senate Bill S6782A

Amended

Provides for the reduction of property/casualty insurance premiums on residential real property when the insured occupant completed a homeowner natural disaster preparedness, home safety & 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

  • 10 / Mar / 2014
    • REFERRED TO INSURANCE
  • 18 / Mar / 2014
    • AMEND (T) AND RECOMMIT TO INSURANCE
  • 18 / Mar / 2014
    • PRINT NUMBER 6782A
  • 04 / Jun / 2014
    • AMEND (T) AND RECOMMIT TO INSURANCE
  • 04 / Jun / 2014
    • PRINT NUMBER 6782B
  • 17 / Jun / 2014
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 17 / Jun / 2014
    • ORDERED TO THIRD READING CAL.1446
  • 17 / Jun / 2014
    • PASSED SENATE
  • 17 / Jun / 2014
    • DELIVERED TO ASSEMBLY
  • 17 / Jun / 2014
    • REFERRED TO INSURANCE

Summary

Establishes the "homeowner natural disaster preparedness, home safety and loss prevention program" to provide for the reduction of property/casualty insurance premiums on residential real property when the insured occupant completes a homeowner natural disaster preparedness, home safety and loss prevention course.

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Bill Details

See Assembly Version of this Bill:
A9047A
Versions:
S6782
S6782A
S6782B
Legislative Cycle:
2013-2014
Current Committee:
Assembly Insurance
Law Section:
Insurance Law
Laws Affected:
Amd ยง2346, Ins L

Sponsor Memo

BILL NUMBER:S6782A

TITLE OF BILL: An act to amend the insurance law, in relation to
reduction in rates of property/casualty insurance rates on residential
property for insureds who complete an approved homeowner natural
disaster preparedness course

PURPOSE OF BILL:

The purpose of this bill is to provide for an actuarially appropriate
reduction in homeowners insurance and insurance that covers property
damage for condominiums, cooperative residential units and for renters
caused by a natural disaster. A residential property owner could
obtain such an actuarially appropriate premium reduction upon
completion of a natural disaster preparedness course that is approved
by the Superintendent of the Financial Services Department. The goal
of the bill is to raise the awareness of natural disaster preparedness
by offering such a course for residential property owners. The
ultimate goal being to help reduce the risk exposure faced by property
owners from damage caused by a natural disaster such as a hurricane,
ice storm, flood, tornado, or other disasters caused by nature.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1: Enacts the "Homeowner Natural Disaster Preparedness
Program."

Section 2: Legislative intent.

Section 3: Amends Insurance Law section 2346 to add a new subsection
(5) that provides for this actuarially appropriate reduction in
homeowners insurance and for others who live in condominiums,
cooperates, or are renters.

-Provides for a definition of "completion certificate", "natural
disaster" and "homeowner natural disaster preparedness course".

-Authorizes the Superintendent of Financial Services to provide for an
actuarially appropriate reduction on residential property insurance
premiums for a period of 3 years upon the completion of a homeowner
natural disaster preparedness course. The Superintendent may also
provide for an actuarially appropriate reduction in premium rates for
the installation of equipment, devices, or other capital improvements
that can help to eliminate or mitigate natural disaster damage.

-Such coarse, after being submitted for approval to the Superintendent
by a property/casualty insurer, shall provide useful information
related to courses of action that can be taken by a homeowner before,
during and after the occurrence of a natural disaster; strategies to
reduce risk exposure to residential property owners, and information
on the kinds of equipment, devices and other capital improvements made
to real property to help reduce the risk of damage to real property,
personal injury or loss of life.

-The insurer would provide for the reduction in insurance premiums
upon completion of such a natural disaster preparedness course. A
completion certificate would need to be issued by the approved natural


disaster preparedness course sponsor and submitted to the insurance
carrier.

-The Superintendent, in consultation with the Commissioner of the
Division of Homeland Security and Emergency Services, would establish
standards and the curriculum to be used in such homeowner natural
disaster preparedness course.

JUSTIFICATION:

Over the last decade or so, it seems that more and more catastrophic
weather events have struck the Northeastern portions of the United
States. The purpose of this bill is to encourage homeowners to take a
natural disaster preparedness course to help reduce the risk of
property damage, personal injury, and loss of life that can occur as
the result of these increasingly catastrophic weather events. In
addition, by encouraging residential property owners to take such a
class, it is the sponsor's hope to help reduce the economic and
personal injuries that occur due to these weather events.

This bill will not adversely affect insurers.in that they would only
give an actuarially appropriate premium reduction that is demonstrated
to reflect real potential property/casualty losses that could be
curbed. Further, this is not a mandate bill in that only those
insurers that wish to offer the course or sanction such a course to
provide for such a premium reduction would need to participate in the
program.

New York State law already provides for an actuarially appropriate
reduction on auto insurance rates to those that take a defensive
driving course. This bill merely extends this concept to homeowners'
insurance. Also, as is the case with the driver safety auto insurance
premium reduction course that is already in state law, such premium
reduction is for a three year period of time.

LEGISLATIVE HISTORY:

New Bill.

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

EFFECTIVE DATE:

January first, next succeeding when the law shall have gone into
effect.

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

                                 6782--A

                            I N  S E N A T E

                             March 10, 2014
                               ___________

Introduced by Sens. KLEIN, SAVINO -- read twice and ordered printed, and
  when  printed to be committed to the Committee on Insurance -- commit-
  tee discharged, bill amended, ordered reprinted as amended and  recom-
  mitted to said committee

AN  ACT to amend the insurance law, in relation to reduction in rates of
  property/casualty insurance rates on residential property for insureds
  who complete  an  approved  homeowner  natural  disaster  preparedness
  course

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

  Section 1. Short title. This act shall be known and may  be  cited  as
the "homeowner natural disaster preparedness program".
  S 2. Legislative intent. The legislature declares that the purposes of
this  act  are  to  provide  homeowners, condominium owners, cooperative
apartment owners, and renters with an incentive  to  take  a  course  of
instruction  on  how to make their residence more resilient to a natural
disaster, reduce the potential loss of  life  or  property  damage  that
could  result  from  a  natural  disaster,  and raise their awareness of
natural disaster preparedness by  offering  property/casualty  insurance
premium reductions.
  S  3.  The  section  heading  of section 2346 of the insurance law, as
amended by chapter 637 of the  laws  of  1993,  is  amended  and  a  new
subsection 5 is added to read as follows:
  Reduction  in  rates  of  fire insurance [or], homeowners insurance OR
PROPERTY/CASUALTY premiums for residential property.
  5. (A) DEFINITIONS. FOR THE PURPOSES OF THIS SUBSECTION, THE FOLLOWING
TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  (1) "COMPLETION CERTIFICATE" MEANS A DOCUMENT WHICH CANNOT BE  ALTERED
AND WHICH IS PROVIDED TO A PERSON WHO SUCCESSFULLY COMPLETES A HOMEOWNER
NATURAL DISASTER PREPAREDNESS COURSE.
  (2)  "NATURAL  DISASTER"  MEANS  THE  OCCURRENCE OR IMMINENT THREAT OF
WIDESPREAD OR SEVERE DAMAGE, INJURY, OR LOSS OF LIFE OR PROPERTY RESULT-
ING FROM ANY NATURAL CAUSE INCLUDING, BUT NOT LIMITED TO,  FIRE,  FLOOD,
EARTHQUAKE,  HURRICANE,  TORNADO, HIGH WATER, LANDSLIDE, MUDSLIDE, WIND,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13992-04-4

S. 6782--A                          2

STORM, WAVE ACTION, ICE  STORM,  EPIDEMIC,  AIR  CONTAMINATION,  BLIGHT,
DROUGHT, INFESTATION, EXPLOSION, WATER CONTAMINATION, BRIDGE FAILURE, OR
BRIDGE COLLAPSE.
  (3)  "HOMEOWNER  NATURAL DISASTER PREPAREDNESS COURSE" MEANS A NATURAL
DISASTER PREPAREDNESS COURSE APPROVED BY THE SUPERINTENDENT, IN  CONSUL-
TATION  WITH  THE  COMMISSIONER OF THE DIVISION OF HOMELAND SECURITY AND
EMERGENCY SERVICES, PURSUANT TO PARAGRAPH (D) OF THIS SUBSECTION.   SUCH
COURSE SHALL PROVIDE USEFUL INFORMATION TO PARTICIPANTS ON ITEMS INCLUD-
ING,  BUT  NOT LIMITED TO:   COURSES OF ACTION THAT CAN BE TAKEN BEFORE,
DURING AND AFTER THE OCCURRENCE OF A  NATURAL  DISASTER,  STRATEGIES  TO
REDUCE RISK EXPOSURE TO INSURED RESIDENTIAL PROPERTY OWNERS AND RENTERS,
AND  INFORMATION  ABOUT  THE INSTALLATION OF EQUIPMENT, DEVICES OR OTHER
CAPITAL IMPROVEMENTS TO REAL PROPERTY WHICH CAN  HELP  TO  ELIMINATE  OR
MITIGATE  DAMAGE  TO  REAL  OR PERSONAL PROPERTY, PERSONAL INJURY OR THE
LOSS OF LIFE CAUSED BY A NATURAL DISASTER.
  (B) THE SUPERINTENDENT MAY  PROVIDE  FOR  AN  ACTUARIALLY  APPROPRIATE
REDUCTION  FOR A PERIOD OF THREE YEARS IN RATES OF HOMEOWNER'S INSURANCE
AND PROPERTY/CASUALTY INSURANCE PREMIUMS APPLICABLE TO RESIDENTIAL  REAL
PROPERTY  FOR  EACH TRIENNIAL COMPLETION OF A HOMEOWNER NATURAL DISASTER
PREPAREDNESS COURSE BY THE INSURED OCCUPANT OF SUCH    RESIDENTIAL  REAL
PROPERTY.  IN ADDITION, THE SUPERINTENDENT MAY ALSO PROVIDE FOR ACTUARI-
ALLY APPROPRIATE REDUCTIONS IN SUCH RATES FOR THE INSTALLATION OF EQUIP-
MENT, DEVICES OR OTHER CAPITAL IMPROVEMENTS TO REAL PROPERTY  WHICH  CAN
HELP TO ELIMINATE OR MITIGATE NATURAL DISASTER DAMAGE.
  (C)  AN  INSURER,  UPON  APPROVAL  OF  THE  SUPERINTENDENT,  MAY  UPON
SUBMISSION OF A COMPLETION CERTIFICATE BY AN INSURED, PROVIDE AN ACTUAR-
IALLY APPROPRIATE REDUCTION, FOR A PERIOD OF THREE YEARS, OF THE PREMIUM
FOR SUCH INSURED'S HOMEOWNER'S INSURANCE OR PROPERTY/CASUALTY  INSURANCE
ON  THE  RESIDENTIAL REAL PROPERTY WHICH IS THE INSURED'S PLACE OF RESI-
DENCE.
  (D) THE SUPERINTENDENT, IN CONSULTATION WITH THE COMMISSIONER  OF  THE
DIVISION  OF  HOMELAND SECURITY AND EMERGENCY SERVICES, SHALL ESTABLISH,
BY RULE, STANDARDS AND  A  CURRICULUM  FOR  HOMEOWNER  NATURAL  DISASTER
PREPAREDNESS COURSES.  EVERY SUCH COURSE SHALL BE APPROVED BY THE SUPER-
INTENDENT AND SUCH COMMISSIONER.
  S  4. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become  a  law;  provided,  however,
that  effective  immediately,  any actions necessary to be taken for the
implementation of the provisions of this act on its effective  date  are
authorized  and  directed  to  be  completed on or before such effective
date.

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