Senate Bill S4926

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

                                 4926--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             April 29, 2011
                               ___________

Introduced  by  Sen.  KLEIN  -- 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 requiring insurers who
  underwrite  property and casualty policies in the state to cover costs
  associated with bedbug infestations in residential buildings

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

  Section  1.  Section  3407-a of the insurance law, as added by chapter
306 of the laws of 2001, is amended to read as follows:
  S 3407-a. Property/casualty insurance  contract  and  policy  standard
provisions.  No  property/casualty insurance policy or contract shall be
issued or issued for delivery on a risk  located  or  resident  in  this
state  insuring  against damage to the insured's real property unless it
contains  in  substance  the  following  [provision]  PROVISIONS  or  [a
provision]  OTHER  PROVISIONS  which [is] ARE equal or more favorable to
the insured:
  (A) a provision that in the event of a pending  claim  for  damage  to
real  property, upon request, the insurer shall furnish to the insured's
representative, designated in writing, or if none has  been  designated,
to  the insured, a copy of any written estimate or estimates of the cost
of damages to real property resulting from the loss  which  the  insurer
has  independently prepared for its own purposes, or had prepared on its
behalf for its own  purposes,  specifying  all  appropriate  deductions,
within thirty days after the request or preparation, whichever is later,
of  such  estimate  or  estimates.  An  insurer shall not be required to
provide an estimate on claims for damages to real property unless it has
independently prepared one or had one prepared on  its  behalf  for  the
insurer's own purposes; AND

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08378-07-1

              

S. 4926--A                          2

  (B) (1) FOR INSURANCE POLICIES ISSUED OR ISSUED FOR DELIVERY ON A RISK
TO PROPERTY ZONED, FOR RESIDENTIAL USE, IN WHOLE OR IN PART, A PROVISION
PROVIDING  FOR OPTIONAL COVERAGE WHEREBY THE INSURER SHALL PAY THE COSTS
ASSOCIATED WITH THE TREATMENT, BY A  LICENSED  EXTERMINATOR,  OF  BEDBUG
INFESTATIONS  AT  THE INSURED PROPERTY, INCLUDING ALL COSTS FOR EXTERMI-
NATION SERVICES; COSTS FOR CLEANING  OF  THE  INSURED  PROPERTY  AND  OF
PERSONAL PROPERTY LOCATED AT THE INSURED PREMISES INCLUDING THE DRY-CLE-
ANING OF CLOTHING AND BEDDING; AND THE COST OF REPLACING ITEMS WHICH ARE
NOT  ABLE  TO  BE  TREATED  OR  CLEANED  INCLUDING,  BUT NOT LIMITED TO,
MATTRESSES OR FURNITURE.  THE INSURED SHALL HAVE THE RIGHT TO SELECT HIS
OR HER PREFERRED METHOD OF EXTERMINATION FROM THE  SERVICES  OFFERED  BY
ANY LICENSED EXTERMINATOR.
  (2)  INSURANCE  COVERAGE TO REIMBURSE THE COSTS OF TREATMENT OF BEDBUG
INFESTATIONS AT AN INSURED  PROPERTY  SHALL  NOT  EXCEED  FIVE  THOUSAND
DOLLARS FOR RESIDENCES OF TWO THOUSAND SQUARE FEET OR LESS AND TEN THOU-
SAND DOLLARS FOR RESIDENCES OF OVER TWO THOUSAND SQUARE FEET.
  (3) ALL INSURANCE COVERAGE SHALL BE PROVIDED ONLY AT THE OPTION OF THE
INSURED AND SHALL BE PROVIDED AT ADDITIONAL COST TO THE INSURED.
  (4)  THE PROVISIONS OF THIS SUBSECTION SHALL APPLY TO ALL HOMEOWNER'S,
RENTER'S, AND CONDO/CO-OP UNIT INSURANCE POLICIES, OR RENEWALS  OF  SUCH
POLICIES,  ISSUED  IN  THE  STATE ON OR AFTER THE EFFECTIVE DATE OF THIS
SUBSECTION.
  S 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law; provided, however, that effective immediate-
ly, the superintendent  of  insurance  is  authorized  and  directed  to
promulgate all rules, regulations and standards necessary for the imple-
mentation  of  this act on or before such effective date, including, but
not limited to, determining procedures for submission to and payment  of
claims  by  insurers and for determining the extent of a bedbug infesta-
tion.