(2) "COMMUNITY-LEVEL MITIGATION ACTION" MEANS A SCIENCE-BASED MITI-
GATION ACTION AS DEMONSTRATED BY A COMMUNITY OR NEIGHBORHOOD LEVEL
DESIGNATION OR CERTIFICATION OR AS UNDERTAKEN BY A GOVERNMENT ENTITY.
(3) "PROPERTY-SPECIFIC MITIGATION ACTION" MEANS A SCIENCE-BASED MITI-
GATION ACTION THAT INCLUDES A VERIFICATION AND CERTIFICATION PROCESS.
(4) "NATURAL DISASTER RISK MODEL" MEANS A TOOL, INSTRUMENTALITY,
MEANS, OR PRODUCT, INCLUDING A MAP-BASED TOOL, A COMPUTER-BASED TOOL, OR
A SIMULATION, THAT IS USED BY AN INSURER IN WHOLE OR IN PART, TO MEASURE
OR ASSESS THE NATURAL DISASTER RISK ASSOCIATED WITH A RESIDENTIAL PROP-
ERTY OR COMMUNITY FOR PURPOSES OF RATING, CLASSIFYING, PRICING, OR
UNDERWRITING, INCLUDING BUT NOT LIMITED TO WRITING OR RENEWING INSUR-
ANCE, BASED ON NATURAL DISASTER RISK OR ESTIMATING RISKS OR LOSSES
CORRESPONDING TO THE NATURAL DISASTER RISK CLASSIFICATIONS.
(5) "NATURAL DISASTER" MEANS THE OCCURRENCE OR IMMINENT THREAT OF
WIDESPREAD CATASTROPHIC OR SEVERE DAMAGE, INJURY, OR LOSS OF LIFE OR
PROPERTY RESULTING FROM ANY NATURAL CAUSE INCLUDING, BUT NOT LIMITED TO,
FIRE, FLOOD, EARTHQUAKE, HURRICANE, TORNADO, HIGH WATER, LANDSLIDE,
MUDSLIDE, WIND, STORM, WAVE ACTION, ICE STORM, AIR CONTAMINATION,
BLIGHT, DROUGHT, INFESTATION, EXPLOSION, WATER CONTAMINATION, BRIDGE
FAILURE, OR BRIDGE COLLAPSE.
(B) EVERY PROPERTY/CASUALTY INSURANCE COMPANY DOING BUSINESS IN THIS
STATE SHALL SUBMIT THE FOLLOWING INFORMATION TO THE DEPARTMENT:
(1) ZIP CODE-LEVEL DATA ON THE FOLLOWING TOPICS:
(A) NONRENEWAL RATES;
(B) NONPAYMENT CANCELLATION RATES;
(C) OTHER CANCELLATION RATES;
(D) CLAIM FREQUENCY RATES;
(E) AVERAGE CLAIM AMOUNTS;
(F) PAID LOSS RATIOS; AND
(G) AVERAGE PREMIUMS;
(2) MARKET SHARE DATA; AND
(3) IF UTILIZED, THE NATURAL DISASTER RISK MODEL OR CATASTROPHE MODEL
OR SCORING METHOD USED TO ASSIGN RISK.
(A) THE FOLLOWING INFORMATION ABOUT A NATURAL DISASTER RISK MODEL OR
CATASTROPHE MODEL OR SCORING METHOD SHALL BE SUBMITTED:
(I) A DESCRIPTION OF SUCH MODEL OR METHOD;
(II) THE IMPACT OF SUCH MODEL OR METHOD ON RATES;
(III) AN ACTUARIAL JUSTIFICATION FOR ALL RATING FACTORS, INCLUDING
MITIGATION DISCOUNTS OFFERED; AND
(IV) AN EXPLANATION OF THE USE OF THE MODEL OR METHOD IN UNDERWRITING
DECISIONS.
(B) ANY MODEL OR METHOD SUBMITTED TO THE DEPARTMENT PURSUANT TO THIS
PARAGRAPH SHALL BE TREATED AS A TRADE SECRET AND SHALL NOT BE SUBJECT TO
DISCLOSURE UNDER ARTICLE SIX OF THE PUBLIC OFFICERS LAW.
(C) ANY PROPERTY/CASUALTY INSURANCE COMPANY THAT USES A NATURAL DISAS-
TER RISK MODEL, A CATASTROPHE MODEL, OR A COMBINATION OF MODELS SHALL
ENSURE THE FOLLOWING FACTORS ARE EITHER INCORPORATED IN THE NATURAL
DISASTER RISK MODEL, CATASTROPHE MODEL, OR COMBINATION OF MODELS OR ARE
OTHERWISE DEMONSTRABLY INCLUDED IN SUCH PROPERTY/CASUALTY INSURANCE
COMPANY'S UNDERWRITING AND PRICING:
(I) PROPERTY-SPECIFIC MITIGATION ACTIONS SUCH AS ESTABLISHING DEFENSI-
BLE SPACE, INCORPORATING BUILDING HARDENING MEASURES, OR RECEIVING
CERTIFICATION FROM AN ENTITY WITH EXPERIENCE IN MITIGATION OF PROPERTIES
AGAINST NATURAL DISASTERS; AND
(II) COMMUNITY-LEVEL MITIGATION ACTIVITIES OR DESIGNATIONS, INCLUDING
FOREST TREATMENT AND OTHER FUEL REDUCTION ACTIVITIES.
A. 9016--A 3
(D) ANY PROPERTY/CASUALTY INSURANCE COMPANY THAT USES A NATURAL DISAS-
TER RISK MODEL OR A CATASTROPHE MODEL OR SCORING METHOD TO ASSIGN RISK
SHALL ALSO INCLUDE THE INFORMATION REQUIRED IN SUBPARAGRAPH (A) OF THIS
PARAGRAPH IN ANY RATE FILING SUBMITTED TO THE SUPERINTENDENT BY SUCH
PROPERTY/CASUALTY INSURANCE COMPANY.
(C) THE DEPARTMENT SHALL CREATE AND MAINTAIN A PUBLIC-FACING DATABASE
WHERE POLICYHOLDERS CAN ACCESS THE MARKET SHARE DATA SUBMITTED BY
PROPERTY/CASUALTY INSURANCE COMPANIES PURSUANT TO PARAGRAPH TWO OF
SUBSECTION (B) OF THIS SECTION.
§ 2. The insurance law is amended by adding a new section 3463 to read
as follows:
§ 3463. REPORT ON THE HOUSING INSURANCE MARKET FOR MULTIFAMILY AND
NONPROFIT HOUSING PROVIDERS. (A) DEFINITIONS. FOR PURPOSES OF THIS
SECTION:
(1) "MULTIFAMILY RESIDENTIAL BUILDING" MEANS A PROPERTY CONTAINING
FIVE OR MORE DWELLING UNITS.
(2) "NONPROFIT HOUSING PROVIDER" MEANS ORGANIZATIONS DESCRIBED BY
SECTION 501(C)(3) OF THE UNITED STATES INTERNAL REVENUE CODE, CHARITABLE
CORPORATIONS AS DEFINED IN PARAGRAPH (A) OF SECTION ONE HUNDRED TWO OF
THE NOT-FOR-PROFIT CORPORATION LAW AND FORMED PURSUANT TO PARAGRAPH (A)
OF SECTION TWO HUNDRED ONE OF THE NOT-FOR-PROFIT CORPORATION LAW, AND
ORGANIZATIONS DESCRIBED BY SECTION TWO HUNDRED SIXTEEN-A OF THE EDUCA-
TION LAW THAT OWN OR OPERATE RESIDENTIAL HOUSING IN NEW YORK.
(3) "AFFORDABLE HOUSING DEVELOPMENT" MEANS A RESIDENTIAL BUILDING WITH
UNITS REQUIRED TO BE AFFORDABLE BY STATUTE, REGULATION, REGULATORY
AGREEMENT, OR RECORDED COVENANT.
(4) "EXCESS LINE INSURANCE" HAS THE SAME MEANING AS IN ARTICLE TWEN-
TY-ONE OF THIS CHAPTER.
(5) "INSURER" MEANS AN AUTHORIZED INSURER WRITING PROPERTY OR LIABIL-
ITY COVERAGE ON RESIDENTIAL BUILDINGS AND INCLUDES REPORTING BY EXCESS
LINE PLACEMENTS THROUGH THE EXCESS LINE ASSOCIATION OF NEW YORK AS
PROVIDED BY REGULATION.
(B) ANNUAL JOINT REPORT. (1) THE SUPERINTENDENT AND THE COMMISSIONER
OF HOMES AND COMMUNITY RENEWAL SHALL SUBMIT A JOINT REPORT DETAILED IN
SUBDIVISION (C) OF THIS SECTION ON OR BEFORE OCTOBER FIRST OF EACH YEAR
TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, AND THE SPEAKER
OF THE ASSEMBLY, AND POST IT ON THEIR WEBSITES.
(2) THE REPORT SHALL ANALYZE THE AVAILABILITY, PRICING, TERMS, AND
AFFORDABILITY OF PROPERTY AND LIABILITY INSURANCE FOR MULTIFAMILY RESI-
DENTIAL BUILDINGS OWNED OR OPERATED BY NONPROFIT AND MISSION-DRIVEN
ENTITIES, INCLUDING AFFORDABLE HOUSING DEVELOPMENTS.
(3) THE REPORT SHALL INCLUDE STATEWIDE AND REGIONAL RESULTS, WITH NEW
YORK CITY REPORTED SEPARATELY FROM THE REST OF THE STATE.
(C) REQUIRED CONTENTS. THE REPORT SHALL PRESENT, AT A MINIMUM, AGGRE-
GATED STATISTICS FOR THE PRIOR CALENDAR YEAR ON:
(1) PREMIUM LEVELS AND CHANGES, INCLUDING AVERAGE AND MEDIAN PREMIUM
PER UNIT AND SQUARE FOOT, AND PREMIUM AS A SHARE OF OPERATING EXPENSES.
(2) COVERAGE AVAILABILITY AND MARKET CHANNEL, INCLUDING NON-RENEWAL
AND DECLINATION COUNTS, THE SHARE PLACED IN THE EXCESS-LINE MARKET, AND
USE OF NEW YORK PROPERTY INSURANCE UNDERWRITING ASSOCIATION.
(3) DEDUCTIBLES BY PERIL AND TREND.
(4) COMMON EXCLUSIONS AND LIMITATIONS, INCLUDING NEW OR EXPANDED
EXCLUSIONS INTRODUCED IN THE REPORTING YEAR.
(5) COVERAGE LIMITS RELATIVE TO REPORTED REPLACEMENT COST.
(6) CLAIMS FREQUENCY AND SEVERITY FOR FIRE, WATER, WIND, AND LIABIL-
ITY, TO THE EXTENT AVAILABLE.
A. 9016--A 4
(7) DOCUMENTED AFFORDABILITY IMPACTS IN THE DIVISION OF HOUSING AND
COMMUNITY RENEWAL PORTFOLIOS, INCLUDING RENT-PRESSURE INDICATORS,
RESERVE DRAWS, OR CAPITAL-PLAN DEFERRALS LINKED TO INSURANCE EXPENSE
CHANGES.
(8) RISK-MITIGATION CREDITS AND BUILDING RESILIENCY INVESTMENTS
REPORTED BY OWNERS AND RECOGNIZED BY INSURERS.
(9) REGIONAL HEAT-MAP SUMMARIES OF MARKET STRESS USING THE METHODOLOGY
SET BY THE DEPARTMENT BY BULLETIN OR CIRCULAR LETTER. THE DEPARTMENT MAY
ALIGN WITH THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS' MARKET-
INTELLIGENCE DATA ELEMENTS.
(D) DATA COLLECTION AND CONFIDENTIALITY. (1) THE SUPERINTENDENT MAY
REQUIRE SPECIAL REPORTS UNDER SECTION THREE HUNDRED EIGHT OF THIS CHAP-
TER AND MAY CONSOLIDATE REQUESTS WITH EXISTING DEPARTMENT DATA CALLS.
(2) THE DEPARTMENT MAY REQUIRE GRANTEES, BORROWERS, AND REGULATED
OWNERS TO PROVIDE INSURANCE EXPENSE AND COVERAGE DATA AS A CONDITION OF
ASSISTANCE.
(3) SUBMISSIONS THAT CONSTITUTE TRADE SECRETS OR SENSITIVE COMMERCIAL
INFORMATION ARE CONFIDENTIAL UNDER PARAGRAPH (D) OF SUBDIVISION TWO OF
SECTION EIGHTY-SEVEN OF THE PUBLIC OFFICERS LAW. THE PUBLISHED REPORT
SHALL CONTAIN ONLY AGGREGATED, DE-IDENTIFIED STATISTICS AND ANALYSIS.
(4) THE DEPARTMENT SHALL CONSULT WITH EXCESS LINE AND NEW YORK PROPER-
TY INSURANCE UNDERWRITING ASSOCIATION REGARDING REPORTING FORMATS THAT
CAPTURE EXCESS-LINE PLACEMENTS AND ASSIGNED-RISK ACTIVITY WITHOUT IDEN-
TIFYING INDIVIDUAL INSUREDS.
(E) THE DIVISION OF HOUSING AND COMMUNITY RENEWAL. THE DIVISION OF
HOUSING AND COMMUNITY RENEWAL SHALL COOPERATE WITH THE DEPARTMENT IN
PRODUCING THE JOINT REPORT, INCLUDING COLLECTING PORTFOLIO-LEVEL INSUR-
ANCE EXPENSE AND COVERAGE DATA FROM REGULATED ENTITIES THROUGH EXISTING
REPORTING SYSTEMS. THE DIVISION OF HOUSING AND COMMUNITY RENEWAL SHALL
PUBLISH NON-CONFIDENTIAL AGGREGATED STATISTICS AND PROVIDE TECHNICAL
ASSISTANCE TO OWNERS ON RISK-MITIGATION PRACTICES RECOGNIZED BY INSUR-
ERS.
(F) RULEMAKING. THE DEPARTMENT MAY ADOPT REGULATIONS OR CIRCULAR
LETTERS TO IMPLEMENT THIS SECTION, HARMONIZE DATA STANDARDS WITH
NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS AND OTHER STATES, LIMIT
THE BURDEN ON SMALL INSURERS, AND ENSURE DATA QUALITY. THE DIVISION OF
HOUSING AND COMMUNITY RENEWAL MAY ISSUE GUIDANCE TO PARTICIPATING
OWNERS.
(G) NO PRIVATE RIGHT OF ACTION. NOTHING IN THIS SECTION CREATES A
PRIVATE RIGHT OF ACTION.
§ 3. The insurance law is amended by adding a new section 2346-b to
read as follows:
§ 2346-B. HOMEOWNERS INSURANCE OR PROPERTY/CASUALTY INSURANCE; MITI-
GATION ACTION. 1. FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
(A) "COMMUNITY-LEVEL MITIGATION ACTION" MEANS A SCIENCE-BASED MITI-
GATION ACTION AS DEMONSTRATED BY A COMMUNITY OR NEIGHBORHOOD-LEVEL
DESIGNATION OR CERTIFICATION OR AS UNDERTAKEN BY A GOVERNMENT ENTITY;
(B) "NATURAL DISASTER" MEANS THE OCCURRENCE OR IMMINENT THREAT OF
WIDESPREAD CATASTROPHIC OR SEVERE DAMAGE, INJURY, OR LOSS OF LIFE OR
PROPERTY RESULTING FROM ANY NATURAL CAUSE INCLUDING, BUT NOT LIMITED TO,
FIRE, FLOOD, EARTHQUAKE, HURRICANE, TORNADO, HIGH WATER, LANDSLIDE,
MUDSLIDE, WIND, STORM, WAVE ACTION, ICE STORM, AIR CONTAMINATION,
BLIGHT, DROUGHT, INFESTATION, EXPLOSION, WATER CONTAMINATION, BRIDGE
FAILURE, OR BRIDGE COLLAPSE;
A. 9016--A 5
(C) "NATURAL DISASTER RISK MODEL" MEANS A TOOL, INSTRUMENTALITY,
MEANS, OR PRODUCT, INCLUDING A MAP-BASED TOOL, A COMPUTER-BASED TOOL, OR
A SIMULATION, THAT IS USED BY AN INSURER IN WHOLE OR IN PART, TO MEASURE
OR ASSESS THE NATURAL DISASTER RISK ASSOCIATED WITH A RESIDENTIAL PROP-
ERTY OR COMMUNITY FOR PURPOSES OF RATING, CLASSIFYING, OR PRICING BASED
ON NATURAL DISASTER RISK OR ESTIMATING RISKS OR LOSSES CORRESPONDING TO
THE NATURAL DISASTER RISK CLASSIFICATIONS; AND
(D) "PROPERTY-SPECIFIC MITIGATION ACTION" MEANS A SCIENCE-BASED MITI-
GATION ACTION THAT INCLUDES A VERIFICATION AND CERTIFICATION PROCESS.
2. THE SUPERINTENDENT SHALL PROVIDE FOR AN ACTUARIALLY APPROPRIATE
REDUCTION IN THE RATES OF HOMEOWNERS INSURANCE PREMIUMS AND
PROPERTY/CASUALTY INSURANCE PREMIUMS APPLICABLE TO RESIDENTIAL REAL
PROPERTY FOR POLICYHOLDERS WHO CAN DEMONSTRATE THAT PROPERTY-SPECIFIC
MITIGATION ACTIONS HAVE BEEN UNDERTAKEN ON THE PROPERTY OR COMMUNITY-
LEVEL MITIGATION ACTIONS HAVE BEEN UNDERTAKEN IN SUFFICIENT PROXIMITY TO
THE PROPERTY TO REDUCE THE RISK OF LOSS FROM A NATURAL DISASTER. THE
SUPERINTENDENT SHALL BY REGULATION ESTABLISH A PROCESS FOR POLICYHOLDERS
TO DEMONSTRATE SUCH MITIGATION ACTIONS HAVE OCCURRED.
3. AN INSURER SHALL POST ON ITS PUBLIC WEBSITE READILY ACCESSIBLE
INFORMATION ON THE PREMIUM DISCOUNTS, INCENTIVES OR OTHER PREMIUM
ADJUSTMENTS THAT ARE AVAILABLE TO POLICYHOLDERS OF HOMEOWNERS INSURANCE
OR PROPERTY/CASUALTY INSURANCE APPLICABLE TO RESIDENTIAL REAL PROPERTY
WHO UNDERTAKE PROPERTY-SPECIFIC MITIGATION ACTIONS OR PROVIDE EVIDENCE
OF COMMUNITY-LEVEL MITIGATION ACTIONS. THE WEBSITE SHALL IDENTIFY, AS
APPLICABLE:
(A) PROPERTY-SPECIFIC MITIGATION ACTIONS FOR THE POLICYHOLDER TO
UNDERTAKE AND COMMUNITY-LEVEL MITIGATION ACTIONS, AS DETERMINED BY THE
SUPERINTENDENT, THAT COULD RESULT IN A DISCOUNT, INCENTIVE, OR OTHER
PREMIUM ADJUSTMENT; AND
(B) THE AMOUNT OF THE DISCOUNT, INCENTIVE, OR OTHER PREMIUM ADJUSTMENT
ASSOCIATED WITH EACH ACTION.
4. (A) AN INSURER THAT PROVIDES A MITIGATION DISCOUNT OR THAT USES A
NATURAL DISASTER RISK MODEL OR RISK SCORE TO UNDERWRITE, NONRENEW,
PRICE, CREATE A RATE DIFFERENTIAL, OR SURCHARGE THE PREMIUM BASED UPON
THE POLICYHOLDER'S OR APPLICANT'S NATURAL DISASTER RISK SHALL PROVIDE AN
ANNUAL WRITTEN NOTICE TO EACH POLICYHOLDER OR APPLICANT UPON APPLICATION
FOR INSURANCE OF THE APPLICABLE MITIGATION DISCOUNTS, THE NATURAL DISAS-
TER RISK SCORE, AND ANY OTHER NATURAL DISASTER RISK CLASSIFICATION USED
BY THE INSURER TO UNDERWRITE, NONRENEW, PRICE, CREATE A RATE DIFFEREN-
TIAL, OR SURCHARGE THE PREMIUM BASED UPON THE POLICYHOLDER'S OR APPLI-
CANT'S NATURAL DISASTER RISK.
(B) SUCH NOTICE SHALL INCLUDE:
(I) A PLAIN-LANGUAGE EXPLANATION OF THE NATURAL DISASTER RISK SCORE OR
OTHER NATURAL DISASTER RISK CLASSIFICATION, INCLUDING AN EXPLANATION
THAT INSURERS MAY USE DIFFERENT MODELS AND HAVE DIFFERENT RISK SCORE
CHANGES THAT COULD RESULT IN DIFFERENT RISK SCORES FROM OTHER INSURERS;
(II) THE RANGE OF THE SCORES OR CLASSIFICATIONS THAT COULD POTENTIALLY
BE ASSIGNED TO THE PROPERTY;
(III) THE RELATIVE POSITION OF THE SCORE OR CLASSIFICATION ASSIGNED TO
THE PROPERTY WITHIN THAT RANGE OF POSSIBLE SCORES OR CLASSIFICATIONS
PROVIDED BY THE INSURER'S RISK MODEL;
(IV) A WRITTEN EXPLANATION OF WHY THE POLICYHOLDER OR APPLICANT
RECEIVED THE ASSIGNED SCORE OR CLASSIFICATION THAT IDENTIFIES THE PRIMA-
RY FEATURES OF THE PROPERTY THAT INFLUENCED THE ASSIGNMENT OF THE SCORE
OR CLASSIFICATION; AND
A. 9016--A 6
(V) THE IMPACT, IF ANY, THAT EACH PROPERTY-SPECIFIC MITIGATION OR
COMMUNITY-LEVEL MITIGATION ACTION COULD HAVE ON A NATURAL DISASTER RISK
SCORE OR CLASSIFICATION ASSIGNED TO THE PROPERTY.
5. THE INSURER SHALL PROVIDE THE NATURAL DISASTER RISK SCORE OR CLAS-
SIFICATION TO THE POLICYHOLDER OR THE APPLICANT:
(A) FOR APPLICANTS, NO LATER THAN FIFTEEN DAYS AFTER THE SUBMISSION OF
THE APPLICANT'S COMPLETED APPLICATION TO THE INSURER;
(B) FOR POLICYHOLDERS, IN THE OFFER OF RENEWAL;
(C) FOR POLICYHOLDERS THAT ARE NOT BEING OFFERED A RENEWAL, WITH THE
NONRENEWAL NOTICE; AND
(D) FOR A POLICYHOLDER OR APPLICANT, IF THE POLICYHOLDER OR APPLICANT
HAS COMPLETED A PROPERTY-SPECIFIC MITIGATION ACTION OR PROVIDES EVIDENCE
OF A COMMUNITY-LEVEL MITIGATION ACTION IN SUFFICIENT PROXIMITY TO THE
PROPERTY TO REDUCE THE RISK OF LOSS SINCE THE TIME OF THE LAST APPLICA-
TION TO OR RENEWAL BY THE INSURER, NO LATER THAN THIRTY DAYS AFTER THE
SUBMISSION TO THE INSURER OF THE POLICYHOLDER'S OR APPLICANT'S REQUEST
THAT THE INSURER PROVIDE A REVISED NATURAL DISASTER RISK SCORE OR RISK
CLASSIFICATION.
6. A POLICYHOLDER OR APPLICANT FOR A POLICY OF INSURANCE WHOSE NATURAL
DISASTER RISK MODEL SCORE, NATURAL DISASTER RISK CLASSIFICATION ASSIGNED
TO THE PROPERTY, OR APPLICABLE MITIGATION DISCOUNT IS INACCURATE AND
PROVIDES EVIDENCE OF THE PROPERTY-SPECIFIC OR COMMUNITY-LEVEL MITIGATION
ACTION MAY APPEAL THE SCORE DIRECTLY TO THE INSURER. THE INSURER SHALL
NOTIFY THE POLICYHOLDER OR APPLICANT IN WRITING OF THE RIGHT TO APPEAL
THE NATURAL DISASTER RISK SCORE OR OTHER NATURAL DISASTER RISK CLASSI-
FICATION OR APPLICABLE MITIGATION DISCOUNT WHEN THE SCORE OR CLASSIFICA-
TION OR DISCOUNT IS PROVIDED TO THE POLICYHOLDER OR APPLICANT AS
REQUIRED BY THIS SECTION. IF THE POLICYHOLDER OR APPLICANT APPEALS THE
NATURAL DISASTER RISK SCORE OR OTHER NATURAL DISASTER RISK CLASSIFICA-
TION OR APPLICABLE DISCOUNT, THE INSURER SHALL ACKNOWLEDGE RECEIPT OF
THE APPEAL IN WRITING WITHIN TEN CALENDAR DAYS AFTER RECEIPT OF THE
APPEAL. THE INSURER SHALL RESPOND TO THE APPEAL IN WRITING WITH A
RECONSIDERATION AND DECISION WITHIN THIRTY CALENDAR DAYS AFTER RECEIVING
THE APPEAL. IF AN APPEAL IS DENIED, THE INSURER SHALL, UPON REQUEST BY
THE SUPERINTENDENT, FORWARD A COPY OF THE APPEAL AND THE INSURER'S
RESPONSE, TO THE SUPERINTENDENT.
§ 4. Paragraphs 12 and 13 of subsection (b) of section 2305 of the
insurance law, as amended by section 9 of part AAA of chapter 59 of the
laws of 2017, are amended and a new paragraph 14 is added to read as
follows:
(12) gap insurance; [and]
(13) private passenger automobile insurance, except as provided in
section two thousand three hundred fifty of this article[,]; AND
(14) HOMEOWNERS INSURANCE OR PROPERTY/CASUALTY INSURANCE APPLICABLE TO
RESIDENTIAL REAL PROPERTY AS IT RELATES TO THE INCLUSION OF PROPERTY-
SPECIFIC MITIGATION ACTIONS AND COMMUNITY-LEVEL MITIGATION ACTIONS IN
THE CALCULATION OF SUCH RATES,
§ 5. Paragraphs 1 and 2 of subsection (d) of section 3425 of the
insurance law are amended to read as follows:
(1) Unless the insurer, at least [forty-five] NINETY but not more than
[sixty] ONE HUNDRED TWENTY days in advance of the end of the policy
period FOR NONRENEWAL OR CONDITIONAL RENEWAL OR THE EFFECTIVE DATE FOR
CANCELLATION, mails or delivers to the named insured, at the address
shown in the policy, a written notice of its intention not to renew a
covered policy, [or] to condition its renewal upon change of limits or
elimination of any coverages, OR TO CANCEL THE POLICY, the named insured
A. 9016--A 7
shall be entitled to renew the policy upon timely payment of the premium
billed to the insured for the renewal. The specific reason or reasons
for nonrenewal or conditioned renewal shall be stated in or shall accom-
pany the notice. THE SPECIFIC REASON OR REASONS FOR CANCELLATION AS
PROVIDED IN SUBSECTION (C) OF THIS SECTION SHALL BE STATED IN OR SHALL
ACCOMPANY THE NOTICE. This paragraph shall not apply when the named
insured, an agent or broker authorized by the named insured, or an
insurer of the named insured, has mailed or delivered written notice to
the insurer that the policy has been replaced or is no longer desired.
(2) If an insurer has the right to cancel a policy it may, in lieu of
cancellation, condition continuation of such policy upon change of
limits or elimination of any coverage not required by law, if written
notice of such intention is mailed or delivered to the insured at the
address shown in the policy at least [twenty] NINETY days prior to the
effective date of such action.
§ 6. The opening paragraph of subsection (c) of section 3426 of the
insurance law, as amended by chapter 235 of the laws of 1989, is amended
to read as follows:
After a covered policy has been in effect for sixty days unless
cancelled pursuant to subsection (b) of this section, or on or after the
effective date if such policy is a renewal, no notice of cancellation
shall become effective until [fifteen] NINETY days after written notice
is mailed or delivered to the first-named insured and to such insured's
authorized agent or broker, and such cancellation is based on one or
more of the following:
§ 7. Paragraphs 3 and 4 of subsection (a) of section 3462 of the
insurance law, as added by section 1 of part BB of chapter 56 of the
laws of 2024, are amended and a new paragraph 5 is added to read as
follows:
(3) The level or source of income of the tenants of the residential
building or the shareholders of a cooperative housing corporation; [or]
(4) Whether such residential building is owned by a limited-equity
cooperative; owned by a public housing authority; or owned by a cooper-
ative housing corporation subject to the provisions of article two,
article four, article five or article eleven of the private housing
finance law[.]; OR
(5) THE RESIDENTIAL BUILDING IS LOCATED IN A DISADVANTAGED COMMUNITY,
AS IDENTIFIED PURSUANT TO SECTION 75-0111 OF THE ENVIRONMENTAL CONSERVA-
TION LAW. AN INSURER WHO CANCELS, REFUSES TO ISSUE, REFUSES TO RENEW OR
INCREASE THE PREMIUM OF A POLICY, OR EXCLUDES, LIMITS, RESTRICTS, OR
REDUCES COVERAGE UNDER A POLICY FOR A RESIDENTIAL BUILDING LOCATED IN A
DISADVANTAGED COMMUNITY SHALL PROVIDE ACTUARIAL INFORMATION TO THE
INSURED OR APPLICANT TO SUPPORT SUCH ACTION.
§ 8. Subsection (b) of section 5402 of the insurance law, as amended
by chapter 42 of the laws of 1996, is amended to read as follows:
(b) The association shall be governed by a board of [thirteen] TWEN-
TY-THREE directors, ten of whom shall be elected annually by cumulative
voting by the members of the association, whose votes in such election
shall be weighted in accordance with each member's net direct premiums
written during the preceding calendar year. AN ADDITIONAL SIX DIRECTORS
SHALL BE APPOINTED ANNUALLY BY THE LEGISLATURE, TWO BY THE TEMPORARY
PRESIDENT OF THE SENATE, TWO BY THE SPEAKER OF THE ASSEMBLY, ONE BY THE
MINORITY LEADER OF THE SENATE AND ONE BY THE MINORITY LEADER OF THE
ASSEMBLY. FOUR DIRECTORS SHALL BE APPOINTED ANNUALLY BY THE GOVERNOR AND
TWO OF SUCH DIRECTORS SHALL BE REPRESENTATIVES OF CONSUMERS. The remain-
ing three directors shall be appointed annually by the superintendent
A. 9016--A 8
and be duly licensed insurance agents or brokers representative of broad
segments of the public obtaining insurance through the association.
§ 9. Subsection (g) of section 5402 of the insurance law, as amended
by chapter 182 of the laws of 2023, is amended to read as follows:
(g) In addition to fire insurance, extended coverage, coverage for
additional perils and homeowners insurance should the same be made
available through the association in accordance with a determination of
necessity pursuant to section five thousand four hundred twelve of this
article, the association may offer broad form coverage to applicants
seeking to insure real property at fixed locations of this state, or the
tangible personal property located thereon. The association may offer
broad form coverage until June thirtieth, two thousand twenty-eight. On
or before October first, two thousand twenty-seven the superintendent
shall require the association to report to the superintendent as to the
number of policies written pursuant to this subsection and paragraph
three of subsection (f) of section five thousand four hundred five of
this article, and any other information the superintendent may require.
On or before January first, two thousand twenty-eight, AND EVERY FOUR
YEARS THEREAFTER, the superintendent shall report to the governor and
the legislature regarding the number of policies issued pursuant to this
section and such paragraph, THE GEOGRAPHIC LOCATION OF SUCH POLICIES,
THE TYPES OF POLICIES OFFERED, THE COVERAGE LIMITS OF SUCH POLICIES,
RISK REDUCTION INVESTMENTS, INFORMATION ON THE FINANCIAL STANDING OF THE
ASSOCIATION and [shall include] recommendations as to the continuation
of such insurance offerings.
§ 10. This act shall take effect on the one hundred eightieth day
after it shall have become a law. 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.