S T A T E O F N E W Y O R K
________________________________________________________________________
6846
2015-2016 Regular Sessions
I N A S S E M B L Y
April 6, 2015
___________
Introduced by M. of A. CRESPO -- read once and referred to the Committee
on Insurance
AN ACT to amend the insurance law, in relation to reduction in rates of
property/casualty insurance on residential property for insureds who
complete an approved homeowner natural disaster, home safety and loss
prevention preparedness course
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Short title. This act shall be known and may be cited as
2 the "homeowner natural disaster, home safety and loss prevention
3 preparedness program".
4 S 2. Legislative intent. The legislature declares that the purposes of
5 this act are to provide homeowners, condominium owners, cooperative
6 apartment owners, and renters with an incentive to take a course of
7 instruction on how to make their residence more resilient to a natural
8 disaster, reduce the potential loss of life or property damage that
9 could result from a natural disaster, reduce the risk of fire, theft,
10 burglary, personal injury or property damage, and raise their awareness
11 of natural disaster preparedness by offering property/casualty insurance
12 premium reductions.
13 S 3. The section heading of section 2346 of the insurance law, as
14 amended by chapter 637 of the laws of 1993, is amended and a new
15 subsection 5 is added to read as follows:
16 Reduction in rates of fire insurance [or], homeowners insurance OR
17 PROPERTY/CASUALTY premiums for residential property.
18 5. (A) DEFINITIONS. FOR THE PURPOSES OF THIS SUBSECTION, THE FOLLOWING
19 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
20 (1) "COMPLETION CERTIFICATE" MEANS A DOCUMENT WHICH CANNOT BE ALTERED
21 AND WHICH IS PROVIDED TO A PERSON WHO SUCCESSFULLY COMPLETES A HOMEOWNER
22 NATURAL DISASTER PREPAREDNESS, HOME SAFETY AND LOSS PREVENTION COURSE.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03953-01-5
A. 6846 2
1 (2) "NATURAL DISASTER" MEANS THE OCCURRENCE OR IMMINENT THREAT OF
2 WIDESPREAD OR SEVERE DAMAGE, INJURY, OR LOSS OF LIFE OR PROPERTY RESULT-
3 ING FROM ANY NATURAL CAUSE INCLUDING, BUT NOT LIMITED TO, FIRE, FLOOD,
4 EARTHQUAKE, HURRICANE, TORNADO, HIGH WATER, LANDSLIDE, MUDSLIDE, WIND,
5 STORM, WAVE ACTION, ICE STORM, EPIDEMIC, AIR CONTAMINATION, BLIGHT,
6 DROUGHT, INFESTATION, EXPLOSION, WATER CONTAMINATION, BRIDGE FAILURE, OR
7 BRIDGE COLLAPSE.
8 (3) "HOMEOWNER NATURAL DISASTER, HOME SAFETY AND LOSS PREVENTION
9 PREPAREDNESS COURSE" MEANS A NATURAL DISASTER PREPAREDNESS, HOME SAFETY
10 AND LOSS PREVENTION COURSE APPROVED BY THE SUPERINTENDENT, IN CONSULTA-
11 TION WITH THE COMMISSIONER OF THE DIVISION OF HOMELAND SECURITY AND
12 EMERGENCY SERVICES, PURSUANT TO PARAGRAPH (D) OF THIS SUBSECTION. SUCH
13 COURSE SHALL PROVIDE USEFUL INFORMATION TO PARTICIPANTS ON ITEMS INCLUD-
14 ING, BUT NOT LIMITED TO: COURSES OF ACTION THAT CAN BE TAKEN BEFORE,
15 DURING AND AFTER THE OCCURRENCE OF A NATURAL DISASTER, STRATEGIES TO
16 REDUCE RISK EXPOSURE TO INSURED RESIDENTIAL PROPERTY OWNERS AND RENTERS,
17 AND INFORMATION ABOUT THE INSTALLATION OF EQUIPMENT, DEVICES OR OTHER
18 CAPITAL IMPROVEMENTS TO REAL PROPERTY WHICH CAN HELP TO ELIMINATE OR
19 MITIGATE DAMAGE TO REAL OR PERSONAL PROPERTY, PERSONAL INJURY OR THE
20 LOSS OF LIFE CAUSED BY A NATURAL DISASTER OR OTHER INSURABLE EVENT OR
21 OCCURRENCE OF A FIRE, THEFT, BURGLARY, PERSONAL INJURY OR PROPERTY
22 DAMAGE.
23 (B) THE SUPERINTENDENT MAY PROVIDE FOR AN ACTUARIALLY APPROPRIATE
24 REDUCTION FOR A PERIOD OF THREE YEARS IN RATES OF HOMEOWNER'S INSURANCE
25 AND PROPERTY/CASUALTY INSURANCE PREMIUMS APPLICABLE TO RESIDENTIAL REAL
26 PROPERTY FOR EACH TRIENNIAL COMPLETION OF A HOMEOWNER NATURAL DISASTER
27 PREPAREDNESS, HOME SAFETY AND LOSS PREVENTION COURSE BY THE INSURED
28 OCCUPANT OF SUCH RESIDENTIAL REAL PROPERTY. IN ADDITION, THE SUPER-
29 INTENDENT MAY ALSO PROVIDE FOR ACTUARIALLY APPROPRIATE REDUCTIONS IN
30 SUCH RATES FOR THE INSTALLATION OF EQUIPMENT, DEVICES OR OTHER CAPITAL
31 IMPROVEMENTS TO REAL PROPERTY WHICH CAN HELP TO ELIMINATE OR MITIGATE
32 NATURAL DISASTER DAMAGE, IMPROVE HOME SAFETY OR PREVENT OTHER LOSSES.
33 (C) AN INSURER, UPON APPROVAL OF THE SUPERINTENDENT, MAY UPON
34 SUBMISSION OF A COMPLETION CERTIFICATE BY AN INSURED, PROVIDE AN ACTUAR-
35 IALLY APPROPRIATE REDUCTION, FOR A PERIOD OF THREE YEARS, OF THE PREMIUM
36 FOR SUCH INSURED'S HOMEOWNER'S INSURANCE OR PROPERTY/CASUALTY INSURANCE
37 ON THE RESIDENTIAL REAL PROPERTY WHICH IS THE INSURED'S PLACE OF RESI-
38 DENCE.
39 (D) THE SUPERINTENDENT, IN CONSULTATION WITH THE COMMISSIONER OF THE
40 DIVISION OF HOMELAND SECURITY AND EMERGENCY SERVICES, SHALL ESTABLISH,
41 BY RULE, STANDARDS AND A CURRICULUM FOR HOMEOWNER NATURAL DISASTER
42 PREPAREDNESS, HOME SAFETY AND LOSS PREVENTION COURSES. EVERY SUCH
43 COURSE SHALL BE APPROVED BY THE SUPERINTENDENT AND SUCH COMMISSIONER.
44 S 4. This act shall take effect on the first of January next succeed-
45 ing the date on which it shall have become a law; provided, however,
46 that effective immediately, any actions necessary to be taken for the
47 implementation of the provisions of this act on its effective date are
48 authorized and directed to be completed on or before such effective
49 date.