observers, newspaper editorialists and even elected leaders themselves are calling this one of the least productive New York legislative sessions in recent memory. Gov. George E. Pataki, Assemblyman Sheldon Silver and Sen. Joseph L. Bruno have been among the critics. While the major unfinished business is the state budget, lawmakers did nothing of significance the entire session. Among the insurance measures in limbo as a result of the inaction are bills to renew the property insurance residual market known as the Fair Plan; reform the workers’ compensation system and amend to the so-called “scaffolding law” affecting employer liability for injuries; change the state’s no-fault auto law to curtail fraud; and fix the law affecting liability of auto leasing companies. Insurance agents warned that the legislative lethargy regarding the Fair Plan, or New York Property Insurance Underwriting Authority (NYPIUA), in particular, would have real impact on thousands of New York property owners who depend on the plan for their insurance. Agents have warned that property closings will be thwarted and people’s insurance coverage will run out because of the failure to renew the Fair Plan. NYPIUA’s policies include more than 50,000 residences and almost 7,100 commercial properties. In 2003, a similar gap in NYPIUA’s authority prevented it from accepting applications for a 58 days.