Relates to directing an examination by the superintendent of financial services concerning the treatment of concurrent causation provisions in homeowners insurance contracts for coverage of sewer backup.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A453
SPONSOR: Cymbrowitz TITLE OF BILL:
An act directing the superintendent of financial services to examine and
make recommendations regarding concurrent causation in relation to sewer
backup insurance coverage
PURPOSE OR GENERAL IDEA OF BILL:
To give the Legislature information on the potential effects of prohib-
iting anti-concurrent causation clauses in sewer backup insurance cover-
age policies.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 directs the Superintendent of Financial Services to submit a
report to the Legislature providing recommendations concerning the
treatment of concurrent causation in relation to homeowners insurance
coverage for sewer backup.
Section 2 provides that this act shall take effect immediately.
JUSTIFICATION:
Anti-concurrent causation clauses in insurance policies operate to
exclude coverage for loss caused by two or more concurrent factors, such
as wind and flood damage, where at least one factor is covered in the
policy any people affected by Superstorm Sandy found that anti-concur-
rent causation causes in their policies prevented them from receiving
coverage for property damage, especially damage to sewer lines. This
bill will allow the Legislature to make an informed decision regarding
the appropriate future treatment of these anti-concurrent causation
clauses in policies for sewer backup insurance coverage.
PRIOR LEGISLATIVE HISTORY:
2014 A.8580 Referred to Insurance
S.579B.A Golden Referred to Insurance
FISCAL IMPLICATIONS:
None
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
453
2015-2016 Regular Sessions
IN ASSEMBLY(Prefiled)
January 7, 2015
___________
Introduced by M. of A. CYMBROWITZ -- read once and referred to the
Committee on Insurance
AN ACT directing the superintendent of financial services to examine and
make recommendations regarding concurrent causation in relation to
sewer backup insurance coverage
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The superintendent of financial services is hereby directed
2 to examine and make recommendations concerning the treatment of concur-
3 rent causation in relation to homeowners insurance coverage for sewer
4 backup. Such study shall specifically include, among other issues, an
5 analysis of the potential premium impact and potential impact on the
6 availability of sewer backup insurance coverage of prohibiting anti-con-
7 current causation clauses from applying relative to such coverage. The
8 superintendent of financial services shall submit a report to the gover-
9 nor and the legislature, on or before January 1, 2017, of findings and
10 recommendations.
11 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00673-01-5
