Assembly Actions -
Senate Actions - UPPERCASE
|Jan 08, 2014||
referred to insurance
|May 22, 2013||
referred to insurance
Senate Bill S5581
2013-2014 Legislative Session
Archive: Last Bill Status - In Senate Committee Insurance Committee
- In Committee Assembly
- On Floor Calendar Assembly
- Passed Assembly
- Delivered to Governor
- Signed By Governor
2013-S5581 (ACTIVE) - Details
2013-S5581 (ACTIVE) - Summary
Relates to anti-concurrent causation clauses; prohibits an insurer from denying or excluding coverage for any claim for loss or damage that would otherwise be covered by a policy solely because an event or peril not covered under the policy or specifically excluded under the policy was a contributing factor in such loss or damage or occurred simultaneously with the event or peril that was covered.
2013-S5581 (ACTIVE) - Sponsor Memo
BILL NUMBER:S5581 TITLE OF BILL: An act to amend the insurance law, in relation to anti-concurrent causation clauses SUMMARY OF PROVISIONS: This bill would prohibit an insurance company from denying a claim that would normally be covered under the policy solely because a separate risk occurred at the same time or contributed to the loss but was not covered under the policy or was specifically excluded. JUSTIFICATION: An anti-concurrent causation clause is a provision contained in many homeowners policies that states that if a loss is caused by two or more perils, one that is covered by the policy and one that is excluded, then the loss is excluded, regardless of which peril is the primary cause or whether the perils occurred concurrently or in a sequence. For example, if a policy covers wind damage but not flood damage, and both events happen at about the same time, then the damage to the property will not be covered. When insurers that use anti-concurrent causation clauses treat property damage as a single loss triggered by multiple perils the result is a complete denial of the claim. In the aftermath of Superstorm Sandy, many homeowners were surprised when insurance companies denied their claims for perils that should have been covered under the policy (such as windstorm damage) because the perils occurred at the same time as a flood, which is excluded under most homeowners policies. As a result, these homeowners
2013-S5581 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 5581 2013-2014 Regular Sessions I N S E N A T E May 22, 2013 ___________ Introduced by Sen. SEWARD -- 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 anti-concurrent causa- tion clauses THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The insurance law is amended by adding a new section 3455 to read as follows: S 3455. ANTI-CONCURRENT CAUSATION CLAUSES. AN INSURER SHALL NOT DENY OR EXCLUDE COVERAGE FOR ANY CLAIM FOR LOSS OR DAMAGE THAT WOULD OTHER- WISE BE COVERED BY A POLICY SOLELY BECAUSE AN EVENT OR PERIL NOT COVERED UNDER THE POLICY OR SPECIFICALLY EXCLUDED UNDER THE POLICY WAS A CONTRIBUTING FACTOR IN SUCH LOSS OR DAMAGE OR OCCURRED SIMULTANEOUSLY WITH THE EVENT OR PERIL THAT WAS COVERED. S 2. This act shall take effect immediately and shall apply to claims made on or after such effective date. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD11120-01-3
Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.
Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.
Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.