Bill Text: NY S01027 | 2011-2012 | 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: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2012-01-26 - PRINT NUMBER 1027B [S01027 Detail]
Download: New_York-2011-S01027-Amended.html
S T A T E O F N E W Y O R K
________________________________________________________________________
1027--A
2011-2012 Regular Sessions
I N S E N A T E
(PREFILED)
January 5, 2011
___________
Introduced by Sens. KLEIN, BRESLIN -- read twice and ordered printed,
and when printed to be committed to the Committee on Insurance --
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 is hereby directed to convene a
6 special advisory panel on homeowners' insurance/catastrophe coverage, to
7 examine and assess the problems affecting the availability and afforda-
8 bility of homeowners' insurance in this state and the effect thereon
9 created by any potential major weather catastrophe. The panel shall
10 study and report on the following issues on or before November 30,
11 [2009] 2012, and on an [annual] BIENNIAL basis thereafter:
12 (a) a review of FEDERAL LEGISLATION AND other states' activities
13 regarding catastrophe related coverage, including but not limited to an
14 evaluation of the experience under the California Earthquake Authority
15 and the Florida [Commission on Hurricane Loss Projection Methodology]
16 HURRICANE CATASTROPHE FUND;
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05019-02-1
S. 1027--A 2
1 (b) an evaluation of the effectiveness of any voluntary market assist-
2 ance program in effect in New York WITH PARTICULAR ATTENTION DEVOTED TO
3 MARKET DYNAMICS IN THE COASTAL HOMEOWNERS' INSURANCE MARKET;
4 (c) an evaluation of the feasibility or experience, if any, of the New
5 York property insurance underwriting association writing homeowners'
6 insurance policies or reinsuring such policies when written in the
7 voluntary market under certain market conditions;
8 (d) an evaluation of the feasibility of the New York property insur-
9 ance underwriting association issuing bonds or establishing other finan-
10 cial mechanisms for catastrophe insurance coverage; and an evaluation of
11 the feasibility of establishing a state-wide catastrophe insurance fund;
12 (e) an evaluation of the feasibility of the New York property insur-
13 ance underwriting association acting as a servicing carrier for policies
14 written pursuant to parts 61 and 62 of title 44 of the Code of Federal
15 Regulations;
16 (f) an evaluation of existing state and local building codes and the
17 feasibility of implementing new building practices and structural
18 improvement retrofitting, to mitigate damage from a major weather catas-
19 trophe;
20 (g) an evaluation of insurer AND GOVERNMENTAL capacity and effective-
21 ness in the event of a catastrophic weather occurrence, including rein-
22 surance capacity and effectiveness, windstorm deductibles and multi-tier
23 programs, AND OTHER RISK SHARING MECHANISMS;
24 (h) an evaluation of insurer preparedness in the recovery, rebuilding
25 and renewal processes following weather-related losses; [and]
26 (i) an evaluation of public awareness of storm risks and programs to
27 educate the public of storm risks and mitigation techniques[.]; AND
28 (J) AN EVALUATION OF THE REASONS WHY AND RATE AT WHICH INSURERS MAY BE
29 WITHDRAWING FROM THE COASTAL HOMEOWNERS' INSURANCE MARKET, CANCELLING
30 SUCH POLICIES OR SUBSTANTIALLY INCREASING INSURANCE PREMIUM RATES IN
31 SUCH MARKET. FURTHER, THE PANEL SHALL STUDY AND ASCERTAIN AN AVERAGE
32 ESTIMATED COST OF OBTAINING COMPARABLE REPLACEMENT HOMEOWNER'S COVERAGE
33 FOR THOSE INSUREDS WHO HAVE BEEN CANCELLED IN SUCH COASTAL AREAS. FOR
34 THE PURPOSES OF THIS SUBDIVISION, THE TERM COASTAL HOMEOWNERS' INSURANCE
35 MARKET SHALL MEAN THOSE AREAS THAT ARE WITHIN ONE MILE OF A SALTWATER
36 OCEAN, SOUND, INLET OR BAY IN THE COUNTIES OF THE BRONX, KINGS, NASSAU,
37 QUEENS, RICHMOND, SUFFOLK, AND WESTCHESTER.
38 S 2. Subdivision (a) of section 23 of chapter 136 of the laws of 2008
39 amending the insurance law relating to extending the effectiveness of
40 certain stand-by powers of the New York property insurance underwriting
41 association, is amended to read as follows:
42 (a) The superintendent of insurance shall implement a program designed
43 to attract more competitors to the state's homeowners' insurance market
44 PARTICULARLY WITH RESPECT TO THOSE COMMUNITIES THAT ARE WITHIN ONE MILE
45 OF A SALTWATER OCEAN, SOUND, INLET OR BAY IN THE COUNTIES OF THE BRONX,
46 KINGS, NASSAU, QUEENS, RICHMOND, SUFFOLK, AND WESTCHESTER. The program
47 shall include, but shall not be limited to:
48 (1) identifying, contacting and soliciting feedback from national,
49 regional and other insurance carriers not currently writing homeowners
50 insurance in the state to determine their interest in selling homeowners
51 insurance in the state;
52 (2) adopting specific measures to encourage such insurers to sell
53 homeowners' insurance in the state; and
54 (3) documenting those issues or concerns such insurers may cite as
55 barriers to selling homeowners insurance in the state.
56 S 3. This act shall take effect immediately.
