S. 5230 2
NATIONAL INSTITUTE OF HEALTH OR OTHER FEDERAL, STATE OR LOCAL AGENCY
ORGANIZED IN PART TO STUDY AND/OR PROTECT HUMAN HEALTH.
3. "TOXIC MOLD RISK ASSESSOR" MEANS A PERSON WHO ESTABLISHES THE LEVEL
OF RISK TO PUBLIC HEALTH ASSOCIATED WITH TOXIC MOLD.
4. "MOLD INSPECTION" MEANS AN INSPECTION OF REAL PROPERTY THAT IS
DESIGNED TO DISCOVER INDOOR MOLD GROWTH, TOXIC MOLD GROWTH, CONDITIONS
THAT FACILITATE INDOOR MOLD GROWTH AND/OR INDICIA OF CONDITIONS THAT ARE
LIKELY TO FACILITATE INDOOR MOLD GROWTH.
S 4851. RESEARCH AND REPORTING. 1. THE DEPARTMENT OF ENVIRONMENTAL
CONSERVATION AND THE DEPARTMENT SHALL JOINTLY UNDERTAKE A COMPREHENSIVE
STUDY OF THE HEALTH EFFECTS OF INDOOR MOLD GROWTH AND TOXIC MOLD. THE
RESULTS OF THE AFOREMENTIONED STUDY SHALL BE SUBMITTED TO THE GOVERNOR,
THE TEMPORARY PRESIDENT OF THE SENATE, THE MINORITY LEADER OF THE
SENATE, THE SPEAKER OF THE ASSEMBLY, THE MINORITY LEADER OF THE ASSEMBLY
AND THE GENERAL PUBLIC. THE STUDY SHOULD ASCERTAIN AMONG OTHER THINGS:
DETAILED INFORMATION ABOUT HARMFUL AND/OR TOXIC STRAINS OF MOLD; METHODS
OF DETECTING HARMFUL AND/OR TOXIC MOLD; POTENTIAL DANGERS OF PROLONGED
EXPOSURE TO INDOOR MOLD GROWTH; MINIMUM LEVELS OF EXPOSURE AT WHICH
INDOOR MOLD GROWTH IS HARMFUL TO HUMAN HEALTH; AND THE HAZARDS INVOLVED
IN MOLD REMEDIATION.
2. THE DIVISION OF HOUSING AND COMMUNITY RENEWAL SHALL STUDY AND
REPORT THE IMPACT OF CONSTRUCTION STANDARDS ON INDOOR MOLD GROWTH. SUCH
STUDY SHALL BE SUBMITTED TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE
SENATE, THE MINORITY LEADER OF THE SENATE, THE SPEAKER OF THE ASSEMBLY
AND THE MINORITY LEADER OF THE ASSEMBLY.
3. ALL RESEARCH AND STUDY CONDUCTED PURSUANT TO THIS ARTICLE SHALL BE
ONGOING WITH UPDATED REPORTS PUBLISHED AS NEEDED TO ADEQUATELY INFORM
THE PUBLIC AND PROTECT HUMAN HEALTH.
S 4852. STANDARDS FOR PREVENTING, DETECTING, AND REMEDIATING INDOOR
MOLD GROWTH. 1. AFTER APPROPRIATE RESEARCH AND STUDY AS REQUIRED BY
THIS ARTICLE, BUT NOT LATER THAN ONE YEAR AFTER THE EFFECTIVE DATE OF
THIS ARTICLE, THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION, IN CONJUNC-
TION WITH APPROPRIATE AGENCIES, SHALL PROMULGATE RULES AND REGULATIONS
THAT INCLUDE AMONG OTHER THINGS: STANDARDS FOR MOLD INSPECTION, MOLD
REMEDIATION, TESTING THE TOXICITY OF MOLD, AND THE PROBLEM OF MOLD REME-
DIATION; STANDARDS FOR CERTIFICATION OF MOLD INSPECTORS, MOLD REMEDIA-
TORS, MOLD TESTING LABS, MOLD RISK ASSESSORS AND INDUSTRIAL HYGIENISTS
INVOLVED WITH MOLD REMEDIATION PLANNING; AND STANDARDS FOR THE DESIGN,
INSTALLATION, AND MAINTENANCE OF AIR VENTILATION AND/OR AIR-CONDITIONING
SYSTEMS TO PREVENT MOLD GROWTH OR CREATION OF CONDITIONS THAT FOSTER
MOLD GROWTH.
2. AFTER APPROPRIATE RESEARCH AND STUDY AS REQUIRED BY THIS ARTICLE,
BUT NOT LATER THAN ONE YEAR AFTER THE EFFECTIVE DATE OF THIS ARTICLE,
THE DIVISION OF HOUSING AND COMMUNITY RENEWAL SHALL PROMULGATE GUIDE-
LINES IDENTIFYING CONDITIONS CREATED PRIOR TO AND DURING CONSTRUCTION
THAT FACILITATE THE GROWTH OF INDOOR MOLD AND RECOMMENDING APPROPRIATE
MEANS OF ELIMINATING THOSE CONDITIONS.
3. TO THE MAXIMUM EXTENT POSSIBLE, THE STANDARDS, GUIDELINES AND
RECOMMENDATIONS ESTABLISHED UNDER THIS SECTION SHALL BE DEVELOPED WITH
THE ASSISTANCE OF ORGANIZATIONS INVOLVED IN ESTABLISHING NATIONAL BUILD-
ING CONSTRUCTION STANDARDS AND REPRESENTATIVES OF STATE OR LOCAL AUTHOR-
ITIES RESPONSIBLE FOR BUILDING INSPECTIONS AND ISSUANCE OF CERTIFICATES
OF OCCUPANCY.
4. THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION AND THE DIVISION OF
HOUSING AND COMMUNITY RENEWAL SHALL MAKE DRAFTS OF THEIR RESPECTIVE
DOCUMENTS AVAILABLE FOR PUBLIC REVIEW AND COMMENT THIRTY DAYS PRIOR TO
S. 5230 3
PUBLICATION. THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION AND THE DIVI-
SION OF HOUSING AND COMMUNITY RENEWAL SHALL MAKE FINAL MODEL STANDARDS
AND TECHNIQUES AVAILABLE TO THE PUBLIC NO LATER THAN ONE YEAR AFTER THE
EFFECTIVE DATE OF THIS ARTICLE.
5. THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION SHALL TAKE SUCH
ACTIONS AS MAY BE NECESSARY TO INFORM APPROPRIATE LOCAL GOVERNMENT AGEN-
CIES AND AUTHORITIES OF THE MODEL STANDARDS AND TECHNIQUES WITH THE GOAL
OF ENSURING THAT SUCH AGENCIES AND AUTHORITIES ADOPT SUCH STANDARDS AND
TECHNIQUES BY JUNE FIRST, TWO THOUSAND TEN.
6. ALL STANDARDS AND GUIDELINES PROMULGATED PURSUANT TO THIS ARTICLE
SHALL BE UPDATED AND PUBLISHED AS NEEDED TO ADEQUATELY INFORM THE PUBLIC
AND PROTECT HUMAN HEALTH.
S 4853. PUBLIC EDUCATION. 1. THE DEPARTMENT OF ENVIRONMENTAL CONSER-
VATION, THE DEPARTMENT AND THE DIVISION OF HOUSING AND COMMUNITY RENEWAL
AND OTHER RELEVANT AGENCIES SHALL SPONSOR PUBLIC EDUCATION PROGRAMS TO
PROMOTE AND INCREASE PUBLIC AWARENESS OF THE DANGERS OF INDOOR MOLD
GROWTH OR TOXIC MOLD.
2. THE PUBLIC EDUCATION PROGRAMS SHOULD INCLUDE, AMONG OTHER THINGS,
INFORMATION REGARDING THE CONDITIONS THAT FACILITATE INDOOR MOLD GROWTH;
GUIDELINES FOR REMEDIATING INDOOR MOLD GROWTH; DANGERS OF EXPOSURE TO
INDOOR MOLD GROWTH IN PUBLIC BUILDINGS; RISK ASSESSMENT AND INSPECTION
METHODS FOR TOXIC MOLD; AND OTHER NECESSARY INFORMATION.
A. THE PUBLIC EDUCATION PROGRAMS SHALL PROVIDE EDUCATION AND INFORMA-
TION THROUGH MODES OF COMMUNICATION THAT ARE COMMONLY UTILIZED AND ABLE
TO BE EASILY CONSUMED BY RELEVANT INDIVIDUALS OR ORGANIZATIONS;
B. PUBLIC EDUCATION PROGRAMS SHOULD BE DESIGNED TO REACH HEALTH
PROFESSIONALS; THE GENERAL PUBLIC; HOMEOWNERS, PROSPECTIVE HOMEOWNERS,
LANDLORDS, AND TENANTS; CONSUMERS OF HOME IMPROVEMENT PRODUCTS; THE REAL
ESTATE INDUSTRY; THE HOME CONSTRUCTION AND RENOVATION INDUSTRY, INCLUD-
ING THE HEATING AND AIR CONDITIONING INDUSTRY; AND OTHER INDIVIDUALS AND
ORGANIZATIONS WITH AN INTEREST IN THE USE AND/OR OCCUPANCY OF REAL PROP-
ERTY.
3. NOTWITHSTANDING THE FOREGOING, THE DEPARTMENT OF ENVIRONMENTAL
CONSERVATION, IN CONSULTATION WITH APPROPRIATE AGENCIES, SHALL PUBLISH,
AND PERIODICALLY REVISE, A PAMPHLET REGARDING INDOOR MOLD HAZARDS. AMONG
OTHER THINGS THIS PAMPHLET SHOULD: CONTAIN INFORMATION REGARDING THE
HEALTH RISKS ASSOCIATED WITH EXPOSURE TO INDOOR MOLD GROWTH; PROVIDE
INFORMATION ON THE HAZARDS OF INDOOR MOLD GROWTH IN PUBLIC HOUSING;
DESCRIBE THE RISKS OF MOLD EXPOSURE FOR PERSONS RESIDING IN A DWELLING
WITH TOXIC MOLD; PROVIDE INFORMATION ON APPROVED METHODS FOR EVALUATING
AND REDUCING MOLD GROWTH AND THEIR EFFECTIVENESS IN IDENTIFYING, REDUC-
ING, ELIMINATING, OR PREVENTING MOLD GROWTH; ADVISE PERSONS HOW TO
OBTAIN A LIST OF PERSONS CERTIFIED TO INSPECT OR REMEDIATE MOLD GROWTH
IN THE AREA IN WHICH THE PAMPHLET IS TO BE USED; STATE THAT A RISK
ASSESSMENT OR INSPECTION FOR MOLD GROWTH IS RECOMMENDED PRIOR TO THE
PURCHASE, LEASE, OR RENOVATION OF TARGET HOUSING; STATE THAT CERTAIN
STATE AND LOCAL LAWS IMPOSE ADDITIONAL REQUIREMENTS RELATED TO MOLD
GROWTH IN HOUSING AND PROVIDE A LISTING OF FEDERAL, STATE, AND LOCAL
AGENCIES, INCLUDING ADDRESS AND TELEPHONE NUMBER, THAT CAN PROVIDE
INFORMATION ABOUT APPLICABLE LAWS AND AVAILABLE GOVERNMENTAL AND PRIVATE
ASSISTANCE AND FINANCING; AND PROVIDE INFORMATION DEEMED APPROPRIATE
AND/OR NECESSARY TO PROMOTE AWARENESS OF THE HAZARDS POSED BY INDOOR
MOLD.
S. 5230 4
TITLE II
HOUSING PROVISIONS FOR INDOOR MOLD HAZARD PREVENTION
AND DETECTION
SECTION 4855. INSPECTIONS OF RESIDENTIAL PROPERTY.
4856. SALE OR LEASE OF RESIDENTIAL PROPERTY.
4857. INSPECTION REQUIREMENTS FOR EXISTING PUBLIC HOUSING.
4858. CONSTRUCTION REQUIREMENTS FOR NEW PUBLIC HOUSING.
4859. BUILDING CODES.
4860. INSPECTION REQUIREMENT IN CONNECTION WITH STATE MADE OR
INSURED MORTGAGES.
S 4855. INSPECTIONS OF RESIDENTIAL PROPERTY. COMMENCING JANUARY
FIRST, TWO THOUSAND ELEVEN, THE LESSOR OF EACH UNIT OF RENTAL PROPERTY
SHALL CONDUCT AN ANNUAL INSPECTION OF SUCH PROPERTY IN ACCORDANCE WITH
THE MODEL STANDARDS AND TECHNIQUES SET FORTH IN SECTION FORTY-EIGHT
HUNDRED FIFTY-TWO OF THIS ARTICLE AND SHALL PROMPTLY NOTIFY THE OCCU-
PANTS OF SUCH PROPERTY OF THE RESULTS OF SUCH INSPECTION.
S 4856. SALE OR LEASE OF RESIDENTIAL PROPERTY. 1. NOT LATER THAN JANU-
ARY FIRST, TWO THOUSAND TWELVE, THE COMMISSIONER OF HOUSING AND COMMUNI-
TY RENEWAL AND THE COMMISSIONER OF ENVIRONMENTAL CONSERVATION SHALL
PROMULGATE RULES AND REGULATIONS UNDER THIS SECTION FOR THE DISCLOSURE
OF MOLD HAZARDS IN HOUSING WHICH IS OFFERED FOR SALE OR LEASE.
2. THE RULES AND REGULATIONS SHALL REQUIRE THAT, BEFORE THE SALE OR
LEASE OF REAL PROPERTY A MOLD INSPECTION BE CONDUCTED BY A STATE-CERTI-
FIED MOLD INSPECTOR AND, WITHIN A REASONABLE TIME PRIOR TO THE EFFECTIVE
DATE OF THE PURCHASE OR LEASE, THE SELLER OR LESSOR SHALL CLEARLY AND
ACCURATELY DISCLOSE TO THE PURCHASER OR LESSEE THE RESULTS OF THE
INSPECTION REQUIRED UNDER THIS SECTION.
3. RULES AND REGULATIONS PROMULGATED UNDER THIS SECTION SHALL PROVIDE
THAT EVERY CONTRACT FOR THE SALE OR LEASE OF ANY INTEREST IN HOUSING
SHALL CONTAIN A STATEMENT SIGNED BY BOTH THE SELLER OR LESSOR AND BY THE
PURCHASER OR LESSEE THAT ACKNOWLEDGES THE RESULT OF THE MOLD INSPECTION
REQUIRED BY SUBDIVISION TWO OF THIS SECTION.
4. ANY PERSON WHO KNOWINGLY MISREPRESENTS THE RESULTS OF A MOLD
INSPECTION OR CAUSES THE RESULTS OF A MOLD INSPECTION TO BE INACCURATE
SHALL BE SUBJECT TO A CIVIL MONEY PENALTY OF ONE THOUSAND DOLLARS.
5. ANY PERSON WHO KNOWINGLY VIOLATES THE PROVISIONS OF THIS SECTION
SHALL BE JOINTLY AND SEVERALLY LIABLE TO THE PURCHASER OR LESSEE IN AN
AMOUNT EQUAL TO THREE TIMES THE AMOUNT OF DAMAGES INCURRED BY SUCH INDI-
VIDUAL.
6. IN ANY CIVIL ACTION BROUGHT FOR DAMAGES, THE APPROPRIATE COURT MAY
AWARD COURT COSTS TO THE PARTY COMMENCING SUCH ACTION, TOGETHER WITH
REASONABLE ATTORNEY FEES AND ANY EXPERT WITNESS FEES, IF THAT PARTY
PREVAILS.
S 4857. INSPECTION REQUIREMENTS FOR EXISTING PUBLIC HOUSING. 1. THE
COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL SHALL ESTABLISH PROCEDURES
TO ELIMINATE, AS FAR AS PRACTICABLE, THE HAZARDS OF INDOOR MOLD WITH
RESPECT TO ANY EXISTING PUBLIC HOUSING WHICH MAY PRESENT SUCH HAZARDS,
IN ACCORDANCE WITH THIS SECTION. SUCH PROCEDURES SHALL PROVIDE FOR
APPROPRIATE MEASURES TO CONDUCT RISK ASSESSMENTS, INSPECTIONS, INTERIM
CONTROLS, AND ABATEMENT OF INDOOR MOLD HAZARDS.
2. AT A MINIMUM, SUCH PROCEDURES SHALL REQUIRE: THE PROVISION OF
INDOOR MOLD HAZARD INFORMATION PAMPHLETS TO TENANTS; PERIODIC RISK
ASSESSMENTS AND INTERIM CONTROLS IN ACCORDANCE WITH A SCHEDULE DETER-
MINED BY THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL; MOLD
INSPECTIONS; ABATEMENT OF INDOOR MOLD HAZARDS IDENTIFIED; WHERE RISK
ASSESSMENT, INSPECTION, OR REDUCTION ACTIVITIES HAVE BEEN UNDERTAKEN,
S. 5230 5
THE PROVISION OF NOTICE TO OCCUPANTS DESCRIBING THE NATURE AND SCOPE OF
SUCH ACTIVITIES AND THE ACTUAL RISK ASSESSMENT OR INSPECTION REPORTS;
AND SUCH OTHER MEASURES AS THE COMMISSIONER OF HOUSING AND COMMUNITY
RENEWAL DEEMS APPROPRIATE.
S 4858. CONSTRUCTION REQUIREMENTS FOR NEW PUBLIC HOUSING. THE COMMIS-
SIONER OF HOUSING AND COMMUNITY RENEWAL SHALL TAKE SUCH ACTIONS AND
IMPOSE SUCH STANDARDS AND CONDITIONS AS MAY BE NECESSARY OR APPROPRIATE
TO ENSURE THAT PUBLIC HOUSING CONSTRUCTED AFTER THE DATE OF THE ISSUANCE
OF THE MODEL CONSTRUCTION STANDARDS AND TECHNIQUES ESTABLISHED UNDER
SECTION FORTY-EIGHT HUNDRED FIFTY-TWO OF THIS ARTICLE, IS CONSTRUCTED IN
ACCORDANCE WITH SUCH MODEL STANDARDS AND TECHNIQUES.
S 4859. BUILDING CODES. 1. THE COMMISSIONER OF HOUSING AND COMMUNITY
RENEWAL SHALL DEVELOP MODEL CONSTRUCTION STANDARDS AND TECHNIQUES FOR
PREVENTING AND CONTROLLING MOLD WITHIN NEW BUILDINGS.
2. THE MODEL STANDARDS AND TECHNIQUES SHALL PROVIDE FOR GEOGRAPHIC
DIFFERENCES IN CONSTRUCTION TYPES AND MATERIALS, GEOLOGY, WEATHER, AND
OTHER VARIABLES THAT MAY AFFECT MOLD LEVELS IN NEW BUILDINGS.
3. TO THE MAXIMUM EXTENT POSSIBLE, THESE STANDARDS AND TECHNIQUES
SHOULD BE DEVELOPED WITH THE ASSISTANCE OF ORGANIZATIONS INVOLVED IN
ESTABLISHING NATIONAL BUILDING CONSTRUCTION STANDARDS AND TECHNIQUES.
THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL SHALL MAKE A DRAFT OF
THE DOCUMENT CONTAINING THE MODEL STANDARDS AND TECHNIQUES AVAILABLE FOR
PUBLIC REVIEW AND COMMENT. THE COMMISSIONER OF HOUSING AND COMMUNITY
RENEWAL SHALL MAKE FINAL MODEL STANDARDS AND TECHNIQUES AVAILABLE TO THE
PUBLIC NO LATER THAN JANUARY FIRST, TWO THOUSAND TEN.
S 4860. INSPECTION REQUIREMENT IN CONNECTION WITH STATE MADE OR
INSURED MORTGAGES. 1. AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND TEN, NO
STATE AGENCY MAY MAKE, INSURE, OR GUARANTEE A MORTGAGE OR LOAN FOR
PURCHASE OR LEASE OF RESIDENTIAL REAL PROPERTY UNLESS: THERE HAS BEEN AN
INSPECTION OF THE PROPERTY FOR THE PRESENCE OF INDOOR MOLD GROWTH, TOXIC
MOLD AND/OR THE CONDITIONS THAT FACILITATE INDOOR MOLD GROWTH HAZARDS BY
A MOLD INSPECTOR CERTIFIED IN ACCORDANCE WITH STANDARDS PROMULGATED
PURSUANT TO THIS ARTICLE WITHIN A REASONABLE TIME PRIOR TO THE MAKING,
INSURING, OR GUARANTEEING OF THE MORTGAGE OR LOAN AND THE RESULTS OF THE
INSPECTION ARE CLEARLY AND ACCURATELY DISCLOSED TO THE PURCHASER, SELLER
AND MORTGAGOR; AND THE CONTRACT FOR PURCHASE AND SALE OF AN INTEREST IN
RESIDENTIAL REAL PROPERTY FOR WHICH SUCH MORTGAGE OR LOAN WAS MADE
CONTAINS A STATEMENT SIGNED BY THE SELLER OR LESSOR AND BY THE PURCHASER
OR LESSEE THAT THESE CONDITIONS HAVE BEEN COMPLIED WITH.
2. THE HEADS OF EACH OF THE AGENCIES OR AUTHORITIES THAT MAKE, INSURE,
OR GUARANTEE MORTGAGES OR LOANS FOR PURCHASE OR LEASE OF RESIDENTIAL
REAL PROPERTY SHALL, NOT LATER THAN SEPTEMBER THIRTIETH, TWO THOUSAND
NINE, ISSUE SUCH RULES AND REGULATIONS AS MAY BE NECESSARY TO CARRY OUT
THIS SECTION.
S 3. The insurance law is amended by adding a new article 57 to read
as follows:
ARTICLE 57
TOXIC MOLD HAZARD INSURANCE PROGRAM
SECTION 5700. PROGRAM AUTHORITY.
5701. SCOPE OF PROGRAM AND PRIORITIES.
5702. NATURE AND LIMITATION OF INSURANCE COVERAGE.
5703. ESTIMATES OF PREMIUM RATES.
5704. ESTABLISHMENT OF CHARGEABLE PREMIUM RATES.
5705. TOXIC MOLD HAZARD INSURANCE FUND.
5706. OPERATING COSTS AND ALLOWANCES.
5707. PAYMENT OF CLAIMS.
S. 5230 6
5708. DISSEMINATION OF INSURANCE INFORMATION.
5709. COORDINATION WITH OTHER PROGRAMS.
5710. REPORTS.
5711. IMPLEMENTATION.
5712. INDUSTRY INSURANCE POOL.
5713. AGREEMENTS WITH INSURANCE POOL.
5714. ADJUSTMENT AND PAYMENT OF CLAIMS AND JUDICIAL REVIEW.
5715. PREMIUM EQUALIZATION PAYMENTS.
5716. EMERGENCY IMPLEMENTATION OF PROGRAM.
5717. ADJUSTMENT AND PAYMENT OF CLAIMS AND JUDICIAL REVIEW.
5718. SERVICES BY THE INSURANCE INDUSTRY.
5719. USE OF INSURANCE POOL, COMPANIES OR OTHER PRIVATE ORGAN-
IZATIONS FOR CERTAIN PAYMENTS.
5720. SETTLEMENT AND ARBITRATION.
5721. RECORDS AND AUDITS.
5722. PAYMENTS.
S 5700. PROGRAM AUTHORITY. (A) THE SUPERINTENDENT SHALL ESTABLISH AND
CARRY OUT A STATE TOXIC MOLD INSURANCE PROGRAM TO ENABLE INTERESTED
PERSONS TO PURCHASE INSURANCE AGAINST LOSSES RESULTING FROM MOLD HAZARDS
IN REAL PROPERTIES LOCATED IN THE STATE.
(B) IN CARRYING OUT THE TOXIC MOLD HAZARD INSURANCE PROGRAM UNDER THIS
ARTICLE, THE SUPERINTENDENT SHALL, TO THE MAXIMUM EXTENT PRACTICABLE,
ENCOURAGE AND ARRANGE FOR APPROPRIATE FINANCIAL PARTICIPATION AND RISK
SHARING IN THE PROGRAM BY INSURANCE COMPANIES AND OTHER INSURERS; AND
OTHER APPROPRIATE PARTICIPATION ON OTHER THAN A RISK-SHARING BASIS, BY
INSURANCE COMPANIES AND OTHER INSURERS, INSURANCE AGENTS AND BROKERS,
AND INSURANCE ADJUSTMENT ORGANIZATIONS.
S 5701. SCOPE OF PROGRAM AND PRIORITIES. (A) IN CARRYING OUT THE
TOXIC MOLD HAZARD INSURANCE PROGRAM, THE SUPERINTENDENT SHALL AFFORD A
PRIORITY TO MAKING TOXIC MOLD HAZARD INSURANCE AVAILABLE TO COVER RESI-
DENTIAL PROPERTIES WHICH ARE DESIGNED FOR THE OCCUPANCY OF FROM ONE TO
FOUR FAMILIES.
(B) IF, PURSUANT TO STUDIES AND INVESTIGATIONS PURSUANT TO SECTION
FIVE THOUSAND SEVEN HUNDRED THREE OF THIS ARTICLE OR SUCH OTHER INFORMA-
TION AS THE SUPERINTENDENT CONSIDERS APPROPRIATE, THE SUPERINTENDENT
DETERMINES THAT IT WOULD BE FEASIBLE TO EXTEND THE INSURANCE PROGRAM
UNDER THIS ARTICLE TO COVER OTHER PROPERTIES, THE SUPERINTENDENT MAY
TAKE SUCH ACTION UNDER THIS ARTICLE AS MAY BE NECESSARY TO MAKE INSUR-
ANCE AVAILABLE TO COVER, ON SUCH BASIS AS MAY BE FEASIBLE, ANY TYPES AND
CLASSES OF: OTHER RESIDENTIAL PROPERTIES; CHURCH PROPERTIES, AND BUSI-
NESS PROPERTIES WHICH ARE OWNED OR LEASED AND OPERATED BY SMALL BUSINESS
CONCERNS; OTHER BUSINESS PROPERTIES; PROPERTIES OCCUPIED BY PRIVATE
NONPROFIT ORGANIZATIONS; AND PROPERTIES OWNED BY STATE AND LOCAL GOVERN-
MENTS AND AGENCIES THEREOF; AND ANY SUCH EXTENSIONS OF THE PROGRAM TO
ANY TYPES AND CLASSES OF THESE PROPERTIES SHALL FROM TIME TO TIME BE
PRESCRIBED IN RULES AND REGULATIONS.
S 5702. NATURE AND LIMITATION OF INSURANCE COVERAGE. THE SUPERINTEN-
DENT SHALL FROM TIME TO TIME, AFTER CONSULTATION WITH INTERESTED
PARTIES, PROVIDE BY RULE AND REGULATION FOR GENERAL TERMS AND CONDITIONS
OF INSURABILITY WHICH SHALL BE APPLICABLE TO PROPERTIES ELIGIBLE FOR
TOXIC MOLD HAZARD INSURANCE COVERAGE UNDER SECTION FIVE THOUSAND SEVEN
HUNDRED ONE OF THIS ARTICLE, INCLUDING: THE TYPES, CLASSES, AND
LOCATIONS OF ANY SUCH PROPERTIES WHICH SHALL BE ELIGIBLE FOR SUCH INSUR-
ANCE; THE NATURE AND LIMITS OF LOSS OR DAMAGE THAT MAY BE COVERED BY
SUCH INSURANCE, WHICH SHALL INCLUDE COSTS OF PROPERTY DAMAGE AND LOSS,
REMEDIATION, RELOCATION (DURING REMEDIATION OR PERMANENTLY), AND RENTAL
S. 5230 7
OF AN ALTERNATIVE DWELLING DURING REMEDIATION; THE CLASSIFICATION, LIMI-
TATION, AND REJECTION OF ANY RISKS THAT MAY BE APPROPRIATE; APPROPRIATE
MINIMUM PREMIUMS; APPROPRIATE LOSS-DEDUCTIBLES; APPROPRIATE LIMITS ON
AGGREGATE LIABILITY UNDER SUCH COVERAGE, BASED ON THE TYPE OF PROPERTY
INSURED; AND ANY OTHER TERMS AND CONDITIONS RELATING TO INSURANCE COVER-
AGE OR EXCLUSION WHICH MAY BE NECESSARY TO CARRY OUT THE PURPOSES OF
THIS ARTICLE.
S 5703. ESTIMATES OF PREMIUM RATES. THE SUPERINTENDENT SHALL UNDERTAKE
AND CARRY OUT SUCH STUDIES AND INVESTIGATIONS AND RECEIVE OR EXCHANGE
SUCH INFORMATION AS MAY BE NECESSARY TO ESTIMATE, AND SHALL FROM TIME TO
TIME ESTIMATE THE FOLLOWING PREMIUM RATES FOR TOXIC MOLD HAZARD INSUR-
ANCE COVERAGE UNDER THIS ARTICLE:
(A) ACTUARIAL RATES. THE RISK PREMIUM RATES THAT WOULD BE REQUIRED TO
MAKE SUCH INSURANCE AVAILABLE ON AN ACTUARIAL BASIS FOR ANY TYPES AND
CLASSES OF PROPERTIES FOR WHICH INSURANCE COVERAGE IS AVAILABLE UNDER
SECTION FIVE THOUSAND SEVEN HUNDRED ONE OF THIS ARTICLE AND WHICH: ARE
BASED ON CONSIDERATION OF THE RISK INVOLVED AND ACCEPTED ACTUARIAL PRIN-
CIPLES; INCLUDE THE APPLICABLE OPERATING COSTS AND ALLOWANCES SET FORTH
IN THE SCHEDULES PRESCRIBED UNDER SECTION FIVE THOUSAND SEVEN HUNDRED
SIX OF THIS ARTICLE AND REFLECTED IN SUCH RATES; AND INCLUDE ANY ADMIN-
ISTRATIVE EXPENSES OF CARRYING OUT THE INSURANCE PROGRAM UNDER THIS
ARTICLE.
(B) SUBSIDIZED RATES. THE RISK PREMIUM RATES THAT: ARE LESS THAN THE
RATES ESTIMATED UNDER SUBSECTION (A) OF THIS SECTION; WOULD BE REASON-
ABLE; WOULD ENCOURAGE PROSPECTIVE INSUREDS TO PURCHASE TOXIC MOLD HAZARD
INSURANCE COVERAGE; WOULD BE CONSISTENT WITH THE PURPOSES OF THIS ARTI-
CLE; AND INCLUDE ANY ADMINISTRATIVE EXPENSES INCURRED IN CARRYING OUT
THE INSURANCE PROGRAM UNDER THIS ARTICLE.
S 5704. ESTABLISHMENT OF CHARGEABLE PREMIUM RATES. (A) ON THE BASIS OF
ESTIMATES MADE UNDER SECTION FIVE THOUSAND SEVEN HUNDRED THREE OF THIS
ARTICLE AND SUCH OTHER INFORMATION AS MAY BE NECESSARY, THE SUPERINTEN-
DENT SHALL FROM TIME TO TIME, AFTER CONSULTATION WITH THE INTERESTED
PARTIES, PRESCRIBE BY RULES AND REGULATIONS: CHARGEABLE PREMIUM RATES
FOR ANY TYPES AND CLASSES OF PROPERTIES FOR WHICH INSURANCE COVERAGE
SHALL BE AVAILABLE UNDER SECTION FIVE THOUSAND SEVEN HUNDRED ONE OF THIS
ARTICLE (AT LESS THAN THE ESTIMATED RISK PREMIUM RATES UNDER SECTION
FIVE THOUSAND SEVEN HUNDRED THREE OF THIS ARTICLE, WHERE NECESSARY), AND
THE TERMS AND CONDITIONS UNDER WHICH, AND THE AREAS WITHIN WHICH, SUCH
RATES SHALL APPLY.
(B) SUCH RATES SHALL, INSOFAR AS PRACTICABLE, BE:
(1) BASED ON A CONSIDERATION OF THE RESPECTIVE RISKS INVOLVED, INCLUD-
ING DIFFERENCES IN RISKS DUE TO CONSTRUCTION TYPES AND MATERIALS, BUILD-
ING SYSTEMS, GEOLOGY, CLIMATE, AND OTHER FACTORS THAT MAY AFFECT MOLD
LEVELS IN BUILDINGS;
(2) ADEQUATE, ON THE BASIS OF ACCEPTED ACTUARIAL PRINCIPLES, TO
PROVIDE RESERVES FOR ANTICIPATED LOSSES; OR IF LESS THAN SUCH AMOUNT
CONSISTENT WITH THE OBJECTIVE OF MAKING TOXIC MOLD HAZARD INSURANCE
COVERAGE AVAILABLE WHERE NECESSARY AT REASONABLE RATES SO AS TO ENCOUR-
AGE PROSPECTIVE INSUREDS TO PURCHASE SUCH INSURANCE AND WITH THE
PURPOSES OF THIS ARTICLE;
(3) ADEQUATE TO PROVIDE FOR ANY ADMINISTRATIVE EXPENSES OF THE INSUR-
ANCE PROGRAMS UNDER THIS ARTICLE; AND
(4) STATED SO AS TO REFLECT THE BASIS FOR SUCH RATES, INCLUDING THE
DIFFERENCES (IF ANY) BETWEEN THE ESTIMATED ACTUARIAL RISK PREMIUM RATES
UNDER SUBSECTION (A) OF SECTION FIVE THOUSAND SEVEN HUNDRED THREE OF
THIS ARTICLE AND THE ESTIMATED SUBSIDIZED RISK PREMIUM RATES UNDER
S. 5230 8
SUBSECTION (B) OF SECTION FIVE THOUSAND SEVEN HUNDRED THREE OF THIS
ARTICLE.
(C) SUBJECT ONLY TO THE LIMITATION UNDER SUBDIVISION FOUR OF THIS
SECTION, THE CHARGEABLE RATE WITH RESPECT TO ANY PROPERTY THAT IS
LOCATED WITHIN A JURISDICTION THAT THE SUPERINTENDENT DETERMINES HAS NOT
ADOPTED ADEQUATE TOXIC MOLD CONTROL MEASURES, WITH EFFECTIVE ENFORCEMENT
PROVISIONS, THAT THE SUPERINTENDENT DETERMINES ARE CONSISTENT WITH THE
MODEL STANDARDS AND TECHNIQUES FOR INSPECTION AND CERTIFICATION OF OCCU-
PANCY ISSUED UNDER SECTION FORTY-EIGHT HUNDRED FIFTY-FIVE OF THE PUBLIC
HEALTH LAW AND WITH THE MODEL STANDARDS FOR PUBLIC DISCLOSURE ISSUED
UNDER SECTION FORTY-EIGHT HUNDRED FIFTY-SIX OF THE PUBLIC HEALTH LAW,
SHALL NOT BE LESS THAN THE APPLICABLE ESTIMATED RISK PREMIUM RATE FOR
SUCH AREA (OR SUBDIVISION THEREOF) UNDER SUBSECTION (A) OF SECTION FIVE
THOUSAND SEVEN HUNDRED THREE OF THIS ARTICLE, EXCEPT THAT SUCH PREMIUM
RATE FOR SUCH PROPERTIES SHALL BE AFFORDABLE AND REASONABLY PRICED.
(D) NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE, THE CHARGEA-
BLE RISK PREMIUM RATES FOR TOXIC MOLD HAZARD INSURANCE UNDER THIS ARTI-
CLE FOR ANY PROPERTIES WITHIN ANY SINGLE RISK CLASSIFICATION MAY NOT BE
INCREASED BY AN AMOUNT THAT WOULD RESULT IN THE AVERAGE OF SUCH RATE
INCREASES FOR PROPERTIES WITHIN THE RISK CLASSIFICATION DURING ANY
TWELVE-MONTH PERIOD EXCEEDING TEN PERCENT OF THE AVERAGE OF THE RISK
PREMIUM RATES FOR PROPERTIES WITHIN THE RISK CLASSIFICATION UPON THE
COMMENCEMENT OF SUCH TWELVE-MONTH PERIOD.
(E) THE CHARGEABLE RISK PREMIUM RATE FOR TOXIC MOLD HAZARD INSURANCE
UNDER THIS ARTICLE FOR A SINGLE FAMILY DWELLING SHALL BE AFFORDABLE AND
REASONABLY PRICED.
S 5705. TOXIC MOLD HAZARD INSURANCE FUND. (A) TO CARRY OUT THE TOXIC
MOLD HAZARD INSURANCE PROGRAM UNDER THIS ARTICLE, THE SUPERINTENDENT
SHALL ESTABLISH A TOXIC MOLD HAZARD INSURANCE FUND, WHICH SHALL BE AN
ACCOUNT SEPARATE FROM ANY OTHER ACCOUNTS OR FUNDS AVAILABLE TO THE
SUPERINTENDENT AND SHALL BE AVAILABLE FOR MAKING SUCH PAYMENTS AS MAY,
FROM TIME TO TIME, BE REQUIRED UNDER SECTION FIVE THOUSAND SEVEN HUNDRED
FIFTEEN OF THIS ARTICLE; AND FOR THE PURPOSES SPECIFIED IN THIS SECTION
UNDER THE CONDITIONS PROVIDED THEREIN.
(B) THE FUND SHALL BE CREDITED WITH ANY AMOUNTS AS MAY BE APPROPRIATED
FOR THE FUND; INTEREST WHICH MAY BE EARNED ON INVESTMENTS OF THE FUND
PURSUANT TO SUBSECTION (C) OF THIS SECTION; RECEIPTS FROM ANY OTHER
OPERATIONS UNDER THIS ARTICLE (INCLUDING PREMIUMS UNDER THE CONDITIONS
SPECIFIED IN THIS SECTION); AND SUCH OTHER AMOUNTS AS MAY BE CREDITED TO
THE FUND.
(C) IF THE SUPERINTENDENT DETERMINES THAT THE AMOUNTS IN THE FUND ARE
IN EXCESS OF CURRENT NEEDS, THE SUPERINTENDENT MAY INVEST SUCH AMOUNTS
AS THE SUPERINTENDENT DEEMS ADVISABLE.
S 5706. OPERATING COSTS AND ALLOWANCES. (A) THE SUPERINTENDENT SHALL
FROM TIME TO TIME NEGOTIATE WITH APPROPRIATE REPRESENTATIVES OF THE
INSURANCE INDUSTRY FOR THE PURPOSE OF ESTABLISHING A CURRENT SCHEDULE OF
OPERATING COSTS APPLICABLE BOTH TO RISK-SHARING INSURANCE COMPANIES AND
OTHER INSURERS AND TO INSURANCE COMPANIES AND OTHER INSURERS, INSURANCE
AGENTS AND BROKERS, AND INSURANCE ADJUSTMENT ORGANIZATIONS PARTICIPATING
ON OTHER THAN A RISK-SHARING BASIS, AND A CURRENT SCHEDULE OF OPERATING
ALLOWANCES APPLICABLE TO RISK-SHARING INSURANCE COMPANIES AND OTHER
INSURERS.
(B) FOR PURPOSES OF SUBSECTION (A) OF THIS SECTION, THE FOLLOWING
DEFINITIONS SHALL APPLY:
S. 5230 9
(1) "OPERATING ALLOWANCES" SHALL MEAN AMOUNTS FOR PROFIT AND CONTIN-
GENCIES THAT THE SUPERINTENDENT DETERMINES ARE REASONABLE AND NECESSARY
TO CARRY OUT THE PURPOSES OF THIS ARTICLE.
(2)"OPERATING COSTS" SHALL MEAN EXPENSE REIMBURSEMENTS COVERING THE
DIRECT, ACTUAL, AND NECESSARY EXPENSES INCURRED IN CONNECTION WITH SELL-
ING AND SERVICING TOXIC MOLD HAZARD INSURANCE COVERAGE; REASONABLE
COMPENSATION PAYABLE FOR SELLING AND SERVICING SUCH COVERAGE, OR COMMIS-
SIONS OR SERVICE FEES PAID TO PRODUCERS; LOSS ADJUSTMENT EXPENSES; AND
OTHER DIRECT, ACTUAL, AND NECESSARY EXPENSES WHICH THE SUPERINTENDENT
FINDS ARE INCURRED IN CONNECTION WITH SELLING OR SERVICING SUCH INSUR-
ANCE COVERAGE.
S 5707. PAYMENT OF CLAIMS. THE SUPERINTENDENT SHALL PRESCRIBE RULES
AND REGULATIONS ESTABLISHING THE GENERAL METHOD OR METHODS BY WHICH
PROVED AND APPROVED CLAIMS FOR LOSSES MAY BE ADJUSTED AND PAID FOR ANY
LOSSES OR DAMAGES COVERED BY TOXIC MOLD HAZARD INSURANCE MADE AVAILABLE
UNDER THIS ARTICLE.
S 5708. DISSEMINATION OF INSURANCE INFORMATION. THE SUPERINTENDENT
SHALL FROM TIME TO TIME TAKE SUCH ACTION AS MAY BE NECESSARY IN ORDER TO
MAKE INFORMATION AVAILABLE TO THE PUBLIC, AND TO ANY STATE OR LOCAL
AGENCY OR OFFICIAL, WITH REGARD TO THE TOXIC MOLD HAZARD INSURANCE
PROGRAM, ITS COVERAGE, AND OBJECTIVES; AND ESTIMATED AND CHARGEABLE
INSURANCE PREMIUM RATES UNDER THE PROGRAM, INCLUDING THE BASIS FOR AND
DIFFERENCES BETWEEN SUCH RATES IN ACCORDANCE WITH THE PROVISIONS OF THIS
ARTICLE.
S 5709. COORDINATION WITH OTHER PROGRAMS. IN CARRYING OUT THE
PROVISIONS OF THIS ARTICLE, THE SUPERINTENDENT SHALL CONSULT WITH OTHER
DEPARTMENTS AND AGENCIES OF THE STATE, AND WITH INTERSTATE AND LOCAL
AGENCIES HAVING RESPONSIBILITIES FOR TOXIC MOLD INSPECTION AND
PREVENTION, IN ORDER TO ENSURE THAT THE PROGRAMS OF SUCH AGENCIES AND
THE PROGRAM UNDER THIS ARTICLE ARE MUTUALLY CONSISTENT.
S 5710. REPORTS. THE SUPERINTENDENT SHALL ANNUALLY SUBMIT A REPORT OF
OPERATIONS UNDER THIS ARTICLE TO THE GOVERNOR, THE TEMPORARY PRESIDENT
OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY.
S 5711. IMPLEMENTATION. FOLLOWING SUCH CONSULTATION WITH REPRESEN-
TATIVES OF THE INSURANCE INDUSTRY AS MAY BE NECESSARY, THE SUPERINTEN-
DENT SHALL IMPLEMENT THE TOXIC MOLD HAZARD INSURANCE PROGRAM UNDER THIS
ARTICLE.
S 5712. INDUSTRY INSURANCE POOL. (A) THE SUPERINTENDENT MAY ENCOURAGE
AND OTHERWISE ASSIST ANY INSURANCE COMPANIES AND OTHER INSURERS THAT
MEET THE REQUIREMENTS PRESCRIBED UNDER SUBSECTION (B) OF THIS SECTION TO
FORM, ASSOCIATE, OR OTHERWISE JOIN TOGETHER IN A POOL IN ORDER TO
PROVIDE THE INSURANCE COVERAGE AUTHORIZED UNDER THIS ARTICLE, AND FOR
THE PURPOSE OF ASSUMING, ON SUCH TERMS AND CONDITIONS AS MAY BE AGREED
UPON, SUCH FINANCIAL RESPONSIBILITY AS WILL ENABLE SUCH COMPANIES AND
OTHER INSURERS, WITH THE FINANCIAL AND OTHER ASSISTANCE AVAILABLE UNDER
THIS ARTICLE, TO ASSURE A REASONABLE PROPORTION OF RESPONSIBILITY FOR
THE ADJUSTMENT AND PAYMENT OF CLAIMS FOR LOSSES UNDER THE TOXIC MOLD
HAZARD INSURANCE PROGRAM.
(B) TO PROMOTE THE EFFECTIVE ADMINISTRATION OF THE TOXIC MOLD HAZARD
INSURANCE PROGRAM UNDER THIS ARTICLE, AND TO ENSURE THAT THE OBJECTIVES
OF THIS ARTICLE ARE FURTHERED, THE SUPERINTENDENT MAY PRESCRIBE APPRO-
PRIATE REQUIREMENTS FOR INSURANCE COMPANIES AND OTHER INSURERS PARTIC-
IPATING IN SUCH POOL, INCLUDING MINIMUM REQUIREMENTS FOR CAPITAL,
SURPLUS OR ASSETS.
S 5713. AGREEMENTS WITH INSURANCE POOL. (A) THE SUPERINTENDENT MAY
ENTER INTO SUCH AGREEMENTS WITH THE POOL FORMED OR OTHERWISE CREATED
S. 5230 10
UNDER THIS ARTICLE AS THE SUPERINTENDENT DEEMS NECESSARY TO CARRY OUT
THE PURPOSES OF THIS ARTICLE.
(B) SUCH AGREEMENTS SHALL SPECIFY: THE TERMS AND CONDITIONS UNDER
WHICH RISK CAPITAL WILL BE AVAILABLE FOR THE ADJUSTMENT AND PAYMENTS OF
CLAIMS; THE TERMS AND CONDITIONS UNDER WHICH THE POOL (AND THE COMPANIES
AND OTHER INSURERS PARTICIPATING THEREIN) SHALL PARTICIPATE IN PREMIUMS
RECEIVED AND PROFITS OR LOSSES REALIZED OR SUSTAINED; THE MAXIMUM AMOUNT
OF PROFIT, ESTABLISHED BY THE SUPERINTENDENT AND SET FORTH IN THE SCHED-
ULES PRESCRIBED UNDER SECTION FIVE THOUSAND SEVEN HUNDRED SIX OF THIS
ARTICLE, WHICH MAY BE REALIZED BY SUCH POOL (AND THE COMPANIES AND OTHER
INSURERS PARTICIPATING THEREIN); THE TERMS AND CONDITIONS UNDER WHICH
OPERATING COSTS AND ALLOWANCES SET FORTH IN THE SCHEDULES PRESCRIBED
UNDER SECTION FIVE THOUSAND SEVEN HUNDRED SIX OF THIS ARTICLE MAY BE
PAID; AND THE TERMS AND CONDITIONS UNDER WHICH PREMIUM EQUALIZATION
PAYMENTS UNDER SECTION FIVE THOUSAND SEVEN HUNDRED FIFTEEN OF THIS ARTI-
CLE WILL BE MADE.
(C) IN ADDITION, SUCH AGREEMENTS SHALL CONTAIN SUCH PROVISIONS AS THE
SUPERINTENDENT FINDS NECESSARY TO ENSURE THAT: NO INSURANCE COMPANY OR
OTHER INSURER THAT MEETS THE REQUIREMENTS PRESCRIBED UNDER SUBSECTION
(B) OF SECTION FIVE THOUSAND SEVEN HUNDRED TWELVE OF THIS ARTICLE AND
HAS INDICATED AN INTENTION TO PARTICIPATE IN THE TOXIC MOLD HAZARD
INSURANCE PROGRAM ON A RISK-SHARING BASIS, WILL BE EXCLUDED FROM PARTIC-
IPATING IN THE POOL; THE INSURANCE COMPANIES AND OTHER INSURERS PARTIC-
IPATING IN THE POOL WILL TAKE WHATEVER ACTION MAY BE NECESSARY TO
PROVIDE CONTINUITY OF TOXIC MOLD HAZARD INSURANCE COVERAGE BY THE POOL;
AND ANY INSURANCE COMPANIES AND OTHER INSURERS, INSURANCE AGENTS, AND
BROKERS AND INSURANCE ADJUSTMENT ORGANIZATIONS WILL BE PERMITTED TO
COOPERATE WITH THE POOL AS FISCAL AGENTS OR OTHERWISE, ON OTHER THAN A
RISK-SHARING BASIS, TO THE MAXIMUM EXTENT PRACTICABLE.
S 5714. ADJUSTMENT AND PAYMENT OF CLAIMS AND JUDICIAL REVIEW. THE
INSURANCE COMPANIES AND OTHER INSURERS THAT FORM, ASSOCIATE, OR OTHER-
WISE JOIN TOGETHER IN THE POOL UNDER THIS PART MAY ADJUST AND PAY ALL
CLAIMS FOR PROVED AND APPROVED LOSSES COVERED BY TOXIC MOLD HAZARD
INSURANCE IN ACCORDANCE WITH THE PROVISIONS OF THIS ARTICLE AND, UPON
THE DISALLOWANCE BY ANY SUCH COMPANY OR OTHER INSURER OF ANY SUCH CLAIM,
OR UPON THE REFUSAL OF THE CLAIMANT TO ACCEPT THE AMOUNT ALLOWED UPON
ANY SUCH CLAIM, THE CLAIMANT, WITHIN ONE YEAR AFTER THE DATE OF MAILING
OF NOTICE OF DISALLOWANCE OR PARTIAL DISALLOWANCE OF THE CLAIM, MAY
INSTITUTE AN ACTION ON SUCH CLAIM AGAINST SUCH COMPANY OR OTHER INSURER.
S 5715. PREMIUM EQUALIZATION PAYMENTS. (A) THE SUPERINTENDENT, ON SUCH
TERMS AND CONDITIONS AS THE SUPERINTENDENT MAY FROM TIME TO TIME
PRESCRIBE, SHALL MAKE PERIODIC PAYMENTS TO THE POOL FORMED OR OTHERWISE
CREATED UNDER SECTION FIVE THOUSAND SEVEN HUNDRED TWELVE OF THIS ARTI-
CLE, IN RECOGNITION OF SUCH REDUCTIONS IN CHARGEABLE PREMIUM RATES UNDER
SECTION FIVE THOUSAND SEVEN HUNDRED FOURTEEN OF THIS ARTICLE BELOW ESTI-
MATED PREMIUM RATES UNDER SECTION FIVE THOUSAND SEVEN HUNDRED THREE OF
THIS ARTICLE AS ARE REQUIRED IN ORDER TO MAKE TOXIC MOLD HAZARD INSUR-
ANCE AVAILABLE ON REASONABLE TERMS AND CONDITIONS.
(B) DESIGNATED PERIODS UNDER THIS SECTION AND THE METHODS FOR DETER-
MINING THE SUM OF PREMIUMS PAID OR PAYABLE DURING SUCH PERIODS SHALL BE
ESTABLISHED BY THE SUPERINTENDENT.
S 5716. EMERGENCY IMPLEMENTATION OF PROGRAM. (A) NOTWITHSTANDING ANY
OTHER PROVISIONS OF THIS ARTICLE, FOR THE PURPOSE OF PROVIDING TOXIC
MOLD HAZARD INSURANCE COVERAGE AT THE EARLIEST POSSIBLE TIME, THE SUPER-
INTENDENT MAY CARRY OUT THE INSURANCE PROGRAM UNDER THIS ARTICLE DURING
THE PERIOD ENDING SEPTEMBER THIRTIETH, TWO THOUSAND TEN, IN ACCORDANCE
S. 5230 11
WITH THE PROVISIONS OF THIS ARTICLE INSOFAR AS THEY RELATE TO THIS ARTI-
CLE, BUT SUBJECT TO THE MODIFICATIONS MADE BY OR UNDER SUBSECTION (B) OF
THIS SECTION.
(B) IN CARRYING OUT THE TOXIC MOLD HAZARD INSURANCE PROGRAM PURSUANT
TO SUBSECTION (A) OF THIS SECTION, THE SUPERINTENDENT SHALL PROVIDE
INSURANCE COVERAGE WITHOUT REGARD TO ANY ESTIMATED RISK PREMIUM RATES
WHICH WOULD OTHERWISE BE DETERMINED UNDER SECTION FIVE THOUSAND SEVEN
HUNDRED THREE OF THIS ARTICLE; AND SHALL UTILIZE THE PROVISIONS AND
PROCEDURES CONTAINED IN OR PRESCRIBED BY THIS ARTICLE TO SUCH EXTENT AND
IN SUCH MANNER AS THE SUPERINTENDENT MAY CONSIDER NECESSARY OR APPROPRI-
ATE TO CARRY OUT THE PURPOSE OF THIS SECTION.
S 5717. ADJUSTMENT AND PAYMENT OF CLAIMS AND JUDICIAL REVIEW. IF THE
PROGRAM IS CARRIED OUT AS PROVIDED IN THIS ARTICLE, THE SUPERINTENDENT
MAY ADJUST AND MAKE PAYMENT OF ANY CLAIMS FOR PROVED AND APPROVED LOSSES
COVERED BY TOXIC MOLD HAZARD INSURANCE, AND UPON THE DISALLOWANCE BY THE
SUPERINTENDENT OF ANY SUCH CLAIMS, OR UPON THE REFUSAL OF THE CLAIMANT
TO ACCEPT THE AMOUNT ALLOWED UPON ANY SUCH CLAIM, THE CLAIMANT, WITHIN
ONE YEAR AFTER THE DATE OF MAILING OF NOTICE OF DISALLOWANCE OR PARTIAL
DISALLOWANCE BY THE SUPERINTENDENT, MAY INSTITUTE AN ACTION AGAINST THE
SUPERINTENDENT ON SUCH CLAIM.
S 5718. SERVICES BY THE INSURANCE INDUSTRY. IN ADMINISTERING THE TOXIC
MOLD HAZARD INSURANCE PROGRAM UNDER THIS ARTICLE, THE SUPERINTENDENT MAY
ENTER INTO ANY CONTRACTS, AGREEMENTS, OR OTHER APPROPRIATE ARRANGEMENTS
WHICH MAY, FROM TIME TO TIME, BE NECESSARY FOR THE PURPOSE OF UTILIZING,
ON SUCH TERMS AND CONDITIONS AS MAY BE AGREED UPON, THE FACILITIES AND
SERVICES OF ANY INSURANCE COMPANIES OR OTHER INSURERS, INSURANCE AGENTS
AND BROKERS, OR INSURANCE ADJUSTMENT ORGANIZATIONS; AND SUCH CONTRACTS,
AGREEMENTS, OR ARRANGEMENTS MAY INCLUDE PROVISION FOR PAYMENT OF APPLI-
CABLE OPERATING COSTS AND ALLOWANCES FOR SUCH FACILITIES AND SERVICES AS
SET FORTH IN THE SCHEDULES PRESCRIBED UNDER SECTION FIVE THOUSAND SEVEN
HUNDRED SIX OF THIS ARTICLE.
S 5719. USE OF INSURANCE POOL, COMPANIES OR OTHER PRIVATE ORGANIZA-
TIONS FOR CERTAIN PAYMENTS. (A) TO PROVIDE FOR MAXIMUM EFFICIENCY IN THE
ADMINISTRATION OF THE TOXIC MOLD HAZARD INSURANCE PROGRAM AND TO FACILI-
TATE THE EXPEDITIOUS PAYMENT OF ANY FUNDS UNDER SUCH PROGRAM, THE SUPER-
INTENDENT MAY ENTER INTO CONTRACTS WITH A POOL FORMED OR OTHERWISE
CREATED UNDER SECTION FIVE THOUSAND SEVEN HUNDRED TWELVE OF THIS ARTI-
CLE, OR ANY INSURANCE COMPANY OR OTHER PRIVATE ORGANIZATION, FOR THE
PURPOSE OF SECURING PERFORMANCE BY SUCH POOL, COMPANY, OR ORGANIZATION
OR ANY OR ALL OF THE FOLLOWING RESPONSIBILITIES: ESTIMATING AND LATER
DETERMINING ANY AMOUNTS OF PAYMENTS TO BE MADE; RECEIVING FROM THE
SUPERINTENDENT, DISBURSING, AND ACCOUNTING FOR FUNDS IN MAKING SUCH
PAYMENTS; MAKING SUCH AUDITS OF THE RECORDS OF ANY INSURANCE COMPANY OR
OTHER INSURER, INSURANCE AGENT OR BROKER, OR INSURANCE ADJUSTMENT ORGAN-
IZATION AS MAY BE NECESSARY TO ASSURE THAT PROPER PAYMENTS ARE MADE;
OTHERWISE ASSISTING IN SUCH MANNER AS THE CONTRACT MAY PROVIDE TO
FURTHER THE PURPOSES OF THIS ARTICLE.
(B) ANY CONTRACT WITH THE POOL OR AN INSURANCE COMPANY OR OTHER
PRIVATE ORGANIZATION UNDER THIS SECTION MAY CONTAIN SUCH TERMS AND
CONDITIONS AS THE SUPERINTENDENT FINDS NECESSARY OR APPROPRIATE FOR
CARRYING OUT RESPONSIBILITIES UNDER SUBSECTION (A) OF THIS SECTION, AND
MAY PROVIDE FOR PAYMENT OF ANY COSTS WHICH THE SUPERINTENDENT DETERMINES
ARE INCIDENTAL TO CARRYING OUT SUCH RESPONSIBILITIES WHICH ARE COVERED
BY THE CONTRACT.
(C) NO CONTRACT MAY BE ENTERED INTO UNDER THIS SECTION UNLESS THE
SUPERINTENDENT FINDS THAT THE POOL, COMPANY, OR ORGANIZATION WILL
S. 5230 12
PERFORM ITS OBLIGATIONS UNDER THE CONTRACT EFFICIENTLY AND EFFECTIVELY,
AND WILL MEET SUCH REQUIREMENTS AS TO FINANCIAL RESPONSIBILITY, LEGAL
AUTHORITY, AND OTHER MATTERS AS THE SUPERINTENDENT FINDS APPROPRIATE.
(D)(1) ANY SUCH CONTRACT MAY REQUIRE THE POOL, COMPANY, OR ORGANIZA-
TION OR ANY OF ITS OFFICERS OR EMPLOYEES CERTIFYING PAYMENTS OR DISBURS-
ING FUNDS PURSUANT TO THE CONTRACT, OR OTHERWISE PARTICIPATING IN CARRY-
ING OUT THE CONTRACT, TO GIVE SURETY BOND IN SUCH AMOUNT AS THE
SUPERINTENDENT MAY DEEM APPROPRIATE.
(2)(A) NO INDIVIDUAL DESIGNATED PURSUANT TO A CONTRACT UNDER THIS
SECTION TO CERTIFY PAYMENTS SHALL, IN THE ABSENCE OF GROSS NEGLIGENCE OR
INTENT TO DEFRAUD, BE LIABLE WITH RESPECT TO ANY PAYMENT CERTIFIED BY
SUCH INDIVIDUAL UNDER THIS SECTION.
(B) NO OFFICER DISBURSING FUNDS SHALL IN THE ABSENCE OF GROSS NEGLI-
GENCE OR INTENT TO DEFRAUD, BE LIABLE WITH RESPECT TO ANY PAYMENT BY
SUCH OFFICER UNDER THIS SECTION IF IT WAS BASED UPON A VOUCHER SIGNED BY
AN INDIVIDUAL DESIGNATED TO CERTIFY PAYMENTS.
(E) ANY CONTRACT ENTERED INTO UNDER THIS SECTION SHALL BE FOR A TERM
OF ONE YEAR, AND MAY BE MADE AUTOMATICALLY RENEWABLE FROM TERM TO TERM
IN THE ABSENCE OF NOTICE BY EITHER PARTY OF AN INTENTION TO TERMINATE AT
THE END OF THE CURRENT TERM; EXCEPT THAT THE SUPERINTENDENT MAY TERMI-
NATE ANY SUCH CONTRACT AT ANY TIME (AFTER REASONABLE NOTICE TO THE POOL,
COMPANY, OR ORGANIZATION INVOLVED) IF THE SUPERINTENDENT FINDS THAT THE
POOL, COMPANY, OR ORGANIZATION HAS FAILED SUBSTANTIALLY TO CARRY OUT THE
CONTRACT, OR IS CARRYING OUT THE CONTRACT IN A MANNER INCONSISTENT WITH
THE EFFICIENT AND EFFECTIVE ADMINISTRATION OF THE TOXIC MOLD HAZARD
INSURANCE PROGRAM UNDER THIS ARTICLE.
S 5720. SETTLEMENT AND ARBITRATION. (A) THE SUPERINTENDENT MAY MAKE
FINAL SETTLEMENT OF ANY CLAIMS OR DEMANDS WHICH MAY ARISE AS A RESULT OF
ANY FINANCIAL TRANSACTIONS THAT THE SUPERINTENDENT IS AUTHORIZED TO
CARRY OUT UNDER THIS ARTICLE AND MAY, TO ASSIST THE SUPERINTENDENT IN
MAKING ANY SUCH SETTLEMENT, REFER ANY DISPUTES RELATING TO SUCH CLAIMS
OR DEMANDS TO ARBITRATION, WITH THE CONSENT OF THE PARTIES CONCERNED.
(B) SUCH ARBITRATION SHALL BE ADVISORY IN NATURE, AND ANY AWARD, DECI-
SION, OR RECOMMENDATION WHICH MAY BE MADE SHALL BECOME FINAL ONLY UPON
THE APPROVAL OF THE SUPERINTENDENT.
S 5721. RECORDS AND AUDITS. (A) THE INSURANCE POOL FORMED OR OTHERWISE
CREATED UNDER THIS ARTICLE, AND ANY INSURANCE COMPANY OR OTHER PRIVATE
ORGANIZATION EXECUTING ANY CONTRACT, AGREEMENT, OR OTHER APPROPRIATE
ARRANGEMENT WITH THE SUPERINTENDENT UNDER THIS ARTICLE, SHALL KEEP SUCH
RECORDS AS THE SUPERINTENDENT SHALL PRESCRIBE, INCLUDING RECORDS WHICH
FULLY DISCLOSE THE TOTAL COSTS OF THE PROGRAM UNDERTAKEN OR THE SERVICES
BEING RENDERED, AND SUCH OTHER RECORDS AS WILL FACILITATE AN EFFECTIVE
AUDIT.
(B) THE SUPERINTENDENT AND THE COMPTROLLER, OR ANY OF THEIR DULY
AUTHORIZED REPRESENTATIVES, SHALL HAVE ACCESS FOR THE PURPOSE OF AUDIT
AND EXAMINATION TO ANY BOOKS, DOCUMENTS, PAPERS AND ANY SUCH INSURANCE
COMPANY OR OTHER PRIVATE ORGANIZATION THAT ARE PERTINENT TO THE COSTS OF
THE PROGRAM UNDERTAKEN OR THE SERVICES BEING RENDERED.
S 5722. PAYMENTS. ANY PAYMENTS UNDER THIS ARTICLE MAY BE MADE (AFTER
NECESSARY ADJUSTMENT ON ACCOUNT OF PREVIOUSLY MADE UNDERPAYMENTS OR
OVERPAYMENTS) IN ADVANCE OR BY WAY OF REIMBURSEMENT, AND IN SUCH
INSTALLMENTS AND ON SUCH CONDITIONS, AS THE SUPERINTENDENT MAY DETER-
MINE.
S 4. The sum of two hundred fifty thousand dollars ($250,000), or so
much thereof as may be necessary, is hereby appropriated to pay the
expenses incurred, including personal service, in carrying out the
S. 5230 13
provisions of this act. Such moneys shall be payable out of the state
treasury in the general fund to the credit of the state purposes account
after audit by and on the warrant of the comptroller upon voucher certi-
fied or approved by the superintendent of insurance in the manner
prescribed by law.
S 5. This act shall take effect on the sixtieth day after it shall
have become a law.
