Security Breach Notification Bill Supported By Agents, Brokers Passes NY Legislature

State Lawmakers Also Extend IIABNY-Backed Program for Property Owners

DeWitt, NY - Legislation intended to notify New York consumers when their most personal information is breached passed both houses of the New York State Legislature June 21. The measure, which also seeks to curb the potential for identity theft, was aggressively supported by the Independent Insurance Agents and Brokers of New York Inc. The not-for-profit trade association, which is based in suburban Syracuse, agreed with New York lawmakers that in the wake of security violations at huge database centers storing personal financial information, the time was right in protecting unsuspecting consumers.
"The Information Security Breach and Notification Act" will impose new requirements on businesses that maintain computerized customer records. IIABNY, which represents independent insurance agencies and brokerages at more than 1,900 locations statewide, worked with the bill's sponsors and others in an effort to streamline the legislation and make it less burdensome to New York's business community.

NYPIUA Reauthorization
Another significant legislative proposal passed by both the New York Senate and Assembly involves the extension of the New York Property Insurance Underwriting Association for one year, until June 30, 2006. NYPIUA provides fire, vandalism and malicious mischief, sprinkler leakage and time element protection, as well as extended coverage to those who cannot obtain it in the voluntary market. It also administers New York's Coastal Market Assistance Program, a network of participating insurance carriers that assists coastal homeowners purchase insurance.

"IIABNY has long been a proponent for granting permanent statutory authority to NYPIUA instead of temporary extensions," said IIABNY Chair of the Board Mark J. Hagan. "While we're thankful many of the policyholders served by NYPIUA won't have to face a gap in coverage this year, we will continue to work toward permanent reauthorization."

SOURCE: IIABNY