Bill Text: NY S01027 | 2011-2012 | General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        1027--B
                              2011-2012 Regular Sessions
                                   I N  S E N A T E
                                      (PREFILED)
                                    January 5, 2011
                                      ___________
       Introduced  by  Sens.  KLEIN,  BRESLIN, SAVINO -- read twice and ordered
         printed, and when printed to be committed to the Committee  on  Insur-
         ance  --  committee  discharged,  bill  amended,  ordered reprinted as
         amended and recommitted  to  said  committee  --  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 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] 2013, and on an [annual] BIENNIAL basis
   12  thereafter:
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD05019-04-2
       S. 1027--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  HURRICANE CATASTROPHE FUND;
    6    (b) an evaluation of the effectiveness of any voluntary market assist-
    7  ance  program in effect in New York WITH PARTICULAR ATTENTION DEVOTED TO
    8  MARKET DYNAMICS IN THE COASTAL HOMEOWNERS' INSURANCE MARKET;
    9    (c) an evaluation of the feasibility or experience, if any, of the New
   10  York property insurance  underwriting  association  writing  homeowners'
   11  insurance  policies  or  reinsuring  such  policies  when written in the
   12  voluntary market under certain market conditions;
   13    (d) an evaluation of the feasibility of the New York  property  insur-
   14  ance underwriting association issuing bonds or establishing other finan-
   15  cial mechanisms for catastrophe insurance coverage; and an evaluation of
   16  the feasibility of establishing a state-wide catastrophe insurance fund;
   17    (e)  an  evaluation of the feasibility of the New York property insur-
   18  ance underwriting association acting as a servicing carrier for policies
   19  written pursuant to parts 61 and 62 of title 44 of the Code  of  Federal
   20  Regulations;
   21    (f)  an  evaluation of existing state and local building codes and the
   22  feasibility  of  implementing  new  building  practices  and  structural
   23  improvement retrofitting, to mitigate damage from a major weather catas-
   24  trophe;
   25    (g)  an evaluation of insurer AND GOVERNMENTAL capacity and effective-
   26  ness in the event of a catastrophic weather occurrence, including  rein-
   27  surance capacity and effectiveness, windstorm deductibles and multi-tier
   28  programs, AND OTHER RISK SHARING MECHANISMS;
   29    (h)  an evaluation of insurer preparedness in the recovery, rebuilding
   30  and renewal processes following weather-related losses; [and]
   31    (i) an evaluation of public awareness of storm risks and  programs  to
   32  educate the public of storm risks and mitigation techniques[.]; AND
   33    (J) AN EVALUATION OF THE REASONS WHY AND RATE AT WHICH INSURERS MAY BE
   34  WITHDRAWING  FROM  THE  COASTAL HOMEOWNERS' INSURANCE MARKET, CANCELLING
   35  SUCH POLICIES OR SUBSTANTIALLY INCREASING  INSURANCE  PREMIUM  RATES  IN
   36  SUCH  MARKET.  FURTHER,  THE  PANEL SHALL STUDY AND ASCERTAIN AN AVERAGE
   37  ESTIMATED COST OF OBTAINING COMPARABLE REPLACEMENT HOMEOWNER'S  COVERAGE
   38  FOR  THOSE  INSUREDS  WHO HAVE BEEN CANCELLED IN SUCH COASTAL AREAS. FOR
   39  THE PURPOSES OF THIS SUBDIVISION, THE TERM COASTAL HOMEOWNERS' INSURANCE
   40  MARKET SHALL MEAN THOSE AREAS THAT ARE WITHIN ONE MILE  OF  A  SALTWATER
   41  OCEAN,  SOUND, INLET OR BAY IN THE COUNTIES OF THE BRONX, KINGS, NASSAU,
   42  QUEENS, RICHMOND, SUFFOLK, AND 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, is amended to read as follows:
   47    (a)  The superintendent of [insurance] FINANCIAL SERVICES shall imple-
   48  ment a program designed to attract more competitors to the state's home-
   49  owners' insurance market PARTICULARLY WITH RESPECT TO THOSE  COMMUNITIES
   50  THAT  ARE  WITHIN  ONE MILE OF A SALTWATER OCEAN, SOUND, INLET OR BAY IN
   51  THE COUNTIES OF THE BRONX, KINGS, NASSAU, QUEENS, RICHMOND, SUFFOLK, AND
   52  WESTCHESTER.  The program shall include, but shall not be limited to:
   53    (1) identifying, contacting and  soliciting  feedback  from  national,
   54  regional  and  other insurance carriers not currently writing homeowners
   55  insurance in the state to determine their interest in selling homeowners
   56  insurance in the state;
       S. 1027--B                          3
    1    (2) adopting specific measures to  encourage  such  insurers  to  sell
    2  homeowners' insurance in the state; and
    3    (3)  documenting  those  issues  or concerns such insurers may cite as
    4  barriers to selling homeowners insurance in the state.
    5    S 3. This act shall take effect immediately.