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PIANY position—C-MAP May 2008 Page 2

A quick summary: Some of the most frequent types of property claims may not be covered and there may be gaps between the two policies, leaving insurance agents uneasy about recommending C-MAP.

In a survey of coastal-area members conducted by PIANY in February 2007, most respondents wanted to see improvements in the C-MAP coverage. As one respondent said: “Push for true wrap-around. C-MAP creates gaps.” Another said that C-MAP “could become a viable option” if these issues were addressed.

These members are only stating what has been known about C-MAP for years. As early as the 1996 report of the Temporary Panel on Homeowners Insurance Coverage, the panel recommended that the C-MAP Steering Committee should explore the development of a standard form of wrap-around coverage. Unfortunately, the Committee considered but did not adopt a standard form.

This bill would help address the concerns of insurance agents and brokers by developing an industry-standard wrap-around form and simultaneously creating a NYPIUA coverage form that is designed to be consistent with it. It also would create incentives for insurers to step up and write more C-MAP wrap-around policies because their exposure to assessments for losses experienced by NYPIUA would be decreased. This approach rewards insurers that voluntarily provide their fair share of protection for residents in parts of the state most exposed to catastrophic property destruction.

For these reasons, PIANY supports and recommends favorable action on S.6266.


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