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A07455 Text:

                STATE OF NEW YORK
                                                                Cal. No. 442
                               2013-2014 Regular Sessions
                   IN ASSEMBLY
                                      May 17, 2013
          --  read  once  and referred to the Committee on Insurance -- reported
          from committee, advanced to  a  third  reading,  amended  and  ordered
          reprinted, retaining its place on the order of third reading

        AN ACT to amend the insurance law, in relation to anti-concurrent causa-
          tion clauses
          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  3455
     2  to read as follows:
     3    §  3455. Anti-concurrent causation clauses. (a) When a flood event not
     4  covered under a policy or specifically excluded  under  a  policy  is  a
     5  contributing  factor  in  or occurs simultaneously as a covered event or
     6  peril, the insurer shall not deny or exclude coverage for  the  loss  or
     7  damage  caused  by  the  covered  event or peril. However, nothing shall
     8  obligate the insurer to pay for any loss or damage caused by  the  flood
     9  event that is not covered or is excluded.

    10    (b)  If  an  insurer  issues  a  policy that includes a provision that
    11  allows the insurer to determine whether  loss  or  damage  caused  by  a
    12  covered  peril  may or may not be covered partially or wholly based upon
    13  whether a peril that is excluded or not covered under the policy was the
    14  proximate or remote cause of the covered loss  or  damage,  the  insurer
    15  must  clearly  state  in  the  policy:  (1)  which peril excluded or not
    16  covered under the  policy  must  cause,  proximately  or  remotely,  the
    17  covered  peril or perils; and (2) in each specific instance, whether the
    18  causation must be proximate or remote  to  result  in  a  limitation  in
    19  coverage.   The insurer must disclose this provision to the policyholder

    20  prior to the sale or purchase of the policy.
    21    § 2. This act shall take effect immediately and  shall  apply  to  all
    22  policies issued or renewed after such effective date.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
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