THE "T L C" INSURANCE INDUSTRY

By Alan Plafker, PRESIDENT & CEO
Member Brokerage Service LLC
A Melrose Credit Union Service Organization

In the past years, I have observed the Insurance Industry from many perspectives. As an Insurance Professional, I have studied many different types of insurance and worked with many insurance carriers. This includes nearly 30 years experience with Property, Liability, Life, and Health insurance for both commercial and personal risks throughout the NYC metro area.

The world of "For Hire" insurance is unique, and presents issues and challenges not normally found in the "general" insurance world. Most people only buy what is required to be properly licensed by the NYC (or other local) TLC (Taxi and Limousine Commission) or the NY State DMV (Department of Motor Vehicles), and insurance carriers have responded by usually offering just the minimum limits required by law.

Insurance Brokers rarely have the opportunity or ability to counsel clients on limits and options and rarely explain the coverage purchased. The brokers usually are selling the minimum coverage required at a price they can sell without regard for the proper coverage to address the clients exposures. They address what the client requires, but very often fail to address what the client really needs.

In my capacity at Member Brokerage Service, the insurance division of Melrose Credit Union (one of the largest financial institutions serving the TLC industry), I see many members and clients who only want to purchase what is required to comply with the applicable laws at the NYC TLC and the NYS DMV.

Many who buy insurance for their Taxis and Black Cars have families to support and large loans to pay. After paying so much for the required vehicle liability coverage, they don't want to, or can't afford to spend more on additional insurance needed. I see so many without coverage for HEALTH, LIFE, DISABILITY, or Fire, Theft and Collision on their vehicle. One unfortunate accident can destroy the lifestyle they worked so hard to create.Many have not planned for retirement, or they are not prepared if they were to live a long life after retirement, die or become disabled.

Since its inception over 80 years ago, the dedicated employees of Melrose Credit Union have encouraged members to save for such events, even if it just meant urging members to put a few dollars into their share (savings) accounts whenever they came in to make a loan payment.

Similarly, many years ago, Insurance companies had agents collecting payments each week to insure people for life, health, disability, and retirement to protect their family's future. I remember spending time with clients to review their needs and exposures and providing coverage to protect them with Health, Disability Income, Life, Auto, Home and any other coverage needed. People bought Life, Annuities, and other endowment policies that grew in cash value to provide for or to supplement retirement income or otherwise provide funds for other expected or unexpected events.

It's a different environment now, especially in the TLC world. Too many people buy the required product rather than the needed product, and are left exposed without HEALTH, LIFE, DISABILITY, and other important insurance coverage, and have not planned adequately for retirement.

In my future TLC magazine articles, I will continue to further address the exposures and insurance concerns in our industry and discuss some solutions. My position on the Board of Directors of two industry organizations (Professional Insurance Agents of NY and the Council of Insurance Brokers of Greater New York) will help me bring you updates to legislative bills and New York State Insurance Department laws & issues affecting our industry such as Workers Compensation and Department of Motor Vehicle procedure changes.

I also plan to include information explaining how insurance companies are rated for financial strength and how NY State is supposed to protect policyholders with a security fund that is currently insolvent and unable to protect our industry. "For Hire" Insurance is the only coverage in NY that is not properly protected by a guarantee fund.

I welcome any comments, questions, or requests relating to any insurance industry topics which can be addressed in future magazine issues that can be helpful to our readers.

© 2015 TLC Magazine Online, Inc.