S T A T E   O F   N E W   Y O R K
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                                  4847

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            February 6, 2009
                               ___________

Introduced by M. of A. WEISENBERG, SWEENEY, ENGLEBRIGHT, BRODSKY, COLTON
  --  Multi-Sponsored  by  -- M. of A. HOOPER, SALADINO -- read once and
  referred to the Committee on Insurance

AN ACT to amend the insurance law, in relation to notice  of  homeowners
  insurance deductibles

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

  Section 1. Section 3445 of the insurance law, as added by  chapter  44
of  the  laws of 1998, is renumbered section 3453 and amended to read as
follows:
  S 3453. Windstorm insurance notice; DEDUCTIBLE  STANDARDS.    (A)  The
superintendent  shall  by  regulation  establish disclosure requirements
with respect to the operation of any deductible in a homeowner's  insur-
ance  policy or dwelling fire personal lines policy which applies as the
result of a windstorm. Such regulations shall prescribe the  form  of  a
notice  to  be  provided  by  an insurer to an insured. The notice shall
explain in clear and plain language the amount of  the  deductible,  the
circumstances  under  which the deductible applies and any other matters
which the superintendent, in his or her discretion, shall deem necessary
or appropriate. WITH RESPECT TO HURRICANE DEDUCTIBLES, SUCH  REGULATIONS
SHALL  PROVIDE FOR NOTICE IN THE DECLARATIONS PAGE, AND A SEPARATE POLI-
CYHOLDER NOTICE, TO ACCOMPANY EVERY POLICY ISSUED AND RENEWED. IN  ADDI-
TION,  SUCH REGULATIONS SHALL PRESCRIBE THE FORM OF A NOTICE OR NOTICES,
WHICH INSURERS SHALL PROVIDE ANNUALLY, AT LEAST ONCE PRIOR TO  HURRICANE
SEASON, IN A SEPARATE AND DISTINCT MAILING OR MAILINGS.
  (B)  THE  SUPERINTENDENT  SHALL  BY REGULATION ESTABLISH STANDARDS FOR
HURRICANE WINDSTORM DEDUCTIBLES, WHICH CREATE, TO  THE  GREATEST  EXTENT
POSSIBLE,  UNIFORMITY  IN THE OPERATION OF SUCH DEDUCTIBLES WITH RESPECT
TO THE TRIGGERING EVENT, DOLLAR AMOUNT, PERCENTAGE, OR ANY OTHER  ASPECT
OF  THE OPERATION OF SUCH DEDUCTIBLES TO PROMOTE: CLEAR UNDERSTANDING OF
THE NATURE, AMOUNT AND TRIGGERING EVENTS OF SUCH DEDUCTIBLES;  AWARENESS

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07962-01-9
              

A. 4847                             2

OF  THE  FULL EXTENT OF THE POLICYHOLDER'S EXPOSURE; AND EASY COMPARISON
BETWEEN INSURER OPTIONS FOR  REGULATORS,  PRODUCERS  AND  POLICYHOLDERS.
SUCH STANDARDS SHALL PROVIDE, TO THE GREATEST EXTENT POSSIBLE, THAT AS A
RESULT OF THE APPLICATION OF ANY SUCH DEDUCTIBLE, A POLICYHOLDER'S MONE-
TARY  EXPOSURE  BEARS A REASONABLE AND ACTUARIALLY APPROPRIATE RELATION-
SHIP TO THE ESTIMATED AMOUNT OF DAMAGE THAT COULD BE SUSTAINED DURING  A
TRIGGERING  EVENT,  AND  APPORTIONS A REASONABLE LEVEL OF SHARING OF THE
RISK BETWEEN INSURER AND INSURED.
  THE SUPERINTENDENT SHALL  PROMULGATE  SUCH  REGULATIONS  BY  EMERGENCY
ADOPTION  OR  OTHERWISE, WITHIN NINETY DAYS OF THE EFFECTIVE DATE OF THE
CHAPTER OF THE LAWS OF TWO THOUSAND NINE WHICH ADDED THIS SUBSECTION.
  S 2. This act shall take effect immediately and  shall  apply  to  all
policies  issued  or  renewed  on  or  after the ninetieth day after the
promulgation of the regulations required in section 3453 of  the  insur-
ance law, as amended by this act.