senate Bill S7381

2013-2014 Legislative Session

Directs superintendent of financial services to establish a separate classification for liability insurance for installers of wind or solar electric generating systems

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Archive: Last Bill Status - In Committee


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

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
May 14, 2014 referred to insurance

S7381 - Bill Details

See Assembly Version of this Bill:
A5796
Current Committee:
Law Section:
Insurance Law
Laws Affected:
Add ยง2346-b, Ins L
Versions Introduced in Previous Legislative Sessions:
2011-2012: A5707
2009-2010: A10826

S7381 - Bill Texts

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Directs superintendent of financial services to establish a separate classification for setting rates for liability insurance for installers of wind or solar electric generating systems; provides for a premium reduction to those installers which have no or minimal insurance claims.

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BILL NUMBER:S7381

TITLE OF BILL: An act to amend the insurance law, in relation to
directing the superintendent of financial services to establish a sepa-
rate classification for liability insurance for businesses engaged in
the installation of wind or solar electric generating systems

PURPOSE OR GENERAL IDEA OF BILL:

This bill directs the superintendent of insurance to establish a sepa-
rate classification for liability insurance for installers of wind or
solar electric generating systems.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 amends the insurance law by adding a new section, 2346-b, to
address the reduction in the rates of liability insurance for installers
of wind or solar electric generating systems. This section goes on to
define the terms "Solar electric generating system", "Wind electric
generating system", and requires that the superintendent shall establish
a separate classification for the determination of rates and premiums
for liability, motor vehicle and workers' compensation provided to any
person or entity engaged in the business of installing solar and/or wind
electric generating systems.

The superintendent shall provide a reduction in the rates of liability,
motor vehicle and workers' compensation insurance premiums applicable to
solar and/or wind electricity generating system installers, when such
installers have filed no or minimal insurance claims, and adhere to
sound jobsite safety practices. The reductions provided for snail be
proportionally related to the actuarially calculable decrease in losses
in the aforementioned circumstances.

JUSTIFICATION:

To the average homeowner in New York State, the cost of installing a
solar energy system continues to be a big investment, likewise being a
solar contractor/installer continues to be a costly challenge. Although
the solar industry continues to grow at an exponential rate, the state's
insurance policy has not kept up with the pace of this new industry.

Most insurance companies offering Workers Compensation as well as
liability insurance, have yet to create a classification tailored
specifically towards the solar contractor installer as they have done
with other trade industries. The New York State Insurance fund is a
prime example. The majority of solar installers using the state insur-
ance fund are often classified into the categories of roofers or orna-
mental iron brass workers, classes that are often more expensive and non
reflective of the type of work the solar contractor performs.

Only a certain percentage of overall work a solar contractor performs on
the average job actually involves being on the roof. More than half of

that work is usually in the less risky electrical work category, yet the
contractor pays an insurance rate commensurate to the majority of the
job being done on a roof.

Providing a separate class of insurance for the solar installer will
establish a rate schedule that is more equitable to the line of work the
solar contractor performs and in many cases reduce their overall costs
of doing business.

Furthermore creating a separate class will enable various contractor and
labor organizations across the state to provide discounted group insur-
ance trusts and funds. This will further help to reduce the overall cost
of solar both to the contractor and the homeowner.

PRIOR LEGISLATIVE HISTORY:

None.

FISCAL IMPLICATION:

None.

EFFECTIVE DATE:

This act shall take effect on the first of January next succeeding the
date on which it shall have become a law, and shall apply to all poli-
cies issued, renewed modified altered or amended on or after such date.

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

                                  7381

                            I N  S E N A T E

                              May 14, 2014
                               ___________

Introduced  by  Sen.  BOYLE  -- 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 directing  the  super-
  intendent of financial services to establish a separate classification
  for  liability insurance for businesses engaged in the installation of
  wind or solar electric generating systems

  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 2346-b
to read as follows:
  S  2346-B. REDUCTION IN RATES OF LIABILITY INSURANCE FOR INSTALLERS OF
WIND OR SOLAR ELECTRIC GENERATING SYSTEMS. (A) FOR THE PURPOSES OF  THIS
SECTION:
  (1)  "SOLAR  ELECTRIC  GENERATING  SYSTEM" MEANS A PHOTOVOLTAIC SYSTEM
THAT IS MANUFACTURED, INSTALLED AND OPERATED IN ACCORDANCE WITH APPLICA-
BLE GOVERNMENT AND INDUSTRY STANDARDS, AND  THAT  IS  CONNECTED  TO  THE
ELECTRIC  SYSTEM  AND  OPERATED  IN  CONJUNCTION WITH AN ELECTRIC CORPO-
RATION'S TRANSMISSION AND DISTRIBUTION FACILITIES.
  (2) "WIND ELECTRIC GENERATING SYSTEM" MEANS ONE OR MORE  WIND  GENERA-
TORS  THAT  ARE  MANUFACTURED, INSTALLED AND OPERATED IN ACCORDANCE WITH
APPLICABLE GOVERNMENT AND INDUSTRY STANDARDS, AND THAT ARE CONNECTED  TO
THE  ELECTRIC  SYSTEM  AND  OPERATED IN PARALLEL WITH AN ELECTRIC CORPO-
RATION'S TRANSMISSION AND DISTRIBUTION FACILITIES.
  (B) THE SUPERINTENDENT SHALL ESTABLISH A SEPARATE  CLASSIFICATION  FOR
THE DETERMINATION OF RATES AND PREMIUMS FOR LIABILITY, MOTOR VEHICLE AND
WORKERS'  COMPENSATION  PROVIDED  TO ANY PERSON OR ENTITY ENGAGED IN THE
BUSINESS OF INSTALLING SOLAR AND/OR WIND ELECTRIC GENERATING SYSTEMS.
  (C) THE SUPERINTENDENT SHALL PROVIDE FOR A REDUCTION IN THE  RATES  OF
LIABILITY,  MOTOR  VEHICLE  AND WORKERS' COMPENSATION INSURANCE PREMIUMS
APPLICABLE TO SOLAR AND/OR WIND ELECTRICITY  GENERATING  SYSTEM  INSTAL-
LERS,  WHEN  SUCH  INSTALLERS HAVE FILED NO OR MINIMAL INSURANCE CLAIMS,
AND ADHERE TO SOUND JOBSITE SAFETY PRACTICES.  THE  REDUCTIONS  PROVIDED
FOR  SHALL  BE  PROPORTIONALLY  RELATED  TO  THE  ACTUARIALLY CALCULABLE
DECREASE IN LOSSES IN THE AFOREMENTIONED CIRCUMSTANCES.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09497-01-3

S. 7381                             2

  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, and shall apply to all
policies  issued, renewed, modified, altered or amended on or after such
date.

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