Assembly Bill A3734

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

                                  3734

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                            January 28, 2013
                               ___________

Introduced  by  M.  of  A.  WEISENBERG, SWEENEY, ROSENTHAL, SCARBOROUGH,
  TITONE, STECK, THIELE, OTIS,  SOLAGES,  ENGLEBRIGHT,  BRENNAN  --  (at
  request  of  the  State  Comptroller) -- read once and referred to the
  Committee on Environmental Conservation

AN ACT to amend the navigation law, in relation to claims against insur-
  ers for petroleum spills

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

  Section  1. Section 190 of the navigation law, as added by chapter 845
of the laws of 1977, is amended to read as follows:
  S 190. Claims against insurers. 1. Any claims for costs of cleanup and
removal, civil penalties or damages by  the  state  and  any  claim  for
damages by any injured person, may be brought directly against the bond,
the insurer, or any other person providing evidence of financial respon-
sibility.
  2.  NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, ALL HOMEOWN-
ERS' POLICIES OF INSURANCE IN THIS  STATE  WHICH  SHALL  INSURE  AGAINST
DAMAGE  TO PROPERTY SHALL CLEARLY PROVIDE THAT CLEANUP AND REMOVAL COSTS
AND ALL DIRECT AND INDIRECT DAMAGES RELATING TO A DISCHARGE OF PETROLEUM
SHALL CONSTITUTE PROPERTY DAMAGE AND SHALL BE INSURABLE WITHIN THE MEAN-
ING OF THE GENERAL LIABILITY PORTIONS OF SUCH INSURANCE POLICY. THE RISK
OF DAMAGES CAUSED BY SUCH DISCHARGES MAY NOT BE AN EXCLUSION IN ANY SUCH
POLICY ISSUED IN THE STATE.
  3. IN ANY CLAIM FOR COVERAGE OF THE COSTS AND DAMAGES  RELATING  TO  A
DISCHARGE  OF  PETROLEUM,  THE INSURER MAY RAISE THE AFFIRMATIVE DEFENSE
THAT THE INSURED HAD ACTUAL KNOWLEDGE OF A CONDITION WHICH A  REASONABLE
PERSON  WOULD HAVE UNDERSTOOD TO POSE AN IMMINENT RISK OF A DISCHARGE OF
PETROLEUM AND THAT THE  INSURED  FAILED  TO  TAKE  REASONABLE  STEPS  TO
PREVENT THE DISCHARGE.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02598-01-3

A. 3734                             2
              

  4. INSURERS SHALL PROVIDE THE FOLLOWING NOTICE IN BOLD LETTERING OF AT
LEAST  TWELVE  POINT TYPE FONT IN EVERY HOMEOWNER'S POLICY, NEWLY ISSUED
OR RENEWED WHICH INSURES AGAINST DAMAGE TO PROPERTY:
  YOU  HAVE  A RESPONSIBILITY TO PREVENT A DISCHARGE FROM YOUR PETROLEUM
(OIL, KEROSENE, ETC.) TANKS AND ASSOCIATED PIPELINES. IF YOU KNOW  OF  A
CONDITION  WHICH  COULD  RESULT  IN  A  DISCHARGE,  YOUR FAILURE TO TAKE
REASONABLE STEPS TO  PREVENT  THE  DISCHARGE  COULD  VOID  THE  COVERAGE
PROVIDED BY THIS POLICY.
  5.  NOTHING IN THIS SECTION SHALL BE CONSTRUED TO LIMIT ANY PRE-EXIST-
ING RIGHT, WHETHER ACTUAL OR IMPLIED, IN WHICH THE INSURED MAY HAVE  HAD
COMPENSATION  FROM  THE  INSURER  FOR  CLEANUP AND REMOVAL COSTS AND ALL
DIRECT AND INDIRECT DAMAGES RELATING TO A DISCHARGE OF PETROLEUM.
  S 2. This act shall take effect on the first of January next  succeed-
ing the date on which it shall have become a law.