New York State Farm Associate Political Action Committee

New York State Farm Associate Political Action Committee February 2014 Dermot Dolan Gen. Charles DeGaulle leader of the Free French Army (the French Resistance) against the German Nazi occupation during World War II and later President of France - once wrote a verse instructive to all of us living in democracies which points to the basic answer as to why we as citizens (both individual and corporate) should participate in Government; Politics is too serious a matter to be left to the politicians. There you have it citizenship whether individual or corporate, demands our active participation in shaping the legislative environment on behalf of ourselves, our businesses and those who depend on our professional advice and service. Given that insurance is regulated at the state level, our greatest impact is achieved by focusing educational efforts with legislators in Albany. To that effect we the NYSFAPAC are charged with building relationships with elected officials who are in positions of influence over the insurance industry and/or recognize the positive societal impact that we as insurance experts deliver on a daily basis. We have done this to significant effect over the past few years, gaining recognition as an influential PAC in Albany when insurance matters are in debate. Without continued growth and renewal of membership in the PAC our efforts cannot continue. I urge you to visit www.nysfapac.com and take an active part in our efforts. Most members find that recurring contributions via the State Farm Credit Union payroll deduction is the most efficient way to support the PAC at the Friend, Bronze, Silver or Gold levels ($100/month). Whatever your budget, being counted as a contributing member of the PAC is of great importance and vital to our continued success. On behalf of the board of directors, thank you for your continued support. Dermot P.J. Dolan, ChFC, CPCU, CASL Fundraiser Receptions Increase Awareness About the NYSFAPAC As the legislative and regulatory challenges facing our industry evolve, so must efforts to support our political allies. In the high stakes battle against trial-bar interests, our industry s financial support of like-minded elected officials is critical. This year PAC leadership took fundraising efforts to a new level by hosting not one but two events to increase awareness with associates and raise funds needed to fulfill the PAC mission. The first event was held at the newly renovated Albany Hilton on the eve of the State Farm New York Legislative Day in early May. The event featured delicious food and drink, good company and guest speakers Tim McFadden, Eastern Market SVP and Joe Spicer, VPA. Both McFadden and Spicer reiterated the importance and value of the PAC, charging those in attendance to introduce at least one fellow New York associate to the PAC. 1

The second event was designed to introduce the PAC to New York-based employees. Held at The Factory in Ballston Spa, nearly 60 associates (mostly employees) attended this casual reception. Spicer and Michele Russo, VPO spoke at the event, thanking supporters and telling them more about what the PAC does and how it supports State Farm public policy priorities. These events dramatically increased the number of PAC contributors in 2013 to a total of 163 contributors, a 46% increase over 2012. More PAC supporters can generate greater contributions and opportunity to strengthen our brand and message with elected officials. Thank you to those PAC members who were instrumental in organizing these events and welcome to new members who joined the PAC in 2013. Jen Dunn Things may come to those who wait but only the things left by those who hustle. ~Abraham Lincoln There is always something to do, another priority or change to implement. As agents, it s hard to prioritize what is important on a daily basis. Sometimes we just wait for the priorities to rise to the top to conquer them, but, we all know this is not the best strategy. In politics, a proactive stance can be the difference between success and failure. Being a part of the New York State Farm Associates Political Action Committee (PAC) is one way to make sure we take advantage of opportunities to stay in control of our business. Supporting the PAC is critical to avoiding those unpleasant days when a new regulation is implemented or a new law goes on the books and we are forced to accept it. While attending the 2013 PAC fundraiser in Albany, I was reminded once again that we face a well-financed opposition in Albany one that seeks to litigate against our industry at every opportunity. The PAC gives us an opportunity to fight fire with fire. A healthy PAC means we can support lawmakers who understand the societal benefits of insurance and who recognize the need to let us to manage our business in a way that allows us to deliver on our promise rather than deliver policyholder premiums to the pockets of trial-lawyers. I recently met a state legislator who excitedly shared a well-intentioned legislative proposal addressing a concern with homeowners insurance. Much to my alarm, the legislation altered a relatively simple application for homeowners insurance into a labor intensive process requiring significant paperwork for us and our potential clients. Fortunately, we were able to sit face to face and discuss the realities of what this legislation meant for our clients. The experience reminded me of the importance of building legislative relationships, providing financial support to reasonable and like-minded lawmakers and being willing to spend a few minutes educating the people representing their constituents in Albany. We must do everything in our power to support legislative advocacy efforts. I encourage you to consider what position, voice, and impact you would like to have on OUR business. Your support helps make our industry a force to be reckoned with but that decision is yours and yours only. By joining the PAC, you are taking a proactive role in making sure our clients interests are being protected and the investment in your business is maximized. As we embark on the New Year, I encourage you to make a difference in 2014 and have your voice heard. By joining the PAC you become a part of the solution in Albany. Remember, this is your business they are making decisions for. Jen Dunn, State Farm Agent, Poughkeepsie, NY 2

The 2014 legislative session officially commenced with Governor Andrew Cuomo delivering his fourth State of the State Address on January 8. The obvious motif of the Governor s speech was we did what we set out to do; focusing a spotlight on programs, both major and minor, that burnished his accomplishments these past three years. As for items remaining on the Governor s agenda, chief among those mentioned are his quest for ethics reform in the Legislature, a women s rights bill and several tax-reduction proposals aimed at eliminating the corporate tax for upstate manufacturers, lowering personal income tax for qualified wage earners and maintaining property tax decreases instituted previously, contingent on locality-tethered requirements. Mr. Cuomo s selection of easy-target, high-polling issues to populate his legislative agenda leaves no mystery as to what year it is: election year (conspicuously absent from the address was any reference to the Governor s predilection on the tumultuous hydro-fracking issue, which might cause him grief one way or another at the polls). From an insurance perspective, notably absent from the Governor s speech were any references to reform of New York s one-sided, strict-liability scaffolding law or changes to the no-fault to eliminate fraud in the system. Just two weeks after the State of the State address, the Governor released the 2014-15 proposed state budget, which does include a proposal to grant the Department of Financial Services greater authority to address medical providers not operating in good faith under the no-fault law. The proposal continues to be analyzed and assessed for its potential effectiveness, but certainly such prominent recognition via inclusion in the proposed state budget is a step in the right direction. Another relatively new obstacle in the industry s path, however, is Assemblyman Kevin Cahill, who is entering his first full session year as Insurance Committee Chairman. Cahill went on record recently with a very different type of auto insurance reform message, characterizing no-fault as an antiquated system which needs to be brought up to modern standards, including the update of coverage amounts; i.e., raising minimum limits. Cahill s pro-trial bar, consumerist orientation is certain to add to the already difficult challenges faced by the industry this year to obtain true no-fault reform. The 2013 Legislative Session Wrap-up On any given day around the halls of the Capitol last year, insurance industry veterans could be heard acknowledging that 2013 was the worst session, in terms of the volume of detrimental impact insurance proposals, in more than two decades. Attacked on all sides by the trial bar, public adjusters, fire patrols, body shops, the DFS (touting stunning proposals to ban the Anti-Concurrent Causation clause and limit homeowners insurance nonrenewals) and politicians running scared in the wake of Superstorm Sandy, the most improbable outcome, that nary a bill damaging to the industry was enacted into law, was actualized. In fact, the industry pulled off the upset of the session in fending off trial bar s No. 1 session priority, the SUM bill, in addition to thwarting multiple bad faith, body shop practices, third-party defendant direct lawsuit, late notice and appraisal bills. Central to the efforts of the Legislature in 2013, particularly the Assembly, were legislative fixes to the chaos brought to New York by Superstorm Sandy. The Assembly passed a multi-bill package geared at correcting perceived problems with the P&C industry s response to Sandy. Unfortunately, several of these measures amounted to cynical attempts by the trial bar to capitalize on a bad situation, while other bills were wellintended by their sponsors, but demonstrated legislators woefully inadequate comprehension of how the insurance mechanism operates. Both categories presented negative consequences for the industry. Early on in the process, State Farm held a seminar for more than twenty state senators to collectively educate them on the thematic issues and the 3

nuances of catastrophic claims adjusting. For the remainder of the 2013 session, State Farm heard from various legislators extolling the value of that meeting relative to their ability to sort out knee-jerk political solutions from initiatives that would genuinely serve to assist their constituents hit hardest by the storm. Fortunately, the Senate understood the need to maintain market stability in New York, refusing to succumb to the political pressure to do something, and refrained from passing the Assembly agenda. Edmond Valente, Special Counsel The contributor report represents contributions reported to the New York State Board of Elections from November 2012 through November 2013. If you believe the report is not accurate with respect to your personal contributions please contact Dermot Dolan. Please see the contributor report on page 6 NYSFAPAC: Education; Relationships; Positive Change NYSFAPAC contributions provide the resources needed to educate and build relationships with key state legislators. In 2013 the NYSFPAC contributed to the following state legislators: Senator Jim Seward Senator John Flanagan Senator William Larkin Senator Ken Lavalle Senator Neil Breslin Assemblyman Carl Heastie Senator Kemp Hannon Senator Jack Martins Assemblyman Will Barclay Senator Phil Boyle Senate Republican Campaign Committee Senator Andrew Lanza Assemblyman Joseph Morelle Senator Marty Golden From left: Pete Sleasman (PAC Executive Board Member), Chris Caraisco (PAC Associate Representative ), Senate Insurance Chair Jim Seward, Dermot Dolan (PAC Board Chair) and Travis Wattie (Public Affairs) representing the NYSFAPAC at Sen. Seward s fundraiser at the Otesaga Resort in Cooperstown, NY. 4

Executive Board: Dermot P.J. Dolan Chairman (Farmingville) Dean Gleeson Vice Chairman (Newburgh) Pete Sleasman Exec Board Member (Albany) Jim Manley Exec Board Member (Newburgh) Steve Klinzing Exec Board Member (Farmingville) Chris Caraisco Associate Representative Damon Schumaker Associate Representative Rob Dillion Associate Representative Board Membership: John Loughlin Albany Jim Rollo Binghamton Doug Thompson Buffalo North Mike Messuro Buffalo North Monica Murphy Commack Marty Connor Elmont John O Brien Hackensack Vicki VanDeVen Hicksville Brock Barrett New York Rodney Shannon New York Mike Tighe Queens Tom Kernan Rochester Steve Lamonica Syracuse South 5

Friend (up to $300) Sheri Adams Linda Adomat Joseph Aguirre Amy Aldrich Jeremiah Baily Franklin Banaszewski Brock Barrett Shannon Barrett Mike Berardino Akram Boutros Dina Bryan Neil Campbell Bonnie Caraisco Calvin Charles Jerry Christopher Nigel Chrysostom Tom Clarke John Corsi Jim Demaio Gary Dill Jennifer Dolan Sam Eubank Robert Field Richard File Jennifer Forand Angela French James Garfinkel Peter Gelsomino Deanne Gleeson Curt Gosda Michele Gullett Daniel Hawrylczak Sherry Hoffman Hillary Holcomb Mackenzie Hollis Sue Ann Hong Sandra Horvath Thomas Hull Rebecca Ianniello George Ihle Cynthia Jackson Mark Johnson Collin Karjohn Jeannine Kelley Johanna Kelly Derek Korbly Eric LaChance Dan LaGoy Richard Landers James Leone Kelly LeRoy Brian Levitt Mark Link Melissa Manikas John Manser Joseph Mauro Stephanie May Timothy McFadden James McGilligan Diane McGrath Bill McLear Eric Miller Nicolas Morales Nancy Morris Monica Murphy Matthew Myers Douglas Nadeau Joseph Nicoll David Palma Cathleen Pardi Laura Penazek-Whitney Anthony Petrozzella Piero Quinci Franklin Raffone Lenore Reges Becky Rivers Matthew Roth Kristopher Rulison Damon Schumaker Paul Schwartz Jeff Seibert Chaila Sekora Lee Shramko Peter Sleasman Joyce Snook Keith Stewart Rene Streicher Leigh-Ann Tamaye Amy Tian Thomas Tobin John Vanderwerken Lisa Vitiello Dan Wagner Travis Wattie Pedriena Wheeler Kelly Wilbur Steve Yeagley Bronze ($300 to $599) Lynne Barnhardt Edward Borenstein Christine Breen-Hale Thomas Broderick Jim Bryan Hector Camillo Michael Cook Steven Cooney Gil Cosenza Brian Downes John Fischer Dick Flanagan Cindy Gleeson-Cooney Lisa Hammond Floyd Holloway Jay Kerley Thomas Kernan Steve Klinzing Ken Kortright Christopher Lane Tamara Lanza Gregory Long John Loughlin Brian Mather Debbie McGuiness John O Brien Chris Palmer Randy Pelosi Steve Pesciotti Ray Polanco Jim Rollo Theresa Royster Michele Russo Lou Santiago Marc Scherer Stephanie Sgroi Douglas Thompson Charles Totoro Jennifer Warren Robert Weber Diane Williams David Wise Silver ($600 to $1,199) Anthony Albano Jim Bryan Michael Christastie Kathleen Clouden Julie Coy Ryan Crosby Jennifer Dunn PJ Furnari Angi Howell-Tenant Steve Lamonica Nereyda Perez Beth Serrano Christie Simmons Michael Tighe Victoria Vandeven Gold ($1,200 and up) Chris Caraisco Dermot Dolan Dean Gleeson Thomas Lavelle James Manley Ralph Marciante Mark Raymond Joe Spicer Deborah Valentine 6