S T A T E   O F   N E W   Y O R K
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                                  2376

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            February 19, 2009
                               ___________

Introduced  by  Sen. PADAVAN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Insurance

AN ACT to amend the insurance law, in relation to establishing  residen-
  tial  home  safety  and  loss  prevention courses and providing for an
  associated reduction in certain insurance premiums and  providing  for
  the repeal of such provisions upon expiration thereof

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 2346 of the insurance law is amended  by  adding  a
new subsection 5 to read as follows:
  5.  THE  SUPERINTENDENT  SHALL  PROVIDE FOR AN ACTUARIALLY APPROPRIATE
REDUCTION IN THE RATES OF FIRE INSURANCE PREMIUMS OR  HOMEOWNERS  INSUR-
ANCE  PREMIUMS  APPLICABLE  TO RESIDENTIAL REAL PROPERTY FOR ANY INSURED
FOR A THREE YEAR PERIOD AFTER SUCCESSFULLY COMPLETING A RESIDENTIAL HOME
SAFETY AND LOSS PREVENTION COURSE  CERTIFIED  PURSUANT  TO  SECTION  TWO
THOUSAND THREE HUNDRED FORTY-SIX-B OF THIS ARTICLE.
  S  2.  The  insurance law is amended by adding a new section 2346-b to
read as follows:
  S 2346-B. CERTIFICATION OF RESIDENTIAL HOME SAFETY AND LOSS PREVENTION
COURSES. (A) THE DEPARTMENT, IN CONSULTATION WITH  THE  OFFICE  OF  FIRE
PREVENTION  AND  CONTROL  OF  THE DEPARTMENT OF STATE AND ANY ADDITIONAL
STATE ENTITY IT DEEMS APPROPRIATE, SHALL CERTIFY  ALL  RESIDENTIAL  HOME
SAFETY  AND LOSS PREVENTION COURSES THAT ARE AUTHORIZED TO OFFER CLASSES
THROUGH WHICH THE INSURED SHALL BE  ELIGIBLE  TO  RECEIVE  AN  INSURANCE
PREMIUM  REDUCTION  PURSUANT  TO SUBSECTION FIVE OF SECTION TWO THOUSAND
THREE HUNDRED FORTY-SIX OF THIS ARTICLE.
  (B) FOR THE PURPOSES OF THIS SECTION:
  (1) "RESIDENTIAL HOME SAFETY AND LOSS PREVENTION COURSE"  OR  "COURSE"
SHALL  MEAN AN INSTRUCTIONAL PROGRAM THAT PRESENTS INFORMATION AND METH-
ODS THAT CAN HELP  AN  INSURED  TO  SIGNIFICANTLY  PREVENT  OR  MINIMIZE
PERSONAL  INJURIES  AND PROPERTY LOSSES IN RESIDENTIAL REAL PROPERTY DUE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09423-01-9
              

S. 2376                             2

TO THE OCCURRENCE  OF  FIRE,  THEFT,  BURGLARY,  ACCIDENTS  AND  WEATHER
RELATED  EVENTS, INCLUDING, BUT NOT LIMITED TO, HOW TO MITIGATE PROPERTY
DAMAGE FROM HURRICANES, ICE STORMS, TORNADOES AND OTHER  NATURAL  DISAS-
TERS; AND
  (2)  "COURSE  SPONSOR" SHALL MEAN ANY INDIVIDUAL, COMPANY OR ORGANIZA-
TION THAT HAS DEVELOPED OR OWNS  A  RESIDENTIAL  HOME  SAFETY  AND  LOSS
PREVENTION  COURSE  AND ALL AGENTS OF SUCH SPONSOR INCLUDING INDEPENDENT
CONTRACTORS THAT CONDUCT CLASSES FOR SUCH SPONSOR AND CLASS INSTRUCTORS.
  (C) THE DEPARTMENT SHALL PROMULGATE SUCH RULES AND REGULATIONS AS  ARE
NECESSARY TO IMPLEMENT THE PROVISIONS OF THIS SECTION. SUCH RULES SHALL,
AT A MINIMUM, PROVIDE FOR:
  (1)  COURSE  SPONSOR  APPLICATION  PROCEDURES  THAT AN APPLICANT SHALL
FOLLOW TO OBTAIN COURSE CERTIFICATION APPROVAL;
  (2) CURRICULUM STANDARDS THAT  THE  COURSE  SPONSORS  AND  INSTRUCTORS
SHALL UTILIZE, BASED UPON SUBMISSIONS FROM ANY COURSE SPONSOR AS DEFINED
IN  PARAGRAPH  TWO OF SUBSECTION (B) OF THIS SECTION, INCLUDING TEACHING
METHODS AND TIME REQUIREMENTS WHICH SHALL BE IN EXCESS OF THREE HOURS;
  (3) STANDARDS, BASED UPON  SUBMISSIONS  FROM  ANY  COURSE  SPONSOR  AS
DEFINED  IN PARAGRAPH TWO OF SUBSECTION (B) OF THIS SECTION, THAT COURSE
SPONSORS SHALL SATISFY TO ENSURE THAT CLASS INSTRUCTORS  ARE  ADEQUATELY
TRAINED;
  (4) A DEMONSTRATION BY THE COURSE SPONSOR THAT SUCCESSFULLY COMPLETING
SUCH COURSE WILL SIGNIFICANTLY REDUCE FIRE, THEFT, LIABILITY AND WEATHER
RELATED LOSSES IN THE RESIDENCE;
  (5)  STANDARDS,  BASED  UPON  SUBMISSIONS  FROM  ANY COURSE SPONSOR AS
DEFINED IN PARAGRAPH TWO OF SUBSECTION (B) OF THIS  SECTION,  TO  ENSURE
THAT  INDIVIDUALS  THAT  COMPLETE SUCH COURSE SHALL RECEIVE CERTIFICATES
THAT CAN BE SUBMITTED TO AN INSURER TO DEMONSTRATE SUCCESSFUL COMPLETION
OF THE CLASS. SUCH CERTIFICATES OF COMPLETION SHALL BE TAMPER PROOF  AND
DESIGNED SO THAT THEY CAN NOT BE FRAUDULENTLY REPRODUCED OR FORGED BY AN
UNAUTHORIZED ISSUER; AND
  (6)  PROCEDURES  FOR  ON-GOING SURVEILLANCE OF COURSE PRESENTATION AND
ADMINISTRATION TO ENSURE THAT THE INSURANCE  PREMIUM  REDUCTION  AWARDED
IS,  AND  CONTINUES  TO  BE,  PROPORTIONALLY  RELATED TO THE ACTUARIALLY
CALCULABLE DECREASE IN LOSSES ATTRIBUTABLE TO THE COURSE.
  (D) THE DEPARTMENT IS AUTHORIZED TO SUSPEND OR REVOKE THE  CERTIFICATE
OF APPROVAL OF ANY COURSE SPONSOR IF THE DEPARTMENT DETERMINES THAT SUCH
SPONSOR  HAS  VIOLATED  THE  PROVISIONS OF THIS SECTION OR HAS MISREPRE-
SENTED INFORMATION ON THE INITIAL APPLICATION  OR  IN  PERIODIC  REPORTS
SUBMITTED TO THE DEPARTMENT.
  (E)  THE  DEPARTMENT  MAY  INCREASE  OR DECREASE THE INSURANCE PREMIUM
DISCOUNT AWARDED TO SUCH COURSE IF IT IS FOUND THAT SUCH DISCOUNT IS NOT
ACTUARIALLY APPROPRIATE.
  S 3. Not less than 180 days before the expiration of the provision  of
this  act,  the  superintendent of insurance shall issue a report to the
governor, temporary president of the senate, speaker  of  the  assembly,
and the chairs of the committees on insurance of the senate and assembly
stating his or her findings on the effect of residential home safety and
loss prevention courses in reducing homeowners insurance claims.
  S 4. This act shall take effect on the one hundred eightieth day after
it  shall  have  become  a law and shall expire and be deemed repealed 3
years after such effective date; provided, however, any rules  or  regu-
lations  necessary  for  the  timely implementation of the provisions of
this act shall be promulgated on or before such date.