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S4654Senate2011-2012 SessionSame asA7042

Prohibits discrimination in the issuance of homeowner's insurance policies and clarifies prohibition of refusal to issue policies based solely on geographical location

Sponsor Lee M. ZeldinSD-3Affects Finance
Status
In Senate Committee
Insurance
Impact
Pending
Passage
Pending

Bill progress

Step 2 of 7

In committee · Insurance

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Who cares

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Sponsors

Primary sponsor
Lee M. Zeldin

Senator · Senate District 3

Chair, Consumer Protection

No co-sponsors yet.

History

  1. Referred to insurance
  2. Referred to insurance

Companion bill

Full text

The text isn't available here yet. Check nysenate.gov.

Sponsor's memo

BILL NUMBER:S4654

Title of bill

An act to amend the insurance law, in relation to prohibiting discrimination in the issuance or renewal of homeowner's insurance policies and to the geographical location of risk of certain policies

Purpose or general idea of bill

Prohibits discrimination in the issuance and renewal of homeowner's insurance policies based on the geographic location of the risk or property.

SUMMARY OF SPECIFIC PROVISIONS:,

Section 3429 of the insurance law is amended to include homeowner's insurance in the list of insurance categories said section applies to. Subdivision (a) of section 3429 of the insurance law is amended to add rejection of an application and limiting the type or amount of coverage offered as actions that are prohibited with regard to discrimination based on geographic location of a risk or property. Part 2 of subdivision (a) of section 3429 is amended to include protection against discrimination based on property location and to allow an insurer to reject an application based on geographic location only when there is unreasonable distance of a risk or property from the insurer's ordinary service area. Subdivision 1 of section 3433 of the insurance law is amended to include homeowner's insurance in the categories of insurance for which the agents or brokers may not have their contracts or accounts terminated or not renewed based on their geographical location or the geographical location of the risks for which coverage is afforded. Subdivision 2 of section 3433 of the insurance law is amended to include geographic location of a risk as a basis of discrimination that is prohibited with respect to terminating or not renewing the contract or account of a broker or agent.

Justification

In light of a move on the part of Allstate Insurance Company to cease offering insurance only on Long Island, New York City, and Westchester County, the insurance law must be changed before other companies follow suit. Insurance companies that do business in our State should not have the option to pick and choose which areas they will do business with. As the number of insurance companies writing in these areas decreases, the cost of homeowner's insurance will skyrocket and protecting our homes will become a luxury few could afford.

Prior legislative history

2009-10: A.2101/S.8238 - Reported Referred to Assembly Codes Committee 2007-08: A.1508 - Held for consideration in Insurance 2005-06: A.9783 - Held for consideration in Insurance

Fiscal implications

None.

Effective date

This act shall take effect on the thirtieth day after it shall have become a law and shall apply to all contract and policies of insurance issued or renewed on and after such date.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.