senate Bill S4654

2011-2012 Legislative Session

Prohibits discrimination in the issuance of homeowner's insurance policies and clarifies prohibition of refusal to issue policies based solely on geographical location

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 04, 2012 referred to insurance
Apr 14, 2011 referred to insurance

S4654 - Bill Details

See Assembly Version of this Bill:
A7042
Current Committee:
Law Section:
Insurance Law
Laws Affected:
Amd ยงยง3429 & 3433, Ins L
Versions Introduced in 2009-2010 Legislative Session:
S8238, A2101

S4654 - Bill Texts

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Prohibits discrimination in the issuance of homeowner's insurance policies based upon the subject property's location; makes various provisions clarifying prohibition on refusal to issue or renew certain policies including homeowner's fire and extended coverage based solely on geographical location.

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BILL NUMBER:S4654

TITLE OF BILL:

An act
to amend the insurance law, in relation to prohibiting discrimination in
the issuance or renewal of homeowner's insurance policies and to the
geographical location of risk of certain policies

PURPOSE OR GENERAL IDEA OF BILL:

Prohibits discrimination in the issuance and renewal of homeowner's
insurance policies based on the geographic location of the risk or
property.

SUMMARY OF SPECIFIC PROVISIONS:,

Section 3429 of the insurance law is amended to include homeowner's
insurance in the list of insurance categories said section applies
to. Subdivision (a) of section 3429 of the insurance law is amended
to add rejection of an application and limiting the type or amount of
coverage offered as actions that are prohibited with regard to
discrimination based on geographic location of a risk or property.
Part 2 of subdivision (a) of section 3429 is amended to include
protection against discrimination based on property location and to
allow an insurer to reject an application based on geographic
location only when there is unreasonable distance of a risk or
property from the insurer's ordinary service area. Subdivision 1 of
section 3433 of the insurance law is amended to include homeowner's
insurance in the categories of insurance for which the agents or
brokers may not have their contracts or accounts terminated or not
renewed based on their geographical location or the geographical
location of the risks for which coverage is afforded.
Subdivision 2 of section 3433 of the insurance law is amended to
include geographic location of a risk as a basis of discrimination
that is prohibited with respect to terminating or not renewing the
contract or account of a broker or agent.

JUSTIFICATION:

In light of a move on the part of Allstate Insurance Company to cease
offering insurance only on Long Island, New York City, and
Westchester County, the insurance law must be changed before other
companies follow suit.
Insurance companies that do business in our State should not have the
option to pick and choose which areas they will do business with. As
the number of
insurance companies writing in these areas decreases, the cost of
homeowner's insurance will skyrocket and protecting our homes will
become a luxury few could afford.

PRIOR LEGISLATIVE HISTORY:

2009-10: A.2101/S.8238 - Reported Referred to Assembly Codes Committee
2007-08: A.1508 - Held for consideration in Insurance
2005-06: A.9783 - Held for consideration in Insurance


FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

This act shall take effect on the thirtieth day after it shall have
become a law and shall apply to all contract and policies of
insurance issued or renewed on and after such date.

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

                                  4654

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             April 14, 2011
                               ___________

Introduced  by  Sen.  ZELDIN -- 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 prohibiting  discrimi-
  nation  in  the  issuance or renewal of homeowner's insurance policies
  and to the geographical location of risk of certain policies

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

  Section  1.  Section  3429  of the insurance law is amended to read as
follows:
  S 3429. Geographical location of risks; HOMEOWNERS';  fire,  fire  and
extended coverage policies; private passenger automobile insurance poli-
cies.  (a)  No insurer shall REJECT ANY APPLICATION FOR, refuse to issue
or renew, LIMIT THE TYPE OR AMOUNT OF COVERAGE OFFERED or shall cancel a
policy of:
  (1) HOMEOWNERS' INSURANCE, fire insurance or fire and extended  cover-
age insurance, or
  (2)  automobile  insurance  subject  to  section  three  thousand four
hundred twenty-five of this article
based solely on the geographical location of the risk OR PROPERTY within
this state. Such prohibition shall not preclude an insurer from  REJECT-
ING  AN APPLICATION FOR SUCH COVERAGE BASED ON THE UNREASONABLE DISTANCE
OF THE RISK OR PROPERTY FROM THE INSURER'S  ORDINARY  SERVICE  AREA,  OR
FROM refusing to issue or renew, LIMITING THE TYPE OR AMOUNT OF COVERAGE
OFFERED  or  from  cancelling such policies [based on sound underwriting
and actuarial principles] reasonably related to  actual  or  anticipated
loss  experience  subject  to the applicable provisions of section three
thousand four hundred twenty-five of this article.
  (b) The superintendent shall by regulation establish  procedures  with
respect  to notification to insureds of the insurer's specific reason or
reasons for refusal to issue or renew or for cancellation of such  poli-
cy.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10775-01-1

S. 4654                             2

  S 2. Section 3433 of the insurance law is amended to read as follows:
  S  3433.  Termination  of  contracts or accounts of licensed agents or
brokers; prohibition; geographical location. (a) No insurer shall termi-
nate or refuse to renew a contract or account of  a  licensed  agent  or
broker who negotiated policies of:
  (1)  HOMEOWNERS' INSURANCE, fire insurance or fire and extended cover-
age insurance or
  (2) automobile  insurance  subject  to  section  three  thousand  four
hundred  twenty-five of this article when such termination or refusal to
renew is based solely on the  geographical  location  of  the  agent  or
broker  or  GEOGRAPHICAL  LOCATION  of  the  risks for which coverage is
afforded through such agent or broker.
  (b)  The  superintendent  shall  by  regulation  establish  procedures
requiring  notification  to  such  agents  or  brokers  of the insurer's
specific reason or reasons for  termination  or  refusal  to  renew  the
agent's or broker's contract or account.
  S  3.  This act shall take effect on the thirtieth day after  it shall
have become a law and shall apply  to  all  contracts  and  policies  of
insurance issued or renewed on and after such date.

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