S T A T E O F N E W Y O R K
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10690
I N A S S E M B L Y
June 13, 2016
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Introduced by COMMITTEE ON RULES -- (at request of M. of A. Cancel) --
read once and referred to the Committee on Insurance
AN ACT to amend the insurance law, in relation to creating a homeowners'
bill of rights and a consumer guide on insuring against catastrophic
loss caused by natural disasters
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 3444-a
to read as follows:
S 3444-A. HOMEOWNERS' BILL OF RIGHTS. ANY INSURER THAT WRITES PERSONAL
LINES INSURANCE AS DEFINED IN PARAGRAPH TWO OF SUBSECTION (A) OF SECTION
THREE THOUSAND FOUR HUNDRED TWENTY-FIVE OF THIS ARTICLE OR COMMERCIAL
LINES INSURANCE POLICIES THAT COVER LOSS OF OR DAMAGE TO REAL PROPERTY,
PERSONAL PROPERTY, OR OTHER LIABILITIES FOR LOSS OF OR DAMAGE TO PROPER-
TY SHALL, UPON ISSUANCE AND RENEWAL OF ANY SUCH POLICY OR CONTRACT,
PROVIDE TO AN INSURED OR POTENTIAL INSURED WRITTEN DETAILED DISCLOSURE
IN A NOTICE PRESCRIBED OR APPROVED BY THE SUPERINTENDENT DESCRIBING
CLEARLY AND IN PLAIN LANGUAGE THE FOLLOWING:
(A) ANY AND ALL COVERAGE FOR LOSS CAUSED BY CERTAIN OCCURRENCES,
INCLUDING BUT NOT LIMITED TO FIRE, WIND, WINDSTORM, MUDSLIDE, HURRICANE,
SNOW, ICE, WATER SURGE, OR FLOOD, COVERAGES PROVIDED UNDER THE POLICY,
ANY LIMITATIONS ON OR EXCLUSIONS FROM COVERAGE, CIRCUMSTANCES THAT WOULD
INVALIDATE COVERAGE UNDER THE POLICY, ANY APPLICABLE DEDUCTIBLES, AND
WHEN SUCH DEDUCTIBLES SHALL BE TRIGGERED;
(B) ALL INFORMATION RELATED TO CLAIMS INVESTIGATION AND PROCESSING,
INCLUDING BUT NOT LIMITED TO THE PROCESS BY WHICH THE INSURED MAY FILE A
CLAIM, ALL APPLICABLE TIME FRAMES REQUIRED BY LAW AND REGULATION, ALL
NECESSARY PROOF OF LOSS INFORMATION AND OTHER INFORMATION THE INSURER
MAY REQUIRE FROM THE INSURED, THE PROCESS BY WHICH THE INSURED MAY FILE
A COMPLAINT WITH THE DEPARTMENT, AND ANY OTHER INFORMATION DEEMED NECES-
SARY BY THE SUPERINTENDENT;
(C) ANY AND ALL RIGHTS A CLAIMANT HAS UNDER THE LAWS AND POLICY WHEN A
CLAIM IS DENIED OR WHEN THE CLAIMANT REJECTS A SETTLEMENT OFFER FROM THE
INSURER, INCLUDING THEIR RIGHT TO FILE A COMPLAINT WITH THE DEPARTMENT;
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01131-04-6
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(D) THAT THE PROVISIONS OF THIS POLICY MAY BE MODIFIED OR CHANGED
PURSUANT TO STATE OR FEDERAL LAW WHEN A LOCAL STATE OF EMERGENCY IS
DECLARED PURSUANT TO SECTION TWENTY-FOUR OF THE EXECUTIVE LAW, WHEN THE
GOVERNOR DECLARES A DISASTER EMERGENCY PURSUANT TO SECTION TWENTY-EIGHT
OF THE EXECUTIVE LAW, OR WHEN THE PRESIDENT OF THE UNITED STATES ISSUES
A MAJOR DISASTER OR EMERGENCY DECLARATION PURSUANT TO THE ROBERT T.
STAFFORD DISASTER RELIEF AND EMERGENCY ASSISTANCE ACT (P.L. 93-288) AND
HOW THE INSURED MAY OBTAIN INFORMATION ABOUT ANY SUCH MODIFICATIONS OR
CHANGES;
(E) INFORMATION ON HOW THE INSURED MAY CONTACT THE INSURER, INCLUDING
THE INSURER'S BUSINESS HOURS, MAILING ADDRESS, PHONE NUMBER, FAX NUMBER,
WEBSITE ADDRESS AND EMAIL; AND
(F) INFORMATION ON HOW THE INSURED CAN OBTAIN THE CONSUMERS GUIDE ON
INSURING AGAINST CATASTROPHIC LOSSES CREATED BY THE DEPARTMENT PURSUANT
TO SECTION THREE HUNDRED THIRTY-EIGHT OF THIS CHAPTER AND ANY OTHER
GUIDES, PAMPHLETS, OR OTHER INFORMATION THE DEPARTMENT HAS MADE PUBLICLY
AVAILABLE THAT WOULD BE BENEFICIAL TO THE INSURED.
S 2. Section 3444 of the insurance law, as amended by chapter 21 of
the laws of 2008, is amended to read as follows:
S 3444. Flood insurance notice AND FLOOD ZONE DISCLOSURE. 1. Insurers
shall provide to their homeowners and dwelling fire personal lines
insureds an annual notice prescribed or approved by the superintendent,
explaining clearly and in plain language that: (a) such policies do not
provide coverage for loss caused by mudslide or flood; and (b) insurance
is available under separate policies issued in accordance with the
National Flood Insurance Program, 42 U.S.C. S 4001 et seq., including
information regarding flood insurance eligibility and access.
2. The policyholder notice required by SUBSECTION ONE OF this section
shall accompany all new homeowners and dwelling fire personal lines
policies and all renewal homeowners and dwelling fire policies.
3. (A) AN INSURER OR PRODUCER SHALL, PRIOR TO THE TIME A POLICY
SUBJECT TO SECTION THREE THOUSAND FOUR HUNDRED FORTY-FOUR-A OF THIS
ARTICLE IS SOLD OR PURCHASED AND UPON RENEWAL OF ANY SUCH POLICY,
DISCLOSE TO THE POTENTIAL INSURED THAT THE REAL PROPERTY WHICH WOULD BE
COVERED BY THE POLICY IS IN A FLOOD ZONE, WHICH FLOOD ZONE THE REAL
PROPERTY IS LOCATED IN, AND WHAT THE LEVEL OF RISK ASSOCIATED WITH THAT
FLOOD ZONE IS, AS DETERMINED BY THE FEDERAL EMERGENCY MANAGEMENT AGENCY.
THIS DISCLOSURE SHALL BE IN A FORM AND MANNER PRESCRIBED OR APPROVED BY
THE SUPERINTENDENT.
(B) AT THE TIME OF THE DISCLOSURE REQUIRED BY PARAGRAPH (A) OF THIS
SUBSECTION, AN INSURER OR PRODUCER SHALL NOTIFY POTENTIAL INSUREDS, IN A
FORM AND MANNER PRESCRIBED OR APPROVED BY THE SUPERINTENDENT, OF THE
AVAILABILITY OF ADDITIONAL COVERAGE OPTIONS FOR DAMAGE AS A RESULT OF
WEATHER CONDITIONS, NATURAL DISASTERS, OR OTHER OCCURRENCES, INCLUDING
BUT NOT LIMITED TO FIRE, WIND, WINDSTORM, MUDSLIDE, HURRICANE, SNOW,
ICE, WATER SURGE, AND FLOOD. SUCH NOTIFICATION SHALL CONTAIN INFORMATION
ON ADDITIONAL AVAILABLE POLICIES AND RIDERS, THE NEW YORK PROPERTY
INSURANCE UNDERWRITING ASSOCIATION, THE COASTAL MARKET ASSISTANCE
PROGRAM, THE NATIONAL FLOOD INSURANCE PROGRAM, AND ANY OTHER OPTIONS
AUTHORIZED BY STATE OR FEDERAL LAW. THE NOTIFICATION MUST INCLUDE A
CONCISE STATEMENT THAT ADDITIONAL TYPES OF COVERAGE ARE AVAILABLE AND
THE TYPES OF COVERAGE THAT CAN BE PURCHASED FROM THE INSURER AND FROM
ANOTHER PARTY.
(C) THE POTENTIAL INSURED SHALL ACKNOWLEDGE RECEIPT OF THE DISCLOSURE
AND NOTIFICATION REQUIRED BY PARAGRAPHS (A) AND (B) OF THIS SUBSECTION
THROUGH A SIGNED WRITING, ELECTRONIC SIGNATURE, OR ANY OTHER MEANS
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PRESCRIBED OR APPROVED BY THE SUPERINTENDENT, EVIDENCING THAT THE POTEN-
TIAL INSURED HAS RECEIVED THE DISCLOSURE. SUCH ACKNOWLEDGMENT SHALL BE
PRESUMPTIVE EVIDENCE THAT THE OBLIGATIONS OF DISCLOSURE AND NOTIFICATION
STATED WITHIN THIS SUBSECTION HAVE BEEN FULFILLED BY THE INSURER OR
PRODUCER AND SHALL NOT BE REQUIRED UPON RENEWAL.
4. (A) IF THE FLOOD ZONE IN WHICH THE INSURED REAL PROPERTY IS LOCATED
CHANGES, THE INSURER OR PRODUCER SHALL, PRIOR TO THE RENEWAL OF THE
POLICY, PROVIDE THE INSURED WITH AN UPDATED DISCLOSURE INFORMING THE
INSURED OF THE NEW FLOOD ZONE AND WHAT THE LEVEL OF RISK ASSOCIATED WITH
THAT FLOOD ZONE IS, AS DETERMINED BY THE FEDERAL EMERGENCY MANAGEMENT
AGENCY. THIS UPDATED DISCLOSURE SHALL BE PROVIDED IN A FORM AND MANNER
PRESCRIBED OR APPROVED BY THE SUPERINTENDENT.
(B) THE INSURED SHALL ACKNOWLEDGE RECEIPT OF THE UPDATED DISCLOSURE
REQUIRED BY PARAGRAPH (A) OF THIS SUBSECTION THROUGH A SIGNED WRITING,
ELECTRONIC SIGNATURE, OR ANY OTHER MEANS PRESCRIBED OR APPROVED BY THE
SUPERINTENDENT, EVIDENCING THAT THE POTENTIAL INSURED HAS RECEIVED THE
DISCLOSURE. SUCH ACKNOWLEDGMENT SHALL BE PRESUMPTIVE EVIDENCE THAT THE
OBLIGATIONS OF DISCLOSURE AND NOTIFICATION STATED WITHIN THIS SUBSECTION
HAVE BEEN FULFILLED BY THE INSURER OR PRODUCER.
S 3. Paragraphs 6 and 7 of subsection (a) of section 2601 of the
insurance law, paragraph 6 as amended and paragraph 7 as added by
section 27 of part H of chapter 60 of the laws of 2014, are amended and
a new paragraph 8 is added to read as follows:
(6) failing to promptly disclose coverage pursuant to subsection (d)
or subparagraph (A) of paragraph two of subsection (f) of section three
thousand four hundred twenty of this chapter; [or]
(7) submitting reasonably rendered claims to the independent dispute
resolution process established under article six of the financial
services law[.]; OR
(8) KNOWINGLY MISREPRESENTING OR FAILING TO PROVIDE PERTINENT FACTS OF
POLICY PROVISIONS TO CLAIMANTS AS REQUIRED BY SECTION THREE THOUSAND
FOUR HUNDRED FORTY-FOUR-A OF THIS CHAPTER AND NOT COMPLYING WITH SUCH
POLICY PROVISIONS, INCLUDING ESTABLISHED TIME FRAMES FOR INVESTIGATION,
CLAIMS PROCESSING AND SETTLEMENT, AND PAYMENT OF CLAIMS.
S 4. The insurance law is amended by adding a new section 338 to read
as follows:
S 338. CONSUMER GUIDE ON INSURING AGAINST CATASTROPHIC LOSSES. (A) SIX
MONTHS AFTER THE EFFECTIVE DATE OF THIS SECTION, THE SUPERINTENDENT
SHALL ISSUE AND UPDATE, AS NECESSARY, A CONSUMER GUIDE ON INSURING
AGAINST CATASTROPHIC LOSSES THAT SHALL CONTAIN COMPREHENSIVE INFORMATION
WRITTEN IN PLAIN LANGUAGE IN A CLEAR AND UNDERSTANDABLE FORMAT, INCLUD-
ING THE FOLLOWING:
(1) THE WAYS IN WHICH DIFFERENT TYPES OF WEATHER CONDITIONS, NATURAL
DISASTERS, OR OTHER OCCURRENCES CAN CAUSE CATASTROPHIC LOSSES, INCLUDING
BUT NOT LIMITED TO DAMAGE FROM FIRE, WIND, WINDSTORM, MUDSLIDE, HURRI-
CANE, SNOW, ICE, EXTREME COLD, WATER SURGE, AND FLOOD;
(2) THE TYPES OF INSURANCE AVAILABLE THAT PROVIDE COVERAGE AGAINST
CATASTROPHIC LOSSES FOR BOTH HOMEOWNERS AND BUSINESSES, A LISTING OF
COMPANIES THAT PROVIDE SUCH COVERAGE, AND RECOMMENDATIONS AS TO HOW BEST
TO SHOP FOR AND COMPARE PRICES, SERVICE AND QUALITY OF INSURANCE COVER-
AGE;
(3) A LIST OF THE EXCLUSIONS TYPICALLY FOUND IN SUCH COVERAGE AND
INFORMATION ON HOW A CONSUMER MAY OBTAIN COVERAGE FOR SUCH EXCLUSIONS,
INCLUDING A LISTING OF COMPANIES THAT PROVIDE SUCH COVERAGE AND AN
EXPLANATION OF, INFORMATION ON, AND THE TYPES OF COVERAGE AVAILABLE FROM
THE NEW YORK PROPERTY INSURANCE UNDERWRITERS ASSOCIATION, THE COASTAL
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MARKET ASSISTANCE PROGRAM, AND THE NATIONAL FLOOD INSURANCE PROGRAM, AND
OTHER OPTIONS AUTHORIZED BY STATE OR FEDERAL LAW;
(4) STEPS A CONSUMER CAN TAKE TO PREPARE FOR A NATURAL DISASTER OR
OTHER CATASTROPHIC LOSS;
(5) STEPS A CONSUMER CAN TAKE FOLLOWING A CATASTROPHIC LOSS IN ORDER
TO FACILITATE THE TIMELY PROCESSING OF THE CONSUMER'S INSURANCE CLAIM
AND AN EXPLANATION OF POLICYHOLDERS' RIGHTS AS PROVIDED IN LAW AND REGU-
LATION; AND
(6) A DEPARTMENT TOLL FREE CONSUMER HOT-LINE AND WEBSITE ADDRESS
THROUGH WHICH CONSUMERS MAY INITIATE COMPLAINTS, AND REQUEST GENERAL
INFORMATION ABOUT INSURANCE.
(B) THE REQUIREMENTS SET FORTH IN SUBSECTION (A) OF THIS SECTION MAY
BE SATISFIED BY SEPARATE OR SUPPLEMENTAL PUBLICATIONS AND UPDATES.
(C) THE SUPERINTENDENT SHALL POST THE CONSUMER GUIDE ON INSURING
AGAINST CATASTROPHIC LOSSES ON THE DEPARTMENT'S WEBSITE.
S 5. This act shall take effect immediately.