Senate Bill S8585

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8585
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             November 17, 2025
                                ___________
 
 Introduced  by Sen. KAVANAGH -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the insurance law, in relation to recovery  for  climate
   disaster losses
 
   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  3463
 to read as follows:
   § 3463. RECOVERY  FOR CLIMATE DISASTER LOSSES. (A) FOR THE PURPOSES OF
 THIS SECTION THE FOLLOWING TERMS HAVE THE FOLLOWING MEANINGS:
   (1) "CLIMATE DISASTER" MEANS ANY EVENT INCLUDING FIRE,  FLOOD,  EARTH-
 QUAKE,  HURRICANE,  TORNADO,  LANDSLIDE,  MUDSLIDE,  WIND,  STORM,  WAVE
 ACTION, WIND-DRIVEN WATER, TIDAL WAVE, VOLCANIC  ACTIVITY,  AIR  CONTAM-
 INATION,  BLIGHT,  DROUGHT,  INFESTATION,  EXPLOSION, NUCLEAR, CHEMICAL,
 BIOLOGICAL, OR  BACTERIOLOGICAL  RELEASE,  WATER  CONTAMINATION,  BRIDGE
 FAILURE  OR BRIDGE COLLAPSE, OR ANY EVENT DESIGNATED IN A STATE DECLARA-
 TION OF DISASTER EMERGENCY PURSUANT TO SECTION TWENTY-EIGHT OF THE EXEC-
 UTIVE LAW OR A LOCAL STATE OF EMERGENCY PURSUANT TO SECTION  TWENTY-FOUR
 OF THE EXECUTIVE LAW, THAT RESULTS IN WIDESPREAD OR SEVERE DAMAGE, INJU-
 RY,  OR  LOSS  OF  LIFE  OR PROPERTY, PROVIDED THAT CLIMATE CHANGE WAS A
 CONTRIBUTING  FACTOR  IN  THE  EVENT'S  FREQUENCY,  SEVERITY,  LOCATION,
 TIMING, OR EXTENT.
   (2) "FOSSIL FUEL PRODUCT" INCLUDES THE FOLLOWING:
   (A) COAL, AS DEFINED IN SECTION 1-103 OF THE ENERGY LAW;
   (B) FOSSIL FUEL, AS DEFINED IN SECTION 1-103 OF THE ENERGY LAW;
   (C) FUEL GASES, AS DEFINED IN SECTION 1-103 OF THE ENERGY LAW; AND
   (D) PETROLEUM PRODUCTS, AS DEFINED IN SECTION 1-103 OF THE ENERGY LAW.
   (3)  "RESPONSIBLE PARTY" MEANS ANY PERSON, FIRM, CORPORATION, COMPANY,
 PARTNERSHIP, SOCIETY, JOINT STOCK COMPANY, ENTITY, OR  ASSOCIATION  THAT
 MEETS ALL OF THE FOLLOWING CRITERIA:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13895-07-5
 S. 8585                             2
              

 
   (A) HAS AN AGGREGATE MARKET CAPITALIZATION OR WORLDWIDE ANNUAL REVENUE
 ACROSS  THE  PARENT  ENTITY AND ALL AFFILIATED ENTITIES OF AT LEAST FIVE
 HUNDRED  MILLION  DOLLARS  ($500,000,000),  DETERMINED  BY  AN   AVERAGE
 CAPITALIZATION  OR  REVENUE OVER THE PRECEDING THREE YEARS. FOR PURPOSES
 OF THIS SUBPARAGRAPH, "AFFILIATED ENTITIES" MEANS A PARENT OR SUBSIDIARY
 CORPORATION  AS WELL AS ANY OTHER BUSINESS ENTITY UNDER COMMON OWNERSHIP
 OR CONTROL WITH THE PARENT ENTITY, INCLUDING AN ENTITY CONSOLIDATED  FOR
 FINANCIAL REPORTING PURPOSES, OR TO ENHANCE PROFITABILITY FOR THE PARENT
 ENTITY;
   (B)  ENGAGED IN THE EXTRACTION, PRODUCTION, MANUFACTURE, MARKETING, OR
 SALE OF FOSSIL FUEL PRODUCTS; AND
   (C) DID BUSINESS IN THE STATE, WAS REGISTERED TO DO  BUSINESS  IN  THE
 STATE,  WAS APPOINTED AN AGENT OF THE STATE, OR OTHERWISE HAD SUFFICIENT
 CONTACTS WITH THE STATE TO BE SUBJECT TO THE STATE'S JURISDICTION.
   "RESPONSIBLE PARTY" DOES NOT INCLUDE ANY TRIBAL GOVERNMENT, THE STATE,
 A POLITICAL SUBDIVISION OF THE TRIBAL OR STATE GOVERNMENT, OR AN EMPLOY-
 EE OF THE TRIBAL OR STATE GOVERNMENT, ON THE BASIS OF ACTS OR  OMISSIONS
 IN THE COURSE OF OFFICIAL DUTIES.
   (B)(1)  THE  ATTORNEY  GENERAL MAY BRING A CIVIL ACTION IN THE NAME OF
 THE PEOPLE OF THE STATE OF NEW YORK AGAINST ANY  RESPONSIBLE  PARTY  FOR
 ANY OF THE FOLLOWING:
   (A)  RECOVERY  OF  AN ASSESSMENT IMPOSED ON MEMBER INSURERS OF THE NEW
 YORK PROPERTY INSURANCE UNDERWRITING  ASSOCIATION  PURSUANT  TO  SECTION
 FIVE  THOUSAND  FOUR  HUNDRED TWELVE OF THIS CHAPTER, TO THE EXTENT THAT
 THE ASSOCIATION  IMPOSED  THE  ASSESSMENT  TO  COVER  THE  ASSOCIATION'S
 EXPENSES OR LOSSES ARISING FROM A CLIMATE DISASTER.
   (B)  RECOVERY OF EACH SURCHARGE OR PREMIUM INCREASE IMPOSED ON POLICY-
 HOLDERS OR INSUREDS  IN  THE  ADMITTED  OR  RESIDUAL  MARKET,  WHEN  THE
 SURCHARGE  OR  INCREASE  IS  BASED  ON  A  PROJECTED LOSS ARISING FROM A
 CLIMATE DISASTER OVER A DEFINED PERIOD, OR TO REFLECT PRICED-IN RISK  OF
 FUTURE CLIMATE ATTRIBUTABLE DAMAGE.
   (C)  RECOVERY OF COSTS INCURRED BY POLICYHOLDERS, INSUREDS, OR TAXPAY-
 ERS RESULTING FROM A DISRUPTION TO THE PROPERTY  OR  CASUALTY  INSURANCE
 MARKET  IN THIS STATE, WHEN THE COSTS ARISES FROM LOSSES ATTRIBUTABLE TO
 A CLIMATE DISASTER.
   (2) IN ANY CIVIL ACTION AGAINST A RESPONSIBLE PARTY UNDER THIS SECTION
 THE ATTORNEY GENERAL MAY RECOVER OR OBTAIN ANY OF THE FOLLOWING:
   (A) ALL CLIMATE ATTRIBUTABLE DAMAGE.
   (B) RESTITUTION  OR  DISGORGEMENT  OF  PROFITS  OBTAINED  THROUGH  THE
 VIOLATION.
   (C) REASONABLE COSTS AND DISBURSEMENTS INCURRED BY THE ATTORNEY GENER-
 AL.
   (D) ANY OTHER RELIEF THAT THE COURT OR JURY DEEMS PROPER.
   (3)  RESPONSIBLE  PARTIES  SHALL  BE  STRICTLY LIABLE FOR ANY DAMAGES,
 RESTITUTION, OR OTHER RELIEF AFFORDED UNDER THIS SECTION.
   (4) IN ANY ACTION UNDER THIS  SECTION,  THE  COURT  SHALL  OFFSET  ANY
 RESTITUTION  AWARD  BY AMOUNTS ALREADY REIMBURSED IN CLAIMS ARISING FROM
 THE SAME CASE OR CONTROVERSY. THE ATTORNEY GENERAL  SHALL  REQUIRE  EACH
 CLAIMANT  SEEKING  RESTITUTION TO CERTIFY, UNDER PENALTY OF PERJURY, ANY
 AMOUNTS RECEIVED FROM AN INSURED OR  THE  NEW  YORK  PROPERTY  INSURANCE
 UNDERWRITING  ASSOCIATION,  INCLUDING  PURSUANT TO SECTION FIVE THOUSAND
 FOUR HUNDRED TEN OF THIS CHAPTER, FOR THE SAME LOSS.
   § 2. The insurance law is amended by adding a new section 4122 to read
 as follows:
   § 4122. RECOVERY FOR CLIMATE DISASTER LOSSES. (A) (1) AN INSURER DOING
 BUSINESS IN THIS STATE AND THE NEW YORK PROPERTY INSURANCE  UNDERWRITING
 S. 8585                             3
 
 ASSOCIATION  WHO HAS SUFFERED HARM AS A RESULT OF A CLIMATE DISASTER MAY
 BRING A CIVIL ACTION AGAINST A RESPONSIBLE PARTY TO  RECOVER  OR  OBTAIN
 ALL OF THE FOLLOWING:
   (A) ALL DAMAGES SUSTAINED IN CONNECTION TO THE CLIMATE DISASTER.
   (B) RESTITUTION.
   (C) COURT COSTS, LITIGATION EXPENSES, AND REASONABLE ATTORNEY'S FEES.
   (D) ANY OTHER RELIEF THAT THE COURT OR JURY DEEMS PROPER.
   FOR  PURPOSES  OF  THIS  SECTION,  "CLIMATE DISASTER" AND "RESPONSIBLE
 PARTY" HAVE THE SAME MEANINGS AS DEFINED IN SECTION THREE THOUSAND  FOUR
 HUNDRED SIXTY-THREE OF THIS CHAPTER.
   (2)  NOTWITHSTANDING  ANY OTHER APPLICABLE STATUTE OF LIMITATIONS, THE
 ACTION MUST BE COMMENCED WITHIN THREE YEARS OF THE DATE  THAT  THE  HARM
 WAS  OR SHOULD HAVE BEEN DISCOVERED BY THE CLAIMANT, WHICHEVER IS EARLI-
 ER.
   (3) RESPONSIBLE PARTIES SHALL BE  STRICTLY  LIABLE  FOR  THE  DAMAGES,
 RESTITUTION, OR OTHER RELIEF AFFORDED UNDER THIS SECTION.
   (4)  NOTWITHSTANDING ANY OTHER LAW, A COURT SHALL NOT AWARD ATTORNEYS'
 FEES OR COSTS TO A DEFENDANT IN  AN  ACTION  BROUGHT  PURSUANT  TO  THIS
 SECTION.
   (5) NONE OF THE RIGHTS ASSIGNED BY THIS SECTION MAY BE WAIVED.
   (6)  DAMAGES  AWARDED PURSUANT TO THIS SUBSECTION MAY BE OFFSET BY ANY
 OF THE FOLLOWING:
   (A) PAYMENTS MADE TO A HARMED PARTY PURSUANT TO A CONTRACT  OF  INSUR-
 ANCE.
   (B)  EVIDENCE THAT A PLAINTIFF FULLY RECOVERED FROM A PUBLIC BODY OR A
 LIABLE THIRD PARTY FOR THEIR ALLEGED INJURIES.
   (B) THE EXISTENCE OF A CIVIL ACTION AGAINST A RESPONSIBLE PARTY PURSU-
 ANT TO THIS SECTION IS NOT AN INDEPENDENT BASIS FOR ENFORCEMENT  OF  ANY
 OTHER LAW, THE DENIAL, REVOCATION, SUSPENSION, OR WITHHOLDING OF A RIGHT
 OR  PRIVILEGE  CONFERRED  BY  THE STATE OR A POLITICAL SUBDIVISION, OR A
 THREAT OF THE DENIAL, REVOCATION, SUSPENSION, OR WITHHOLDING OF A  RIGHT
 OR PRIVILEGE CONFERRED BY THE STATE, A POLITICAL SUBDIVISION, A DISTRICT
 ATTORNEY, A COUNTY OR CITY COUNSEL, AN EXECUTIVE OR ADMINISTRATIVE OFFI-
 CER  OR  EMPLOYEE  OF  THE STATE OR A POLITICAL SUBDIVISION, OR A BOARD,
 COMMISSION, OR SIMILAR BODY WITH RELEVANT AUTHORITY.
   (C) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO:
   (1) LIMIT THE ENFORCEABILITY  OF  EXISTING  LAWS  CONCERNING  CONSUMER
 PROTECTION, CLIMATE, ENVIRONMENT, ENERGY, OR NATURAL RESOURCES;
   (2) LIMIT THE ENFORCEABILITY OF EXISTING LAWS THAT REGULATE OR PROHIB-
 IT  CONDUCT  RELATING  TO CLIMATE DISASTERS, EXTREME WEATHER, GREENHOUSE
 GAS EMISSIONS, OR CONSUMER PROTECTION;
   (3) LIMIT, ANY OTHER RIGHTS OR REMEDIES AVAILABLE UNDER ANY OTHER  LAW
 OR  COMMON  LAW,  INCLUDING ACTIONS FOR DAMAGES TO PROPERTY OR INJURY TO
 PERSONS;
   (4) REPLACE OR OFFSET ANY LEGALLY MANDATED  DISASTER  RECOVERY  FUNDS,
 DESIGNATED DISASTER RECOVERY FUNDS ESTABLISHED VIA LEGISLATION OR ADMIN-
 ISTRATIVE  RULE,  OR  CONTRACTUALLY OBLIGATED OR COURT-ORDERED INSURANCE
 CLAIM PAYOUTS;
   (5) RELIEVE THE LIABILITY OF AN  ENTITY  FOR  DAMAGES  RESULTING  FROM
 CLIMATE CHANGE OR DECEPTIVE ACTS, AS PROVIDED BY ANY OTHER LAW;
   (6) PREEMPT, DISPLACE, OR RESTRICT ANY RIGHTS OR REMEDIES OF A PERSON,
 THE STATE, LOCAL GOVERNMENT ENTITIES, OR A TRIBAL GOVERNMENT PURSUANT TO
 LAW  RELATING  TO  A  PAST,  PRESENT, OR FUTURE ALLEGATION OF ANY OF THE
 FOLLOWING:
   (A) DECEPTION CONCERNING THE EFFECT OF FOSSIL FUELS ON CLIMATE CHANGE;
 S. 8585                             4
 
   (B) DAMAGE OR INJURY RESULTING  FROM  THE  ROLE  OF  FOSSIL  FUELS  IN
 CONTRIBUTING TO CLIMATE CHANGE; OR
   (C)  FAILURE  TO  AVOID  DAMAGE  OR  INJURY RELATED TO CLIMATE CHANGE,
 INCLUDING CLAIMS FOR  NUISANCE,  TRESPASS,  DESIGN  DEFECT,  NEGLIGENCE,
 FAILURE  TO WARN, OR DECEPTIVE OR UNFAIR PRACTICES OR CLAIMS FOR INJUNC-
 TIVE, DECLARATORY, MONETARY, OR OTHER RELIEF;
   (7) PREEMPT, SUPERSEDE, OR DISPLACE ANY STATE LAW OR LOCAL  ORDINANCE,
 REGULATION, POLICY, OR PROGRAM THAT DOES ANY OF THE FOLLOWING:
   (A)  LIMIT,  SET,  OR  ENFORCE  STANDARDS  FOR EMISSIONS OF GREENHOUSE
 GASES;
   (B) MONITOR, REPORT, OR KEEP RECORDS OF EMISSIONS OF GREENHOUSE GASES;
   (C) COLLECT REVENUE THROUGH FEES OR LEVY TAXES; OR
   (D) CONDUCT OR SUPPORT INVESTIGATIONS; OR
   (8) IMPOSE LIABILITY ON SPEECH  OR  CONDUCT  PROTECTED  BY  THE  FIRST
 AMENDMENT  TO  THE UNITED STATES CONSTITUTION, AS MADE APPLICABLE TO THE
 STATES THROUGH THE FOURTEENTH AMENDMENT TO THE UNITED  STATES  CONSTITU-
 TION, OR BY SECTION 8 OF ARTICLE I OF THE NEW YORK CONSTITUTION.
   § 3. Subsection (a) of section 2304 of the insurance law is amended to
 read as follows:
   (a)  In  the making of rates, consideration shall be given to past and
 prospective loss experience, including the conflagration and catastrophe
 hazards, if any, both within and without  this  state,  to  all  factors
 reasonably  attributable  to the class of risks, to a reasonable profit,
 to past and prospective expenses both country-wide and  those  specially
 applicable  to this state, ANY PROCEEDS RECOVERED BY A CLAIM PURSUANT TO
 SECTION THREE THOUSAND FOUR HUNDRED SIXTY-THREE  OR  FOUR  THOUSAND  ONE
 HUNDRED  TWENTY-TWO  OF  THIS  CHAPTER, and in the case of participating
 insurers to policyholders'  dividends,  savings  or  unabsorbed  premium
 deposits allowed or returned to policyholders, members or subscribers.
   § 4. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion,  section  or  part  of  this act shall be adjudged by any court of
 competent jurisdiction to be invalid, such judgment  shall  not  affect,
 impair,  or  invalidate  the remainder thereof, but shall be confined in
 its operation to the clause, sentence, paragraph,  subdivision,  section
 or part thereof directly involved in the controversy in which such judg-
 ment shall have been rendered. It is hereby declared to be the intent of
 the  legislature  that  this  act  would  have been enacted even if such
 invalid provisions had not been included herein.
   § 5. This act shall take effect on the ninetieth day  after  it  shall
 have become a law.