Relates to the denial of certain insurance claims and requires municipal and government entities to notify mortgagees and lien holders when such entities are denied access to inspect certain real properties.
STATE OF NEW YORK
________________________________________________________________________
4407
2013-2014 Regular Sessions
IN SENATE
March 26, 2013
___________
Introduced by Sen. ADDABBO -- read twice and ordered printed, and when
printed to be committed to the Committee on Insurance
AN ACT to amend the insurance law, in relation to the denial of certain
insurance claims; and to amend the general municipal law, in relation
to requiring certain municipal and government entities to notify mort-
gagees and lien holders when such entities are denied access to
inspect certain real properties
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 3407-b
2 to read as follows:
3 § 3407-b. Denial of certain claims for real property. 1. An insurer
4 may deny payments for any claim for real property loss or damage, where
5 such real property has been illegally converted or altered and where the
6 owner of such real property denies a municipal or governmental entity
7 access to such real property for the purpose of inspecting such real
8 property for local code of ordinance violations.
9 2. For purposes of this section, the term "illegally converted or
10 altered" shall include the conversion of any structure into a residen-
11 tial dwelling which violates any applicable zoning or building ordi-
12 nance, code or law or which has not received a valid certificate of
13 occupancy or any other certificate, notice, form or other document
14 relating to authorized occupancy or permissible usage which is issued by
15 a municipal or governmental entity having jurisdiction over such
16 matters.
17 § 2. The general municipal law is amended by adding a new section 99-x
18 to read as follows:
19 § 99-x. Inspection for local code or ordinance violations. Any munici-
20 pal or governmental entity having jurisdiction over zoning or building
21 ordinances, codes or laws or certificates of occupancy or any other
22 certificates, notices, forms or other documents relating to authorized
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01034-01-3
S. 4407 2
1 occupancy or permissible usage, which has been denied access to inspect
2 a premises which is suspected to have been illegally converted or
3 altered, shall notify all mortgagees or any other lien holders of the
4 property that such inspection has been denied.
5 § 3. This act shall take effect immediately.
