For immediate release …
Wednesday, April 25, 2012
PIWA praises pro-job bill domesticating surplus-lines carriers in New York
GLENMONT, N.Y.—The Professional Insurance Wholesalers Association of New York State Inc. is applauding the New York State Senate Insurance Committee for reporting out Sen. James L. Seward's legislation (S.6808) that will permit the incorporation of domestic excess-line insurance companies in New York state.
"This is an important step to New York's goal of job preservation and job creation," said PIWA President Jo Ann Peri. "Nearby states such as New Hampshire, and New Jersey have already permitted this. NY needs to allow US-based surplus lines companies to more effectively compete against foreign-based insurance companies. Senator Seward's bill would allow this."
"The authority is necessitated due to changes in Dodd-Frank provisions of Federal Law which now give foreign-based insurance companies a distinct advantage over US-based surplus lines insurance companies." Ms. Peri explained. "In essence, the federal law gives foreign based insurance companies a single port of entry into the US."
"Traditionally, however, US-based surplus lines companies are required to be 'admitted' in one state. This presents operational problems and thus competitive for US based surplus lines companies that foreign insurers do not have."
"Despite New York's prestigious role as the financial capital of the world, the state stands to lose thousands of financial service jobs already this year," said PIWA President Jo Ann Peri. "This legislation would help to reverse that process."
A companion bill is sponsored in the Assembly by Assemblyman Joe Morelle.
Established in 1978, the Professional Insurance Wholesalers Association of New York State Inc. is a trade association of New York state insurance wholesalers serving retail insurance producers with specialty and excess-line markets.
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