NY State Senate Bill 2009-S1845

Senate Bill S1845

2009-2010 Legislative Session

Directs superintendent of insurance to amend rules and regulations with respect to homeowners' policies

download bill text pdf

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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to insurance
Nov 10, 2009	print number 1845b
Nov 10, 2009	amend (t) and recommit to insurance
Jun 01, 2009	print number 1845a
Jun 01, 2009	amend and recommit to insurance
Feb 09, 2009	referred to insurance

Bill Amendments

Original

B (Active)

co-Sponsors

2009-S1845 - Details

See Assembly Version of this Bill:: A6680
Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Amd §3425, Ins L; amd §12, Chap 42 of 1996; amd §23, Chap 136 of 2008
Versions Introduced in Other Legislative Sessions:: 2011-2012: S1041, A4261
2013-2014: S3068, A6601

2009-S1845 - Summary

Directs superintendent of insurance to amend rules and regulations with respect to homeowners' policies; also directs study of certain facets of insurance industry including, but not limited to the profitability of the property/casualty insurance in coastal areas.

2009-S1845 - Sponsor Memo

                                 BILL NUMBER:  S1845

 TITLE OF BILL :

An act to amend the insurance law, in relation to homeowners'
insurance policies


 PURPOSE OR GENERAL IDEA OF BILL :

Directs superintendent of insurance to amend rules and regulations
with respect to homeowners' policies.

 SUMMARY OF SPECIFIC PROVISIONS :

Section 1 amends section 2351 of the insurance law to reduce the
percentage of policies (from 4% to 2% in a single year and from 20% to
10% over a five year period) that an insurer can cancel/non-renew
without state approval and also requires insurers to demonstrate
potential risk/loss to justify such cancellations or non-renewals
before such approval shall be granted by the department.
Section 2 adds a new section 2352 directing the Insurance Department
to conduct a study on the profitability of the property/casualty
insurance industry, specifically reviewing the reasons and rate at
which they increase their premiums or terminate coverage in markets
less impacted by natural disasters, and to report such findings to the

govenor and the legislature.

 JUSTIFICATION :

One of New York's largest insurers, Allstate, recently announced plans
to cancel or "nonrenew" more than 26,000 homeowner's insurance
policies in the coastal portions of New York City, Westchester County
and Long Island. However, because this number represents less than 4%
of their total policies in New York State, Allstate is not required to
notify the State Insurance Department of their plans or take any steps
to ensure that their departure from this segment of the market is
conducted in an orderly manner to minimize the disruption that is sure
to be caused by so many homeowners scrambling for replacement
coverage.

Furthermore, Allstate is not currently required to demonstrate any
kind of financial or actuarial rationale for dropping tens of
thousands of its policyholders While ostensibly caused by losses
incurred during the 2005 hurricane season, some suspect that
Allstate's real reason for canceling large numbers of policies in
relatively low risk areas like New York is their desire to promote the
creation of government-funded liability pools for future natural
disasters.

 PRIOR LEGISLATIVE HISTORY :

2006 - S.7609 - Referred to Insurance
2008 - S.2269A - Referred to Insurance

 FISCAL IMPLICATION :

No cost to the state.

 EFFECTIVE DATE :
Immediately, provided however that the amendments of section 2351 of
the insurance law made by section one of this act shall not affect the
expiration of such section and shall be deemed to expire therewith.

2009-S1845 - Bill Text download pdf

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

                                  1845

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            February 9, 2009
                               ___________

Introduced  by  Sens.  KLEIN,  DUANE, OPPENHEIMER, PARKER, SMITH -- 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 homeowners' insurance
  policies

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

  Section  1. Section 2351 of the insurance law is amended by adding two
new subsections (d) and (e) to read as follows:
  (D) THE SUPERINTENDENT IS DIRECTED TO AMEND THE RULES AND  REGULATIONS
OF  THE  DEPARTMENT  WITH  RESPECT  TO  THE  DEFINITION  OF THE MATERIAL
REDUCTION OF VOLUME OF HOMEOWNERS' POLICIES TO MEAN A REDUCTION  IN  THE
NET  NUMBER  OF  HOMEOWNERS'  INSURANCE  POLICIES WRITTEN BY TEN PERCENT
INSTEAD OF TWENTY PERCENT OR MORE, OR A REDUCTION IN THE NET  NUMBER  OF
SUCH  POLICIES BY FIVE HUNDRED, WHICHEVER IS GREATER, DURING A FIVE YEAR
PERIOD OR A REDUCTION OF THE NET NUMBER OF HOMEOWNERS'  INSURANCE  POLI-
CIES  IN  FORCE,  BY  TWO  PERCENT INSTEAD OF FOUR PERCENT OR MORE, OR A
REDUCTION IN THE NET NUMBER OF SUCH POLICIES BY ONE  HUNDRED,  WHICHEVER
IS GREATER, DURING A ONE-YEAR PERIOD.
  (E)  THE SUPERINTENDENT IS DIRECTED TO AMEND THE RULES AND REGULATIONS
OF THE DEPARTMENT WITH RESPECT TO THE PLAN TO BE SUBMITTED TO THE SUPER-
INTENDENT BY THE INSURER FOR THE ORDERLY  REDUCTION  OF  THE  NUMBER  OF
HOMEOWNERS'  POLICIES  WRITTEN TO REQUIRE THAT SAID PLAN DEMONSTRATE THE
POTENTIAL RISK OR LOSS TO THE SATISFACTION OF THE DEPARTMENT TO  JUSTIFY
WIDESPREAD CANCELLATION OR NON-RENEWAL OF HOMEOWNERS' POLICIES.
  S 2. The insurance law is amended by adding a new section 2352 to read
as follows:
  S  2352. STUDY ON THE PROFITABILITY OF THE PROPERTY/CASUALTY INSURANCE
INDUSTRY. THE DEPARTMENT IS DIRECTED TO CONDUCT A STUDY ON  THE  PROFIT-
ABILITY  OF  THE  PROPERTY/CASUALTY  INSURANCE  INDUSTRY. THE DEPARTMENT
SHALL SPECIFICALLY REVIEW THE REASONS AND THE  RATE  AT  WHICH  INSURERS

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02897-01-9

S. 1845                             2

INCREASE  THEIR  PREMIUMS OR TERMINATE COVERAGE IN MARKETS LESS IMPACTED
BY NATURAL DISASTERS. THE DEPARTMENT SHALL MAKE A PRELIMINARY REPORT  TO
THE  GOVERNOR AND LEGISLATURE OF ITS FINDINGS, CONCLUSIONS AND RECOMMEN-
DATIONS NOT LATER THAN MAY FIRST, TWO THOUSAND TEN AND A FINAL REPORT OF
ITS  FINDINGS, CONCLUSIONS AND RECOMMENDATIONS NOT LATER THAN MAY FIRST,
TWO THOUSAND ELEVEN AND SHALL SUBMIT WITH ITS REPORTS  SUCH  LEGISLATIVE
PROPOSALS AS IT DEEMS NECESSARY TO IMPLEMENT ITS PROPOSALS.
  S 3. This act shall take effect immediately.

co-Sponsors

2009-S1845A - Details

See Assembly Version of this Bill:: A6680
Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Amd §3425, Ins L; amd §12, Chap 42 of 1996; amd §23, Chap 136 of 2008
Versions Introduced in Other Legislative Sessions:: 2011-2012: S1041, A4261
2013-2014: S3068, A6601

2009-S1845A - Summary

2009-S1845A - Sponsor Memo

                                 BILL NUMBER:  S1845A

 TITLE OF BILL :

An act to amend the insurance law, in relation to homeowners'
insurance policies


 PURPOSE OR GENERAL IDEA OF BILL :

Directs superintendent of insurance to amend rules and regulations
with respect to homeowners' policies.

 SUMMARY OF SPECIFIC PROVISIONS :

Section 1 amends section 2351 of the insurance law to reduce the
percentage of policies (from 4% to 2% in a single year and from 20% to
10% over a five year period) that an insurer can cancel/non-renew
without state approval and also requires insurers to demonstrate
potential risk/loss to justify such cancellations or non-renewals
before such approval shall be granted by the department.  Section 2
adds a new section 2352 directing the Insurance Department to conduct
a study on the profitability of the property/casualty insurance
industry, specifically reviewing the reasons and rate at which they
increase their premiums or terminate coverage in markets less impacted
by natural disasters, and to report such findings to the governor and

the legislature.

 JUSTIFICATION :

One of New York's largest insurers, Allstate, recently announced plans
to cancel or "nonrenew" more than 26,000 homeowner's insurance
policies in the coastal portions of New York City, Westchester County
and Long Island. However, because this number represents less than 4%
of their total policies in New York State, Allstate is not required to
notify the State Insurance Department of their plans or take any steps
to ensure that their departure from this segment of the market is
conducted in an orderly manner to minimize the disruption that is sure
to be caused by so many homeowners scrambling for replacement
coverage.

Furthermore, Allstate is not currently required to demonstrate any
kind of financial or actuarial rationale for dropping tens of
thousands of its policyholders While ostensibly caused by losses
incurred during the 2005 hurricane season, some suspect that
Allstate's real reason for canceling large numbers of policies in
relatively low risk areas like New York is their desire to promote the
creation of government-funded liability pools for future natural
disasters.

 PRIOR LEGISLATIVE HISTORY :

2006 - S.7609 - Referred to Insurance
2008 - S.2269A - Referred to Insurance

 FISCAL IMPLICATION :

No cost to the state.

 EFFECTIVE DATE :
Immediately, provided however that the amendments of section 2351 of
the insurance law made by section one of this act shall not affect the
expiration of such section and shall be deemed to expire therewith.

2009-S1845A - Bill Text download pdf

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

                                 1845--A

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            February 9, 2009
                               ___________

Introduced  by  Sens.  KLEIN,  DUANE, OPPENHEIMER, PARKER, SMITH -- read
  twice and ordered printed, and when printed to  be  committed  to  the
  Committee  on Insurance -- committee discharged, bill amended, ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the insurance law, in relation to homeowners'  insurance
  policies

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

  Section 1. Subparagraph (C) of  paragraph  2  of  subdivision  (o)  of
section 3425 of the insurance law, as added by chapter 42 of the laws of
1996, is amended to read as follows:
  (C)  (I)  The superintendent shall promulgate rules and regulations to
establish standards for the definition of "materially reduce its  volume
of  policies"  as  used in this paragraph. Such definition shall require
that a plan be filed with the superintendent if  the  insurer  plans  to
reduce  the  net  number  of homeowners insurance policies as defined in
subsection (a) of section twenty-three hundred fifty-one of this chapter
by [twenty] TEN percent or more, or plans to reduce the  net  number  of
such  policies it writes by five hundred, whichever is greater, within a
five year period of time; provided, however, that if an insurer  is  not
otherwise  required to file a plan pursuant to this subparagraph, a plan
shall be filed if the insurer plans to reduce the  net  number  of  such
policies  it has in force in a twelve month period by [four] TWO percent
or more or the net number of such policies it  writes  by  one  hundred,
whichever is greater.
  The  provisions  of  this  subparagraph  shall  not  apply to policies
cancelled or nonrenewed by  the  insured  or  policies  not  renewed  or
cancelled  pursuant  to  subparagraph (A), (B), (C), (D) or (E) of para-
graph two of subsection (c) of this section.
  (II) THE SUPERINTENDENT IS DIRECTED TO AMEND THE RULES AND REGULATIONS
OF THE DEPARTMENT WITH RESPECT TO THE PLAN TO BE SUBMITTED TO THE SUPER-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02897-05-9

S. 1845--A                          2

INTENDENT BY THE INSURER FOR THE ORDERLY  REDUCTION  OF  THE  NUMBER  OF
HOMEOWNERS'  POLICIES  WRITTEN TO REQUIRE THAT SAID PLAN DEMONSTRATE THE
POTENTIAL RISK OR LOSS TO THE SATISFACTION OF THE DEPARTMENT TO  JUSTIFY
WIDESPREAD CANCELLATION OR NON-RENEWAL OF HOMEOWNERS' POLICIES.
  S 2. The insurance law is amended by adding a new section 2352 to read
as follows:
  S  2352. STUDY ON THE PROFITABILITY OF THE PROPERTY/CASUALTY INSURANCE
INDUSTRY. THE DEPARTMENT IS DIRECTED TO CONDUCT A STUDY ON  THE  PROFIT-
ABILITY  OF  THE  PROPERTY/CASUALTY  INSURANCE  INDUSTRY. THE DEPARTMENT
SHALL SPECIFICALLY REVIEW THE REASONS AND THE  RATE  AT  WHICH  INSURERS
INCREASE  THEIR  PREMIUMS OR TERMINATE COVERAGE IN MARKETS LESS IMPACTED
BY NATURAL DISASTERS. THE DEPARTMENT SHALL MAKE A PRELIMINARY REPORT  TO
THE  GOVERNOR AND LEGISLATURE OF ITS FINDINGS, CONCLUSIONS AND RECOMMEN-
DATIONS NOT LATER THAN MAY FIRST, TWO THOUSAND TEN AND A FINAL REPORT OF
ITS FINDINGS, CONCLUSIONS AND RECOMMENDATIONS NOT LATER THAN MAY  FIRST,
TWO  THOUSAND  ELEVEN AND SHALL SUBMIT WITH ITS REPORTS SUCH LEGISLATIVE
PROPOSALS AS IT DEEMS NECESSARY TO IMPLEMENT ITS PROPOSALS.
  S 3. This act shall take effect immediately.

co-Sponsors

View additional co-sponsors

2009-S1845B (ACTIVE) - Details

See Assembly Version of this Bill:: A6680
Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Amd §3425, Ins L; amd §12, Chap 42 of 1996; amd §23, Chap 136 of 2008
Versions Introduced in Other Legislative Sessions:: 2011-2012: S1041, A4261
2013-2014: S3068, A6601

2009-S1845B (ACTIVE) - Summary

2009-S1845B (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S1845B

 TITLE OF BILL :

An act to amend the insurance law, in relation to homeowners'
insurance policies; to amend chapter 42 of the laws of 1996, amending
the insurance law relating to homeowners' insurance and a temporary
panel on homeowners' insurance coverage, in relation to the panel's
evaluation regarding coastal areas; and to amend chapter 136 of the
laws of 2008, amending the insurance law relating to extending the
effectiveness of certain stand-by powers of the New York property
insurance underwriting association, in relation to attracting more
competitors to the coastal counties


 PURPOSE OR GENERAL IDEA OF BILL :


The purpose of this bill is to expand the definition of "materially
reduce its volume of policies" to reduce the threshold before insurers
must submit a withdrawal plan to the Insurance Department when
non-renewing substantial numbers of homeowners' insurance policies in
this State's coastal areas.  Further, the bill expands the definition
of the term "minimizes market disruption" so that it is tailored more
to the needs of homeowners who are near the coast and unable to obtain
affordable homeowners' insurance.

 SUMMARY OF SPECIFIC PROVISIONS :

Section 1: Amends Insurance Law section 3425(o)(2)to reduce the
percentage or net number of non-renewed homeowners' policies that
insurers terminate in coastal areas that triggers the mandate that
such insurer must file a withdrawal plan to minimize market
disruption. Under current law, if an insurer plans to "materially
reduce its volume of policies" by cancelling or non-renewing 20% or
more of its homeowners' policies or the net number of policies by at
least 500  ON A STATE-WIDE BASIS  during the next five years period or
the same ratio of cancellations during the course of a single year,
then such insurer must file a withdrawal plan that demonstrates how
the homeowners' insurance market will not be disrupted.

This bill adds a supplemental definition for the term "materially
reduce its volume of policies" that adds a lower threshold for those
insurers that are non-renewing policies in the State's coastal areas.
Under this definition, if a carrier plans to reduce its number of
policies by 15% over 5 years or the net number of policies by 200 over
a five year period of time, or similar percentage of polices over a
one year period of time  IN COASTAL AREAS , then the carrier must file
a withdrawal plan that is specific to the coastal homeowners'
insurance market. Coastal areas is defined as within one mile of the
salt water line of New York's shoreline.

Section 2: Amends Chapter 136 of the Laws of 2008 to expand the charge
of the Temporary Panel on Homeowners' Insurance Coverage to include
evaluating the profitability of insurers that write homeowners'
insurance in this state and the profits or losses such insurers
sustain by writing coverages along this State's coast line. Further,
such Task Force shall look into the estimated cost of obtaining
comparable homeowners' insurance if their previous coverage has been
cancelled.

Section 3: Amends section 23 of Chapter 136 of the Laws of 2008 to
encourage the Superintendent of Insurance to seek to new ways to
identify new insurance carriers that may want to write homeowners'
insurance in the State's coastal areas to help replace those carriers
that are slowing withdrawing from this market. Encouraging more
private carriers to write coastal homeowners' insurance should help to
increase the availability of coastal homeowners' insurance and give
consumers more choice in this tightening market.

 JUSTIFICATION :

One of New York's largest insurers, recently announced plans to cancel
or "non-renew" more than 26,000 homeowner's insurance policies in the
coastal portions of New York City, Westchester County and Long Island.
However, because this number represents less than 4% of their total
number of policies written in New York State, such insurer is not
required by law to notify the State Insurance Department of their
plans, file a withdrawal plan, or take any steps to ensure that their
departure from this segment of the market is conducted in an orderly
manner to minimize the disruption that is sure to be caused by so many
homeowners scrambling for replacement coverage.

This bill adds a new alternative definition for "materially reduce its
volume of policies" so that if an insurer inordinately begins to
withdraw from the coastal homeowners' market, that such an insurer
must also file a withdrawal plan. In this withdrawal plan filed with
the Insurance Department, the insurer must set for the reasons for
such withdrawal, describe the measures to be taken by the insurer to
minimize market disruption, and provide other information that the
Superintendent may require. The filing of this plan not only forces
the withdrawing insurer to justify its actions to the Department, but
gives notice to the Department so that they can use the regulatory
tools at its disposal to encourage other insurers to increase the
number of homeowners' writings in coastal areas.

 PRIOR LEGISLATIVE HISTORY :

2006 - S.7609 - Referred to Insurance
2008 - S.2269-A - Referred to Insurance

 FISCAL IMPLICATION :

None.

 EFFECTIVE DATE :
Immediate.

2009-S1845B (ACTIVE) - Bill Text download pdf

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

                                 1845--B

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            February 9, 2009
                               ___________

Introduced  by  Sens.  KLEIN,  DUANE, OPPENHEIMER, PARKER, SMITH -- read
  twice and ordered printed, and when printed to  be  committed  to  the
  Committee  on Insurance -- committee discharged, bill amended, ordered
  reprinted as amended and recommitted to said  committee  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN  ACT to amend the insurance law, in relation to homeowners' insurance
  policies; to amend chapter 42 of the laws of 1996, amending the insur-
  ance law relating to homeowners' insurance and a  temporary  panel  on
  homeowners'  insurance coverage, in relation to the panel's evaluation
  regarding coastal areas; and to amend chapter 136 of the laws of 2008,
  amending the insurance law relating to extending the effectiveness  of
  certain  stand-by powers of the New York property insurance underwrit-
  ing association, in relation to attracting  more  competitors  to  the
  coastal counties

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

  Section 1. Subparagraphs (C) and (D) of paragraph 2 of subdivision (o)
of section 3425 of the insurance law, as added by chapter 42 of the laws
of 1996, are amended to read as follows:
  (C) The superintendent  shall  promulgate  rules  and  regulations  to
establish  standards for the definition of "materially reduce its volume
of policies" as used in this paragraph.
  (I) Such definition shall require that a plan be filed with the super-
intendent if the insurer plans to reduce the net  number  of  homeowners
insurance  policies as defined in subsection (a) of section twenty-three
hundred fifty-one of this chapter by twenty percent or more, or plans to
reduce the net number of such policies it writes by five hundred, which-
ever is greater, within a five year period of time;  provided,  however,
that  if an insurer is not otherwise required to file a plan pursuant to
this subparagraph, a plan shall be filed if the insurer plans to  reduce

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02897-07-9

S. 1845--B                          2

the net number of such policies it has in force in a twelve month period
by  four percent or more or the net number of such policies it writes by
one hundred, whichever is greater.
  (II)  PROVIDED FURTHER, SUCH DEFINITION OF THE TERM "MATERIALLY REDUCE
ITS VOLUME OF POLICIES" SHALL MEAN  IF  AN  INSURER  PLANS,  IN  COASTAL
AREAS,  TO  REDUCE  THE  NET NUMBER OF HOMEOWNERS' INSURANCE POLICIES AS
DEFINED  IN  SUBSECTION  (A)  OF  SECTION  TWO  THOUSAND  THREE  HUNDRED
FIFTY-ONE OF THIS CHAPTER BY FIFTEEN PERCENT OR MORE, OR PLANS TO REDUCE
THE  NET  NUMBER OF SUCH POLICIES IT WRITES BY TWO HUNDRED, WHICHEVER IS
GREATER, WITHIN A FIVE YEAR PERIOD OF TIME; PROVIDED, HOWEVER,  THAT  IF
AN  INSURER  IS  NOT  OTHERWISE REQUIRED TO FILE A PLAN PURSUANT TO THIS
SUBPARAGRAPH, A PLAN SHALL BE FILED IF THE INSURER PLANS TO  REDUCE  THE
NET  NUMBER OF SUCH POLICIES IT HAS IN FORCE IN A TWELVE MONTH PERIOD BY
THREE PERCENT OR MORE OR THE NET NUMBER OF SUCH POLICIES  IT  WRITES  BY
FORTY,  WHICHEVER  IS GREATER. FOR THE PURPOSES OF THIS SUBPARAGRAPH THE
TERM "COASTAL AREAS" SHALL MEAN THOSE AREAS THAT ARE WITHIN ONE MILE  OF
A  SALTWATER  OCEAN,  SOUND,  INLET OR BAY IN THE COUNTIES OF THE BRONX,
KINGS, NASSAU, QUEENS, RICHMOND, SUFFOLK AND WESTCHESTER.
  The provisions of  this  subparagraph  shall  not  apply  to  policies
cancelled  or  nonrenewed  by  the  insured  or  policies not renewed or
cancelled pursuant to subparagraph (A), (B), (C), (D) or  (E)  of  para-
graph two of subsection (c) of this section.
  (D)  The  superintendent  shall  promulgate  rules  and regulations to
establish standards to approve such an application and to define  "mini-
mizes  market disruption." SUCH DEFINITION OF THE TERM "MINIMIZES MARKET
DISRUPTION" SHALL INCLUDE AN ANALYSIS OF THE ABILITY OF A  HOLDER  OF  A
HOMEOWNER'S  INSURANCE  POLICY WHO HAS BEEN CANCELLED OR TERMINATED IN A
COASTAL AREA TO READILY OBTAIN COMPARABLE REPLACEMENT HOMEOWNERS' COVER-
AGES AT RELATIVELY COMPARABLE PREMIUM RATES  IN  THE  PRIVATE  INSURANCE
MARKET.
  S  2. Paragraphs (h) and (i) of subdivision 1 of section 12 of chapter
42 of the laws of 1996, amending the insurance law relating to  homeown-
ers'  insurance and a temporary panel on homeowners' insurance coverage,
as amended by chapter 136 of the laws of 2008, are  amended  and  a  new
paragraph (j) is added to read as follows:
  (h)  an evaluation of insurer preparedness in the recovery, rebuilding
and renewal processes following weather-related losses; [and]
  (i) an evaluation of public awareness of storm risks and  programs  to
educate the public of storm risks and mitigation techniques[.]; AND
  (J) AN EVALUATION OF THE PROFITABILITY OF INSURERS THAT WRITE HOMEOWN-
ER'S  INSURANCE IN COASTAL AREAS OF THIS STATE AND THE PROFITS OR LOSSES
SUCH INSURERS SUSTAIN BY WRITING COVERAGES ALONG  THIS  STATE'S  COASTAL
AREAS.  THE PANEL SHALL SPECIFICALLY ANALYZE THE REASONS WHY AND RATE AT
WHICH INSURERS MAY BE WITHDRAWING FROM THE COASTAL HOMEOWNERS' INSURANCE
MARKET  AND  INORDINARILY  CANCELLING  SUCH  POLICIES  OR  SUBSTANTIALLY
INCREASING  INSURANCE  PREMIUM  RATES IN SUCH MARKET. FURTHER, THE PANEL
SHALL STUDY THE COST OF  OBTAINING  COMPARABLE  REPLACEMENT  HOMEOWNER'S
COVERAGE  FOR  THOSE  INSUREDS  WHO  HAVE BEEN CANCELLED IN SUCH COASTAL
AREAS. FOR THE PURPOSES OF THIS PARAGRAPH, THE TERM COASTAL  HOMEOWNERS'
INSURANCE  MARKET  SHALL  MEAN THOSE AREAS THAT ARE WITHIN ONE MILE OF A
SALTWATER OCEAN, SOUND, INLET OR BAY  IN  THE  COUNTIES  OF  THE  BRONX,
KINGS, NASSAU, QUEENS, RICHMOND, SUFFOLK, AND WESTCHESTER.
  S 3. Subdivision (a) of section 23 of chapter 136 of the laws of 2008,
amending  the  insurance  law relating to extending the effectiveness of
certain stand-by powers of the New York property insurance  underwriting
association, is amended to read as follows:

S. 1845--B                          3

  (a) The superintendent of insurance shall implement a program designed
to  attract more competitors to the state's homeowners' insurance market
PARTICULARLY WITH RESPECT TO THOSE COMMUNITIES THAT ARE WITHIN ONE  MILE
OF  A SALTWATER OCEAN, SOUND, INLET OR BAY IN THE COUNTIES OF THE BRONX,
KINGS,  NASSAU, QUEENS, RICHMOND, SUFFOLK, AND WESTCHESTER.  The program
shall include, but shall not be limited to:
  (1) identifying, contacting and  soliciting  feedback  from  national,
regional  and  other insurance carriers not currently writing homeowners
insurance in the state to determine their interest in selling homeowners
insurance in the state;
  (2) adopting specific measures to  encourage  such  insurers  to  sell
homeowners' insurance in the state; and
  (3)  documenting  those  issues  or concerns such insurers may cite as
barriers to selling homeowners insurance in the state.
  S 4. This act shall take effect immediately.

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Senate Bill S1845

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Sponsored By

Archive: Last Bill Status - In Senate Committee Insurance Committee

Bill Amendments

co-Sponsors

2009-S1845 - Details

2009-S1845 - Summary

2009-S1845 - Sponsor Memo

2009-S1845 - Bill Text download pdf

co-Sponsors

2009-S1845A - Details

2009-S1845A - Summary

2009-S1845A - Sponsor Memo

2009-S1845A - Bill Text download pdf

co-Sponsors

2009-S1845B (ACTIVE) - Details

2009-S1845B (ACTIVE) - Summary

2009-S1845B (ACTIVE) - Sponsor Memo

2009-S1845B (ACTIVE) - Bill Text download pdf

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