BILL NUMBER:  S654

 TITLE OF BILL :  An act to amend the insurance law, in relation to
directing the superintendent of financial services to establish a
separate classification for liability insurance for businesses engaged
in the installation of wind or solar electric generating systems

 PURPOSE OR GENERAL IDEA OF BILL :

This bill directs the superintendent of insurance to establish a
separate classification for liability insurance for installers of wind
or solar electric generating systems.

 SUMMARY OF SPECIFIC PROVISIONS :

Section 1 amends the insurance law by adding a new section, 2346-b, to
address the reduction in the rates of liability insurance for
installers of wind or solar electric generating systems. This section
goes on to define the terms "Solar electric generating system", "Wind
electric generating system", and requires that the superintendent
shall establish a separate classification for the determination of
rates and premiums for liability, motor vehicle and workers'
compensation provided to any person or entity engaged in the business
of installing solar and/or wind electric generating systems.

The superintendent shall provide a reduction in the rates of
              

liability, motor vehicle and workers' compensation insurance premiums
applicable to solar and/or wind electricity generating system
installers, when such installers have filed no or minimal insurance
claims, and adhere to sound jobsite safety practices. The reductions
provided for snail be proportionally related to the actuarially
calculable decrease in losses in the aforementioned circumstances.

 JUSTIFICATION :

To the average homeowner in New York State, the cost of installing a
solar energy system continues to be a big investment, likewise, being
a solar contractor/installer continues to be a costly challenge.
Although the solar industry continues to grow at an exponential rate,
the state's insurance policy has not kept up with the pace of this new
industry.

Most insurance companies offering Workers Compensation as well as
liability insurance, have yet to create a classification tailored
specifically, towards the solar contractor installer as they have done
with other trade industries. The New York State Insurance fund is a
prime example. The majority of solar installers using the state
insurance fund are often classified into the categories of roofers or
ornamental iron brass workers, classes that are often more expensive
and non reflective of the type of work the solar contractor performs.

Only a certain percentage of overall work a solar contractor performs
on the average job actually involves being on the roof. More than half
of that work is usually in the less risky electrical work category,
yet the contractor pays an insurance rate commensurate to the majority
of the job being done on a roof.

Providing a separate class of insurance for the solar installer will
establish a rate schedule that is more equitable to the line of work
the solar contractor performs and in many cases reduce their overall
costs of doing business.

Furthermore, creating a separate class will enable various contractor
and labor organizations across the state to provide discounted group
insurance trusts and funds. This will further help to reduce the
overall cost of solar both to the contractor and the homeowner.
 PRIOR LEGISLATIVE HISTORY :

01/13/15 REFERRED TO INSURANCE
01/06/16 REFERRED TO INSURANCE

 FISCAL IMPLICATION :  None.

 EFFECTIVE DATE :  This act shall take effect on the first of January
next succeeding the date on which it shall have become a law, and
shall apply to all policies issued, renewed modified altered or
amended on or after such date.