senate Bill S4403A

Provides for actuarially appropriate discounts on fire and homeowners insurance after completion of certified residential home safety and loss prevention course

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 04 / Apr / 2011
    • REFERRED TO INSURANCE
  • 13 / Jun / 2011
    • AMEND AND RECOMMIT TO INSURANCE
  • 13 / Jun / 2011
    • PRINT NUMBER 4403A
  • 04 / Jan / 2012
    • REFERRED TO INSURANCE

Summary

Provides for the establishment of residential home safety and loss prevention courses certified by the superintendent of insurance; requires insurers to provide actuarially appropriate discounts on fire and homeowners insurance premiums to those homeowners who have completed a residential home safety and loss prevention course; directs the superintendent of insurance to promulgate such rules and regulations as are necessary to implement such program and specifies certain matters which must be included in such rules and regulations; requires the superintendent of insurance to issue a report thereon.

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Bill Details

See Assembly Version of this Bill:
A1237A
Versions:
S4403
S4403A
Legislative Cycle:
2011-2012
Current Committee:
Senate Insurance
Law Section:
Insurance Law
Laws Affected:
Amd §2346, add §2346-b, Ins L
Versions Introduced in Previous Legislative Cycles:
2009-2010: S2376, A9094
2007-2008: A152

Sponsor Memo

BILL NUMBER:S4403A

TITLE OF BILL:
An act
to amend the insurance law, in relation to establishing residential 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

PURPOSE:
To permit the superintendent of insurance to provide an actuarially
appropriate reduction in insurance premiums to those individuals that
take a certified Home Safety and Loss Prevention Course.

SUMMARY OF PROVISIONS:
Section 1. Amends section 2346 of the Insurance Law by adding
subsection (5) to provide that an appropriate premium discount be
given by insurers to fire and homeowners insurance policy holders for
a three year period after successfully completing a course in home
safety and accident prevention. The discount shall be based on sound
actuarial practices. Such courses shall be certified by the Insurance
Department pursuant to Insurance Law, section 2346-1.

Section 2: A new section 2346-b of the Insurance Law is added to
establish standards that residential home safety and loss prevention
courses must satisfy to be certified. Only certified courses may
conduct classes that will enable students to receive the premium
discount. The insurance Department shall consult with the Office of
Fire Prevention and Control of the Division of Homeland Security and
Emergency Services.

Section 3: Not less than 180 days before the expiration of this
section 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 both the senate and
assembly, stating his or her findings on the effect of this course.

Section 4: Effective Date

JUSTIFICATION:
Currently, when policy holders take a home safety and accident
prevention course, there is no discount at all for the holder
concerning their homeowners or tire insurance policy. This
legislation will allow for an actuarially appropriate reduction to be
awarded to the policy holder.
This legislation will encourage policy holders to take a course on
home safety and loss prevention, thus reducing property and personal
injury loss and consequentially reducing the cost of claims paid by
insurance companies. This in turn will permit insurers to lower
rates for those who take these classes.

LEGISLATIVE HISTORY:
S.2376

FISCAL IMPLICATIONS:


None.

EFFECTIVE DATE:
This act shall take effect 180 days after it shall have become a law
and shall be deemed repealed three years after such date; provided
however, any rules or regulations necessary for the timely
implementation of the provisions of this act shall be promulgated on
or before such date.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 4403--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              April 4, 2011
                               ___________

Introduced by Sens. O'MARA, DeFRANCISCO, MAZIARZ, RANZENHOFER, ZELDIN --
  read  twice  and  ordered printed, and when printed to be committed to
  the Committee on Insurance  --  committee  discharged,  bill  amended,
  ordered reprinted as amended and recommitted to said committee

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 DIVISION OF HOMELAND SECURITY AND EMERGEN-
CY SERVICES 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-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05010-03-1

S. 4403--A                          2

ODS THAT CAN HELP  AN  INSURED  TO  SIGNIFICANTLY  PREVENT  OR  MINIMIZE
PERSONAL  INJURIES  AND PROPERTY LOSSES IN RESIDENTIAL REAL PROPERTY DUE
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.

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