Bill Text: NY A00146 | 2015-2016 | General Assembly | Introduced
Bill Title: Prohibits discrimination in the issuance of homeowner's insurance policies based upon the subject property's location or age of structures contained thereon; makes various provisions clarifying prohibition on refusal to issue or renew certain policies including homeowner's fire and extended coverage based solely on geographical location.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2016-05-26 - advanced to third reading cal.727 [A00146 Detail]
Download: New_York-2015-A00146-Introduced.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 146 2015-2016 Regular Sessions I N A S S E M B L Y (PREFILED) January 7, 2015 ___________ Introduced by M. of A. GANTT, WEPRIN -- Multi-Sponsored by -- M. of A. PERRY -- read once and referred to the Committee on Insurance AN ACT to amend the insurance law, in relation to prohibiting discrimi- nation in the issuance or renewal of homeowners' insurance policies and to the geographical location of risk of certain policies THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. Section 3429 of the insurance law is amended to read as 2 follows: 3 S 3429. Geographical location of risks; HOMEOWNERS'; fire, fire and 4 extended coverage policies; private passenger automobile insurance poli- 5 cies. (a) No insurer shall REJECT ANY APPLICATION FOR, refuse to issue 6 or renew, LIMIT THE TYPE OR AMOUNT OF COVERAGE OFFERED or shall cancel a 7 policy of: 8 (1) HOMEOWNERS' INSURANCE, fire insurance or fire and extended cover- 9 age insurance, or 10 (2) automobile insurance subject to section three thousand four 11 hundred twenty-five of this article 12 based solely on the geographical location, AGE OR MARKET VALUE of the 13 risk OR PROPERTY within this state. Such prohibition shall not preclude 14 an insurer from REJECTING AN APPLICATION FOR SUCH COVERAGE BASED ON THE 15 UNREASONABLE DISTANCE OF THE RISK OR PROPERTY FROM THE INSURER'S ORDI- 16 NARY SERVICE AREA, OR FROM refusing to issue or renew, LIMITING THE TYPE 17 OR AMOUNT OF COVERAGE OFFERED or from cancelling such policies [based on 18 sound underwriting and actuarial principles] IF ITS ACTION IS SUPPORTED 19 BY ACTUARIALLY SOUND STATISTICAL DATA reasonably related to actual or 20 anticipated loss experience subject to the applicable provisions of 21 section three thousand four hundred twenty-five of this article, AND 22 SUCH ACTION IS CONSISTENT WITH ITS TREATMENT OF RISKS OF SUBSTANTIALLY 23 SIMILAR HAZARD IN ALL GEOGRAPHICAL LOCATIONS IT SERVES IN THIS STATE. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD02108-01-5 A. 146 2 1 (b) The superintendent shall by regulation establish procedures with 2 respect to notification to insureds of the insurer's specific reason or 3 reasons for refusal to issue or renew or for cancellation of such poli- 4 cy. 5 S 2. Section 3430 of the insurance law, paragraph 1 of subsection (a) 6 as amended by chapter 259 of the laws of 2005, is amended to read as 7 follows: 8 S 3430. Right of insured, agent or broker aggrieved on basis of 9 geographical location of property or risks. (a) An insured aggrieved by 10 an inability to obtain OR RETAIN A TYPE OR AMOUNT OF: 11 (1) homeowner's insurance, including fire insurance or fire and 12 extended coverage insurance, other than from the New York property 13 insurance underwriting association, or 14 (2) automobile insurance subject to section three thousand four 15 hundred twenty-five of this article, other than through the New York 16 automobile insurance plan, 17 from any insurer or through any insurance agent or broker because of the 18 geographical location, AGE OR MARKET VALUE of the risk or property with- 19 in the state or a licensed agent or broker whose contract or account was 20 terminated or not renewed because of the geographical location of the 21 agent or broker or the geographical location, AGE OR MARKET VALUE of the 22 risks within the state for which coverage is afforded through the agent 23 or broker [and the grievance was not the result of the application of 24 sound underwriting and actuarial principles reasonably related to actual 25 or anticipated loss experience] may file a complaint to that effect with 26 the superintendent on a form prescribed by him. 27 (b) The superintendent shall investigate the complaint pursuant to 28 rules and regulations promulgated by him. In addition to any other power 29 or procedure authorized by this chapter, the superintendent SHALL TAKE 30 SUCH ACTION AND REQUIRE SUCH DOCUMENTATION AS DEEMED NECESSARY TO DETER- 31 MINE COMPLIANCE WITH SECTION THREE THOUSAND FOUR HUNDRED TWENTY-NINE AND 32 THREE THOUSAND FOUR HUNDRED THIRTY-THREE OF THIS ARTICLE, AND may 33 require the physical inspection of the risk or property or hold a hear- 34 ing, or both, for the purpose of assisting him in his determination of 35 the issues raised by the complaint. 36 S 3. Section 3433 of the insurance law is amended to read as follows: 37 S 3433. Termination of contracts or accounts of licensed agents or 38 brokers; prohibition; geographical location. (a) No insurer shall termi- 39 nate or refuse to renew a contract or account of a licensed agent or 40 broker who negotiated policies of: 41 (1) HOMEOWNERS' INSURANCE, fire insurance or fire and extended cover- 42 age insurance or 43 (2) automobile insurance subject to section three thousand four 44 hundred twenty-five of this article when such termination or refusal to 45 renew is based solely on the geographical location of the agent or 46 broker or GEOGRAPHICAL LOCATION, AGE OR MARKET VALUE of the risks for 47 which coverage is afforded through such agent or broker UNLESS SUCH 48 ACTION IS SUPPORTED BY ACTUARIALLY SOUND STATISTICAL DATA REASONABLY 49 RELATED TO ACTUAL OR ANTICIPATED LOSS EXPERIENCE OF SUCH RISKS, AND SUCH 50 ACTION IS CONSISTENT WITH ITS TREATMENT OF LICENSED AGENTS OR BROKERS 51 WHO NEGOTIATED POLICIES FOR RISKS OF SUBSTANTIALLY SIMILAR HAZARD IN ALL 52 GEOGRAPHICAL LOCATIONS IT SERVES IN THIS STATE. 53 (b) The superintendent shall by regulation establish procedures 54 requiring notification to such agents or brokers of the insurer's 55 specific reason or reasons for termination or refusal to renew the 56 agent's or broker's contract or account. A. 146 3 1 S 4. This act shall take effect on the thirtieth day after it shall 2 have become a law and shall apply to all contracts and policies of 3 insurance issued or renewed on and after such date.