S T A T E O F N E W Y O R K
________________________________________________________________________
2436
2023-2024 Regular Sessions
I N A S S E M B L Y
January 26, 2023
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Introduced by M. of A. COLTON, COOK, L. ROSENTHAL, MILLER, PALMESANO,
SANTABARBARA, HYNDMAN, RIVERA -- read once and referred to the Commit-
tee on Insurance
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 6 to read as follows:
6. 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.
§ 2. The insurance law is amended by adding a new section 2346-b to
read as follows:
§ 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 SIX 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
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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00893-01-3
A. 2436 2
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.
§ 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.
§ 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. Effective immediately, the addition,
amendment and/or repeal of any rule or regulation necessary for the
implementation of this act on its effective date are authorized to be
made and completed on or before such effective date.