Bill Text: NY A05312 | 2013-2014 | General Assembly | Amended
Bill Title: Directs the special advisory panel on homeowners' insurance/catastrophe coverage to study certain facets of profitability of insurance in coastal areas.
Spectrum: Slight Partisan Bill (Democrat 8-3)
Status: (Introduced - Dead) 2014-06-03 - held for consideration in insurance [A05312 Detail]
Download: New_York-2013-A05312-Amended.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 5312--B 2013-2014 Regular Sessions I N A S S E M B L Y February 22, 2013 ___________ Introduced by M. of A. WEISENBERG, TITONE, BORELLI, McKEVITT, TITUS, SALADINO -- Multi-Sponsored by -- M. of A. BRENNAN, COOK, RIVERA, THIELE -- read once and referred to the Committee on Insurance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- recommitted to the Committee on Insurance in accordance with Assembly Rule 3, sec. 2 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend chapter 42 of the laws of 1996 amending the insurance law relating to homeowners' insurance and a temporary panel on home- owners' insurance coverage, in relation to the special advisory panel on homeowners' insurance/catastrophe coverage; and to amend chapter 136 of the laws of 2008 amending the insurance law relating to extend- ing the effectiveness of certain stand-by powers of the New York prop- erty insurance underwriting association, in relation to the program designed to attract more competitors to the homeowners' insurance market THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. Subdivision 1 of section 12 of chapter 42 of the laws of 2 1996 amending the insurance law relating to homeowners' insurance and a 3 temporary panel on homeowners' insurance coverage, as amended by chapter 4 136 of the laws of 2008, is amended to read as follows: 5 (1) The superintendent of [insurance] FINANCIAL SERVICES is hereby 6 directed to convene a special advisory panel on homeowners' 7 insurance/catastrophe coverage, to examine and assess the problems 8 affecting the availability and affordability of homeowners' insurance in 9 this state and the effect thereon created by any potential major weather 10 catastrophe. The panel shall study and report on the following issues 11 on or before November 30, [2009] 2015, and on [an annual] A BIENNIAL 12 basis thereafter: EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD06594-07-4 A. 5312--B 2 1 (a) a review of FEDERAL LEGISLATION AND other states' activities 2 regarding catastrophe related coverage, including but not limited to an 3 evaluation of the experience under the California Earthquake Authority 4 and the Florida Commission on Hurricane Loss Projection Methodology; 5 (b) an evaluation of the effectiveness of any voluntary market assist- 6 ance program in effect in New York WITH PARTICULAR ATTENTION DEVOTED TO 7 MARKET DYNAMICS IN THE COASTAL HOMEOWNERS' INSURANCE MARKET; 8 (c) an evaluation of the feasibility or experience, if any, of the New 9 York property insurance underwriting association writing homeowners' 10 insurance policies or reinsuring such policies when written in the 11 voluntary market under certain market conditions; 12 (d) an evaluation of the feasibility of the New York property insur- 13 ance underwriting association issuing bonds or establishing other finan- 14 cial mechanisms for catastrophe insurance coverage; and an evaluation of 15 the feasibility of establishing a state-wide catastrophe insurance fund; 16 (e) an evaluation of the feasibility of the New York property insur- 17 ance underwriting association acting as a servicing carrier for policies 18 written pursuant to parts 61 and 62 of title 44 of the Code of Federal 19 Regulations; 20 (f) an evaluation of existing state and local building codes and the 21 feasibility of implementing new building practices and structural 22 improvement retrofitting, to mitigate damage from a major weather catas- 23 trophe; 24 (g) an evaluation of insurer AND GOVERNMENTAL capacity and effective- 25 ness in the event of a catastrophic weather occurrence, including rein- 26 surance capacity and effectiveness, windstorm deductibles and multi-tier 27 programs, AND OTHER RISK SHARING MECHANISMS; 28 (h) an evaluation of insurer preparedness in the recovery, rebuilding 29 and renewal processes following weather-related losses; [and] 30 (i) an evaluation of public awareness of storm risks and programs to 31 educate the public of storm risks and mitigation techniques[.]; AND 32 (J) AN EVALUATION OF WHETHER AND THE RATE AT WHICH INSURERS MAY BE 33 WITHDRAWING FROM THE COASTAL HOMEOWNERS' INSURANCE MARKET, CANCELLING 34 SUCH POLICIES OR SUBSTANTIALLY INCREASING INSURANCE PREMIUM RATES IN 35 SUCH MARKET, AND THE REASONS FOR ANY SUCH ACTIONS. FURTHER, THE PANEL 36 SHALL STUDY AND ASCERTAIN AN AVERAGE ESTIMATED COST OF OBTAINING COMPA- 37 RABLE REPLACEMENT HOMEOWNER'S COVERAGE FOR THOSE INSUREDS WHO HAVE BEEN 38 CANCELLED IN SUCH COASTAL AREAS. FOR THE PURPOSES OF THIS SUBDIVISION, 39 THE TERM COASTAL HOMEOWNERS' INSURANCE MARKET SHALL MEAN THOSE AREAS 40 THAT ARE WITHIN ONE MILE OF A SALTWATER OCEAN, SOUND, INLET OR BAY IN 41 THE COUNTIES OF THE BRONX, KINGS, NASSAU, QUEENS, RICHMOND, SUFFOLK, AND 42 WESTCHESTER. 43 S 2. Subdivision (a) of section 23 of chapter 136 of the laws of 2008 44 amending the insurance law relating to extending the effectiveness of 45 certain stand-by powers of the New York property insurance underwriting 46 association, as further amended by section 104 of part A of chapter 62 47 of the laws of 2011, is amended to read as follows: 48 (a) The superintendent of financial services shall implement a program 49 designed to attract more competitors to the state's homeowners' insur- 50 ance market PARTICULARLY WITH RESPECT TO THOSE COMMUNITIES THAT ARE 51 WITHIN ONE MILE OF A SALTWATER OCEAN, SOUND, INLET OR BAY IN THE COUN- 52 TIES OF THE BRONX, KINGS, NASSAU, QUEENS, RICHMOND, SUFFOLK AND WEST- 53 CHESTER. The program shall include, but shall not be limited to: 54 (1) identifying, contacting and soliciting feedback from national, 55 regional and other insurance carriers not currently writing homeowners A. 5312--B 3 1 insurance in the state to determine their interest in selling homeowners 2 insurance in the state; 3 (2) adopting specific measures to encourage such insurers to sell 4 homeowners' insurance in the state; and 5 (3) documenting those issues or concerns such insurers may cite as 6 barriers to selling homeowners insurance in the state. 7 S 3. This act shall take effect immediately.