Creates a homeowners' bill of rights; directs the superintendent of financial services to issue a consumers guide on insuring against catastrophic loss.
STATE OF NEW YORK
________________________________________________________________________
2287--A
2013-2014 Regular Sessions
IN ASSEMBLY
January 11, 2013
___________
Introduced by M. of A. SILVER, TITONE, CUSICK, MORELLE, GOLDFEDER, WEIS-
ENBERG, SKOUFIS, BROOK-KRASNY, CYMBROWITZ, HENNESSEY, WEINSTEIN, GOTT-
FRIED, LUPARDO, NOLAN, PERRY, SANTABARBARA, MILLMAN, OTIS, RAMOS --
Multi-Sponsored by -- M. of A. ABINANTI, BENEDETTO, BRENNAN, COLTON,
ENGLEBRIGHT, GALEF, GLICK, GUNTHER, JACOBS, JAFFEE, LAVINE, V. LOPEZ,
MAISEL, MARKEY, ORTIZ, PAULIN, SOLAGES, SWEENEY, THIELE, TITUS,
ZEBROWSKI -- read once and referred to the Committee on Insurance --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee
AN ACT to amend the insurance law, in relation to creating a homeowners'
bill of rights and a consumer guide on insuring against catastrophic
loss caused by natural disasters
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The insurance law is amended by adding a new section 3444-a
2 to read as follows:
3 § 3444-a. Homeowners' bill of rights. (a) Any insurer that writes
4 personal lines insurance as defined in paragraph two of subsection (a)
5 of section three thousand four hundred twenty-five of this article or
6 commercial lines insurance policies that cover loss of or damage to real
7 property, personal property, or other liabilities for loss of or damage
8 to property shall, upon issuance and renewal of any such policy or
9 contract, provide to an insured or potential insured written detailed
10 disclosure in a notice prescribed or approved by the superintendent
11 describing clearly and in plain language the following:
12 (1) any and all coverage for loss caused by certain occurrences,
13 including but not limited to fire, wind, windstorm, mudslide, hurricane,
14 snow, ice, water surge, or flood, coverages provided under the policy,
15 any limitations on or exclusions from coverage, circumstances that would
16 invalidate coverage under the policy, any applicable deductibles, and
17 when such deductibles shall be triggered;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD07472-03-3
A. 2287--A 2
1 (2) all information related to claims investigation and processing,
2 including but not limited to the process by which the insured may file a
3 claim, all applicable time frames required by law and regulation, all
4 necessary proof of loss information and other information the insurer
5 may require from the insured, the process by which the insured may file
6 a complaint with the department, and any other information deemed neces-
7 sary by the superintendent;
8 (3) any and all rights a claimant has under the laws and policy when a
9 claim is denied or when the claimant rejects a settlement offer from the
10 insurer, including their right to file a complaint with the department;
11 (4) that the provisions of this policy may be modified or changed
12 pursuant to state or federal law when a local state of emergency is
13 declared pursuant to section twenty-four of the executive law, when the
14 governor declares a disaster emergency pursuant to section twenty-eight
15 of the executive law, or when the President of the United States issues
16 a major disaster or emergency declaration pursuant to the Robert T.
17 Stafford Disaster Relief and Emergency Assistance Act (P.L. 93-288) and
18 how the insured may obtain information about any such modifications or
19 changes;
20 (5) information on how the insured may contact the insurer, including
21 the insurer's business hours, mailing address, phone number, fax number,
22 website address and email; and
23 (6) information on how the insured can obtain the consumers guide on
24 insuring against catastrophic losses created by the department pursuant
25 to section three hundred thirty-eight of this chapter and any other
26 guides, pamphlets, or other information the department has made publicly
27 available that would be beneficial to the insured.
28 § 2. Section 3444 of the insurance law, as amended by chapter 21 of
29 the laws of 2008, is amended to read as follows:
30 § 3444. Flood insurance notice and flood zone disclosure. 1. Insurers
31 shall provide to their homeowners and dwelling fire personal lines
32 insureds an annual notice prescribed or approved by the superintendent,
33 explaining clearly and in plain language that: (a) such policies do not
34 provide coverage for loss caused by mudslide or flood; and (b) insurance
35 is available under separate policies issued in accordance with the
36 National Flood Insurance Program, 42 U.S.C. § 4001 et seq., including
37 information regarding flood insurance eligibility and access.
38 2. The policyholder notice required by subsection one of this section
39 shall accompany all new homeowners and dwelling fire personal lines
40 policies and all renewal homeowners and dwelling fire policies.
41 3. (a) An insurer or producer shall, prior to the time a policy
42 subject to subsection (a) of section three thousand four hundred forty-
43 four-a of this article is sold or purchased and upon renewal of any such
44 policy, disclose to the potential insured that the real property which
45 would be covered by the policy is in a flood zone, which flood zone the
46 real property is located in, and what the level of risk associated with
47 that flood zone is, as determined by the Federal Emergency Management
48 Agency. This disclosure shall be in a form and manner prescribed or
49 approved by the superintendent.
50 (b) At the time of the disclosure required by paragraph (a) of this
51 subsection, an insurer or producer shall notify potential insureds, in a
52 form and manner prescribed or approved by the superintendent, of the
53 availability of additional coverage options for damage as a result of
54 weather conditions, natural disasters, or other occurrences, including
55 but not limited to fire, wind, windstorm, mudslide, hurricane, snow,
56 ice, water surge, and flood. Such notification shall contain information
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1 on additional available policies and riders, the New York Property
2 Insurance Underwriting Association, the Coastal Market Assistance
3 Program, the National Flood Insurance Program, and any other options
4 authorized by state or federal law. The notification must include a
5 concise statement that additional types of coverage are available and
6 the types of coverage that can be purchased from the insurer and from
7 another party.
8 (c) The potential insured shall acknowledge receipt of the disclosure
9 and notification required by paragraphs (a) and (b) of this subsection
10 through a signed writing, electronic signature, or any other means
11 prescribed or approved by the superintendent, evidencing that the poten-
12 tial insured has received the disclosure. Such acknowledgment shall be
13 presumptive evidence that the obligations of disclosure and notification
14 stated within this subsection have been fulfilled by the insurer or
15 producer and shall not be required upon renewal.
16 4. (a) If the flood zone in which the insured real property is located
17 changes, the insurer or producer shall, prior to the renewal of the
18 policy, provide the insured with an updated disclosure informing the
19 insured of the new flood zone and what the level of risk associated with
20 that flood zone is, as determined by the Federal Emergency Management
21 Agency. This updated disclosure shall be provided in a form and manner
22 prescribed or approved by the superintendent.
23 (b) The insured shall acknowledge receipt of the updated disclosure
24 required by paragraph (a) of this subsection through a signed writing,
25 electronic signature, or any other means prescribed or approved by the
26 superintendent, evidencing that the potential insured has received the
27 disclosure. Such acknowledgment shall be presumptive evidence that the
28 obligations of disclosure and notification stated within this subsection
29 have been fulfilled by the insurer or producer.
30 § 3. Paragraph 6 of subsection (a) of section 2601 of the insurance
31 law, as amended by chapter 388 of the laws of 2008, is amended and a new
32 paragraph 7 is added to read as follows:
33 (6) failing to promptly disclose coverage pursuant to subsection (d)
34 or subparagraph (A) of paragraph two of subsection (f) of section three
35 thousand four hundred twenty of this chapter[.]; or
36 (7) knowingly misrepresenting or failing to provide pertinent facts of
37 policy provisions to claimants as required by section three thousand
38 four hundred forty-four-a of this chapter and not complying with such
39 policy provisions, including established time frames for investigation,
40 claims processing and settlement, and payment of claims.
41 § 4. The insurance law is amended by adding a new section 338 to read
42 as follows:
43 § 338. Consumer guide on insuring against catastrophic losses. (a) Six
44 months after the effective date of this section, the superintendent
45 shall issue and update, as necessary, a consumer guide on insuring
46 against catastrophic losses that shall contain comprehensive information
47 written in plain language in a clear and understandable format, includ-
48 ing the following:
49 (1) the ways in which different types of weather conditions, natural
50 disasters, or other occurrences can cause catastrophic losses, including
51 but not limited to damage from fire, wind, windstorm, mudslide, hurri-
52 cane, snow, ice, extreme cold, water surge, and flood;
53 (2) the types of insurance available that provide coverage against
54 catastrophic losses for both homeowners and businesses, a listing of
55 companies that provide such coverage, and recommendations as to how best
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1 to shop for and compare prices, service and quality of insurance cover-
2 age;
3 (3) a list of the exclusions typically found in such coverage and
4 information on how a consumer may obtain coverage for such exclusions,
5 including a listing of companies that provide such coverage and an
6 explanation of, information on, and the types of coverage available from
7 the New York Property Insurance Underwriters Association, the Coastal
8 Market Assistance Program, and the National Flood Insurance Program, and
9 other options authorized by state or federal law;
10 (4) steps a consumer can take to prepare for a natural disaster or
11 other catastrophic loss;
12 (5) steps a consumer can take following a catastrophic loss in order
13 to facilitate the timely processing of the consumer's insurance claim
14 and an explanation of policyholders' rights as provided in law and regu-
15 lation; and
16 (6) a department toll free consumer hot-line and website address
17 through which consumers may initiate complaints, and request general
18 information about insurance.
19 (b) The requirements set forth in subsection (a) of this section may
20 be satisfied by separate or supplemental publications and updates.
21 (c) The superintendent shall post the consumer guide on insuring
22 against catastrophic losses on the department's website.
23 § 5. This act shall take effect immediately.
