Assembly Bill A1475A

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

                                 1475--A

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  M.  of A. COLTON, PALMESANO, BARRON, MILLMAN, ROSENTHAL,
  ROBERTS, GUNTHER, COOK -- Multi-Sponsored by  --  M.  of  A.  BOYLAND,
  BRENNAN,  FARRELL,  SALADINO,  WEISENBERG -- read once and referred 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 establishing residen-
  tial home safety and loss prevention  courses  and  providing  for  an
  associated  reduction  in certain insurance premiums and providing for
  the repeal of such provisions upon expiration thereof

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

  Section  1.  Section  2346 of the insurance law is amended by adding a
new subsection 5 to read as follows:
  5. THE SUPERINTENDENT SHALL PROVIDE  FOR  AN  ACTUARIALLY  APPROPRIATE
REDUCTION  IN  THE RATES OF FIRE INSURANCE PREMIUMS OR HOMEOWNERS INSUR-
ANCE PREMIUMS APPLICABLE TO RESIDENTIAL REAL PROPERTY  FOR  ANY  INSURED
FOR A THREE YEAR PERIOD AFTER SUCCESSFULLY COMPLETING A RESIDENTIAL HOME
SAFETY  AND  LOSS  PREVENTION  COURSE  CERTIFIED PURSUANT TO SECTION TWO
THOUSAND THREE HUNDRED FORTY-SIX-B OF THIS ARTICLE.
  S 2. The insurance law is amended by adding a new  section  2346-b  to
read as follows:
  S 2346-B. CERTIFICATION OF RESIDENTIAL HOME SAFETY AND LOSS PREVENTION
COURSES.  (A)  THE  DEPARTMENT,  IN CONSULTATION WITH THE OFFICE OF FIRE
PREVENTION AND CONTROL OF THE DIVISION OF HOMELAND SECURITY AND EMERGEN-
CY SERVICES AND ANY ADDITIONAL STATE ENTITY IT DEEMS APPROPRIATE,  SHALL
CERTIFY ALL RESIDENTIAL HOME SAFETY AND LOSS PREVENTION COURSES THAT ARE
AUTHORIZED  TO OFFER CLASSES THROUGH WHICH THE INSURED SHALL BE ELIGIBLE
TO RECEIVE AN INSURANCE PREMIUM REDUCTION PURSUANT TO SUBSECTION FIVE OF
SECTION TWO THOUSAND THREE HUNDRED FORTY-SIX OF THIS ARTICLE.
  (B) FOR THE PURPOSES OF THIS SECTION:
  (1) "RESIDENTIAL HOME SAFETY AND LOSS PREVENTION COURSE"  OR  "COURSE"
SHALL  MEAN AN INSTRUCTIONAL PROGRAM THAT PRESENTS INFORMATION AND METH-
ODS THAT CAN HELP  AN  INSURED  TO  SIGNIFICANTLY  PREVENT  OR  MINIMIZE
              

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04166-02-3

A. 1475--A                          2

PERSONAL  INJURIES  AND PROPERTY LOSSES IN RESIDENTIAL REAL PROPERTY DUE
TO THE OCCURRENCE  OF  FIRE,  THEFT,  BURGLARY,  ACCIDENTS  AND  WEATHER
RELATED  EVENTS, INCLUDING, BUT NOT LIMITED TO, HOW TO MITIGATE PROPERTY
DAMAGE  FROM  HURRICANES, ICE STORMS, TORNADOES AND OTHER NATURAL DISAS-
TERS; AND
  (2) "COURSE SPONSOR" SHALL MEAN ANY INDIVIDUAL, COMPANY  OR  ORGANIZA-
TION  THAT  HAS  DEVELOPED  OR  OWNS  A RESIDENTIAL HOME SAFETY AND LOSS
PREVENTION COURSE AND ALL AGENTS OF SUCH SPONSOR  INCLUDING  INDEPENDENT
CONTRACTORS THAT CONDUCT CLASSES FOR SUCH SPONSOR AND CLASS INSTRUCTORS.
  (C)  THE DEPARTMENT SHALL PROMULGATE SUCH RULES AND REGULATIONS AS ARE
NECESSARY TO IMPLEMENT THE PROVISIONS OF THIS SECTION. SUCH RULES SHALL,
AT A MINIMUM, PROVIDE FOR:
  (1) COURSE SPONSOR APPLICATION  PROCEDURES  THAT  AN  APPLICANT  SHALL
FOLLOW TO OBTAIN COURSE CERTIFICATION APPROVAL;
  (2)  CURRICULUM  STANDARDS  THAT  THE  COURSE SPONSORS AND INSTRUCTORS
SHALL UTILIZE, BASED UPON SUBMISSIONS FROM ANY COURSE SPONSOR AS DEFINED
IN PARAGRAPH TWO OF SUBSECTION (B) OF THIS SECTION,  INCLUDING  TEACHING
METHODS AND TIME REQUIREMENTS WHICH SHALL BE IN EXCESS OF THREE HOURS;
  (3)  STANDARDS,  BASED  UPON  SUBMISSIONS  FROM  ANY COURSE SPONSOR AS
DEFINED IN PARAGRAPH TWO OF SUBSECTION (B) OF THIS SECTION, THAT  COURSE
SPONSORS  SHALL  SATISFY TO ENSURE THAT CLASS INSTRUCTORS ARE ADEQUATELY
TRAINED;
  (4) A DEMONSTRATION BY THE COURSE SPONSOR THAT SUCCESSFULLY COMPLETING
SUCH COURSE WILL SIGNIFICANTLY REDUCE FIRE, THEFT, LIABILITY AND WEATHER
RELATED LOSSES IN THE RESIDENCE;
  (5) STANDARDS, BASED UPON  SUBMISSIONS  FROM  ANY  COURSE  SPONSOR  AS
DEFINED  IN  PARAGRAPH  TWO OF SUBSECTION (B) OF THIS SECTION, TO ENSURE
THAT INDIVIDUALS THAT COMPLETE SUCH COURSE  SHALL  RECEIVE  CERTIFICATES
THAT CAN BE SUBMITTED TO AN INSURER TO DEMONSTRATE SUCCESSFUL COMPLETION
OF  THE CLASS. SUCH CERTIFICATES OF COMPLETION SHALL BE TAMPER PROOF AND
DESIGNED SO THAT THEY CAN NOT BE FRAUDULENTLY REPRODUCED OR FORGED BY AN
UNAUTHORIZED ISSUER; AND
  (6) PROCEDURES FOR ON-GOING SURVEILLANCE OF  COURSE  PRESENTATION  AND
ADMINISTRATION  TO  ENSURE  THAT THE INSURANCE PREMIUM REDUCTION AWARDED
IS, AND CONTINUES TO  BE,  PROPORTIONALLY  RELATED  TO  THE  ACTUARIALLY
CALCULABLE DECREASE IN LOSSES ATTRIBUTABLE TO THE COURSE.
  (D)  THE DEPARTMENT IS AUTHORIZED TO SUSPEND OR REVOKE THE CERTIFICATE
OF APPROVAL OF ANY COURSE SPONSOR IF THE DEPARTMENT DETERMINES THAT SUCH
SPONSOR HAS VIOLATED THE PROVISIONS OF THIS  SECTION  OR  HAS  MISREPRE-
SENTED  INFORMATION  ON  THE  INITIAL APPLICATION OR IN PERIODIC REPORTS
SUBMITTED TO THE DEPARTMENT.
  (E) THE DEPARTMENT MAY INCREASE  OR  DECREASE  THE  INSURANCE  PREMIUM
DISCOUNT AWARDED TO SUCH COURSE IF IT IS FOUND THAT SUCH DISCOUNT IS NOT
ACTUARIALLY APPROPRIATE.
  S  3. Not less than 180 days before the expiration of the provision of
this act, the superintendent of financial services shall issue a  report
to  the  governor,  temporary  president  of  the senate, speaker of the
assembly, and the chairs of the committees on insurance  of  the  senate
and  assembly  stating  his or her findings on the effect of residential
home safety and loss prevention courses in reducing homeowners insurance
claims.
  S 4. This act shall take effect on the one hundred eightieth day after
it shall have become a law and shall expire and  be  deemed  repealed  5
years  after  such effective date; provided, however, any rules or regu-
lations necessary for the timely implementation  of  the  provisions  of
this act shall be promulgated on or before such date.