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Your NY Connection Magazine 2021 Q1 (Winter 33)

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Published by NYIA, 2021-04-01 15:46:14

Your NY Connection Magazine 2021 Q1 (Winter 33)

Your NY Connection Magazine 2021 Q1 (Winter 33)

NYYour Connection
First Quarter 2021 • Issue 33





A clearer

view of what’s ahead

At Swiss Re, we believe in long-term commitment and in forging enduring relationships
with our clients and partners. We’ve seen what happens when your people talk to our people,
when your specialized knowledge meets our technical expertise, and when your local
relationships combine with our global capacity. This all adds up to competitive propositions
tailored to your individual needs… and fresh opportunities to explore together. If you’re looking
for added value from your reinsurance partner, give us a call. We’re smarter together.

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34 07 Welcome to NYIA’s
Newest Members

08 Alternate View

32 Q&A

34 Giving Back

48 New & Noteworthy

50 Upcoming Events

36 • First Quarter 2021 • 3

NYIA Officers & Directors Chair’s Message

Mark Prechtl, Chair There is a general sense of optimism right now as more
President/CEO people receive vaccines, businesses open and the
Chautauqua Patrons Insurance Company economy starts to stabilize. Given all that we experienced
in the past year and how quickly people’s lives
Charles Makey, First Vice Chair dramatically changed, there has been an even greater
President emphasis on how government and business can also
Merchants Insurance Group change and respond to the current needs that exist.

Edward Harper, Second Vice Chair The concepts of innovation and modernization are not new, and NYIA has
President & CEO been engaged in this space for quite some time. A core part of NYIA’s advocacy
Statewide Underwriting Services is calling for modernization of laws and regulations and encouraging the
cultivation of an innovative insurance culture. What is new is the level of
Norman Orlowski, Treasurer policyholder interest in different products and services, the level of industry
President/CEO interest in renewed and restored operations and the speed to which everyone
Erie and Niagara Insurance Association would like to function, all exponentially increased by the pandemic.

Elizabeth Heck, Immediate Past Chair NYIA’s focus this year in relation to innovation and modernization is two-fold.
President & CEO The association is currently reactivating our Innovation and Modernization
Greater New York Mutual Insurance Company Advisory Group, first launched in 2015. The work of the advisory group will
be centered on modernization with the underlying tenet that innovation
Ellen Melchionni, President cannot be fully realized without substantial modernization. The thought is
President the advisory group will not only propose ideas on how laws and regulations
New York Insurance Association, Inc. can be modernized, but will also look to put forward guiding principles about
the importance of modernization and its connection to innovation. As Ellen
Stacey Orlando, Secretary outlines in her column, NYIA is looking to use guiding principles as a means
Director of Design & Technology to convey overarching considerations related to a number of key issues, and
New York Insurance Association, Inc. innovation/modernization is another topic that could be addressed in this way.

Matthew Benedict The other focal point in this area is a virtual innovation education series
President & CEO with the theme “Making Innovation Practical” tying the sessions together.
Midstate Mutual Insurance Company The Education and Conference Planning Committee met earlier this year and
indicated their interest in education featuring innovation. NYIA staff has been
Jennifer Cavolo working with members of that committee to develop an insightful and useful
Product Manager series that will explore topics in a progressional order.The first part of the series
Progressive is “Here and Now: Modern Data Analytics,” which will address how analytics are
currently being used in a wide range of core insurance functions. The next part
Marc Craw will delve into “As We Evolve: Practical Uses for Current Technology” and will be
Senior Counsel a survey of high tech tools, in the form of both hardware and software, which
MLMIC Insurance Company can be utilized by insurance companies. The final segment will investigate
“What the Future May Hold: Changing Landscape and Insurance Models” and
Siobhan Davey look at new technology or rapid evolving technology and how it could change
President & CEO property and casualty insurance. Be sure to stay tuned for all NYIA has in store!
Broome Co-operative Insurance Company
Mark Prechtl
Stephen Harris NYIA Chair
President & CEO
Sterling Insurance Company

Kristen Martin
President & Chief Operating Officer
Utica National Insurance Group

Scott Shatraw
Utica First Insurance Company

Jaynine Warner
Legislative Affairs, North Atlantic
Farmers Group, Inc.

4 • Your NY Connection Magazine

RM Hoffman
Roth &
Matlin, LLP




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505 8th Ave., Suite 1704 212.964.1890 [email protected]
New York, NY 10018

NYIA Staff President’s Remarks

Ellen Melchionni I am fascinated by the ever-changing buzz words that
President pop in and out of different cultures. I have convinced
[email protected] myself that I will remain hip, and I make conscious
Cassandra Anderson, CAE efforts to casually insert trending phrases into
Vice President conversations (usually with an attempt at humor). It
[email protected] makes me feel as though I am keeping up with the times
Stacey Orlando and am plugged in.
Director of Design & Technology/
Corporate Secretary Let’s take a deep dive into some low hanging fruit because we need to utilize
[email protected] buzzwords to incentivize our teams and create corporate synergy. You get the
Javier R. Tapia, Esq. picture? Not to get too granular, but I have noticed that one phrase is continually
Director of Government Affairs used in a variety of situations. There has been an increase in the use of guiding
[email protected] principles. I’ve completely embraced this one. It sounds ethical and righteous.
Susan Dawes We should guide, not force, and adopt principles to be virtuous and fair. Guiding
Account Services Coordinator principles define a mindset and create a culture where people can identify
[email protected] what is important. Adopting certain principles provide rails without sounding
Kaitlyn Emory demanding and are a polite way of letting someone know they are veering off
Communications Coordinator course. While it is a great phrase, it also signifies a philosophical shift.
[email protected]
NYIA has created guiding principles from time to time. Several years ago with
NYIA Office the agent groups, we created guiding principles for information security geared
to the insurance industry and shared with regulators as they were crafting the
130 Washington Avenue cyber security regulation. We recently created principles for insurance regulation
Albany, New York 12210 and cannabis. We will be offering similar principles to public policymakers
518.432.4227 on lead liability and the safety of buildings. The Reinsurance Association of
518.432.4220 fax America has published their guiding principles for addressing climate change.
[email protected] DFS should consider a guiding principles approach for some of their latest
initiatives and allow for flexibility with individual company decisions on
Visit Us Online investments, corporate social responsibility, writing specific risks or responding
to policyholders during a crisis. Recently, DFS has alluded to being more flexible and has stepped up their outreach to the industry. NYIA has fully engaged and consistently provided input about the need for a holistic view and approach.
association I think guiding principles will endure, while other expressions will be short- lived. My reference to staying hip reveals that I am no longer hip, let alone cool, phat and definitely not amazeballs. Some phrases morph into a different
new-york-insurance- meaning or fade away and become passe. I think the word passe is actually
association passe. I will continue to make efforts to drop knowledge on you, but I won’t call
myself a thought leader or declare myself directionally accurate. I encourage you
6 • Your NY Connection Magazine all to stay woke, don’t be a Karen and for heaven’s sake, don’t be a snowflake.

Ellen D. Melchionni
NYIA President


to NYIA’s Newest members...

NYIA is proud to add the following companies to the association’s

Insurance Services Office, Inc. (ISO) Editor-in-Chief
Anne Casillo, Director Northeast Government Relations Cassandra Anderson
319A Southbridge Street, Suite 205
Auburn, MA 01501 Creative Director
P: 508.852.7360 Stacey Orlando
[email protected] Managing Editor
Kaitlyn Emory
ISO’s story of growth and innovation has taken them from their roots in 1971 as
a not-for-profit advisory and rating organization serving United States insurers to Contributing Writers
the publically held global company they are today serving customers in insurance, Susan Dawes
energy, and specialized markets and financial services for more than 30 countries. Dan Kohane
Ryan Maxwell
Mura Law Group, PLLC Sue Quimby
Roy A. Mura, Managing Member Javier R. Tapia
930 Rand Building, 14 Lafayette Square
Buffalo, NY 14203 Looking to advertise?
P: 716.855.2800 Please contact Stacey Orlando at 518.432.4227 or [email protected]
[email protected] for advertising information.

Mura Law Group opened their law practice in November 1994 and have been No part of this publication may be
providing insurance coverage and defense services to New York property and casualty reproduced or transmitted in any form
insurers since then. Many of their insurer clients are NYIA members. by any electronic or mechanical means,
without prior written permission of the
publisher. Send permission requests to
Stacey Orlando at [email protected]

Copyright 2021 by New York Insurance
Association, Inc. All rights reserved. • First Quarter 2021 • 7

When? VIEW

“Reflections” A slightly different take on
P&C insurance issues

by Susan Dawes
New York Insurance Association, Inc.

February was Insurance Careers Month. What a better way to celebrate than to
highlight the longevity of our member’s insurance careers by sharing pictures
from our archives. Check out some of the familiar faces below!

2004 2001


1993 1997

8 • Your NY Connection Magazine

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• American Western Home
Insurance Company v. Gjonaj
Realty Management Co.

• Bodlovic v. Giannoutsos
• Houston Casualty Company v.

Prosight Specialty Insurance

10 • Your NY Connection Magazine

Hindsight is 2020

by Dan D. Kohane and Ryan P. Maxwell
Hurwitz & Fine, P.C. • First Quarter 2021 • 11

obody will forget the year (cue flashback sequence). In a relatively
2020 although few will want short decision, Certain Underwriters at Lloyd’s
to remember it. As part of our London v. Advance Transit Co., Inc., 188
annual tradition, we take a look A.D.3d 523 (First Department November
back at unique decisions which 17, 2020), New York’s First Department
we found somewhat off the beaten track. recognized that a number of earlier
decisions indicating that “New York law …
Recoup in the Soup? permits insurers to provide their insureds
with a defense subject to ‘a reservation of
Two roads diverged in a yellow wood, and rights to, among other things, later recoup
the Second Department preferred the road their defense costs upon a determination of
less traveled. non-coverage.’”

The issue: recoupment of defense costs. The Thus, since the insurer, Lloyd’s, reserved
case is - American Western Home Insurance its right to recover payments made by
Company v. Gjonaj Realty Management Co., underwriters including payments for
192 A.D.3d 281, 38 N.Y.S.3d 626 (Second defense costs and expenses, attorneys’
Department December 30, 2020). However, fees, and costs of suit, it was permitted to
the more well-traveled road was navigated recoup defense costs once non-coverage
43 days earlier by the First Department was established.

“Two roads diverged in
a yellow wood, and the

Second Department
preferred the road

less traveled.”

12 • Your NY Connection Magazine


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The Second Department?

The Second Department? Feggetaboutit. In
American Western, Viktor Gecaj commenced a
personal injury action against Gjonaj Realty
& Management Co. (“Gjonaj”) and 28-47
Webb Avenue Associates, LLC (“Webb”) to
recover damages for injuries he allegedly
sustained when he fell from a ladder at the
premises owned by Webb and managed
by Gjonaj Realty. American Western Home
Insurance Company (“American Western”)
had issued a liability policy under which

Webb and Gjonaj Realty qualified as
insureds (the “insureds”). Upon timely
notice of Gecaj’s claim, the policy required
American Western to defend the insureds in
the underlying action.

The insureds failed to notify American
Western of Gecaj’s accident until October
2014—more than four years after the
incident—and only after a $900,000
judgment was entered against the insureds.
Approximately one week later, American
Western advised the insureds that it was
denying coverage due to their failure to
comply with policy’s timely notice provision.
Thereafter, in December 2015, upon vacatur
of the default judgment, American Western
advised the insureds that it would defend
them in the underlying action. At that
time, American Western expressly reserved
its right to deny coverage should it be
determined that American Western had been
prejudiced by the insureds late notice.

14 • Your NY Connection Magazine

Upon notice that Gecaj had appealed the insureds. This declaratory judgment action
vacatur of the default judgment, American ensued. Agreeing that American Western
Western further reserved its rights to deny was prejudiced by the default, the Second
coverage upon any reinstatement of the Department agreed that the carrier had
default judgment. no duty to indemnify the insureds in the
underlying action. However, and in reversing
Sure enough, the First Department reinstated the trial court, the Second Department
the default against the insureds, at which disagreed that American Western could
point American Western advised the insureds recoup the defense costs it incurred after
and Gecaj, by letter dated May 2, 2017, that the vacatur of the default and through the
it was denying coverage. American Western appeal. Precedent be damned.
expressly reserved its right to recover any
fees and costs incurred in defending the

“Upon notice
that Gecaj had

appealed the
vacatur of the
default judgment,
American Western
further reserved
its rights to deny
coverage upon
any reinstatement
of the default


Recoupment! Yes? No? • First Quarter 2021 • 15

“However, the court looked
beyond these decisions,

instead nodding favorably
to other recent federal
cases that found recoupment
inappropriate where the
policy at issue provided a
duty to defend, but had no
express contractual provision
allowing for recoupment of

defense costs.”

The Second Department recognized a Next the court acknowledged that a
trend allowing insurance companies to number of New York state and federal
recoup defense costs in actions where courts had permitted recoupment, so long
no duty to indemnify has been found, as that right was expressly reserved by
citing California’s landmark decision, Buss the insurer, including the First Department
v. Superior Court, 16 Cal.4th 35, 939 P.2d case, mentioned previously.
766 (1997), which “held that a liability
insurer has a right of recoupment against However, the court looked beyond these
its insured for the costs of defending an decisions, instead nodding favorably to
underlying action where most or all of other recent federal cases that found
the claims are later found to be outside of recoupment inappropriate where the
the policy coverage.” However, the court policy at issue provided a duty to defend,
reasoned that other jurisdiction recently but had no express contractual provision
“deciding in the first instance whether allowing for recoupment of defense costs.
insurers can recover defense costs have
generally concluded that they cannot.”

16 • Your NY Connection Magazine

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indemnification, you
say? There’s coverage
for that. Oodles and
oodles of coverage.”


The court agreed with the latter, holding Just Because They Sound Alike, Doesn’t
that if the insurance company had wanted Mean They are the Same
to include language permitting recoupment
of defense costs for claims that are later Courts seem to have some difficulty in
determined not covered, it could have done distinguishing between additional insured
so. It did not. coverage and “insured contracts.” We don’t
know why, but we see more and more of that
The Second Department reasoned that confusion. This year was no different.
“[a]llowing the insurance company to
recover the costs it incurred in defending Contractual indemnification, you say?
the underlying action risks eroding th[e] There’s coverage for that. Oodles and
well established doctrine [that an insurer oodles of coverage. The case is Bodlovic v
may be contractually bound to defend Giannoutsos, 189 A.D.3d 1333, 134 N.Y.S.3d
even though it may not ultimately be 818 (Mem) (Second Department December
bound to pay] and effectively would make 23, 2020). Bodlovic was allegedly injured
the duty to defend merely coextensive by a malfunctioning motorized rollup gate
with the duty to indemnify.” while working for Gigi Salon & Spa (“Gigi
Salon”). Gigi Salon leased the premises
Two polar opposite opinions from two from the Giannoutsos. Bodlovic and his
Departments within two months appears to wife sued the Giannoutsos, asserting that
be a recipe for leave to appeal to New York’s they had actual or constructive notice of
high court. But that remains to be seen. the gate’s dangerous condition.

18 • Your NY Connection Magazine

Gigi Salon had procured a commercial “[T]his exclusion does not apply to liability
general liability policy from United States assumed by the insured under an ‘insured
Liability Insurance Company (“USLIC”), contract,’ with “insured contract” defined to
which named the Giannoutsos as additional include “[a] contract for a lease of premises.”
insureds. The Giannoutsos commenced
a third-party action against Gigi Salon Given the aforementioned, the court held
seeking indemnification and contribution, that the subject lease required Gigi Salon
and another against USLIC seeking a to procure general liability insurance in
declaration that USLIC was obligated to favor of the defendants and to defend and
defend and indemnify them in the main indemnify them for bodily injury claims,
action under the policy. USLIC moved for as the lease qualified as an “insured
summary judgment, arguing that its policy contract” and USLIC failed to establish,
excludes coverage pursuant to a bodily injury prima facie, that the defendants are not
exclusion contained in an endorsement to entitled to coverage.
the policy. In opposition, the Giannoutsos
argued that the “insured contract” exception “In opposition, the
to the exclusion applied with respect to Giannoutsos argued that
the parties’ lease agreement. the “insured contract”
exception to the exclusion
The relevant endorsement language applied with respect to the
excluded coverage for bodily injury parties’ lease agreement.”
to, among others, an employee
performing duties related to the
conduct of the insured’s business. Thus,
the court noted that the exclusion
is intended to avoid duplication of
coverage for injuries to an insured’s
employee that would be covered
by a workers’ compensation
policy. However, an exception
to the exclusion provided:

CInosnutrreadct • First Quarter 2021 • 19

“There is a very important
difference between being
an additional insured and a
contractual indemnitee.”

AdIndsituiroendal IInndseumrnanitcye

Insured Contract...

What is wrong with this decision? Plenty. Instead, it provides coverage to the named
Plainly, the employee exclusion removed insured, Gigi Salon, for Giannoutsos claim for
coverage for injuries to an employee of contractual indemnity.
“any insured.” This would include coverage
running directly to the Giannoutsos as There is a very important difference
additional insureds. However, the “insured between being an additional insured and a
contract” exception permits coverage contractual indemnitee.
assumed by “the insured” under an “insured
contract” including a lease agreement. The Giannoutsos may well be contractual
indemnitees and Gigi Salon may have
Here, the only party to have assumed liability coverage for that contractual claim, but that
under the lease agreement was Gigi Salon, does not create additional insured coverage
USLIC’s named insured. The Giannoutsos for the contractual indemnitee. We repeat—a
have not and are thus not entitled to little louder for those in the back—a
any coverage whatsoever—regardless of contractual indemnitee is not an additional
the exception. Accordingly, the Giannoutsos insured by default. USLIC owed no duty
were (understandably) claiming entitlement to defend to the Giannoutsos where they
to trade contract indemnity from Gigi Salon qualify as contractual indemnitees alone.
due to the lease. That’s a fair claim. Any coverage for trade contract indemnity
runs to the named insured, Gigi Salon, once
However, the “insured contract” exception it pays amounts to Giannoutsos as required
to the cited exclusion does not resurrect by an insured contract. In essence, the
additional insured coverage running directly Second Department has “jumped the shark”
to the Giannoutsos,which is plainly excluded. on this one by conflating the two.

20 • Your NY Connection Magazine

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Expect more from your reinsurer

How mighty is Mighty?

How Mighty is Mighty? First, it brought an action against Nouveau
seeking a declaration that under its
In a pillar of New York insurance law, Mighty agreement with the insured, the insurer
Midgets, Inc. v. Centennial Insurance Company, was obligated to defend it as an additional
47 N.Y.2d 12,389 N.E.2d 1080 (1979),the New insured. Then, NYUHC’s insurer, Houston
York Court of Appeals recognized a narrow Casualty Company, sued New York Marine
exception to the American Rule holding seeking a declaration that New York Marine
that an insurer is responsible to pay the was obligated to defend NYUHC as an
successful insured’s declaratory judgment additional insured.
fees and costs to obtain coverage where the
insurer brings the declaratory judgement New York Marine argued that the insured’s
action against its insured, placing its insured initiation of the lawsuit was dispositive on
in a defensive posture. In U.S. Underwriters the issue of whether declaratory judgment
Ins. Co. v. City Club Hotel, LLC, 3 N.Y.3d 592, fees were available, regardless of which
822 N.E.2d 777 (2004), the court held that party succeeds. The court disagreed, noting
the obligation to reimburse the successful that no bright line rule could be divined
insured applied even if the insurer defended from the cases relied upon.
while it challenged coverage.

That is that, but not this. A recent case, Rather, the court examined the reasoning
Houston Casualty Company v. Prosight behind the narrow exception to the
Specialty Insurance Company, 462 F.Supp.3d American Rule and determined that the
443 (S.D.N.Y. May 27, 2020), held that a contractual duty to defend applies to any
successful insured can recover declaratory action arising out of an occurrence, including
judgment fees even if it initiated the a declaratory judgment action filed by the
lawsuit. New York University Hospitals insurer. The court found it anomalous for
Center (“NYUHC”) entered into an agreement the entitlement of declaratory judgment
with New York Marine’s insured, Nouveau fees to rest on whether the insurer is
Elevator Industries, Inc. (“Nouveau”), which plaintiff or defendant. Consequently, “in
allegedly required New York Marine to unusual circumstances, a court may look
defend NYUHC as an additional insured in beyond the labels ‘plaintiff’ and ‘defendant’
an underlying lawsuit. The court noted that to determine whether an insured is in an
in this case, NYUHC initiated the actions offensive or defensive position in a dispute
seeking a defense, twice. over the duty to defend.” (citations omitted).

22 • Your NY Connection Magazine

Although unclear, the court appeared to side Dan Kohane is a senior member, and
with the insured due either to its success Ryan Maxwell an associate, with Hurwitz
on the merits or the legal steps the insurer & Fine, P.C. You can reach them at
had taken to free itself from its policy 716.849.8900 and [email protected]
obligations. According to the court, the and [email protected]
record established that New York Marine and
its insured resisted owing a duty to defend “The court noted that
NYUHC from the outset, which was now it did not find case
conceded. The insured filed a counterclaim law holding that the
in the action seeking a declaration that
there was no such duty and New York Marine “pertinacious” denial of
filed an affirmative defense of no coverage a duty to defend did not
in the Houston Casualty Company’s lawsuit. entitle the insured to fees
The court found that New York Marine incurred in the litigation.”
had “persistently and seemingly reflexively”
denied any duty to defend despite a
clear duty based on the NYUHC/Nouveau
Agreement and the New York Marine Policy.
The court noted that it did not find case law
holding that the “pertinacious” denial of a
duty to defend did not entitle the insured to
fees incurred in the litigation. Labeling that
as “the apt context here,” the court found
such fees recoverable. At least we are left
to ponder whether that behavior would be
pertinacious if the insurer succeeded?

We are thankful that each and
every year, the courts give us
an opportunity to scratch our
heads and wonder. This year
was no exception.

“We are thankful that each and every year, the courts give us an
opportunity to scratch our heads and wonder. This year was no exception.” • First Quarter 2021 • 23

data old pranchquantifyingwide variety mainhistorically
dbeutrenctors allow oantawlyoze listed case
impacot lmajor
claims rating factorstechnweatherlower bedroomhail hoexmpeeonswinveers usewind tyaltogpecrtoohnctteieonrcumteisponilinhgelpsfamily
less way product
aspizgeee raciculracnyew damage oloeligibilitystatisticso fraar information sound
cash baths categoriesg level varies cucrmoebnlfserarutesaqemotiutdnmeamgenocdchiyfperydactical half
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ost k detachedone interesting
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conditionseven mix

inudnudsetrrwyritetevenrything liability policy personal set

assist neighborhood year

24 • Your NY Connection Magazine

By Peril Rating

Changing the
Game for Insurers

inglyresults by Sue Quimby, CPCU, AU, CIC, CPIW, DAE
MSO, Inc.
initial By peril rating is
ogy a tool that gives
the insurer the
A fundamental aspect of ability to analyze
insurance is charging the
correct premium for the the individual
exposure being underwritten. characteristics
and exposures of
This means that the insurer must have a risk on a very
granular level.
a good understanding of the risk they • First Quarter 2021 • 25
are taking. Advances in technology have

given rise to more and more elaborate

and detailed methods of quantifying risk.

The increasing use of predictive analytics

tools, including by peril rating, has been a

game changer. By peril rating is a tool that

gives the insurer the ability to analyze the

individual characteristics and exposures of a

risk on a very granular level.

Insurers use a variety of methods to pursue rating system was the lack of access to
their goals of increased market share,reduced data. Compiling and analyzing results in
losses, simplified underwriting and claims the pre-computer world was cumbersome,
handling. Some perils, such as named storms expensive and time consuming.
or floods, can be excluded altogether. Others
can be mitigated through use of conditions Simple rating plans assume that perils are
and deductibles. Hurricane deductibles and impacted equally by the same factors. For
actual cash value (ACV) limitations on roof example, a risk in the Midwest may have
damage are two examples of conditions that a higher risk of wind/tornado damage—
are commonly included. regardless of whether they are located in
a rural or urban setting. However, theft and
Historically, some risks, such as homeowners vandalism risk might be higher in a more
and small businessowners, have been treated urban setting. By peril rating breaks the
almost like commodities—one size fits all. types of losses that can occur into a number
Early rating plans for homeowners and of categories. Insurers can rate a risk based
businessowners policies were fairly simple. on a more accurate understanding of the
Premiums were based on a limited number mix and magnitude of perils the risk is
of characteristics—construction, occupancy, exposed to. The perils that are commonly
protection and exposure. Coverage under included in by peril rating systems are
these programs was “all risk”—everything fire, liability, theft or vandalism, wind, hail,
was covered unless it was specifically weather-related water, nonweather-related
excluded. One reason for the simplified water, lightning and all other perils.

Historically, Some Common Perils
some risks, such Included in By Peril
as homeowners Rating Systems

and small Fire Lightning
have been treated Wind Theft &
almost like

size fits all.

26 • Your NY Connection Magazine

cust omersNo solution is out of reach for our

MSO, the depth of knowledge to underwrite with ease.

Being an industry leader doesn’t just come from being frequently cited as a resource for the
latest information, trends and insights we provide. Our success comes from ensuring our
clients have a full grasp of this data to be better prepared when it comes to underwriting risks.

For more information call (800) 935-6900 R
or visit us online at
Customized Rating and Statistical Services.

Compare Houses

Houses in the same neighborhood with the same replacement cost will have different
exposures. For comparison purposes, look at two one-family houses built the same year.
Both have a replacement cost of $500,000.

House A House B

Brick Colonial STYLE Ranch
2 Story STORIES 1 Story
Bedrooms 4 Bedrooms
3 Bedrooms Baths 2 ½ Baths
2 Baths Slate Roof (New)
Roof Detached Garage
Shingle Roof (15 years old) Garage None
Attached Garage OTHER

Important Note

Very Different Houses...
Same Replacement Cost

28 • Your NY Connection Magazine

As a case in point, two houses in Water damage is an interesting Not every by peril
the same neighborhood with the peril as it can be due to weather rating system
same replacement cost will have or nonweather causes. So, water is the same, as
different exposures. damage would be listed in two
categories: weather-related and each insurer can
For comparison purposes, look at nonweather-related. have their own
two one-family houses built the set of perils that
same year. Both have a replacement In the example provided, more are used in their
cost of $500,000. One (House A) is bathrooms in House B could mean a rating system.
a three-bedroom two story brick higher frequency of water damage,
colonial with two baths, a pool and but multiple stories in House A may
attached garage. The shingle roof mean a possible increased severity
is 15 years old. The other (House of damage from any one loss due
B) is a frame one story ranch with to water from upstairs damaging
four bedrooms and two and a lower levels. House A would also
half baths, and a detached garage. have a greater risk of weather-
House B has a brand-new slate related water damage to the roof
roof. While the cost to rebuild after due to its age.
a total loss would be the same, the
risk of the loss happening varies. Not every by peril rating system
is the same, as each insurer can
Dogs, pools, trampolines and swing have their own set of perils that
sets represent an increase in liability are used in their rating system.
hazard. Brick houses are less likely As indicated, rates differ based
to burn. Other characteristics of the on the individual perils the risk
homes may also impact the rate is exposed to, as well as the
charged. Alarms, security systems characteristics of the property
and cameras reduce the risk of itself, and two homes in the same
theft and vandalism. Smoke and neighborhood with the same
fire detectors impact the fire peril, replacement cost can have different
lowering the rate. rates under by peril rating.

“While the cost to
rebuild after a total
loss would be the same,
the risk of the loss
happening varies.” • First Quarter 2021 • 29

“The use of by peril rating
will only strengthen as
the ability and accuracy
of predictive analytics
continues to increase.”

in multiple locations and even
multiple states. This means that the
same business, e.g., a clothing store,
can have different rates under a by
peril system due to the different
exposures in the various locations.

Use of a by peril As with any rating methodology, Use of by peril rating has increased
rating system developing the proper initial rate dramatically in recent years. In
requires that is only part of the battle. Collecting addition, predictive analytics uses
premiums and results to allow the company to data collection, modeling and
respond appropriately to variance in statistics to assist companies in
losses be reported risk and modify the rate accordingly their underwriting, rate making
based on the is equally important. An insurer’s and claims handling functions.
data is only as good as the Together, by peril rating and
components of the information that is collected. Use of predictive analytics have changed
by peril rating a by peril rating system requires that how the insurance industry can
system. premiums and losses be reported review and assess risk. The ability
based on the components of the by to use these practical applications
30 • Your NY Connection Magazine peril rating system. in a statistically sound way helps
to reduce risk and fraud. The
By peril rating is not just for personal use of by peril rating will only
lines. The businessowners policy strengthen as the ability and
(BOP) product has experienced a accuracy of predictive analytics
major transition since its beginnings. continues to increase.
Originally designed as a program for
main street type, fairly homogenous Sue Quimby is a vice president,
risks, the BOP eligibility classes media editor, client services
have been expanded to include & training and a senior product
a wide range of risks with very development analyst at MSO, Inc
different liability and property (The Mutual Service Office, Inc).
exposures. BOP policies can now be You can reach Sue at 201.857.9128
written for insureds with properties or [email protected]

Pastel & Rosen, LLP

Engaging in the general practice of law
with an emphasis on representing
property/casualty insurance

companies for legislative, regulatory,
and compliance work.

Robert S. Pastel, Esq. and Michael E. Rosen, Esq.

258 State Street, Albany, NY 12210 (518) 462-4715

Kristen Martin

by Cassandra Anderson, CAE Every day when I show up for work, I am prepared
New York Insurance Association, Inc. for possibly having my day go in a totally unplanned
direction, and I really do enjoy that.
Kristen Martin is president and chief operating
officer with Utica National Insurance Group, a Q: Why did you decide to pursue a greater leadership
position she has held 2019. At this same time role in NYIA?
she was elected to the position of director A: NYIA has been so important in helping the industry
of Utica Mutual Insurance Company and its affiliates be heard on proposed legislation and being able to
Graphic Arts Mutual Insurance Company and Republic- be part of the board is a really exciting opportunity
Franklin Insurance Company. She has spent 20 years as we work to improve the business and regulatory
with the company, starting as an examiner in 2001. environment in New York.
She has since served in a variety of roles, including as
corporate secretary, executive vice president and director Q: What is the greatest opportunity for the association?
of underwriting operations. Her admiration for her A: The greatest opportunity for NYIA will be to help the
company and for the Mohawk Valley is evident. Read on industry modernize so that they can better serve their
to find out what role she thinks best prepared her for a customers, which means regulations that inhibit those
leadership position and what she succinctly lists as her efforts will need to be addressed. Likewise, as climate
five passions. and cyber risks continue to emerge, the association
will be instrumental in educating its members and
Q: Where did your career take you before Utica National? advocating for them in Albany.
A: Before joining Utica National, I was a trial attorney in
Albany with the firm Thorn and Gershon. Q: What prepared you for your current role?
A: It may surprise people for me to say my time as
Q: What do you like best about working in insurance? general auditor at Utica National prepared me to be
A: The best part of working in insurance is that it is COO, but it did, as it gave me the chance to learn about
always challenging. Whether you are working to help
respond to a claims event, or working to launch a new
product or technology platform, it is truly never boring.

32 • Your NY Connection Magazine

the operations of our company in the broadest sense. know someone
When people ask what role to consider to be prepared Interested in a
for advancement, I always advocate a stint in our internal career in
audit department. insurance?
Tell them
Q: How do you define success? about
A: For me, success is building strong teams, setting goals NYISF!
and working together to achieve those goals—the harder
the challenge, the more rewarding the success. now accepting
Q: If you weren’t in insurance what would you be doing?
A: If we are talking dream jobs here, I would be general Opportunity
manager of the New Jersey Devils. I can guarantee a
Stanley Cup in three years if they will have me. The New York Insurance Scholarship
Foundation recognizes and supports
Q: What would people be surprised to learn about you? individuals interested in pursuing a
A: I have six dogs and during the pandemic, I have taken career in insurance. Scholarships are
up skeet shooting. awarded annually to individuals who
embody the qualities necessary to
Q: How do you like to spend your time outside of work? excel in the insurance industry.
A: I have five passions—my family, my dogs, hockey,
politics and my Peloton. I am usually involved in a The Future of the Foundation
combination of any of those things.
The New York Insurance Scholars
Q: Utica is famous for its Tomato Pie and Utica Greens, program has officially launched. Visit our
which restaurant is your personal favorite? website for more information on how to
A: I love the Willows and everything about it! apply for a 2021–2022 scholarship.

Q: What is your favorite movie? 130 Washington Ave. Phone web
A: Remember the Titans
Albany, New York 518.432.4227
Q: What is your favorite movie quote?
A: “All we have to decide is what to do with the time that
is given us.” – Lord of the Rings

Q: How would you describe your leadership style?
A: I strive to be an authentic leader who builds consensus
but who is also comfortable making hard decisions.

Q: What do you like best about the Mohawk Valley?
A: This is easy—the people. The Mohawk Valley is home
to some of the most diverse people who have built a
community that I am proud to call home. • First Quarter 2021 • 33


by Kaitlyn Emory
New York Insurance Association, Inc.

Plymouth Rock Assurance
Provides Support for Children

In early 2020 when many companies were making the to them,” said Mary Boyd, president and CEO of Plymouth
choice to switch to remote work and schools became Rock Assurance Independent Agency Group. “The program
virtual classrooms, much more was changing than where was designed as a family friendly activity and offered a
a person went to work or school every day. The pandemic welcome and educational distraction during the difficult
had seemingly flipped our daily lives upside down and early days of the COVID-19 pandemic, especially while
even though we may have tried, it was hard to hold on children and parents were both adjusting to working and
to any sense of normalcy. learning at home.”

Plymouth Rock first began working remotely in March Plymouth Rock has been dedicated to helping children
of last year, which is when a team of employees from through a variety of philanthropic efforts, including
the communications and human resources departments more than 20 years of involvement with the Juvenile
and independent agents group devised a video series, Diabetes Research Fund (JDRF). Hundreds of Plymouth
they coined Plymouth Rock Story Time. The video series Rock employees, their families and friends have given
featured volunteers from across the company reading their time and support to raise awareness for Type 1
their favorite story books aloud for fellow employee’s diabetes and have raised hundreds of thousands of
children and families. dollars for the JDRF.

“We launched the program so the children of our Their involvement with the JDRF grew out of employees’
employees, and our agents, could meet their parent’s personal experiences with Type 1 diabetes. The One
coworkers and enjoy their favorite storybook read aloud Walk, an annual walk that raises funds to combat

juvenile diabetes, became a favorite event for former for at-risk populations. Plymouth Rock encourages
president and CEO of Plymouth Rock’s New Jersey employees to take an active role in their communities
operations, Gerry Wilson. Gerry retired in late 2020, but and has a generous gift matching program that allows
Plymouth Rock is looking forward to continuing their employees to make even larger contributions to their
support for the walk this year. nonprofit group of choice. Plymouth Rock also achieves
it philanthropic mission through the Plymouth Rock
“As a company, we are committed to giving back to the Foundation,which supports many nonprofit organizations
communities where we live and work,” indicated Boyd. that are positively impacting communities in need.
“We are dedicated to providing our communities more
than just insurance and recognize that getting Plymouth Kaitlyn Emory is NYIA’s communications coordinator
Rock volunteers outside our office positively impacts You can reach Kaitlyn at [email protected] or
people and communities in need.” 518.432.4227.

Plymouth Rock is especially dedicated to community
development, whether through educational programs
for underserved students, violence prevention programs
for vulnerable youth, or health care and safety advocacy

OLV System &

The Ease of the OLV System and Legislation to Adopt

by Javier R. Tapia, Esq.
New York Insurance Association, Inc.

36 • Your NY Connection Magazine • First Quarter 2021 • 37

T he renowned federal Shortly thereafter as the popularity
judge and legal scholar, of the automobile exploded,
Guido Calabrese, once public policymakers recognized
famously referred to the need to protect lives and
property from the risks posed
the automobile as “an evil by motorists and automobiles by
requiring compulsory insurance,
deity who demanded 55,000 with Massachusetts being the
first state to mandate proof of
lives every year in exchange automobile liability insurance
upon vehicle registration in 1925,
for providing amazing powers which appears in the article Auto
Insurance Industry [Complete Guide]
of individual transportation by Matthew B. Sims.

without precedent in human

history,” as was referenced in the

article The U.S. Experience with

No-Fault Automobile Insurance: A

Retrospective by Rand Corporation.

The great risk which accompanied the Since that time, 49 states,
including New York, require

great benefits of automobiles was not that motorists carry liability
insurance as a way of

lost on auto manufacturers and insurers protecting the public from

who quickly recognized after the damage and injuries caused
development of the automobile in the by automobile accidents, as
stated in the article Making

late 19th century that insurance could the Case for Using Web
Services to Verify Evidence

effectively spread and transfer the risk of Auto Liability Insurance
without diluting the benefit.” by the Insurance Industry
Committee on Motor Vehicle

Administration (IICMVA).

The great risk which accompanied

the great benefits of automobiles However, even as states were

was not lost on auto manufacturers increasingly mandating automobile

and insurers who quickly recognized liability insurance upon motorists

after the development of the the challenge remained of

automobile in the late 19th century corroborating that motorists do,

that insurance could effectively in fact, carry the minimum

spread and transfer the risk without required coverage. To ensure that

diluting the benefit. Thus, the first motorists are properly insured

auto insurance liability policy was most states have required what

issued in 1898 to Dr. Truman Martin is known as automobile liability

of Buffalo, New York, according to insurance reporting (ALIR) laws

We Can Blame Mr. Loomis for Car for personal and commercial

Insurance by Larry Printz. automobile insurance.

38 • Your NY Connection Magazine

Serving the Needs of the
Insurance Community

Proud Member of NYIA

Farber, Brocks & Zane L.L.P. Tel (516) 739-5100
[email protected]
400 Garden City Plaza - Ste. 100
Garden City , NY 11530
Westteld, Simsbury,
With offices in; New Jersey Connecticut

New York

... the IIES system during
the project development

phase in the years
1998–2000 cost New

York approximately
$5,000,000 ...”

According to the IICMVA, currently, the ALIR system used by the New In a report by the Governor and
38 states, including New York, York State Department of Motor the Legislature titled Insurance
have ALIR requirements for Vehicles (DMV) to monitor the Information and Enforcement
personal automobile insurance, insurance status of the nearly 5 System (IIES) New Directions in
and New York is one of 18 states million registered automobiles in Enforcing Compulsory Insurance
that also mandates ALIR for New York State (see, NY VTL § Laws it states that the cost
commercial automobile insurance. 313(b), (c); 15 NYCRR, Part 34). to implement the IIES system
The IICMVA also states that ALIR IIES was established pursuant to during the project development
systems typically require insurance L.1997, chap. 678, as amended by phase in the years 1998–2000
companies to report their book of L.1998, chap. 509. At the time of its cost New York approximately
business, cancellation reporting, enactment IIES was considered a $5,000,000 with approximately
or comprehensive databases to a cutting edge, high-tech, ALIR system $4,500,000 going to Andersen
state’s Department of Motor Vehicles that replaced New York’s prior Consulting (not inclusive of
(DMV). The Insurance Information paper-based insurance verification post-production support) for
and Enforcement System (IIES) is system. And it wasn’t cheap. implementation of IIES.

40 • Your NY Connection Magazine

In addition to the cost
of implementing IIES
on the state, IICMVA
has estimated that
the collective cost of

implementing IIES
reporting platforms within
insurance carriers in New
York cost $122,400,400.”

In addition to the cost of within DMV has cost $9,807,000, the IIES system is approximately
implementing IIES on the state, however, the proposed figure in 6.1 percent in New York. Which
IICMVA has estimated that the the Governor’s Proposed Executive is second only to Maine with
collective cost of implementing Budget for FY2022 has increased 4.5 percent of its motorists
IIES reporting platforms within that figure to $10,873,000. uninsured, and significantly
insurance carriers in New York Ultimately, the foregoing costs ahead of Florida which reported
cost $122,400,400. are passed along to consumers a 26.7 percent, according to
through insurance premiums. data reported by the Insurance
Furthermore, since the system’s Research Council (IRC). More
implementation the costs of While the American Association problematic, however, especially
maintaining IIES has been funded of Motor Vehicle Administrators given the costs of the program
by an assessment against the (AAMVA) has suggested that there is has been IIES data-match rate.
insurance industry (see, New York no correlation between a state’s
Vehicle & Traffic Law §317). In ALIR system and its uninsured According to recent DMV estimates,
recent years, the cost of the motorist rate, nevertheless the IIES operates with approximately an
“Compulsory Insurance Program” uninsured motorist rate during 85 percent successful data match • First Quarter 2021 • 41

It is now a legacy system 4 Key Data Points
based on decades old for the OLV System
technology that is
susceptible to numerous NAIC number
data entry mistakes and
other factors leading to policy key
(i.e. policy number)
data-match failures.”
vehicle identification
number (VIN)

confirmation date

rate. Consequently, approximately 15 York newer ALIR platforms based are made over the Internet. The
percent of motorists on New York on contemporary data exchange IICMVA OLV system simplifies the
roads (750,000) may inadvertently technologies and processes, such as automobile insurance verification
appear to law enforcement as being XLM, have been developed. process by focusing each inquiry
uninsured even though they are on four key data points:
indeed properly insured. The most notable of such newer
ALIR platforms is online verification 1. Carrier’s NAIC Number
It is not entirely surprising that the of insurance (OLV) such as the 2. Policy Key (i.e. policy
IIES program would still leave much OLV system developed by the
to be desired from an ALIR system IICMVA. Unlike IIES which receives number)
in 2021. It is now a legacy system bulk insurance policy data from 3. Vehicle Identification
based on decades old technology insurers, cross-references it with
that is susceptible to numerous data the DMV registration database, Number (VIN)
entry mistakes and other factors and then issues the data back to 4. Requested Confirmation
leading to data-match failures. insurers with a data-match report,
However, since 2000 when IIES OLV systems are web-based, Date
was first implemented in New meaning that verification requests
Versions of the IICMVA OLV system
have been adopted in 18 states with
others in development.

42 • Your NY Connection Magazine

Reinsurance Association of America • Reinsurance Education Institute

Equipment Breakdown Solutions

The Ease of the OLV ALIR System

• Engages system use during registrations, traffic stops, court inquiries
and periodic verifications, etc.

• Eliminates delays in the database reporting programs
• Ends the creation and maintenance of data repositories
• Reduces expenses and labor
• Enhances results with greater accuracy and more precise matching.
• Ensures that standardization and future advancements are available to

all jurisdictions
• Enhances data security
• Easily identifies counterfeit Auto Insurance Identification Cards
• Uses evidence of insurance with DMV vehicle registrations and renewals,

police roadside inquiries, accident investigations and court requests

More and more states are adopting The OLV ALIR system also ensures to an OLV ALIR system. In New York,
OLV ALIR systems given the that standardization and future Senate Insurance Committee Chair,
numerous benefits associated with advancements are available to all Neil D. Breslin, has introduced
such systems. According to the jurisdictions and it enhances data the IICMVA model law, S4871 and
IICMVA, an event-based system can security (confidential customer Assemblymember Aileen M. Gunther
be engaged during the registration data is not required). In addition, has introduced the companion bill,
process, traffic stops, court it easily identifies counterfeit Auto A6335. Implementation of the
inquiries, periodic verifications, Insurance Identification Cards and IICMVA model law also allows
etc. Other advantages of this type the evidence of insurance can be for more efficient implementation.
of system include eliminating the used with DMV vehicle registrations For example, some states have
delay associated with a database and renewals, police roadside implemented the OLV law using
reporting program, ending the inquiries, accident investigations third-party vendors, while other
creation and maintenance of data and court requests. states have developed the
repositories, reducing expenses platform in-house.
and labor and enhancing results In order to adopt OLV verification
with greater accuracy and more the IICMVA has drafted model Furthermore, the IICMVA model
precise matching. legislation to assist states transition law also allows for flexibility in the

44 • Your NY Connection Magazine

The Legislature and JJ of the Transportation, compounded by the fact
the Governor should Environmental Conservation, that they are frequently
enact this provision and Economic Development forced to spend their time
in the final enacted bill) authorizing the correcting data errors that
Superintendent of Financial incorrectly identify them as
Services (DFS) to convene uninsured … [furthermore]
a motor vehicle insurance [c]ommercial insureds do
task force to consider, inter not register all vehicles the
alia, “legislative or regulatory same way and do not use
initiatives to reduce the cost of personal identifiers such as
motor vehicle insurance.” name, address and VIN. This
causes matching errors. The
budget, and this task The Legislature and the Governor inability to match evidence
force should consider should enact this provision in of insurance information to
the final enacted budget, and DMV registration databases
adoption of the this task force should consider results in undue hardships
IICMVA model law, adoption of the IICMVA for these customers.
model law, S4871 (Breslin)/
A6335 (Gunther). In addition to the efficiencies
and cost savings to the state and
S4871 (Breslin)/ Currently, as the IICVMA has consumers, the National Association
noted in an article entitled of Insurance Commissioners (NAIC)
A6335 (Gunther).” The Road to Online Insurance has stated as a best practice that
Verification, both personal and state ALIR systems should now use
modalities of implementation. The commercial auto insurance XML data protocols which allow for
State of Maryland has adopted the policyholders are paying for the the sharing of structured data across
OLV law using a bifurcated model, excessive costs of the current different information systems.
meaning that state’s legacy ALIR IIES system:
system is still available to those NYIA believes it is clear that the
carriers that want to continue [c]onsumers are forced to outdated IIES system, developed
using the legacy system, while the pay twice under these laws. decades ago, is not the best choice
OLV system is available to those They pay higher insurance for New York. We will be advocating
carriers that want to use the OLV premiums to offset for passage of this bill and
system for auto liability insurance insurer costs associated encouraging the state to adopt a
reporting. Additionally, the state with these laws. They pay modern OLV system that meets the
of Illinois has adopted the OLV again as citizens when needs of all stakeholders.
system in stages, not implementing they pay for jurisdictional
the entire legislation at once. expenses associated with Javier R. Tapia is NYIA’s director
the program via fines, fees, of government affairs. Javier can
The FY2022 Proposed Executive assessments and taxes. be reach at .518.432.4227 or at
Budget includes a provision (Part The cost to consumers is [email protected] • First Quarter 2021 • 45

New & Noteworthy

Makey Named President of University. He also holds the following designations
from the Insurance Institute of America: associate in
Merchants Insurance Group insurance services (AIS), associate in management (AIM),
and associate in general insurance (INS).
Merchants Insurance Group, a
group of property and casualty Utica National Promotes
insurance companies serving
policyholders in the New England, Turi to Executive VP
Mid-Atlantic, and Midwest states,
announced the appointment of Utica National Insurance Company
Charles E. Makey, III, as president. has named Bernard Turi executive
He is currently the company’s senior vice president of vice president, general counsel,
insurance operations. Makey will assume the role of general auditor and chief risk
president on April 1, and will be the 10th president in officer. Turi joined Utica National in
the company’s 103-year history. He will also join the 1987 as a senior claims specialist
company’s board of directors. Robert M. Zak, Merchants in the errors and omissions
Insurance Group’s current president and CEO, will retire department. He was promoted to staff attorney in 1990,
on March 31 after more than 25 years in the position associate claims attorney in 1995, claims attorney/
and more than 35 years at Merchants. Zak will remain director of liability claims in 1999, associate general
on the company’s board of directors and become its counsel and claims attorney in 2004, director of risk &
board chair effective April 1. reinsurance in 2011, general counsel and director of risk
and reinsurance in December 2013, and general counsel,
Makey’s insurance career spans more than 30 years. general auditor, and chief risk officer in 2014. He serves
He joined Merchants in 1996 as director of sales and as the chair of the screening committee of the Utica
will celebrate his 25th anniversary this year. In 1998 National Group Foundation. He was named an officer
he was promoted to assistant vice president/regional of the company as assistant vice president in 1999,
manager of the company’s New England Regional Office promoted to vice president in 2007, and named senior
in Manchester, New Hampshire. He then served as vice president in 2011, before this most recent promotion.
vice president and regional manager of the company’s
Central States Strategic Business Center in Dublin, Ohio A cum laude graduate of Niagara University with a
before his promotion in 2009 to senior vice president bachelor’s degree in political science, Turi earned a Juris
of insurance operations. Makey is a board member of Doctorate from the Syracuse University College of Law.
NYIA, serving as the association’s first vice chair. He also He was chair of NYIA in 2014 and 2015 and served on the
sits on the board of trustees for the New York Insurance board of directors from 2007–2015, and as an officer with
Scholarship Foundation (NYISF). the organization 2010–2015. He currently serves on the
board of directors and the finance and audit committees
Makey has a master’s in business administration of the New York Property Insurance Underwriting
from Daniel Webster College and a bachelor’s degree Association (NYPIUA), the board of directors of the Motor
in business administration with a concentration in Vehicle Accident Indemnification Corporation (MVAIC).
marketing and management from St. Bonaventure

46 • Your NY Connection Magazine

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New & Noteworthy

NYIA Member Companies of consumers. The board consists of 10 members
appointed by the Superintendent. The membership
Named Best Employers consists of seven representatives of domestic insurance
companies, one insurance producer representative and
Allstate, Progressive and Nationwide have been named two consumer representatives. Each member serves a
to the Forbes list of America’s Best Employers 2021. This term of three years or until a successor is appointed.
prestigious award is presented by Forbes and Statista In addition, board members may be re-appointed for
Inc. that selected America’s Best Employers 2021 additional terms at the Superintendent’s discretion.
through an independent survey applied to a vast sample
of more than 50,000 American employees working for GNY Earns National Top
companies with more than 1,000 employees in America.
Across 25 industry sectors, the evaluation was based on Workplace Award
direct and indirect recommendations from employees
that were asked to rate their willingness to recommend Greater New York Mutual Insurance Company (GNY)
their own employers to friends and family. has received recognition as a 2021 Top Workplace. In
November 2020, GNY employees completed a national
Superintendent Appoints Top Workplace survey conducted anonymously by
Energage, an independent research company. Not only
Insurance Advisory Board did GNY earn recognition as a 2021 Top Workplace,
but GNY received special acknowledgment for its
Superintendent of Financial Services Linda A. Lacewell performance in the areas of leadership, management
announced the New York State Department of Financial support and cross-team cooperation.
Services (DFS) has appointed Lucy Fato, executive vice
president and general counsel of American International Utica National Named to
Group (AIG) and Bernard Turi, executive vice president,
general counsel, general auditor and chief risk officer Elite Internship List
of Utica National Insurance Group, to serve a three-year
term on the New York State Insurance Advisory Board. The Utica National Insurance Group 2020 Internship
Members of the board include representatives of the Program captured a spot on the inaugural Rising
insurance industry and consumer advocates, as required Insurance Star Executives (RISE) Elite 50 Internships
by statute. List for 2021. Utica National enjoys a variety of benefits,
due to the internship program. The company uncovers
The Superintendent has evaluated the nominations new talent, learns from fresh perspectives, exposes
received and selected board members that reflect young professionals to its brand, and fosters leadership
the broad diversity of the State of New York and development among current employees. Interns gain
the insurance industry. The board is tasked with real world experience, learn about their strengths and
encouraging and promoting the growth of the insurance weaknesses, and gauge whether a position within the
industry in the state, and furthering the goals of DFS as insurance industry is right for them.
they relate to the insurance industry and the protection

48 • Your NY Connection Magazine

New & Noteworthy

The RISE Elite 50 Internships is an annual program that member of the Board of Governors of the Florida
identifies and publishes a list of the 50 best internship Medical Malpractice Joint Underwriting Association,
programs in the insurance industry across the USA. The member of the Board of Directors of the Florida Birth-
program is comprised of a publication (both digital and Related Neurological Injury Compensation Association,
hard copy), a dedicated interactive section of the RISE and member of the Board of Directors of Professionals
website, and a virtual award presentation. Nominations Resource Network, Inc. White is also a former board
for the list can be submitted by the company or the member of the Medical Professional Liability Association
participating interns as they answer a series of questions and currently serves on three of their committees.
about the program.
Galfetti and Ryan Elected
TDC Group Announces
President and Treasurer
The Board of Directors of Community Mutual Insurance
The TDC Group of companies has announce that Robert Company voted unanimously last week to elect Jennifer
E. White Jr. has been promoted to chief operating officer P. Galfetti as president of the company, and Schuyler M.
(COO), reporting to Richard E. Anderson, MD, FACP, Ryan as treasurer. The promotions were announced at
chairman and chief exectutive officer (CEO). In this role, the company’s annual meetings held on March 17.
White will oversee the operations of the four business
units that make up TDC Group, The Doctors Company, Galfetti joined the companies in 2009 after more than
Healthcare Risk Advisors, TDC Specialty Underwriters, 15 years of diverse accounting and finance work. In
and Medical Advantage. 2013 she was promoted to Union Mutual’s treasurer and
elected to Community Mutual’s Board of Directors, two
White, former president of the insurance operations positions she will maintain.
of FPIC Insurance Group, has more than 50 years of
experience in the insurance industry. He joined The Ryan joined the companies as a senior accountant in 2014
Doctors Company with the acquisition of FPIC in 2011, and is currently the company’s assistant vice president of
and he served most recently as executive vice president, finance. She is also a member of the Community Mutual
medical professional liability. White graduated magna Board of Directors, both positions she will also maintain.
cum laude from San Francisco State University.
Galfetti and Ryan’s elections mark the first time that
He is chairman of the board of the Florida Justice the company has ever had a completely female slate of
Reform Institute, a member of the Florida Chamber of officers. They join Lisa L. Keysar, who serves as CEO of
Commerce Board of Directors, board member of the Community Mutual, and Sarah R. Jarvis, Esq., who serves
Florida Insurance Council, past chair and current board as corporate secretary.

Do you have news you would like to share?
Please send releases and announcements to Kaitlyn Emory at [email protected] • First Quarter 2021 • 49

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