senate Bill S5236

Signed by Governor

Relates to the joint underwriting association

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Sponsor

Bill Status


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

  • 14 / May / 2013
    • REFERRED TO INSURANCE
  • 18 / Jun / 2013
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 18 / Jun / 2013
    • ORDERED TO THIRD READING CAL.1451
  • 18 / Jun / 2013
    • PASSED SENATE
  • 18 / Jun / 2013
    • DELIVERED TO ASSEMBLY
  • 18 / Jun / 2013
    • REFERRED TO INSURANCE
  • 18 / Jun / 2013
    • SUBSTITUTED FOR A7829A
  • 18 / Jun / 2013
    • ORDERED TO THIRD READING RULES CAL.387
  • 18 / Jun / 2013
    • PASSED ASSEMBLY
  • 18 / Jun / 2013
    • RETURNED TO SENATE
  • 06 / Dec / 2013
    • DELIVERED TO GOVERNOR
  • 18 / Dec / 2013
    • SIGNED CHAP.542

Summary

Relates to the joint underwriting association.

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Bill Details

See Assembly Version of this Bill:
A7829A
Versions:
S5236
Legislative Cycle:
2013-2014
Law Section:
Insurance Law
Laws Affected:
Amd ยง5402, Ins L

Sponsor Memo

BILL NUMBER:S5236

TITLE OF BILL: An act to amend the insurance law, in relation to the
joint underwriting association

PURPOSE OR GENERAL IDEA OF BILL: The purpose of this bill is to amend
the insurance law to reduce the administrative burden of having NYPIUA
report to the Department of Financial Services (DFS) on an annual basis
regarding the number of broad form policies written by the association
as well as reduce the burden of the DFS to report annually to the Gover-
nor and Legislature.

SUMMARY OF SPECIFIC PROVISIONS: This bill would amend section 5402 of
the insurance law to require NYPIUA to report to the Department of
Financial Services regarding the number of broad form policies written
at the end of NYPIUA's ten year authority to write such policies rather
than on an annual basis. The bill would also require DFS to report to
the Governor and the Legislature no later than January 1st, 2018,
regarding the number of policies issued, including any recommendations
as to the continuation of such offerings.

JUSTIFICATION: In 2008, NYPIUA was given the authority to offer broad
form coverage (DP-2) on personal dwelling and tangible personal property
for a period of five years in addition to basic form (DP-1) that covers
property damage from fire and other basic perils. The broad form policy
covers damage from falling objects; weight of ice, snow or sleet; acci-
dental discharge of water or steam; freezing; damage from artificially
generated electrical current; volcanic eruption; and burglary, in addi-
tion to the basic coverage of a DP-1 policy.

In December, 2012, the DFS reported to the Governor and Legislature that
NYPIUA had issued more than 30,000 broad form policies and that such a
policy "provides enhanced coverage options to policyholders compared to
the basic form policy and represents a meaningful improvement for home-
owners who cannot obtain a homeowners policy in the voluntary market."
The report also states: "Continuation of the broad form policy is an
essential means by which NYPIUA can fulfill its mission."

NYPIUA has reported to the DFS on an annual basis since enactment of the
2008 amendments authorizing broad form coverage. As the DFS report
points out, offering expanded broad form coverage has been beneficial to
New York homeowners.

Requiring NYPIUA to continue to provide annual reports is unnecessarily
time consuming and takes valuable personnel away from their day to day
duties of working with homeowners trying to obtain property insurance.
Requiring NYPIUA to provide a report on broad form coverage at the end
of their ten years of authority is sufficient to assess the program.

PRIOR LEGISLATIVE HISTORY: This is new legislation.

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None.

EFFECTIVE DATE: This bill will take effect immediately.

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

                                  5236

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 14, 2013
                               ___________

Introduced  by  Sen.  SEWARD -- 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 the joint underwriting
  association

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

  Section  1.  Subsection  (g)  of section 5402 of the insurance law, as
amended by section 1 of part W of chapter 55 of the  laws  of  2013,  is
amended to read as follows:
  (g)  In  addition  to  fire insurance, extended coverage, coverage for
additional perils and homeowners  insurance  should  the  same  be  made
available  through the association in accordance with a determination of
necessity pursuant to section five thousand four hundred twelve of  this
article,  the  association  may  offer broad form coverage to applicants
seeking to insure real property at fixed locations of this state, or the
tangible personal property located thereon. The  association  may  offer
broad  form coverage for a period of ten years beginning on June thirti-
eth, two thousand eight. [The] ON OR BEFORE OCTOBER FIRST, TWO  THOUSAND
SEVENTEEN  THE superintendent shall require the association to report to
him or her [annually during that ten-year period] as to  the  number  of
policies  written  pursuant  to  this  subsection and paragraph three of
subsection (f) of section five thousand four hundred five of this  arti-
cle [in the previous year], and any other information the superintendent
may  require.  [The superintendent shall then report to the governor and
the legislature regarding the number of policies issued pursuant to this
subsection and such paragraph annually for the  first  nine  years  such
coverage is offered.] On or before January first, two thousand eighteen,
the superintendent shall [make a final, cumulative] report to the gover-
nor  and the legislature [which] REGARDING THE NUMBER OF POLICIES ISSUED
PURSUANT TO THIS SECTION AND SUCH PARAGRAPH AND shall include  recommen-
dations as to the continuation of such insurance offerings.
  S 2. This act shall take effect immediately.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10992-01-3

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