NY State Senate Bill 2025-S8585A

Current Bill Status - In Senate Committee Insurance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 29, 2026	print number 8585a
May 29, 2026	amend (t) and recommit to insurance
Jan 07, 2026	referred to insurance
Nov 17, 2025	referred to rules

Bill Amendments

Original

A (Active)

co-Sponsors

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2025-S8585 - Details

See Assembly Version of this Bill:: A9279
Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Add §3463, amd §2304, Ins L

2025-S8585 - Summary

Enacts the "climate accountability and loss recovery act"; provides that the attorney general may bring a civil action against a covered entity for recovery of certain costs and assessments arising from a climate disaster.

2025-S8585 - Sponsor Memo

                                 
BILL NUMBER: S8585

SPONSOR: KAVANAGH
 
TITLE OF BILL:

An act to amend the insurance law, in relation to recovery for climate
disaster losses

 
PURPOSE OR GENERAL IDEA OF BILL:

To allow for private insurers, the New York Property Insurance Under-
writing Association (NYPIUA), and the New York State Attorney General to
seek damages from fossil fuel corporations in cases of climate-related
catastrophic incidents and disasters.

 
SUMMARY OF PROVISIONS:

Section one of the bill adds new section 3463 to the insurance law.

Subdivision (a) the new section 3463 establishes definitions for
"climate disaster," "fossil fuel product," and "responsible party."

Subdivision (b) of the new section 3463 permits the office of the Attor-
ney General to bring a civil action on behalf of the people of New York
against any responsible party to recover assessments imposed on member
insurers of NYPIUA, increased costs imposed on policyholders based on
project climate disasters, or costs resulting from disruptions to the
property/casualty insurance market arising from climate disasters. It
authorizes the Attorney General to recover climate attributable damage,
restitution, disgorgement, reasonable costs and disbursements incurred,
and other relief that a court or jury deem proper.

Subdivision (c) of the new section 3463 establishes that responsible
parties shall be strictly liable for any damages, restitution, or other
relief afforded under this section.

Subdivision (d) of the new section 3463 provides that, in any action
under this section, the court shall offset any restitution award by
amounts already reimbursed in claims arising from the same case or
controversy, and requires claimants seeking restitution to certify any
amounts received from an insurer or NYPIUA for the same loss.

Section two of the bill amends the insurance law by creating new section
4122.

Subdivision (a) of the new section 4122 permits NYPIUA and any insurer
doing business in the state who have suffered harm as a result of a
climate disaster to bring a civil action against a responsible party to
recover relief, and establishes a three-year statute of limitations from
the date the harm was discovered. It makes responsible parties strictly
liable for damages, restitution, or other relief, and provides that none
of the rights assigned may be waived.

Subdivision (b) of the new section 4122 provides that the existence of a
civil action against a responsible party is not an independent basis for
enforcement of any other law or for the denial, revocation, suspension,
or withholding of any right or privilege conferred by the state.


Subdivision (c) of the new section 4122 provides that nothing in this
section shall be construed to limit the enforceability of existing laws
in related areas, relieve liability of damages for climate change from
other laws, preempt any person from seeking damages related to climate
change, or limit a party's First Amendment rights.

Section three of the bill amends section 2304 of the insurance law to
require subrogation proceeds to be considered as factors in setting
insurance rates.

Section four of the bill provides for severability of the provisions in
the event any are found to be invalid.

Section five of the bill sets forth the effective date.

 
JUSTIFICATION:

Climate change has imposed extraordinary and escalating costs on New
York State, its residents and municipalities, and its insurance markets.
Severe flooding, heat waves, and convective storms are increasingly
expensive to recover from, and New York communities are facing mounting
damage while the state's Property Insurance Underwriting Association
(NYPIUA) and private insurers cover very large climate-related losses.
In 2012, Superstorm Sandy caused more than $25 billion in insured loss-
es, and in 2021, Hurricane Ida caused over $200 million in insured loss-
es. Increasingly frequent severe storms continue to strain the state's
insurance infrastructure.

These costs ultimately fall on taxpayers through costs associated with
emergency response, disaster relief, and infrastructure repairs, and
insurance policyholders through rising premiums. Advances in attribution
science now enable researchers to identify the contribution of climate
change to specific weather events. This bill would provide a path to
allow those who profited from products that they knew would contribute
to climate disasters to be held accountable for a proportionate share of
the resulting costs, rather than forcing New York's taxpayers and home-
owners to shoulder the full burden. It would establish frameworks for
the Attorney General and insurers to recover costs from parties respon-
sible.

This legislation would protect the stability of New York's insurance
market and reduce pressure on taxpayers and policyholders, promoting
both fairness and accountability in addressing the costs of climate
change.

 
PRIOR LEGISLATIVE HISTORY:

This is a new bill.

 
FISCAL IMPLICATIONS:

None to the state.

 
EFFECTIVE DATE:
This act shall take effect ninety days after it shall become a law.

2025-S8585 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8585
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             November 17, 2025
                                ___________
 
 Introduced  by Sen. KAVANAGH -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the insurance law, in relation to recovery  for  climate
   disaster losses
 
   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  3463
 to read as follows:
   § 3463. RECOVERY  FOR CLIMATE DISASTER LOSSES. (A) FOR THE PURPOSES OF
 THIS SECTION THE FOLLOWING TERMS HAVE THE FOLLOWING MEANINGS:
   (1) "CLIMATE DISASTER" MEANS ANY EVENT INCLUDING FIRE,  FLOOD,  EARTH-
 QUAKE,  HURRICANE,  TORNADO,  LANDSLIDE,  MUDSLIDE,  WIND,  STORM,  WAVE
 ACTION, WIND-DRIVEN WATER, TIDAL WAVE, VOLCANIC  ACTIVITY,  AIR  CONTAM-
 INATION,  BLIGHT,  DROUGHT,  INFESTATION,  EXPLOSION, NUCLEAR, CHEMICAL,
 BIOLOGICAL, OR  BACTERIOLOGICAL  RELEASE,  WATER  CONTAMINATION,  BRIDGE
 FAILURE  OR BRIDGE COLLAPSE, OR ANY EVENT DESIGNATED IN A STATE DECLARA-
 TION OF DISASTER EMERGENCY PURSUANT TO SECTION TWENTY-EIGHT OF THE EXEC-
 UTIVE LAW OR A LOCAL STATE OF EMERGENCY PURSUANT TO SECTION  TWENTY-FOUR
 OF THE EXECUTIVE LAW, THAT RESULTS IN WIDESPREAD OR SEVERE DAMAGE, INJU-
 RY,  OR  LOSS  OF  LIFE  OR PROPERTY, PROVIDED THAT CLIMATE CHANGE WAS A
 CONTRIBUTING  FACTOR  IN  THE  EVENT'S  FREQUENCY,  SEVERITY,  LOCATION,
 TIMING, OR EXTENT.
   (2) "FOSSIL FUEL PRODUCT" INCLUDES THE FOLLOWING:
   (A) COAL, AS DEFINED IN SECTION 1-103 OF THE ENERGY LAW;
   (B) FOSSIL FUEL, AS DEFINED IN SECTION 1-103 OF THE ENERGY LAW;
   (C) FUEL GASES, AS DEFINED IN SECTION 1-103 OF THE ENERGY LAW; AND
   (D) PETROLEUM PRODUCTS, AS DEFINED IN SECTION 1-103 OF THE ENERGY LAW.
   (3)  "RESPONSIBLE PARTY" MEANS ANY PERSON, FIRM, CORPORATION, COMPANY,
 PARTNERSHIP, SOCIETY, JOINT STOCK COMPANY, ENTITY, OR  ASSOCIATION  THAT
 MEETS ALL OF THE FOLLOWING CRITERIA:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13895-07-5
 S. 8585                             2

 
   (A) HAS AN AGGREGATE MARKET CAPITALIZATION OR WORLDWIDE ANNUAL REVENUE
 ACROSS  THE  PARENT  ENTITY AND ALL AFFILIATED ENTITIES OF AT LEAST FIVE
 HUNDRED  MILLION  DOLLARS  ($500,000,000),  DETERMINED  BY  AN   AVERAGE
 CAPITALIZATION  OR  REVENUE OVER THE PRECEDING THREE YEARS. FOR PURPOSES
 OF THIS SUBPARAGRAPH, "AFFILIATED ENTITIES" MEANS A PARENT OR SUBSIDIARY
 CORPORATION  AS WELL AS ANY OTHER BUSINESS ENTITY UNDER COMMON OWNERSHIP
 OR CONTROL WITH THE PARENT ENTITY, INCLUDING AN ENTITY CONSOLIDATED  FOR
 FINANCIAL REPORTING PURPOSES, OR TO ENHANCE PROFITABILITY FOR THE PARENT
 ENTITY;
   (B)  ENGAGED IN THE EXTRACTION, PRODUCTION, MANUFACTURE, MARKETING, OR
 SALE OF FOSSIL FUEL PRODUCTS; AND
   (C) DID BUSINESS IN THE STATE, WAS REGISTERED TO DO  BUSINESS  IN  THE
 STATE,  WAS APPOINTED AN AGENT OF THE STATE, OR OTHERWISE HAD SUFFICIENT
 CONTACTS WITH THE STATE TO BE SUBJECT TO THE STATE'S JURISDICTION.
   "RESPONSIBLE PARTY" DOES NOT INCLUDE ANY TRIBAL GOVERNMENT, THE STATE,
 A POLITICAL SUBDIVISION OF THE TRIBAL OR STATE GOVERNMENT, OR AN EMPLOY-
 EE OF THE TRIBAL OR STATE GOVERNMENT, ON THE BASIS OF ACTS OR  OMISSIONS
 IN THE COURSE OF OFFICIAL DUTIES.
   (B)(1)  THE  ATTORNEY  GENERAL MAY BRING A CIVIL ACTION IN THE NAME OF
 THE PEOPLE OF THE STATE OF NEW YORK AGAINST ANY  RESPONSIBLE  PARTY  FOR
 ANY OF THE FOLLOWING:
   (A)  RECOVERY  OF  AN ASSESSMENT IMPOSED ON MEMBER INSURERS OF THE NEW
 YORK PROPERTY INSURANCE UNDERWRITING  ASSOCIATION  PURSUANT  TO  SECTION
 FIVE  THOUSAND  FOUR  HUNDRED TWELVE OF THIS CHAPTER, TO THE EXTENT THAT
 THE ASSOCIATION  IMPOSED  THE  ASSESSMENT  TO  COVER  THE  ASSOCIATION'S
 EXPENSES OR LOSSES ARISING FROM A CLIMATE DISASTER.
   (B)  RECOVERY OF EACH SURCHARGE OR PREMIUM INCREASE IMPOSED ON POLICY-
 HOLDERS OR INSUREDS  IN  THE  ADMITTED  OR  RESIDUAL  MARKET,  WHEN  THE
 SURCHARGE  OR  INCREASE  IS  BASED  ON  A  PROJECTED LOSS ARISING FROM A
 CLIMATE DISASTER OVER A DEFINED PERIOD, OR TO REFLECT PRICED-IN RISK  OF
 FUTURE CLIMATE ATTRIBUTABLE DAMAGE.
   (C)  RECOVERY OF COSTS INCURRED BY POLICYHOLDERS, INSUREDS, OR TAXPAY-
 ERS RESULTING FROM A DISRUPTION TO THE PROPERTY  OR  CASUALTY  INSURANCE
 MARKET  IN THIS STATE, WHEN THE COSTS ARISES FROM LOSSES ATTRIBUTABLE TO
 A CLIMATE DISASTER.
   (2) IN ANY CIVIL ACTION AGAINST A RESPONSIBLE PARTY UNDER THIS SECTION
 THE ATTORNEY GENERAL MAY RECOVER OR OBTAIN ANY OF THE FOLLOWING:
   (A) ALL CLIMATE ATTRIBUTABLE DAMAGE.
   (B) RESTITUTION  OR  DISGORGEMENT  OF  PROFITS  OBTAINED  THROUGH  THE
 VIOLATION.
   (C) REASONABLE COSTS AND DISBURSEMENTS INCURRED BY THE ATTORNEY GENER-
 AL.
   (D) ANY OTHER RELIEF THAT THE COURT OR JURY DEEMS PROPER.
   (3)  RESPONSIBLE  PARTIES  SHALL  BE  STRICTLY LIABLE FOR ANY DAMAGES,
 RESTITUTION, OR OTHER RELIEF AFFORDED UNDER THIS SECTION.
   (4) IN ANY ACTION UNDER THIS  SECTION,  THE  COURT  SHALL  OFFSET  ANY
 RESTITUTION  AWARD  BY AMOUNTS ALREADY REIMBURSED IN CLAIMS ARISING FROM
 THE SAME CASE OR CONTROVERSY. THE ATTORNEY GENERAL  SHALL  REQUIRE  EACH
 CLAIMANT  SEEKING  RESTITUTION TO CERTIFY, UNDER PENALTY OF PERJURY, ANY
 AMOUNTS RECEIVED FROM AN INSURED OR  THE  NEW  YORK  PROPERTY  INSURANCE
 UNDERWRITING  ASSOCIATION,  INCLUDING  PURSUANT TO SECTION FIVE THOUSAND
 FOUR HUNDRED TEN OF THIS CHAPTER, FOR THE SAME LOSS.
   § 2. The insurance law is amended by adding a new section 4122 to read
 as follows:
   § 4122. RECOVERY FOR CLIMATE DISASTER LOSSES. (A) (1) AN INSURER DOING
 BUSINESS IN THIS STATE AND THE NEW YORK PROPERTY INSURANCE  UNDERWRITING
 S. 8585                             3
 
 ASSOCIATION  WHO HAS SUFFERED HARM AS A RESULT OF A CLIMATE DISASTER MAY
 BRING A CIVIL ACTION AGAINST A RESPONSIBLE PARTY TO  RECOVER  OR  OBTAIN
 ALL OF THE FOLLOWING:
   (A) ALL DAMAGES SUSTAINED IN CONNECTION TO THE CLIMATE DISASTER.
   (B) RESTITUTION.
   (C) COURT COSTS, LITIGATION EXPENSES, AND REASONABLE ATTORNEY'S FEES.
   (D) ANY OTHER RELIEF THAT THE COURT OR JURY DEEMS PROPER.
   FOR  PURPOSES  OF  THIS  SECTION,  "CLIMATE DISASTER" AND "RESPONSIBLE
 PARTY" HAVE THE SAME MEANINGS AS DEFINED IN SECTION THREE THOUSAND  FOUR
 HUNDRED SIXTY-THREE OF THIS CHAPTER.
   (2)  NOTWITHSTANDING  ANY OTHER APPLICABLE STATUTE OF LIMITATIONS, THE
 ACTION MUST BE COMMENCED WITHIN THREE YEARS OF THE DATE  THAT  THE  HARM
 WAS  OR SHOULD HAVE BEEN DISCOVERED BY THE CLAIMANT, WHICHEVER IS EARLI-
 ER.
   (3) RESPONSIBLE PARTIES SHALL BE  STRICTLY  LIABLE  FOR  THE  DAMAGES,
 RESTITUTION, OR OTHER RELIEF AFFORDED UNDER THIS SECTION.
   (4)  NOTWITHSTANDING ANY OTHER LAW, A COURT SHALL NOT AWARD ATTORNEYS'
 FEES OR COSTS TO A DEFENDANT IN  AN  ACTION  BROUGHT  PURSUANT  TO  THIS
 SECTION.
   (5) NONE OF THE RIGHTS ASSIGNED BY THIS SECTION MAY BE WAIVED.
   (6)  DAMAGES  AWARDED PURSUANT TO THIS SUBSECTION MAY BE OFFSET BY ANY
 OF THE FOLLOWING:
   (A) PAYMENTS MADE TO A HARMED PARTY PURSUANT TO A CONTRACT  OF  INSUR-
 ANCE.
   (B)  EVIDENCE THAT A PLAINTIFF FULLY RECOVERED FROM A PUBLIC BODY OR A
 LIABLE THIRD PARTY FOR THEIR ALLEGED INJURIES.
   (B) THE EXISTENCE OF A CIVIL ACTION AGAINST A RESPONSIBLE PARTY PURSU-
 ANT TO THIS SECTION IS NOT AN INDEPENDENT BASIS FOR ENFORCEMENT  OF  ANY
 OTHER LAW, THE DENIAL, REVOCATION, SUSPENSION, OR WITHHOLDING OF A RIGHT
 OR  PRIVILEGE  CONFERRED  BY  THE STATE OR A POLITICAL SUBDIVISION, OR A
 THREAT OF THE DENIAL, REVOCATION, SUSPENSION, OR WITHHOLDING OF A  RIGHT
 OR PRIVILEGE CONFERRED BY THE STATE, A POLITICAL SUBDIVISION, A DISTRICT
 ATTORNEY, A COUNTY OR CITY COUNSEL, AN EXECUTIVE OR ADMINISTRATIVE OFFI-
 CER  OR  EMPLOYEE  OF  THE STATE OR A POLITICAL SUBDIVISION, OR A BOARD,
 COMMISSION, OR SIMILAR BODY WITH RELEVANT AUTHORITY.
   (C) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO:
   (1) LIMIT THE ENFORCEABILITY  OF  EXISTING  LAWS  CONCERNING  CONSUMER
 PROTECTION, CLIMATE, ENVIRONMENT, ENERGY, OR NATURAL RESOURCES;
   (2) LIMIT THE ENFORCEABILITY OF EXISTING LAWS THAT REGULATE OR PROHIB-
 IT  CONDUCT  RELATING  TO CLIMATE DISASTERS, EXTREME WEATHER, GREENHOUSE
 GAS EMISSIONS, OR CONSUMER PROTECTION;
   (3) LIMIT, ANY OTHER RIGHTS OR REMEDIES AVAILABLE UNDER ANY OTHER  LAW
 OR  COMMON  LAW,  INCLUDING ACTIONS FOR DAMAGES TO PROPERTY OR INJURY TO
 PERSONS;
   (4) REPLACE OR OFFSET ANY LEGALLY MANDATED  DISASTER  RECOVERY  FUNDS,
 DESIGNATED DISASTER RECOVERY FUNDS ESTABLISHED VIA LEGISLATION OR ADMIN-
 ISTRATIVE  RULE,  OR  CONTRACTUALLY OBLIGATED OR COURT-ORDERED INSURANCE
 CLAIM PAYOUTS;
   (5) RELIEVE THE LIABILITY OF AN  ENTITY  FOR  DAMAGES  RESULTING  FROM
 CLIMATE CHANGE OR DECEPTIVE ACTS, AS PROVIDED BY ANY OTHER LAW;
   (6) PREEMPT, DISPLACE, OR RESTRICT ANY RIGHTS OR REMEDIES OF A PERSON,
 THE STATE, LOCAL GOVERNMENT ENTITIES, OR A TRIBAL GOVERNMENT PURSUANT TO
 LAW  RELATING  TO  A  PAST,  PRESENT, OR FUTURE ALLEGATION OF ANY OF THE
 FOLLOWING:
   (A) DECEPTION CONCERNING THE EFFECT OF FOSSIL FUELS ON CLIMATE CHANGE;
 S. 8585                             4
 
   (B) DAMAGE OR INJURY RESULTING  FROM  THE  ROLE  OF  FOSSIL  FUELS  IN
 CONTRIBUTING TO CLIMATE CHANGE; OR
   (C)  FAILURE  TO  AVOID  DAMAGE  OR  INJURY RELATED TO CLIMATE CHANGE,
 INCLUDING CLAIMS FOR  NUISANCE,  TRESPASS,  DESIGN  DEFECT,  NEGLIGENCE,
 FAILURE  TO WARN, OR DECEPTIVE OR UNFAIR PRACTICES OR CLAIMS FOR INJUNC-
 TIVE, DECLARATORY, MONETARY, OR OTHER RELIEF;
   (7) PREEMPT, SUPERSEDE, OR DISPLACE ANY STATE LAW OR LOCAL  ORDINANCE,
 REGULATION, POLICY, OR PROGRAM THAT DOES ANY OF THE FOLLOWING:
   (A)  LIMIT,  SET,  OR  ENFORCE  STANDARDS  FOR EMISSIONS OF GREENHOUSE
 GASES;
   (B) MONITOR, REPORT, OR KEEP RECORDS OF EMISSIONS OF GREENHOUSE GASES;
   (C) COLLECT REVENUE THROUGH FEES OR LEVY TAXES; OR
   (D) CONDUCT OR SUPPORT INVESTIGATIONS; OR
   (8) IMPOSE LIABILITY ON SPEECH  OR  CONDUCT  PROTECTED  BY  THE  FIRST
 AMENDMENT  TO  THE UNITED STATES CONSTITUTION, AS MADE APPLICABLE TO THE
 STATES THROUGH THE FOURTEENTH AMENDMENT TO THE UNITED  STATES  CONSTITU-
 TION, OR BY SECTION 8 OF ARTICLE I OF THE NEW YORK CONSTITUTION.
   § 3. Subsection (a) of section 2304 of the insurance law is amended to
 read as follows:
   (a)  In  the making of rates, consideration shall be given to past and
 prospective loss experience, including the conflagration and catastrophe
 hazards, if any, both within and without  this  state,  to  all  factors
 reasonably  attributable  to the class of risks, to a reasonable profit,
 to past and prospective expenses both country-wide and  those  specially
 applicable  to this state, ANY PROCEEDS RECOVERED BY A CLAIM PURSUANT TO
 SECTION THREE THOUSAND FOUR HUNDRED SIXTY-THREE  OR  FOUR  THOUSAND  ONE
 HUNDRED  TWENTY-TWO  OF  THIS  CHAPTER, and in the case of participating
 insurers to policyholders'  dividends,  savings  or  unabsorbed  premium
 deposits allowed or returned to policyholders, members or subscribers.
   § 4. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion,  section  or  part  of  this act shall be adjudged by any court of
 competent jurisdiction to be invalid, such judgment  shall  not  affect,
 impair,  or  invalidate  the remainder thereof, but shall be confined in
 its operation to the clause, sentence, paragraph,  subdivision,  section
 or part thereof directly involved in the controversy in which such judg-
 ment shall have been rendered. It is hereby declared to be the intent of
 the  legislature  that  this  act  would  have been enacted even if such
 invalid provisions had not been included herein.
   § 5. This act shall take effect on the ninetieth day  after  it  shall
 have become a law.

co-Sponsors

View additional co-sponsors

2025-S8585A (ACTIVE) - Details

See Assembly Version of this Bill:: A9279
Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Add §3463, amd §2304, Ins L

2025-S8585A (ACTIVE) - Summary

2025-S8585A (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S8585A

SPONSOR: KAVANAGH
 
TITLE OF BILL:

An act to amend the insurance law, in relation to enacting the "climate
accountability and loss recovery act"

 
PURPOSE OR GENEIDEA OF BILL:

To allow for the New York State Attorney General to seek damages from
fossil fuel corporations in cases of climate-related catastrophic inci-
dents and disasters.

 
SUMMARY OF PROVISIONS:

Section one of the bill titles the act the "Climate Accountability and
Loss Recovery Act."

Section two of the bill adds new section 3463 to the insurance law.

Subdivision (a) the new section 3463 establishes definitions for

"climate disaster," "fossil fuel product," "covered entity," and "market
disruption."

Subdivision (b) of the new section 3463 permits the office of the Attor-
ney General to bring a civil action on behalf of the people of New York
against any covered entity to recover assessments imposed on member
insurers of NYPIUA, surcharges or premium increases imposed on policy-
holders based on project climate disasters, or costs or losses incurred
by policyholders, insureds, or taxpayers that arise from a climate
disaster and are transferred or backstopped through a residual market
mechanism. It authorizes the Attorney General to recover climate attrib-
utable damage, restitution, disgorgement, reasonable costs and disburse-
ments incurred, and other relief that a court or jury deem proper. It
also provides that the Attorney General may not recover on behalf of any
person who is not a policyholder or insured, or recover amounts exceed-
ing applicable coverage limits.

Subdivision (c) of the new section 3463 establishes that covered enti-
ties shall be strictly liable for any damages, restitution, or other
relief afforded under this section.

Subdivision (d) of the new section 3463 provides that, in any action
under this section, the court shall offset any restitution award by
amounts already reimbursed in claims arising from the same case or
controversy, and requires claimants seeking restitution to certify any
amounts received from an insurer or NYPIUA for the same loss.

Section three of the bill amends section 2304 of the insurance law to
require proceeds recovered pursuant to section 3463 to be considered as
factors in setting insurance rates.

Section four of the bill provides for severability of the provisions in
the event any are found to be invalid.

Section five of the bill sets forth the effective date.

 
JUSTIFICATION:
Climate change has imposed extraordinary and escalating costs on New
York State, its residents and municipalities, and its insurance markets.
Severe flooding, heat waves, and convective storms are increasingly
expensive to recover from, and New York communities are facing mounting
damage. In 2012, Superstorm Sandy caused more than $25 billion in
insured losses, and in 2021, Hurricane Ida caused over $200 million in
insured losses. Increasingly frequent severe storms continue to strain
the state's insurance infrastructure.

These costs ultimately fall on taxpayers through costs associated with
emergency response, disaster relief, and infrastructure repairs, and
insurance policyholders through rising premiums. Advances in attribution
science now enable researchers to identify the contribution of climate
change to specific weather events. This bill would provide a path to
allow those who profited from products that they knew would contribute
to climate disasters to be held accountable for a proportionate share of
the resulting costs, rather than forcing New York's taxpayers and home-
owners to shoulder the full burden. It would establish frameworks for
the Attorney General to recover costs from parties responsible.

This legislation would protect the stability of New York's insurance
market and reduce pressure on taxpayers and policyholders, promoting
both fairness and accountability in addressing the costs of climate
change.

 
PRIOR LEGISLATTHISTORY:

This is a new bill.

 
FISCAL IMPLICATIONS:

None to the state.

 
EFFECTIVE DATE:
This act shall take effect ninety days after it shall become a law.

2025-S8585A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8585--A
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             November 17, 2025
                                ___________
 
 Introduced  by Sens. KAVANAGH, GONZALEZ, HARCKHAM, KRUEGER, MAY, SALAZAR
   -- read twice and ordered printed, and when printed to be committed to
   the Committee on Rules -- recommitted to the Committee on Insurance in
   accordance with Senate Rule 6, sec. 8 --  committee  discharged,  bill
   amended,  ordered reprinted as amended and recommitted to said commit-
   tee
 
 AN ACT to amend the insurance law, in relation to enacting the  "climate
   accountability and loss recovery act"
 
   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 "climate accountability and loss recovery act".
   § 2. The insurance law is amended by adding a new section 3463 to read
 as follows:
   § 3463. RECOVERY   FOR   CLIMATE  DISASTER  LOSSES;  ATTORNEY  GENERAL
 ENFORCEMENT. (A) FOR THE PURPOSES OF THIS SECTION  THE  FOLLOWING  TERMS
 HAVE THE FOLLOWING MEANINGS:
   (1)  "CLIMATE  DISASTER" MEANS ANY EVENT INCLUDING FIRE, FLOOD, HURRI-
 CANE, TORNADO, LANDSLIDE, MUDSLIDE, WIND, STORM, WAVE ACTION,  WIND-DRI-
 VEN  WATER, TIDAL WAVE, AIR CONTAMINATION, BLIGHT, DROUGHT, INFESTATION,
 EXPLOSION, NUCLEAR, CHEMICAL, BIOLOGICAL,  OR  BACTERIOLOGICAL  RELEASE,
 WATER  CONTAMINATION,  BRIDGE  FAILURE  OR BRIDGE COLLAPSE, OR ANY EVENT
 DESIGNATED IN A STATE DECLARATION  OF  DISASTER  EMERGENCY  PURSUANT  TO
 SECTION  TWENTY-EIGHT OF THE EXECUTIVE LAW OR A LOCAL STATE OF EMERGENCY
 PURSUANT TO SECTION TWENTY-FOUR OF  THE  EXECUTIVE  LAW,  PROVIDED  THAT
 CLIMATE CHANGE WAS A SUBSTANTIAL FACTOR IN THE EVENT'S FREQUENCY, SEVER-
 ITY, LOCATION, TIMING, OR EXTENT.
   (2) "FOSSIL FUEL PRODUCT" INCLUDES THE FOLLOWING:
   (A) COAL, AS DEFINED IN SECTION 1-103 OF THE ENERGY LAW;
   (B) FOSSIL FUEL, AS DEFINED IN SECTION 1-103 OF THE ENERGY LAW;
   (C) FUEL GASES, AS DEFINED IN SECTION 1-103 OF THE ENERGY LAW; AND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13895-08-6

 S. 8585--A                          2
 
   (D) PETROLEUM PRODUCTS, AS DEFINED IN SECTION 1-103 OF THE ENERGY LAW.
   (3)  "COVERED  ENTITY"  MEANS  ANY PERSON, FIRM, CORPORATION, COMPANY,
 PARTNERSHIP, SOCIETY, JOINT STOCK COMPANY, ENTITY, OR  ASSOCIATION  THAT
 MEETS ALL OF THE FOLLOWING CRITERIA:
   (A) HAS AN AGGREGATE MARKET CAPITALIZATION OR WORLDWIDE ANNUAL REVENUE
 ACROSS  THE  PARENT  ENTITY AND ALL AFFILIATED ENTITIES OF AT LEAST FIVE
 HUNDRED  MILLION  DOLLARS  ($500,000,000),  DETERMINED  BY  AN   AVERAGE
 CAPITALIZATION  OR  REVENUE OVER THE PRECEDING THREE YEARS. FOR PURPOSES
 OF THIS SUBPARAGRAPH, "AFFILIATED ENTITIES" MEANS A PARENT OR SUBSIDIARY
 CORPORATION AS WELL AS ANY OTHER BUSINESS ENTITY UNDER COMMON  OWNERSHIP
 OR  CONTROL WITH THE PARENT ENTITY, INCLUDING AN ENTITY CONSOLIDATED FOR
 FINANCIAL REPORTING PURPOSES, OR TO ENHANCE PROFITABILITY FOR THE PARENT
 ENTITY;
   (B) ENGAGED IN THE EXTRACTION, PRODUCTION,  MANUFACTURE,  OR  SALE  AT
 WHOLESALE OF FOSSIL FUEL PRODUCTS; AND
   (C)  DID  BUSINESS  IN THE STATE, WAS REGISTERED TO DO BUSINESS IN THE
 STATE, WAS APPOINTED AN AGENT OF THE STATE, OR OTHERWISE HAD  SUFFICIENT
 CONTACTS WITH THE STATE TO BE SUBJECT TO THE STATE'S JURISDICTION.
   "COVERED  ENTITY"  DOES NOT INCLUDE THE FEDERAL GOVERNMENT, ANY TRIBAL
 GOVERNMENT, THE STATE, A POLITICAL SUBDIVISION OF THE  TRIBAL  OR  STATE
 GOVERNMENT,  OR AN EMPLOYEE OF THE FEDERAL, TRIBAL, OR STATE GOVERNMENT,
 ON THE BASIS OF ACTS OR OMISSIONS IN THE COURSE OF OFFICIAL DUTIES.
   (4) "MARKET DISRUPTION" MEANS A MATERIAL IMPAIRMENT TO THE AVAILABILI-
 TY, AFFORDABILITY, OR STABILITY OF THE PROPERTY AND  CASUALTY  INSURANCE
 MARKET THAT IS ATTRIBUTABLE TO LOSSES OR PROJECTED LOSSES ARISING FROM A
 CLIMATE DISASTER, INCLUDING BUT NOT LIMITED TO:
   (A) THE WITHDRAWAL, NONRENEWAL, OR SUBSTANTIAL REDUCTION IN UNDERWRIT-
 ING BY INSURERS OR REINSURERS;
   (B)  THE  IMPOSITION  OF ASSESSMENTS, SURCHARGES, OR PREMIUM INCREASES
 RELATED TO INSURANCE LOSSES OR PROJECTED INSURANCE LOSSES RESULTING FROM
 CLIMATE DISASTERS;
   (C) A MATERIAL INCREASE IN THE NUMBER OF  PROPERTIES  COVERED  BY  THE
 RESIDUAL  MARKET, EXCESS AND SURPLUS LINE MARKETS, OR THE NEW YORK PROP-
 ERTY INSURANCE UNDERWRITING ASSOCIATION; OR
   (D) THE INCURRENCE OF PUBLIC COSTS OR TAXPAYER-SUPPORTED  EXPENDITURES
 TO STABILIZE, BACKSTOP, OR REPLACE PRIVATE INSURANCE CAPACITY.
   A MARKET DISRUPTION MAY EXIST NOTWITHSTANDING THAT INDIVIDUAL INSURERS
 REMAIN SOLVENT OR THAT INSURANCE COVERAGE CONTINUES TO BE AVAILABLE ON A
 LIMITED, EXCESS, OR NON-ADMITTANCE BASIS.
   (B)(1)  THE  ATTORNEY  GENERAL MAY BRING A CIVIL ACTION IN THE NAME OF
 THE PEOPLE OF THE STATE OF NEW YORK AGAINST ANY COVERED ENTITY  FOR  ANY
 OF THE FOLLOWING:
   (A)  RECOVERY  OF  AN ASSESSMENT IMPOSED ON MEMBER INSURERS OF THE NEW
 YORK PROPERTY INSURANCE UNDERWRITING  ASSOCIATION  PURSUANT  TO  SECTION
 FIVE  THOUSAND  FOUR  HUNDRED TWELVE OF THIS CHAPTER, TO THE EXTENT THAT
 THE ASSOCIATION  IMPOSED  THE  ASSESSMENT  TO  COVER  THE  ASSOCIATION'S
 EXPENSES OR LOSSES ARISING FROM A CLIMATE DISASTER.
   (B)  RECOVERY OF EACH SURCHARGE OR PREMIUM INCREASE IMPOSED ON POLICY-
 HOLDERS OR INSUREDS  IN  THE  ADMITTED,  RESIDUAL,  EXCESS,  OR  SURPLUS
 MARKET, WHEN THE SURCHARGE OR INCREASE IS BASED ON AN ACTUAL OR PROJECT-
 ED LOSS ARISING FROM A CLIMATE DISASTER, OR TO REFLECT PRICED-IN RISK OF
 A CLIMATE DISASTER.
   (C) RECOVERY OF COSTS AND LOSSES INCURRED BY POLICYHOLDERS OR INSUREDS
 WHEN  THE  COSTS  AND LOSSES (I) ARISE FROM A CLIMATE DISASTER; AND (II)
 ARE TRANSFERRED, POOLED, ASSESSED, OR  PUBLICLY  BACKSTOPPED  THROUGH  A
 RESIDUAL  MARKET  MECHANISM  TO ADDRESS INSURER INSOLVENCY, MARKET WITH-
 S. 8585--A                          3
 
 DRAWAL, OR THE AVAILABILITY OF PROPERTY AND CASUALTY INSURANCE  COVERAGE
 IN THIS STATE, PROVIDED HOWEVER THAT THIS SUBPARAGRAPH SHALL NOT AUTHOR-
 IZE  THE ATTORNEY GENERAL TO RECOVER DAMAGES ON BEHALF OF ANY PERSON WHO
 IS  NOT  A  POLICYHOLDER OR INSURED, OR TO RECOVER AMOUNTS EXCEEDING THE
 APPLICABLE LIMITS OF THE INSURANCE COVERAGE HELD BY  A  POLICYHOLDER  OR
 INSURED FOR A LOSS.
   (2)  IN  ANY  CIVIL ACTION AGAINST A COVERED ENTITY UNDER THIS SECTION
 THE ATTORNEY GENERAL MAY RECOVER OR OBTAIN ANY OF THE FOLLOWING:
   (A) ALL DAMAGES ARISING FROM A CLIMATE DISASTER.
   (B) REASONABLE COSTS AND DISBURSEMENTS INCURRED BY THE ATTORNEY GENER-
 AL.
   (C) ANY OTHER RELIEF THAT THE COURT OR JURY DEEMS PROPER.
   (3) ANY COVERED ENTITY SHALL BE STRICTLY  LIABLE,  WITHOUT  REGARD  TO
 FAULT, FOR ANY DAMAGES OR OTHER RELIEF AFFORDED UNDER THIS SECTION.
   (4)  IN  ANY  ACTION  UNDER  THIS  SECTION, THE COURT SHALL OFFSET ANY
 DAMAGES BY AMOUNTS ALREADY REIMBURSED IN CLAIMS ARISING  FROM  THE  SAME
 CASE  OR  CONTROVERSY.  THE ATTORNEY GENERAL SHALL REQUIRE EACH CLAIMANT
 SEEKING DAMAGES TO  CERTIFY,  UNDER  PENALTY  OF  PERJURY,  ANY  AMOUNTS
 RECEIVED FROM AN INSURED OR THE NEW YORK PROPERTY INSURANCE UNDERWRITING
 ASSOCIATION,  INCLUDING  PURSUANT  TO SECTION FIVE THOUSAND FOUR HUNDRED
 TEN OF THIS CHAPTER, FOR THE SAME LOSS.
   § 3. Subsection (a) of section 2304 of the insurance law is amended to
 read as follows:
   (a) In the making of rates, consideration shall be given to  past  and
 prospective loss experience, including the conflagration and catastrophe
 hazards,  if  any,  both  within  and without this state, to all factors
 reasonably attributable to the class of risks, to a  reasonable  profit,
 to  past  and prospective expenses both country-wide and those specially
 applicable to this state, ANY PROCEEDS RECOVERED BY A CLAIM PURSUANT  TO
 SECTION  THREE THOUSAND FOUR HUNDRED SIXTY-THREE OF THIS CHAPTER, and in
 the case of participating insurers to policyholders' dividends,  savings
 or  unabsorbed  premium  deposits  allowed or returned to policyholders,
 members or subscribers.
   § 4. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion, section or part of this act shall be  adjudged  by  any  court  of
 competent  jurisdiction  to  be invalid, such judgment shall not affect,
 impair, or invalidate the remainder thereof, but shall  be  confined  in
 its  operation  to the clause, sentence, paragraph, subdivision, section
 or part thereof directly involved in the controversy in which such judg-
 ment shall have been rendered. It is hereby declared to be the intent of
 the legislature that this act would  have  been  enacted  even  if  such
 invalid provisions had not been included herein.
   §  5.  This  act shall take effect on the ninetieth day after it shall
 have become a law.

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Senate Bill S8585A

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Current Bill Status - In Senate Committee Insurance Committee

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co-Sponsors

2025-S8585 - Details

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