INSURANCE
State hands $277,430 to Buffalo Fire Dept.
Published: July 04, 2009, 12:30 am
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The New York State Insurance Department said it has distributed more than $48.5 million to fire departments and districts statewide — including $277,430 to Buffalo — from a program that taxes foreign insurers that write fire insurance in the state.
The money from the foreign fire tax program represents proceeds collected by the Department in the past year from foreign and “alien” insurance companies, which are incorporated and based in other states or countries but licensed to do business in New York.
Under state insurance law, any such company that writes fire insurance in New York must contribute 2 percent of the premiums written on properties in the state. Licensed excess line brokers that place insurance policies with insurers that are not licensed in the state must contribute 3 percent of such premiums. Excess line coverage is insurance that is not available from licensed carriers and is purchased through brokers.
Fire taxes are distributed by July 1 each year based on the amount of foreign fire insurance premiums written in each fire department or district. The money is intended to be used by departments and their members for any purpose that benefits the fire department or fire company.
The bulk of the proceeds was distributed to fire districts and departments statewide. New York City received $11.5 million, while the Fireman’s Association of the State of New York got $4.7 million to support and maintain the firefighter’s home in Hudson.
“The foreign fire tax program supports the bravest among us, those who put their lives on the line every time the alarm goes off in the station house,” State Insurance Superintendent Eric Dinallo said in a press release.
jepstein@buffnews.com
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