Senate Bill S2088

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

                                 2088--A
    Cal. No. 50

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            February 11, 2009
                               ___________

Introduced  by  Sen. BRESLIN -- read twice and ordered printed, and when
  printed to be committed to the  Committee  on  Insurance  --  reported
  favorably  from  said  committee,  ordered to first and second report,
  ordered to a third reading, passed by  Senate  and  delivered  to  the
  Assembly,  recalled,  vote  reconsidered, restored to third reading --
  reported favorably from said committee and committed to the  Committee
  on  Rules  -- committee discharged, bill amended, ordered reprinted as
  amended and recommitted to said committee

AN ACT to amend the insurance law and the civil practice law and  rules,
  in relation to standard fire insurance policies

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

  Section 1. Subsection (g) of section 3404 of  the  insurance  law,  as
added by chapter 27 of the laws of 1990, is amended to read as follows:
  (g)  Notwithstanding  any  other provision of law to the contrary, the
provisions of the appraisal clause set out on the  second  page  of  the
standard  fire  policy and the provisions of section three thousand four
hundred eight of this [chapter] ARTICLE, including determinations as  to
the  amount  of  loss or damage rendered thereunder, shall be binding on
all parties to the contract of [fire] insurance evidenced by the  policy
AND  MAY BE ENFORCED BY EITHER THE INSURER OR THE INSURED BY APPLICATION
MADE PURSUANT TO SUBSECTION (C) OF SECTION THREE THOUSAND  FOUR  HUNDRED
EIGHT OF THIS ARTICLE.
  S  2.  Section  3408  of  the insurance law is amended by adding a new
subsection (c) to read as follows:
  (C) IN THE EVENT OF A COVERED LOSS, WHENEVER  AN  INSURED  OR  INSURER
FAILS  TO  PROCEED  WITH  AN  APPRAISAL UPON DEMAND OF THE OTHER, EITHER
PARTY MAY APPLY TO THE COURT IN THE MANNER PROVIDED IN SUBSECTION (A) OF
THIS SECTION FOR AN ORDER  DIRECTING  THE  OTHER  TO  COMPLY  WITH  SUCH
DEMAND. IF AN APPRAISAL IS SO ORDERED, IT SHALL BE LIMITED TO A DETERMI-
NATION  OF  ACTUAL  CASH VALUE AND/OR REPLACEMENT COST, OR THE AMOUNT OF

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

                                                           LBD03015-06-9

S. 2088--A                          2

LOSS WHICH SHALL BE DETERMINED AS SPECIFIED  IN  THE  POLICY  AND  SHALL
PROCEED  PURSUANT TO THE TERMS OF THE APPLICABLE APPRAISAL CLAUSE OF THE
INSURANCE POLICY AND NOT AS AN ARBITRATION.
  S  3.  Section  7601 of the civil practice law and rules is amended to
read as follows:
  S 7601. Special proceeding to enforce agreement that issue or  contro-
versy  be  determined  by  a  person named or to be selected.  A special
proceeding may be commenced to specifically enforce an agreement[, other
than one contained in the standard fire insurance policy of the  state,]
that a question of valuation, appraisal or other issue or controversy be
determined  by  a person named or to be selected.  The court may enforce
such an agreement as if it were an arbitration agreement, in which  case
the  proceeding  shall be conducted as if brought under article seventy-
five OF THIS CHAPTER. Where there  is  a  defense  which  would  require
dismissal of an action for breach of the agreement, the proceeding shall
be  dismissed.   PROVIDED, HOWEVER, THAT THIS SECTION SHALL NOT APPLY TO
ANY AGREEMENT CONTAINED IN THE STANDARD FIRE  INSURANCE  POLICY  OF  THE
STATE  WITH  THE  EXCEPTION OF AN ACTION TO ENFORCE THE APPRAISAL CLAUSE
PURSUANT TO SECTION THREE THOUSAND FOUR HUNDRED EIGHT OF  THE  INSURANCE
LAW WHICH SHALL NOT BE ENFORCED AS AN ARBITRATION AGREEMENT.
  S 4. This act shall take effect immediately.