NY State Senate Bill 2017-S7246

Archive: Last Bill Status - In Senate Committee Insurance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2018	referred to insurance

co-Sponsors

2017-S7246 (ACTIVE) - Details

See Assembly Version of this Bill:: A1643
Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Add §215, Ins L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S4235, A1093
2015-2016: S3758, A4172
2019-2020: S1634, A7830

2017-S7246 (ACTIVE) - Summary

Creates a task force on disasters to examine how insurers who write policies that cover loss of or damage to real property, personal property or other liabilities for loss of, damage to, or injury to persons or property in the state respond to disasters.

2017-S7246 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S7246

SPONSOR: BROOKS
 
TITLE OF BILL:  An act to amend the insurance law, in relation to
creating a task force on disasters

 
PURPOSE OR GENERAL IDEA OF BILL:

The purpose of this bill is to create a task force to examine and report
on whether policyholders and communities have adequate insurance cover-
age and if they are able to rely upon that coverage in the event of a
disaster.

 
SUMMARY OF SPECIFIC PROVISIONS:

§ 215.(a)Creates a task force to examine how insurers who write policies
that cover loss of or damage to real property, personal property, or
other liabilities for loss of, damage to, or injury to persons or prop-
erty in New York State respond to disasters, in what ways state and
local agencies such as the Department of Financial Services can assist
claimants in connecting with insurance companies, and what steps the

industry can take to improve its response in the future.

(b) 1. The task force would consist of 23 members, including the Super-
intendent of the Department of Financial Services as chair, 6 members
appointed by the Governor, 5 members appointed by the Governor upon the
recommendation of the Speaker of Assembly, 5 members appointed by Gover-
nor upon the recommendation of the temporary president of the Senate, 3
members shall be appointed by the Governor upon the recommendation of
the minority leader of the assembly, and 3 of whom shall be shall be
appointed by the Governor based upon the recommendation of the minority
leader of the Senate.  The task force would report to the Governor, the
Speaker of the Assembly, the Temporary President of the Senate, and the
Chairs of the Assembly and Senate Insurance Committees one year after
the effective date of its authorizing legislation. The appointees shall
include 4 insurers who write policies that cover loss or damage to real
property, or injury to persons or property, and at least one insurer who
writes for the national flood insurance program; 10 local officials who
respond to disaster and emergencies including police officials, profes-
sional and volunteer fire and emergency services personnel, and local
officials responsible for the coordination of emergency services, these
appointees shall include representation from the following geographic
regions: New York City, Long Island, mid-Hudson, Capital Region, north
country, Mohawk Valley, Southern tier, Central New York, Finger Lakes,
and Western New York; 2 organizations that represent independent public
adjusters; 2 non-profits that have experience with disaster relief; and
2 consumer advocacy groups.  The report would be required to include the
following information:

(1) Steps insurers currently take in order to respond to disaster-relat-
ed claims in a timely fashion.

(2) Challenges insurer experience when responding to disasters.

(3) Steps insurers currently take to adequately assess damage so that
homeowners and municipalities can remove debris and make repairs quick-
ly.


(4) Additional steps insurers and state and local agencies can take to
better respond to the needs of communities and policyholders affected by
a disaster.

(5) Ways insurers and state and local agencies can proactively reach out
to policyholders and communities following a disaster.

(6) Ways insurers assist homeowners and businesses affected by a disas-
ter whose premiums are due.

(7) Steps insurers can take if their employees are affected by a disas-
ter in order to ensure that they are still able to respond to claims in
a timely fashion.

(8) Whether or not New Yorkers have adequate access to insurance cover-
age and if not, identifying what barriers exist that may prevent people
from purchasing adequate coverage.

(9) Identifying measures to encourage homeowners and businesses to
purchase flood insurance as needed.

(10) Steps insurers take to prevent disputes with policy holders and to
resolve those which do occur as well as additional steps insurers can
take.

(11) Legislative actions that can be considered to address such issues.

§ 2. This act shall take effect immediately.

 
JUSTIFICATION:

Following Super-storm Sandy and Tropical Storms Irene and Lee, it was
found that there were lengthy delays in the time to investigate and
process claims, conducting site inspections of damaged property, and
making payments to policyholders. This was due to the large volume of
claims received and obstacles the storms presented to insurance compa-
nies, such as washed away roads and displaced policyholders.  Such
delays made it difficult for homeowners and communities to begin to make
repairs and rebuild in a timely fashion and were especially troublesome
when repairs were necessary for the health and safety of individuals and
the community.

In addition, disasters have a significant impact upon businesses, espe-
cially small businesses. For example, following Sandy, many businesses
in Long Island were unable to open, resulting in not only lost income
for the businesses but also lost wages for their employees.  This can
make it difficult for business owners and individuals to make premium
payments, putting them at risk for losing their insurance coverage when
they need it the most.

Furthermore, following the storms many policyholders were surprised to
learn that they did not have adequate coverage. Many policyholders were
unaware that their homeowner's policy did not cover flood damages or, if
they were aware, did not purchase a separate flood policy. Policyholders
also expressed confusion over what types of damages homeowners and flood
policies cover and what the coverage limits were under their policies.
As a result, many policyholders received payments that were far less
than what they expected to receive.
Because of these issues and the increasing frequency with which the
State is seeing destructive storms like Sandy, Irene, and Lee, it is
important to examine how the insurance industry responds to disasters
and what steps the industry can take to improve its response in the
future.

This task force will in effect create a public/private partnership
between both New York State and the insurance industry. Working togeth-
er, issues brought on by future disasters will address in a more effec-
tive manner.

 
PRIOR LEGISLATIVE HISTORY:

2017: S1594A/A1643A
2015-2016: S3758/A4172
2013-2014: S4235B/A1093C

 
FISCAL IMPLICATIONS FOR STATE:

To be determined

 
LOCAL FISCAL IMPLICATIONS:

To be determined

 
EFFECTIVE DATE:
This act shall take effect immediately.

2017-S7246 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7246
 
                             I N  S E N A T E
 
                              January 5, 2018
                                ___________
 
 Introduced  by  Sen.  BROOKS -- 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 creating a task  force
   on disasters
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The insurance law is amended by adding a new section 215 to
 read as follows:
   § 215. TASK FORCE ON DISASTERS.  (A) THERE IS HEREBY  CREATED  A  TASK
 FORCE  TO  EXAMINE HOW INSURERS WHO WRITE POLICIES THAT COVER LOSS OF OR
 DAMAGE TO REAL PROPERTY, PERSONAL PROPERTY,  OR  OTHER  LIABILITIES  FOR
 LOSS  OF,  DAMAGE TO, OR INJURY TO PERSONS OR PROPERTY IN NEW YORK STATE
 RESPOND TO DISASTERS, IN WHAT WAYS STATE AND LOCAL AGENCIES SUCH AS  THE
 DEPARTMENT OF FINANCIAL SERVICES CAN ASSIST IN SUCH RESPONSE AND WHETHER
 POLICYHOLDERS AND COMMUNITIES HAVE ADEQUATE INSURANCE.
   (B)  (1)  THE TASK FORCE SHALL CONSIST OF TWENTY-THREE MEMBERS, ONE OF
 WHOM SHALL BE THE SUPERINTENDENT OR  HIS  OR  HER  DESIGNATED  REPRESEN-
 TATIVE,  SIX  OF  WHOM  SHALL BE APPOINTED BY THE GOVERNOR, FIVE OF WHOM
 SHALL BE APPOINTED BY THE GOVERNOR BASED UPON THE RECOMMENDATION OF  THE
 SPEAKER OF THE ASSEMBLY, FIVE OF WHOM SHALL BE APPOINTED BY THE GOVERNOR
 BASED  UPON THE RECOMMENDATION OF THE TEMPORARY PRESIDENT OF THE SENATE,
 THREE OF WHOM SHALL BE APPOINTED BY THE GOVERNOR BASED UPON  THE  RECOM-
 MENDATION  OF  THE  MINORITY  LEADER  OF THE ASSEMBLY, AND THREE OF WHOM
 SHALL BE APPOINTED BY THE GOVERNOR BASED UPON THE RECOMMENDATION OF  THE
 MINORITY LEADER OF THE SENATE.
   (2) THE APPOINTEES SHALL INCLUDE REPRESENTATIVES OF THE FOLLOWING:
   (A)  FOUR  INSURERS WHO WRITE POLICIES THAT COVER LOSS OF OR DAMAGE TO
 REAL PROPERTY, PERSONAL PROPERTY, OR  OTHER  LIABILITIES  FOR  LOSS  OF,
 DAMAGE  TO,  OR INJURY TO PERSONS OR PROPERTY, INCLUDING REPRESENTATIVES
 FROM COMPANIES OF VARYING SIZES AND LOCATIONS AND AT LEAST  ONE  INSURER
 WHO WRITES FOR THE NATIONAL FLOOD INSURANCE PROGRAM.
   (B)  TEN  LOCAL  OFFICIALS  WHO  RESPOND TO DISASTERS AND EMERGENCIES,
 INCLUDING POLICE OFFICIALS, PROFESSIONAL AND VOLUNTEER FIRE AND EMERGEN-
 CY SERVICES PERSONNEL, AND LOCAL OFFICIALS RESPONSIBLE FOR  THE  COORDI-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD01156-04-7

 S. 7246                             2
 
 NATION  OF  EMERGENCY SERVICES AND THE LOCALITY'S RESPONSE TO A DISASTER
 OR EMERGENCY.  THESE APPOINTMENTS SHALL REFLECT THE GEOGRAPHIC DIVERSITY
 OF THE STATE AND INCLUDE REPRESENTATIVES FROM  LOCALITIES  WITH  VARYING
 POPULATION  DENSITIES.   THESE APPOINTMENTS SHALL ALSO INCLUDE REPRESEN-
 TATIVES FROM THE FOLLOWING REGIONS: NEW YORK CITY, LONG ISLAND, MID-HUD-
 SON, CAPITAL  REGION,  NORTH  COUNTRY,  MOHAWK  VALLEY,  SOUTHERN  TIER,
 CENTRAL NEW YORK, FINGER LAKES, AND WESTERN NEW YORK.
   (C) TWO ORGANIZATIONS THAT REPRESENT INDEPENDENT AND PUBLIC ADJUSTERS.
   (D) TWO NON-PROFITS THAT HAVE EXPERIENCE WITH DISASTER RELIEF.
   (E) TWO CONSUMER ADVOCACY GROUPS.
   (F)  ONE  INDEPENDENT  INSURANCE AGENT WHO OBTAINS COVERAGE FOR POLICY
 HOLDERS FOR LOSS OF OR DAMAGE TO REAL PROPERTY,  PERSONAL  PROPERTY,  OR
 OTHER  LIABILITIES FOR LOSS OF, DAMAGE TO, OR INJURY TO PERSONS OR PROP-
 ERTY.
   (3) RECOMMENDATIONS AND APPOINTMENTS SHALL TAKE INTO CONSIDERATION THE
 EXPERTISE OF OTHER APPOINTEES, SO THAT THE TASK FORCE REFLECTS A  DIVER-
 SITY OF EXPERIENCE.
   (4)  THE MEMBERS OF THE TASK FORCE SHALL NOT RECEIVE COMPENSATION, BUT
 SHALL BE REIMBURSED FOR REASONABLE TRAVEL EXPENSES.
   (C) THE SUPERINTENDENT, OR HIS OR HER DESIGNATED REPRESENTATIVE, SHALL
 SERVE AS THE CHAIR OF THE TASK FORCE.
   (D) THE TASK FORCE SHALL REPORT TO THE GOVERNOR, THE  SPEAKER  OF  THE
 ASSEMBLY,  THE  TEMPORARY  PRESIDENT OF THE SENATE, AND THE CHAIR OF THE
 ASSEMBLY INSURANCE COMMITTEE AND  THE  CHAIR  OF  THE  SENATE  INSURANCE
 COMMITTEE ON THE RESULTS OF ITS EXAMINATION ONE YEAR AFTER THE EFFECTIVE
 DATE OF THIS SECTION.  THE REPORT SHALL INCLUDE INFORMATION ON THE CHAL-
 LENGES  THAT  INSURERS FACE WHEN RESPONDING TO A DISASTER, POSSIBLE WAYS
 FOR INSURERS TO WORK BETTER WITH COMMUNITY STAKEHOLDERS AND STATE  AGEN-
 CIES TO FACILITATE TIMELY CLAIMS INVESTIGATION AND PROCESSING, SUGGESTED
 LEGISLATION  TO  ADDRESS,  ISSUES  IDENTIFIED BY THE TASK FORCE, AND ANY
 OTHER INFORMATION THE SUPERINTENDENT DEEMS RELEVANT.
   (E) IN COMPLETING ITS TASK, THE TASK FORCE WILL CONSIDER THE FOLLOWING
 ISSUES, AS WELL AS ANY OTHER ISSUE THAT IT DEEMS RELEVANT:
   (1) STEPS INSURERS CURRENTLY TAKE IN ORDER TO RESPOND TO  DISASTER-RE-
 LATED CLAIMS IN A TIMELY FASHION;
   (2) CHALLENGES INSURERS EXPERIENCE WHEN RESPONDING TO DISASTERS;
   (3)  STEPS INSURERS CURRENTLY TAKE TO ADEQUATELY ASSESS DAMAGE SO THAT
 HOMEOWNERS AND MUNICIPALITIES CAN REMOVE DEBRIS AND MAKE REPAIRS  QUICK-
 LY;
   (4) ADDITIONAL STEPS INSURERS AND STATE AND LOCAL AGENCIES CAN TAKE TO
 BETTER RESPOND TO THE NEEDS OF COMMUNITIES AND POLICYHOLDERS AFFECTED BY
 A DISASTER;
   (5)  WAYS  INSURERS AND STATE AND LOCAL AGENCIES CAN PROACTIVELY REACH
 OUT TO POLICYHOLDERS AND COMMUNITIES FOLLOWING A DISASTER;
   (6) WAYS INSURERS ASSIST  HOMEOWNERS  AND  BUSINESSES  AFFECTED  BY  A
 DISASTER WHOSE PREMIUMS ARE DUE;
   (7)  STEPS  INSURERS  CAN  TAKE  IF  THEIR EMPLOYEES ARE AFFECTED BY A
 DISASTER IN ORDER TO ENSURE THAT THEY  ARE  STILL  ABLE  TO  RESPOND  TO
 CLAIMS IN A TIMELY FASHION;
   (8)  WHETHER  OR  NOT  NEW  YORKERS  HAVE ADEQUATE ACCESS TO INSURANCE
 COVERAGE AND IF NOT, IDENTIFYING WHAT BARRIERS EXIST  THAT  MAY  PREVENT
 PEOPLE FROM PURCHASING ADEQUATE COVERAGE;
   (9)  IDENTIFYING  MEASURES  TO  ENCOURAGE HOMEOWNERS AND BUSINESSES TO
 PURCHASE FLOOD INSURANCE AS NEEDED;

 S. 7246                             3
 
   (10) STEPS INSURERS TAKE TO PREVENT DISPUTES WITH POLICYHOLDERS AND TO
 RESOLVE THOSE WHICH DO OCCUR AS WELL AS ADDITIONAL  STEPS  INSURERS  CAN
 TAKE;
   (11)  LEGISLATIVE  ACTIONS  THAT  CAN  BE  CONSIDERED  TO ADDRESS SUCH
 ISSUES.
   § 2. This act shall take effect immediately.

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Senate Bill S7246

Sponsored By

Archive: Last Bill Status - In Senate Committee Insurance Committee

co-Sponsors

2017-S7246 (ACTIVE) - Details

2017-S7246 (ACTIVE) - Summary

2017-S7246 (ACTIVE) - Sponsor Memo

2017-S7246 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S7246

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Sponsored By

John E. Brooks

Archive: Last Bill Status - In Senate Committee Insurance Committee

co-Sponsors

Joseph P. Addabbo Jr.

Luis R. Sepúlveda

2017-S7246 (ACTIVE) - Details

2017-S7246 (ACTIVE) - Summary

2017-S7246 (ACTIVE) - Sponsor Memo

2017-S7246 (ACTIVE) - Bill Text download pdf

Comments