|SAME AS||SAME AS A07469|
|Amd §12, Chap 42 of 1996; amd §23, Chap 136 of 2008|
|Directs the special advisory panel on homeowners' insurance/catastrophe coverage to study certain facets of profitability of insurance in coastal areas.|
|01/31/2017||REFERRED TO INSURANCE|
|01/03/2018||REFERRED TO INSURANCE|
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STATE OF NEW YORK ________________________________________________________________________ 3971 2017-2018 Regular Sessions IN SENATE January 31, 2017 ___________ Introduced by Sens. KLEIN, AVELLA, SAVINO -- read twice and ordered printed, and when printed to be committed to the Committee on Insur- ance 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. Subdivisions 1 and 2 of section 12 of chapter 42 of the 2 laws of 1996 amending the insurance law relating to homeowners' insur- 3 ance and a temporary panel on homeowners' insurance coverage, as amended 4 by chapter 136 of the laws of 2008, are 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 on 11 or before November 30, [ 2009] 2018, and on [ an annual] a biennial basis 12 thereafter: 13 (a) a review of international, federal and other states' activities 14 regarding catastrophe related coverage, including but not limited to an 15 evaluation of the experience under the California Earthquake Authority 16 and the Florida Commission on Hurricane Loss Projection Methodology; EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD09368-01-7S. 3971 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[ .]; 28 (j) an evaluation of whether and the 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, and the reasons for any such actions. Further, the panel 32 shall study and ascertain an average estimated cost of obtaining compa- 33 rable replacement homeowner's coverage for those insureds who have been 34 cancelled in such coastal areas. For the purposes of this subdivision, 35 the term coastal homeowners' insurance market shall mean those areas 36 that are within one mile of a saltwater ocean, sound, inlet or bay in 37 the counties of the Bronx, Kings, Nassau, Queens, Richmond, Suffolk and 38 Westchester; and 39 (k) an evaluation of state and local municipal natural disaster miti- 40 gation plans, as provided for in article two-B of the executive law, as 41 they relate to minimizing property damage to residential homes in coas- 42 tal areas of the state and suggest ways to minimize insurable and non- 43 insurable residential home losses due to such catastrophic natural 44 disaster events. 45 (2) The panel shall consist of [ twenty-three] twenty-six members. The 46 superintendent of [ insurance] financial services shall be the chair of 47 the panel. The other [ twenty-two] twenty-five members shall be the 48 director of the state emergency management office, the state chief risk 49 officer, the director of risk and insurance management of the office of 50 general services, and twenty-two members appointed as follows: six 51 members shall be appointed by the governor, of whom two shall be experts 52 in the field of catastrophic meteorological science, two shall be build- 53 ing or code enforcement officials and two shall be representative of 54 insurance consumers; six members shall be appointed by the temporary 55 president of the senate, of whom three shall be representative of 56 producers actively placing homeowner's insurance policies in this state,S. 3971 3 1 two shall be representative of insurance companies actively writing 2 homeowner's insurance policies in this state and one shall be represen- 3 tative of insurance companies providing reinsurance coverage; six 4 members shall be appointed by the speaker of the assembly, of whom three 5 shall be representative of producers actively placing homeowner's insur- 6 ance policies in this state and three shall be representative of insur- 7 ance companies actively writing homeowner's insurance policies in this 8 state; and two members each shall be appointed by the minority leader of 9 the senate and the minority leader of the assembly, provided of the 10 members appointed by each minority leader one shall be representative of 11 producers actively placing homeowner's insurance policies in this state 12 and one shall be representative of insurance companies actively writing 13 homeowner's insurance policies in this state. Each member of the panel 14 shall serve at the pleasure of the official who appointed him or her. 15 § 2. Subdivision (a) of section 23 of chapter 136 of the laws of 2008 16 amending the insurance law relating to extending the effectiveness of 17 certain stand-by powers of the New York property insurance underwriting 18 association, as further amended by section 104 of part A of chapter 62 19 of the laws of 2011, is amended to read as follows: 20 (a) The superintendent of financial services shall implement a program 21 designed to attract more competitors to the state's homeowners' insur- 22 ance market particularly with respect to those communities that are 23 within one mile of a saltwater ocean, sound, inlet or bay in the coun- 24 ties of the Bronx, Kings, Nassau, Queens, Richmond, Suffolk and West- 25 chester. The program shall include, but shall not be limited to: 26 (1) identifying, contacting and soliciting feedback from national, 27 regional and other insurance carriers not currently writing homeowners 28 insurance in the state to determine their interest in selling homeowners 29 insurance in the state; 30 (2) adopting specific measures to encourage such insurers to sell 31 homeowners' insurance in the state; and 32 (3) documenting those issues or concerns such insurers may cite as 33 barriers to selling homeowners insurance in the state. 34 § 3. This act shall take effect immediately.