Add §§4122 & 2346-b, amd §§2346, 2305, 3425, 3426, 3462 & 5402, Ins L
Requires property/casualty insurance companies to submit certain zip code-level data to the department of financial services on nonrenewal rates, nonpayment cancellation rates, other cancellation rates, claim frequency rates, average claim amounts, paid loss ratios, and average premiums; requires property/casualty insurance companies that use a natural disaster risk model or scoring method to assign risk, information about such model or scoring method; authorizes a premium discount to policyholders of homeowners insurance or property/casualty insurance applicable to residential real property who demonstrate certain mitigation actions; requires insurers to post about such discounts on their public websites; relates to the timing of cancellation and nonrenewal notices for certain insurance policies; relates to increasing membership of the board governing the New York property insurance underwriting association; requires a quadrennial report on the activities of such association; increases such board membership to 23 including 6 directors appointed by the legislature and 4 directors appointed by the governor.
STATE OF NEW YORK
________________________________________________________________________
9016--D
2025-2026 Regular Sessions
IN ASSEMBLY
August 27, 2025
___________
Introduced by M. of A. TORRES, FORREST, KELLES, TAPIA, SIMON, GALLAGHER
-- read once and referred to the Committee on Insurance -- recommitted
to the Committee on Insurance in accordance with Assembly Rule 3, sec.
2 -- committee discharged, bill amended, ordered reprinted as amended
and recommitted to said committee -- again reported from said commit-
tee with amendments, ordered reprinted as amended and recommitted to
said committee -- again reported from said committee with amendments,
ordered reprinted as amended and recommitted to said committee --
again reported from said committee with amendments, ordered reprinted
as amended and recommitted to said committee
AN ACT to amend the insurance law, in relation to requiring
property/casualty insurance companies to submit certain zip code-level
data to the department of financial services; to amend the insurance
law, in relation to authorizing a premium discount to policyholders
who demonstrate certain mitigation actions; to amend the insurance
law, in relation to the timing of cancellation and nonrenewal notices
for certain insurance policies; and to amend the insurance law, in
relation to increasing membership of the board governing the New York
property insurance underwriting association and to requiring a
quadrennial report on the activities of such association
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 4122
2 to read as follows:
3 § 4122. Reporting requirements for property/casualty insurance compa-
4 nies. Every property/casualty insurance company doing business in this
5 state shall annually submit the following information to the department
6 with zip code-level data:
7 (a) nonrenewal rates;
8 (b) nonpayment cancellation rates;
9 (c) other cancellation rates;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD13657-06-6
A. 9016--D 2
1 (d) claim frequency rates;
2 (e) average claim amounts;
3 (f) paid loss ratios; and
4 (g) average premiums.
5 § 2. The insurance law is amended by adding a new section 2346-b to
6 read as follows:
7 § 2346-b. Homeowners insurance or property/casualty insurance; miti-
8 gation action. 1. For the purposes of this section, the following terms
9 shall have the following meanings:
10 (a) "community-level mitigation action" means an actuarially appropri-
11 ate mitigation action as demonstrated by a community or neighborhood-
12 level designation or certification or as undertaken by a government
13 entity; and
14 (b) "property-specific mitigation action" means an actuarially appro-
15 priate mitigation action that includes a verification and certification
16 process.
17 2. The superintendent shall provide for an actuarially appropriate
18 reduction in the rates of homeowners insurance premiums and
19 property/casualty insurance premiums applicable to residential real
20 property for policyholders who can demonstrate that property-specific
21 mitigation actions have been undertaken on the property or community-
22 level mitigation actions have been undertaken in sufficient proximity to
23 the property to reduce the risk of loss from a natural disaster. The
24 superintendent shall by regulation establish a process for policyholders
25 to demonstrate such mitigation actions have occurred.
26 3. An insurer shall post on its public website readily accessible
27 information on the premium discounts, incentives or other premium
28 adjustments that are available to policyholders of homeowners insurance
29 or property/casualty insurance applicable to residential real property
30 who undertake property-specific mitigation actions or provide evidence
31 of community-level mitigation actions. The website shall identify, as
32 applicable:
33 (a) Property-specific mitigation actions for the policyholder to
34 undertake and community-level mitigation actions, as determined by the
35 superintendent, that could result in a discount, incentive, or other
36 premium adjustment; and
37 (b) The amount of the discount, incentive, or other premium adjustment
38 associated with each action.
39 4. An insurer that issues or delivers in this state a policy that
40 insures loss of or damage to real property shall specify the nature and
41 the total percentage amount reduction of each discount applied to the
42 policy on the declarations page and specify the nature and percentage of
43 all available discounts that the insurer offers on the policy in a
44 conspicuous note entitled "DISCOUNT INFORMATION" included with the poli-
45 cy.
46 5. An insurer shall report the following information to the super-
47 intendent, in a form prescribed by the superintendent, by April first of
48 each year:
49 (a) a list of all discounts offered to insureds during the preceding
50 calendar year, including the nature of the discounts and the discount
51 percentage amounts; and
52 (b) the number of insureds who received each discount during the
53 preceding calendar year and the zip codes in which the insured proper-
54 ties are located.
55 6. A policyholder or applicant for a policy of insurance whose appli-
56 cable mitigation discount related to property-specific or community-lev-
A. 9016--D 3
1 el mitigation is inaccurate and provides evidence of the property-spe-
2 cific or community-level mitigation action may appeal directly to the
3 insurer. The insurer shall notify the policyholder or applicant in writ-
4 ing of the right to appeal the applicable mitigation discount when the
5 discount is provided to the policyholder or applicant as required by
6 this section. If the policyholder or applicant appeals the applicable
7 discount, the insurer shall acknowledge receipt of the appeal in writing
8 within ten calendar days after receipt of the appeal. The insurer shall
9 respond to the appeal in writing with a reconsideration and decision
10 within thirty calendar days after receiving the appeal. If an appeal is
11 denied, the insurer shall, upon request by the superintendent, forward a
12 copy of the appeal and the insurer's response, to the superintendent.
13 § 3. Subsections 1 and 2 of section 2346 of the insurance law,
14 subsection 1 as amended by chapter 454 of the laws of 1994 and
15 subsection 2 as amended by chapter 637 of the laws of 1993, are amended
16 to read as follows:
17 1. [The superintendent may provide for a] An insurer shall offer at
18 least one discount, subject to approval by the superintendent, that
19 provides an actuarially appropriate reduction in the rates of fire
20 insurance premiums or the fire insurance component of homeowners insur-
21 ance premiums applicable to residential real property for fire
22 prevention or mitigation improvements, such as when the real property is
23 equipped with smoke detecting alarm devices, approved sprinkler systems,
24 or fire extinguishers[, should a statistically valid study of insurer
25 experience indicate an actuarially significant decrease in losses in the
26 aforementioned circumstances. The reductions provided for shall be
27 proportionally related to the actuarially calculable decrease in losses
28 in the aforementioned circumstances].
29 2. [The superintendent may provide for a] (a) An insurer shall offer
30 at least one discount that provides an actuarially appropriate reduction
31 in the rates of homeowners insurance premiums applicable to residential
32 real property for each of the following categories of improvements:
33 (1) theft prevention or mitigation improvements, such as when the real
34 property is equipped with dead-bolt locks[, should a statistically valid
35 study of insurer experience indicate an actuarially significant decrease
36 in losses attributable to the use of such a device. The superintendent
37 shall by regulation establish standards for dead-bolt locks for which a
38 reduction may be approved. The reductions provided for shall be propor-
39 tionally related to the actuarially calculable decrease in losses
40 attributable to the use of such a device] or a security system; and
41 (2) water damage prevention or mitigation improvements, such as a
42 smart water monitor and shutoff device.
43 (b) An insurer shall offer a discount that provides an actuarially
44 appropriate reduction in the rates of homeowners insurance premiums
45 applicable to residential real property for the installation of a newly
46 constructed roof or a roof replacement and for each of the following
47 wind damage mitigation improvements to the property:
48 (1) improvements made to roof coverings, such as tiles or shingles,
49 for wind-resistance;
50 (2) roof deck attachments;
51 (3) secondary water resistance, including sealing and strengthening a
52 roof deck, roof and gable end vents or covers, and improvements made for
53 water intrusion resistance of attic vents; and
54 (4) roof to wall connections, including toe nails, clips, strapping,
55 or ties.
A. 9016--D 4
1 (c) To be considered for any discount provided for in paragraph (b) of
2 this subsection, an insurable property shall be certified as constructed
3 in accordance with any building code applicable in this state or New
4 York city, as amended from time-to-time, or such other standards as
5 approved by the superintendent.
6 § 4. Paragraphs 12 and 13 of subsection (b) of section 2305 of the
7 insurance law, as amended by section 9 of part AAA of chapter 59 of the
8 laws of 2017, are amended and a new paragraph 14 is added to read as
9 follows:
10 (12) gap insurance; [and]
11 (13) private passenger automobile insurance, except as provided in
12 section two thousand three hundred fifty of this article[,]; and
13 (14) homeowners insurance or property/casualty insurance applicable to
14 residential real property as it relates to the inclusion of property-
15 specific mitigation actions and community-level mitigation actions in
16 the calculation of such rates,
17 § 5. Paragraphs 1 and 2 of subsection (d) of section 3425 of the
18 insurance law are amended to read as follows:
19 (1) Unless the insurer, at least [forty-five] ninety but not more than
20 [sixty] one hundred twenty days in advance of the end of the policy
21 period for nonrenewal or conditional renewal or the effective date for
22 cancellation, mails or delivers to the named insured, at the address
23 shown in the policy, a written notice of its intention not to renew a
24 covered policy, [or] to condition its renewal upon change of limits or
25 elimination of any coverages, or to cancel the policy, the named insured
26 shall be entitled to renew the policy upon timely payment of the premium
27 billed to the insured for the renewal. The specific reason or reasons
28 for nonrenewal or conditioned renewal shall be stated in or shall accom-
29 pany the notice. The specific reason or reasons for cancellation as
30 provided in subsection (c) of this section shall be stated in or shall
31 accompany the notice. This paragraph shall not apply when the named
32 insured, an agent or broker authorized by the named insured, or an
33 insurer of the named insured, has mailed or delivered written notice to
34 the insurer that the policy has been replaced or is no longer desired.
35 (2) If an insurer has the right to cancel a policy it may, in lieu of
36 cancellation, condition continuation of such policy upon change of
37 limits or elimination of any coverage not required by law, if written
38 notice of such intention is mailed or delivered to the insured at the
39 address shown in the policy at least [twenty] ninety days prior to the
40 effective date of such action.
41 § 6. The opening paragraph of subsection (c) of section 3426 of the
42 insurance law, as amended by chapter 235 of the laws of 1989, is amended
43 to read as follows:
44 After a covered policy has been in effect for sixty days unless
45 cancelled pursuant to subsection (b) of this section, or on or after the
46 effective date if such policy is a renewal, no notice of cancellation
47 shall become effective until [fifteen] ninety days after written notice
48 is mailed or delivered to the first-named insured and to such insured's
49 authorized agent or broker, and such cancellation is based on one or
50 more of the following:
51 § 7. Paragraphs 3 and 4 of subsection (a) of section 3462 of the
52 insurance law, as added by section 1 of part BB of chapter 56 of the
53 laws of 2024, are amended and a new paragraph 5 is added to read as
54 follows:
55 (3) The level or source of income of the tenants of the residential
56 building or the shareholders of a cooperative housing corporation; [or]
A. 9016--D 5
1 (4) Whether such residential building is owned by a limited-equity
2 cooperative; owned by a public housing authority; or owned by a cooper-
3 ative housing corporation subject to the provisions of article two,
4 article four, article five or article eleven of the private housing
5 finance law[.]; or
6 (5) The residential building is located in a disadvantaged community,
7 as identified pursuant to section 75-0111 of the environmental conserva-
8 tion law. An insurer who cancels, refuses to issue, refuses to renew or
9 increase the premium of a policy, or excludes, limits, restricts, or
10 reduces coverage under a policy for a residential building located in a
11 disadvantaged community shall provide actuarial information to the
12 insured or applicant to support such action.
13 § 8. Subsection (b) of section 5402 of the insurance law, as amended
14 by chapter 42 of the laws of 1996, is amended to read as follows:
15 (b) The association shall be governed by a board of [thirteen] twen-
16 ty-three directors, ten of whom shall be elected annually by cumulative
17 voting by the members of the association, whose votes in such election
18 shall be weighted in accordance with each member's net direct premiums
19 written during the preceding calendar year. An additional six directors
20 shall be appointed annually by the legislature, two by the temporary
21 president of the senate, two by the speaker of the assembly, one by the
22 minority leader of the senate and one by the minority leader of the
23 assembly. Four directors shall be appointed annually by the governor and
24 two of such directors shall be representatives of consumers. The remain-
25 ing three directors shall be appointed annually by the superintendent
26 and be duly licensed insurance agents or brokers representative of broad
27 segments of the public obtaining insurance through the association.
28 § 9. Subsection (g) of section 5402 of the insurance law, as amended
29 by chapter 182 of the laws of 2023, is amended to read as follows:
30 (g) In addition to fire insurance, extended coverage, coverage for
31 additional perils and homeowners insurance should the same be made
32 available through the association in accordance with a determination of
33 necessity pursuant to section five thousand four hundred twelve of this
34 article, the association may offer broad form coverage to applicants
35 seeking to insure real property at fixed locations of this state, or the
36 tangible personal property located thereon. The association may offer
37 broad form coverage until June thirtieth, two thousand twenty-eight. On
38 or before October first, two thousand twenty-seven the superintendent
39 shall require the association to report to the superintendent as to the
40 number of policies written pursuant to this subsection and paragraph
41 three of subsection (f) of section five thousand four hundred five of
42 this article, and any other information the superintendent may require.
43 On or before January first, two thousand twenty-eight, and every four
44 years thereafter, the superintendent shall report to the governor and
45 the legislature regarding the number of policies issued pursuant to this
46 section and such paragraph, the geographic location of such policies,
47 the types of policies offered, the coverage limits of such policies,
48 risk reduction investments, information on the financial standing of the
49 association and [shall include] recommendations as to the continuation
50 of such insurance offerings.
51 § 10. This act shall take effect on the one hundred eightieth day
52 after it shall have become a law. Effective immediately, the addition,
53 amendment and/or repeal of any rule or regulation necessary for the
54 implementation of this act on its effective date are authorized to be
55 made and completed on or before such effective date.
