senate Bill S6782A

2013-2014 Legislative Session

Provides for the reduction of property/casualty insurance premiums on residential real property when the insured occupant completed a homeowner natural disaster preparedness, home safety & loss prevention course

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Sponsored By

Archive: Last Bill Status - Passed Senate


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

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Actions

view actions (10)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 17, 2014 referred to insurance
delivered to assembly
passed senate
ordered to third reading cal.1446
committee discharged and committed to rules
Jun 04, 2014 print number 6782b
amend (t) and recommit to insurance
Mar 18, 2014 print number 6782a
amend (t) and recommit to insurance
Mar 10, 2014 referred to insurance

Bill Amendments

Original
A
B (Active)
Original
A
B (Active)

Co-Sponsors

S6782 - Bill Details

See Assembly Version of this Bill:
A9047A
Current Committee:
Law Section:
Insurance Law
Laws Affected:
Amd §2346, Ins L

S6782 - Bill Texts

view summary

Establishes the "homeowner natural disaster preparedness, home safety and loss prevention program" to provide for the reduction of property/casualty insurance premiums on residential real property when the insured occupant completes a homeowner natural disaster preparedness, home safety and loss prevention course.

view sponsor memo
BILL NUMBER:S6782

TITLE OF BILL: An act to amend the insurance law, in relation to
reduction in rates of property/casualty insurance rates on residential
property for insureds who complete an approved natural disaster
preparedness course

PURPOSE OF BILL:

The purpose of this bill is to provide for an actuarially appropriate
reduction in homeowners insurance and insurance that covers property
damage for condominiums, cooperative residential units and for renters
caused by a natural disaster. A residential property owner could
obtain such an actuarially appropriate premium reduction upon
completion of a natural disaster preparedness course that is approved
by the Superintendent of the Financial Services Department. The goal
of the bill is to raise the awareness of natural disaster preparedness
by offering such a course for residential property owners. The
ultimate goal being to help reduce the risk exposure faced by property
owners from damage caused by a natural disaster such as a hurricane,
ice storm, flood, tornado, or other disasters caused by nature.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1: Legislative intent.

Section 2: Amends Insurance Law section 2346 to add a new subsection
(5) that provides for this actuarially appropriate reduction in
homeowners insurance and for others who live in condominiums,
cooperates, or are renters.

-Provides for a definition of "completion certificate", "natural
disaster" and "natural disaster preparedness course".

-Authorizes the Superintendent of Financial Services to provide for an
actuarially appropriate reduction on residential property insurance
premiums for a period of 3 years upon the completion of a natural
disaster preparedness course. The Superintendent may also provide for
an actuarially appropriate reduction in premium rates for the
installation of equipment, devices, or other capital improvements that
can help to eliminate or mitigate natural disaster damage.

-Such coarse, after being submitted for approval to the Superintendent
by a property/casualty insurer, shall provide useful information
related to courses of action that can be taken by a homeowner before,
during and after the occurrence of a natural disaster; strategies to
reduce risk exposure to residential property owners, and information
on the kinds of equipment, devices and other capital improvements made
to real property to help reduce the risk of damage to real property,
personal injury or loss of life.

- The insurer would provide for the reduction in insurance premiums
upon completion of such a natural disaster preparedness course. A
completion certificate would need to be issued by the approved natural
disaster preparedness course sponsor and submitted to the insurance
carrier.


- The Superintendent, in consultation with the Commissioner of the
Division of Homeland Security and Emergency Services, would establish
standards and the curriculum to be used in such natural disaster
preparedness course.

JUSTIFICATION:

Over the last decade or so, it seems that more and more catastrophic
weather events have struck the Northeastern portions of the United
States. The purpose of this bill is to encourage homeowners to take a
natural disaster preparedness course to help reduce the risk of
property damage, personal injury, and loss of life that can occur as
the result of these increasingly catastrophic weather events. In
addition, by encouraging residential property owners to take such a
class, it is the sponsor's hope to help reduce the economic and
personal injuries that occur due to these weather events.

This bill will not adversely affect insurers in that they would only
give an actuarially appropriate premium reduction that is demonstrated
to reflect real potential property/casualty losses that could be
curbed. Further, this is not a mandate bill in that only those
insurers that wish to offer the course or sanction such a course to
provide for such a premium reduction would need to participate in the
program.

New York State law already provides for an actuarially appropriate
reduction on auto insurance rates to those that take a defensive
driving course. This bill merely extends this concept to homeowners
insurance. Also, as is the case with the driver safety auto insurance
premium reduction course that is already in state law, such premium
reduction is for a three year period of time.

LEGISLATIVE HISTORY:

New Bill.

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

EFFECTIVE DATE:

January first, next succeeding when the law shall have gone into
effect.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6782

                            I N  S E N A T E

                             March 10, 2014
                               ___________

Introduced by Sens. KLEIN, SAVINO -- 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 reduction in rates of
  property/casualty insurance rates on residential property for insureds
  who complete an approved natural disaster preparedness course

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

  Section  1.  Legislative  intent.  The  legislature  declares that the
purposes of this act are  to  provide  homeowners,  condominium  owners,
cooperative  apartment  owners,  and renters with an incentive to take a
course of instruction on how to make their residence more resilient to a
natural disaster, reduce the potential loss of life or  property  damage
that  could result from a natural disaster, and raise their awareness of
natural disaster preparedness by  offering  property/casualty  insurance
premium reductions.
  S  2.  The  section  heading  of section 2346 of the insurance law, as
amended by chapter 637 of the  laws  of  1993,  is  amended  and  a  new
subsection 5 is added to read as follows:
  Reduction  in  rates  of  fire insurance [or], homeowners insurance OR
PROPERTY/CASUALTY premiums for residential property.
  5. (A) DEFINITIONS. FOR THE PURPOSES OF THIS SUBSECTION, THE FOLLOWING
TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  (1) "COMPLETION CERTIFICATE" MEANS A DOCUMENT WHICH CANNOT BE  ALTERED
AND  WHICH  IS PROVIDED TO A PERSON WHO SUCCESSFULLY COMPLETES A NATURAL
DISASTER PREPAREDNESS COURSE.
  (2) "NATURAL DISASTER" MEANS THE  OCCURRENCE  OR  IMMINENT  THREAT  OF
WIDESPREAD OR SEVERE DAMAGE, INJURY, OR LOSS OF LIFE OR PROPERTY RESULT-
ING  FROM  ANY NATURAL CAUSE INCLUDING, BUT NOT LIMITED TO, FIRE, FLOOD,
EARTHQUAKE, HURRICANE, TORNADO, HIGH WATER, LANDSLIDE,  MUDSLIDE,  WIND,
STORM,  WAVE  ACTION,  ICE  STORM,  EPIDEMIC, AIR CONTAMINATION, BLIGHT,
DROUGHT, INFESTATION, EXPLOSION, WATER CONTAMINATION, BRIDGE FAILURE, OR
BRIDGE COLLAPSE.
  (3) "NATURAL DISASTER PREPAREDNESS COURSE" MEANS  A  NATURAL  DISASTER
PREPAREDNESS COURSE APPROVED BY THE SUPERINTENDENT, IN CONSULTATION WITH

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13992-03-4

S. 6782                             2

THE  COMMISSIONER  OF  THE  DIVISION  OF HOMELAND SECURITY AND EMERGENCY
SERVICES, PURSUANT TO PARAGRAPH (D) OF THIS  SUBSECTION.    SUCH  COURSE
SHALL PROVIDE USEFUL INFORMATION TO PARTICIPANTS ON ITEMS INCLUDING, BUT
NOT  LIMITED TO:  COURSES OF ACTION THAT CAN BE TAKEN BEFORE, DURING AND
AFTER THE OCCURRENCE OF A NATURAL DISASTER, STRATEGIES  TO  REDUCE  RISK
EXPOSURE  TO INSURED RESIDENTIAL PROPERTY OWNERS AND RENTERS, AND INFOR-
MATION ABOUT THE INSTALLATION OF EQUIPMENT,  DEVICES  OR  OTHER  CAPITAL
IMPROVEMENTS  TO  REAL  PROPERTY WHICH CAN HELP TO ELIMINATE OR MITIGATE
DAMAGE TO REAL OR PERSONAL PROPERTY, PERSONAL INJURY OR THE LOSS OF LIFE
CAUSED BY A NATURAL DISASTER.
  (B) THE SUPERINTENDENT MAY  PROVIDE  FOR  AN  ACTUARIALLY  APPROPRIATE
REDUCTION  FOR A PERIOD OF THREE YEARS IN RATES OF HOMEOWNER'S INSURANCE
AND PROPERTY/CASUALTY INSURANCE PREMIUMS APPLICABLE TO RESIDENTIAL  REAL
PROPERTY  FOR  EACH TRIENNIAL COMPLETION OF A NATURAL DISASTER PREPARED-
NESS COURSE BY THE INSURED OCCUPANT OF SUCH  RESIDENTIAL REAL  PROPERTY.
IN  ADDITION, THE SUPERINTENDENT MAY ALSO PROVIDE FOR ACTUARIALLY APPRO-
PRIATE REDUCTIONS IN SUCH  RATES  FOR  THE  INSTALLATION  OF  EQUIPMENT,
DEVICES OR OTHER CAPITAL IMPROVEMENTS TO REAL PROPERTY WHICH CAN HELP TO
ELIMINATE OR MITIGATE NATURAL DISASTER DAMAGE.
  (C)  AN  INSURER,  UPON  APPROVAL  OF  THE  SUPERINTENDENT,  MAY  UPON
SUBMISSION OF A COMPLETION CERTIFICATE BY AN INSURED, PROVIDE AN ACTUAR-
IALLY APPROPRIATE REDUCTION, FOR A PERIOD OF THREE YEARS, OF THE PREMIUM
FOR SUCH INSURED'S HOMEOWNER'S INSURANCE OR PROPERTY/CASUALTY  INSURANCE
ON  THE  RESIDENTIAL REAL PROPERTY WHICH IS THE INSURED'S PLACE OF RESI-
DENCE.
  (D) THE SUPERINTENDENT, IN CONSULTATION WITH THE COMMISSIONER  OF  THE
DIVISION  OF  HOMELAND SECURITY AND EMERGENCY SERVICES, SHALL ESTABLISH,
BY RULE, STANDARDS AND A CURRICULUM FOR  NATURAL  DISASTER  PREPAREDNESS
COURSES.   EVERY SUCH COURSE SHALL BE APPROVED BY THE SUPERINTENDENT AND
SUCH COMMISSIONER.
  S 3. This act shall take effect on the first of January next  succeed-
ing  the  date  on  which it shall have become a law; provided, however,
that effective immediately, any actions necessary to be  taken  for  the
implementation  of  the provisions of this act on its effective date are
authorized and directed to be completed  on  or  before  such  effective
date.

Co-Sponsors

S6782A - Bill Details

See Assembly Version of this Bill:
A9047A
Current Committee:
Law Section:
Insurance Law
Laws Affected:
Amd §2346, Ins L

S6782A - Bill Texts

view summary

Establishes the "homeowner natural disaster preparedness, home safety and loss prevention program" to provide for the reduction of property/casualty insurance premiums on residential real property when the insured occupant completes a homeowner natural disaster preparedness, home safety and loss prevention course.

view sponsor memo
BILL NUMBER:S6782A

TITLE OF BILL: An act to amend the insurance law, in relation to
reduction in rates of property/casualty insurance rates on residential
property for insureds who complete an approved homeowner natural
disaster preparedness course

PURPOSE OF BILL:

The purpose of this bill is to provide for an actuarially appropriate
reduction in homeowners insurance and insurance that covers property
damage for condominiums, cooperative residential units and for renters
caused by a natural disaster. A residential property owner could
obtain such an actuarially appropriate premium reduction upon
completion of a natural disaster preparedness course that is approved
by the Superintendent of the Financial Services Department. The goal
of the bill is to raise the awareness of natural disaster preparedness
by offering such a course for residential property owners. The
ultimate goal being to help reduce the risk exposure faced by property
owners from damage caused by a natural disaster such as a hurricane,
ice storm, flood, tornado, or other disasters caused by nature.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1: Enacts the "Homeowner Natural Disaster Preparedness
Program."

Section 2: Legislative intent.

Section 3: Amends Insurance Law section 2346 to add a new subsection
(5) that provides for this actuarially appropriate reduction in
homeowners insurance and for others who live in condominiums,
cooperates, or are renters.

-Provides for a definition of "completion certificate", "natural
disaster" and "homeowner natural disaster preparedness course".

-Authorizes the Superintendent of Financial Services to provide for an
actuarially appropriate reduction on residential property insurance
premiums for a period of 3 years upon the completion of a homeowner
natural disaster preparedness course. The Superintendent may also
provide for an actuarially appropriate reduction in premium rates for
the installation of equipment, devices, or other capital improvements
that can help to eliminate or mitigate natural disaster damage.

-Such coarse, after being submitted for approval to the Superintendent
by a property/casualty insurer, shall provide useful information
related to courses of action that can be taken by a homeowner before,
during and after the occurrence of a natural disaster; strategies to
reduce risk exposure to residential property owners, and information
on the kinds of equipment, devices and other capital improvements made
to real property to help reduce the risk of damage to real property,
personal injury or loss of life.

-The insurer would provide for the reduction in insurance premiums
upon completion of such a natural disaster preparedness course. A
completion certificate would need to be issued by the approved natural


disaster preparedness course sponsor and submitted to the insurance
carrier.

-The Superintendent, in consultation with the Commissioner of the
Division of Homeland Security and Emergency Services, would establish
standards and the curriculum to be used in such homeowner natural
disaster preparedness course.

JUSTIFICATION:

Over the last decade or so, it seems that more and more catastrophic
weather events have struck the Northeastern portions of the United
States. The purpose of this bill is to encourage homeowners to take a
natural disaster preparedness course to help reduce the risk of
property damage, personal injury, and loss of life that can occur as
the result of these increasingly catastrophic weather events. In
addition, by encouraging residential property owners to take such a
class, it is the sponsor's hope to help reduce the economic and
personal injuries that occur due to these weather events.

This bill will not adversely affect insurers.in that they would only
give an actuarially appropriate premium reduction that is demonstrated
to reflect real potential property/casualty losses that could be
curbed. Further, this is not a mandate bill in that only those
insurers that wish to offer the course or sanction such a course to
provide for such a premium reduction would need to participate in the
program.

New York State law already provides for an actuarially appropriate
reduction on auto insurance rates to those that take a defensive
driving course. This bill merely extends this concept to homeowners'
insurance. Also, as is the case with the driver safety auto insurance
premium reduction course that is already in state law, such premium
reduction is for a three year period of time.

LEGISLATIVE HISTORY:

New Bill.

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

EFFECTIVE DATE:

January first, next succeeding when the law shall have gone into
effect.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 6782--A

                            I N  S E N A T E

                             March 10, 2014
                               ___________

Introduced by Sens. KLEIN, SAVINO -- read twice and ordered printed, and
  when  printed to be committed to the Committee on Insurance -- commit-
  tee discharged, bill amended, ordered reprinted as amended and  recom-
  mitted to said committee

AN  ACT to amend the insurance law, in relation to reduction in rates of
  property/casualty insurance rates on residential property for insureds
  who complete  an  approved  homeowner  natural  disaster  preparedness
  course

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

  Section 1. Short title. This act shall be known and may  be  cited  as
the "homeowner natural disaster preparedness program".
  S 2. Legislative intent. The legislature declares that the purposes of
this  act  are  to  provide  homeowners, condominium owners, cooperative
apartment owners, and renters with an incentive  to  take  a  course  of
instruction  on  how to make their residence more resilient to a natural
disaster, reduce the potential loss of  life  or  property  damage  that
could  result  from  a  natural  disaster,  and raise their awareness of
natural disaster preparedness by  offering  property/casualty  insurance
premium reductions.
  S  3.  The  section  heading  of section 2346 of the insurance law, as
amended by chapter 637 of the  laws  of  1993,  is  amended  and  a  new
subsection 5 is added to read as follows:
  Reduction  in  rates  of  fire insurance [or], homeowners insurance OR
PROPERTY/CASUALTY premiums for residential property.
  5. (A) DEFINITIONS. FOR THE PURPOSES OF THIS SUBSECTION, THE FOLLOWING
TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  (1) "COMPLETION CERTIFICATE" MEANS A DOCUMENT WHICH CANNOT BE  ALTERED
AND WHICH IS PROVIDED TO A PERSON WHO SUCCESSFULLY COMPLETES A HOMEOWNER
NATURAL DISASTER PREPAREDNESS COURSE.
  (2)  "NATURAL  DISASTER"  MEANS  THE  OCCURRENCE OR IMMINENT THREAT OF
WIDESPREAD OR SEVERE DAMAGE, INJURY, OR LOSS OF LIFE OR PROPERTY RESULT-
ING FROM ANY NATURAL CAUSE INCLUDING, BUT NOT LIMITED TO,  FIRE,  FLOOD,
EARTHQUAKE,  HURRICANE,  TORNADO, HIGH WATER, LANDSLIDE, MUDSLIDE, WIND,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13992-04-4

S. 6782--A                          2

STORM, WAVE ACTION, ICE  STORM,  EPIDEMIC,  AIR  CONTAMINATION,  BLIGHT,
DROUGHT, INFESTATION, EXPLOSION, WATER CONTAMINATION, BRIDGE FAILURE, OR
BRIDGE COLLAPSE.
  (3)  "HOMEOWNER  NATURAL DISASTER PREPAREDNESS COURSE" MEANS A NATURAL
DISASTER PREPAREDNESS COURSE APPROVED BY THE SUPERINTENDENT, IN  CONSUL-
TATION  WITH  THE  COMMISSIONER OF THE DIVISION OF HOMELAND SECURITY AND
EMERGENCY SERVICES, PURSUANT TO PARAGRAPH (D) OF THIS SUBSECTION.   SUCH
COURSE SHALL PROVIDE USEFUL INFORMATION TO PARTICIPANTS ON ITEMS INCLUD-
ING,  BUT  NOT LIMITED TO:   COURSES OF ACTION THAT CAN BE TAKEN BEFORE,
DURING AND AFTER THE OCCURRENCE OF A  NATURAL  DISASTER,  STRATEGIES  TO
REDUCE RISK EXPOSURE TO INSURED RESIDENTIAL PROPERTY OWNERS AND RENTERS,
AND  INFORMATION  ABOUT  THE INSTALLATION OF EQUIPMENT, DEVICES OR OTHER
CAPITAL IMPROVEMENTS TO REAL PROPERTY WHICH CAN  HELP  TO  ELIMINATE  OR
MITIGATE  DAMAGE  TO  REAL  OR PERSONAL PROPERTY, PERSONAL INJURY OR THE
LOSS OF LIFE CAUSED BY A NATURAL DISASTER.
  (B) THE SUPERINTENDENT MAY  PROVIDE  FOR  AN  ACTUARIALLY  APPROPRIATE
REDUCTION  FOR A PERIOD OF THREE YEARS IN RATES OF HOMEOWNER'S INSURANCE
AND PROPERTY/CASUALTY INSURANCE PREMIUMS APPLICABLE TO RESIDENTIAL  REAL
PROPERTY  FOR  EACH TRIENNIAL COMPLETION OF A HOMEOWNER NATURAL DISASTER
PREPAREDNESS COURSE BY THE INSURED OCCUPANT OF SUCH    RESIDENTIAL  REAL
PROPERTY.  IN ADDITION, THE SUPERINTENDENT MAY ALSO PROVIDE FOR ACTUARI-
ALLY APPROPRIATE REDUCTIONS IN SUCH RATES FOR THE INSTALLATION OF EQUIP-
MENT, DEVICES OR OTHER CAPITAL IMPROVEMENTS TO REAL PROPERTY  WHICH  CAN
HELP TO ELIMINATE OR MITIGATE NATURAL DISASTER DAMAGE.
  (C)  AN  INSURER,  UPON  APPROVAL  OF  THE  SUPERINTENDENT,  MAY  UPON
SUBMISSION OF A COMPLETION CERTIFICATE BY AN INSURED, PROVIDE AN ACTUAR-
IALLY APPROPRIATE REDUCTION, FOR A PERIOD OF THREE YEARS, OF THE PREMIUM
FOR SUCH INSURED'S HOMEOWNER'S INSURANCE OR PROPERTY/CASUALTY  INSURANCE
ON  THE  RESIDENTIAL REAL PROPERTY WHICH IS THE INSURED'S PLACE OF RESI-
DENCE.
  (D) THE SUPERINTENDENT, IN CONSULTATION WITH THE COMMISSIONER  OF  THE
DIVISION  OF  HOMELAND SECURITY AND EMERGENCY SERVICES, SHALL ESTABLISH,
BY RULE, STANDARDS AND  A  CURRICULUM  FOR  HOMEOWNER  NATURAL  DISASTER
PREPAREDNESS COURSES.  EVERY SUCH COURSE SHALL BE APPROVED BY THE SUPER-
INTENDENT AND SUCH COMMISSIONER.
  S  4. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become  a  law;  provided,  however,
that  effective  immediately,  any actions necessary to be taken for the
implementation of the provisions of this act on its effective  date  are
authorized  and  directed  to  be  completed on or before such effective
date.

Co-Sponsors

S6782B (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A9047A
Current Committee:
Law Section:
Insurance Law
Laws Affected:
Amd §2346, Ins L

S6782B (ACTIVE) - Bill Texts

view summary

Establishes the "homeowner natural disaster preparedness, home safety and loss prevention program" to provide for the reduction of property/casualty insurance premiums on residential real property when the insured occupant completes a homeowner natural disaster preparedness, home safety and loss prevention course.

view sponsor memo
BILL NUMBER:S6782B

TITLE OF BILL: An act to amend the insurance law, in relation to
reduction in rates of property/casualty insurance on residential
property for insureds who complete an approved homeowner natural
disaster, home safety and loss prevention preparedness course

PURPOSE OF BILL: The purpose of this bill is to provide for an
actuarially appropriate reduction in homeowners insurance and
insurance that covers property damage for condominiums, cooperative
residential units and for renters caused by a natural disaster or
other insurable events. A residential property owner could obtain such
an actuarially appropriate premium reduction upon completion of a
natural disaster preparedness, home safety and loss prevention course
that is approved by the Superintendent of the Financial Services
Department. The goal of the bill is to raise the awareness of natural
disaster preparedness and losses by other insurable events by offering
such a course for residential property owners. The ultimate goal being
to help reduce the risk exposure faced by property owners from damage
caused by a wide spread natural disaster such as a hurricane, ice
storm, flood, tornado, or other disasters caused by nature or by other
insurable events such as fire, theft, burglary, personal injury or
property damage.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1: Enacts the "Homeowner Natural Disaster, Home Safety and
Loss Prevention Preparedness Program."

Section 2: Legislative intent.

Section 3: Amends Insurance Law section 2346 to add a new subsection
(5) that provides for this actuarially appropriate reduction in
homeowners insurance and for others who live in condominiums,
cooperates, or are renters.

-Provides for a definition of "completion certificate", "natural
disaster" and "homeowner natural disaster, home safety and loss
prevention preparedness course".

-Authorizes the Superintendent of Financial Services to provide for an
actuarially appropriate reduction on residential property insurance
premiums for a period of 3 years upon the completion of a homeowner
natural disaster preparedness, home safety and loss prevention course.
The Superintendent may also provide for an actuarially appropriate
reduction in premium rates for the installation of equipment, devices,
or other capital improvements that can help to eliminate or mitigate
natural disaster damage or losses from other insurable events.

-Such coarse, after being submitted for approval to the Superintendent
by a property/casualty insurer, shall provide useful information
related to courses of action that can be taken by a homeowner before,
during and after the occurrence of a natural disaster; strategies to
reduce risk exposure to residential property owners, and information
on the kinds of equipment, devices and other capital improvements made
to real property to help reduce the risk of damage to real property,
personal injury or loss of life. The emphasis of the course is to be


on reducing the risk of damage from natural disasters, but it shall
also include information about increasing home safety and other loss
prevention techniques.

-The insurer would provide for the reduction in insurance premiums
upon completion of such a natural disaster, home safety and loss
prevention preparedness course. A completion certificate would need to
be issued by the approved natural disaster preparedness course sponsor
and submitted to the insurance carrier.

-The Superintendent, in consultation with the Commissioner of the
Division of Homeland Security and Emergency Services, would establish
standards and the curriculum to be used in such homeowner natural
disaster, home safety and loss prevention preparedness course.

JUSTIFICATION: Over the last decade or so, it seems that more and more
catastrophic weather events have struck the Northeastern portions of
the United States. The purpose of this bill is to encourage homeowners
to take a natural disaster preparedness course to help reduce the risk
of property damage, personal injury, and loss of life that can occur
as the result of these increasingly catastrophic weather events. In
addition, by encouraging residential property owners to take such a
class, it is the sponsor's hope to help reduce the economic and
personal injuries that occur due to these weather events. In addition,
such course, to increase the cost savings to consumers and insurance
carriers can include items related to home safety and other loss
prevention techniques.

This bill will not adversely affect insurers, in that they would only
give an actuarially appropriate premium reduction that is demonstrated
to reflect real potential property/casualty losses that could be
curbed. Further, this is not a mandate bill in that only those
insurers that wish to offer the course or sanction such a course to
provide for such a premium reduction would need to participate in the
program.

New York State law already provides for an actuarially appropriate
reduction on auto insurance rates to those that take a defensive
driving course. This bill merely extends this concept to homeowners'
insurance. Also, as is the case with the driver safety auto insurance
premium reduction course that is already in state law, such premium
reduction is for a three year period of time.

LEGISLATIVE HISTORY: New Bill.

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None.

EFFECTIVE DATE: January first, next succeeding when the law shall have
gone into effect.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 6782--B

                            I N  S E N A T E

                             March 10, 2014
                               ___________

Introduced  by  Sens.  KLEIN,  SAVINO,  AVELLA -- read twice and ordered
  printed, and when printed to be committed to the Committee  on  Insur-
  ance  --  committee  discharged,  bill  amended,  ordered reprinted as
  amended and recommitted to said  committee  --  committee  discharged,
  bill  amended,  ordered  reprinted  as amended and recommitted to said
  committee

AN ACT to amend the insurance law, in relation to reduction in rates  of
  property/casualty  insurance  on residential property for insureds who
  complete an approved homeowner natural disaster, home safety and  loss
  prevention preparedness course

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

  Section 1. Short title. This act shall be known and may  be  cited  as
the  "homeowner  natural  disaster,  home  safety  and  loss  prevention
preparedness program".
  S 2. Legislative intent. The legislature declares that the purposes of
this act are to  provide  homeowners,  condominium  owners,  cooperative
apartment  owners,  and  renters  with  an incentive to take a course of
instruction on how to make their residence more resilient to  a  natural
disaster,  reduce  the  potential  loss  of life or property damage that
could result from a natural disaster, reduce the risk  of  fire,  theft,
burglary,  personal injury or property damage, and raise their awareness
of natural disaster preparedness by offering property/casualty insurance
premium reductions.
  S 3. The section heading of section 2346  of  the  insurance  law,  as
amended  by  chapter  637  of  the  laws  of  1993, is amended and a new
subsection 5 is added to read as follows:
  Reduction in rates of fire insurance  [or],  homeowners  insurance  OR
PROPERTY/CASUALTY premiums for residential property.
  5. (A) DEFINITIONS. FOR THE PURPOSES OF THIS SUBSECTION, THE FOLLOWING
TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  (1)  "COMPLETION CERTIFICATE" MEANS A DOCUMENT WHICH CANNOT BE ALTERED
AND WHICH IS PROVIDED TO A PERSON WHO SUCCESSFULLY COMPLETES A HOMEOWNER
NATURAL DISASTER PREPAREDNESS, HOME SAFETY AND LOSS PREVENTION COURSE.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13992-06-4

S. 6782--B                          2

  (2) "NATURAL DISASTER" MEANS THE  OCCURRENCE  OR  IMMINENT  THREAT  OF
WIDESPREAD OR SEVERE DAMAGE, INJURY, OR LOSS OF LIFE OR PROPERTY RESULT-
ING  FROM  ANY NATURAL CAUSE INCLUDING, BUT NOT LIMITED TO, FIRE, FLOOD,
EARTHQUAKE, HURRICANE, TORNADO, HIGH WATER, LANDSLIDE,  MUDSLIDE,  WIND,
STORM,  WAVE  ACTION,  ICE  STORM,  EPIDEMIC, AIR CONTAMINATION, BLIGHT,
DROUGHT, INFESTATION, EXPLOSION, WATER CONTAMINATION, BRIDGE FAILURE, OR
BRIDGE COLLAPSE.
  (3) "HOMEOWNER NATURAL  DISASTER,  HOME  SAFETY  AND  LOSS  PREVENTION
PREPAREDNESS  COURSE" MEANS A NATURAL DISASTER PREPAREDNESS, HOME SAFETY
AND LOSS PREVENTION COURSE APPROVED BY THE SUPERINTENDENT, IN  CONSULTA-
TION  WITH  THE  COMMISSIONER  OF  THE DIVISION OF HOMELAND SECURITY AND
EMERGENCY SERVICES, PURSUANT TO PARAGRAPH (D) OF THIS SUBSECTION.   SUCH
COURSE SHALL PROVIDE USEFUL INFORMATION TO PARTICIPANTS ON ITEMS INCLUD-
ING,  BUT  NOT LIMITED TO:   COURSES OF ACTION THAT CAN BE TAKEN BEFORE,
DURING AND AFTER THE OCCURRENCE OF A  NATURAL  DISASTER,  STRATEGIES  TO
REDUCE RISK EXPOSURE TO INSURED RESIDENTIAL PROPERTY OWNERS AND RENTERS,
AND  INFORMATION  ABOUT  THE INSTALLATION OF EQUIPMENT, DEVICES OR OTHER
CAPITAL IMPROVEMENTS TO REAL PROPERTY WHICH CAN  HELP  TO  ELIMINATE  OR
MITIGATE  DAMAGE  TO  REAL  OR PERSONAL PROPERTY, PERSONAL INJURY OR THE
LOSS OF LIFE CAUSED BY A NATURAL DISASTER OR OTHER  INSURABLE  EVENT  OR
OCCURRENCE  OF  A  FIRE,  THEFT,  BURGLARY,  PERSONAL INJURY OR PROPERTY
DAMAGE.
  (B) THE SUPERINTENDENT MAY  PROVIDE  FOR  AN  ACTUARIALLY  APPROPRIATE
REDUCTION  FOR A PERIOD OF THREE YEARS IN RATES OF HOMEOWNER'S INSURANCE
AND PROPERTY/CASUALTY INSURANCE PREMIUMS APPLICABLE TO RESIDENTIAL  REAL
PROPERTY  FOR  EACH TRIENNIAL COMPLETION OF A HOMEOWNER NATURAL DISASTER
PREPAREDNESS, HOME SAFETY AND LOSS  PREVENTION  COURSE  BY  THE  INSURED
OCCUPANT  OF  SUCH    RESIDENTIAL REAL PROPERTY. IN ADDITION, THE SUPER-
INTENDENT MAY ALSO PROVIDE FOR  ACTUARIALLY  APPROPRIATE  REDUCTIONS  IN
SUCH  RATES  FOR THE INSTALLATION OF EQUIPMENT, DEVICES OR OTHER CAPITAL
IMPROVEMENTS TO REAL PROPERTY WHICH CAN HELP TO  ELIMINATE  OR  MITIGATE
NATURAL DISASTER DAMAGE, IMPROVE HOME SAFETY OR PREVENT OTHER LOSSES.
  (C)  AN  INSURER,  UPON  APPROVAL  OF  THE  SUPERINTENDENT,  MAY  UPON
SUBMISSION OF A COMPLETION CERTIFICATE BY AN INSURED, PROVIDE AN ACTUAR-
IALLY APPROPRIATE REDUCTION, FOR A PERIOD OF THREE YEARS, OF THE PREMIUM
FOR SUCH INSURED'S HOMEOWNER'S INSURANCE OR PROPERTY/CASUALTY  INSURANCE
ON  THE  RESIDENTIAL REAL PROPERTY WHICH IS THE INSURED'S PLACE OF RESI-
DENCE.
  (D) THE SUPERINTENDENT, IN CONSULTATION WITH THE COMMISSIONER  OF  THE
DIVISION  OF  HOMELAND SECURITY AND EMERGENCY SERVICES, SHALL ESTABLISH,
BY RULE, STANDARDS AND  A  CURRICULUM  FOR  HOMEOWNER  NATURAL  DISASTER
PREPAREDNESS,  HOME  SAFETY  AND  LOSS  PREVENTION COURSES.   EVERY SUCH
COURSE SHALL BE APPROVED BY THE SUPERINTENDENT AND SUCH COMMISSIONER.
  S 4. This act shall take effect on the first of January next  succeed-
ing  the  date  on  which it shall have become a law; provided, however,
that effective immediately, any actions necessary to be  taken  for  the
implementation  of  the provisions of this act on its effective date are
authorized and directed to be completed  on  or  before  such  effective
date.

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