Relates to boating liability insurance rates

1 Co-sponsor

• Tony Avella

BILL NUMBER:S7199

Title of bill

An act to amend the insurance law, in relation to boating liability insurance rates

Purpose or general idea of bill

The purpose of this bill is to require insurance carriers, licensed to issue yacht or boating liability insurance in this state, to grant actuarially appropriate rate reductions to any owner of a yacht or boat who has successfully completed a boating safety course that was approved by the Commission of Parks.

Summary of specific provisions

Section 1: Adds § 2336-b to the Insurance Law.

§ 2336-b. Boat liability insurance rates; premium reductions in certain cases.

(a) Any schedule of rates or rating plan for boat liability insurance submitted to the superintendent shall provide for an actuarially appropriate reduction in premium charges for anyone insured who has successfully completed a boat safety course which has been approved by the commissioner of parks, recreation and historic preservation. The provisions of this section shall not apply to attendance at a course pursuant to sections 54 or 49 of the Navigation Law as a result of any boating infraction.

(b) For the purpose of this section the term boat shall mean any residential or pleasure vessel that is not a crew racing shell as defined in section two of the Navigation Law.

Section 2: Sets the effective date.

Justification

Currently, Navigation Law, section 78-a authorizes, but does not require, licensed insurance carriers to grant premium reductions to any yacht and boat owner who has successfully completed a boating safety course or holds a valid United States Coast Guard operator's license. Insurance Law §2336-a authorizes licensed insurance carriers to grant actuarially appropriate rate reductions to any insured person who has successfully completed a snowmobile safety course that has been approved by the Commissioner of Parks, Recreation and Historic Preservation. This legislation would be similar for boating insurance as it is for snowmobile.

The noticeable increase in boat traffic within and surrounding New York's waterway has led to an increased potential for boating accidents. Many municipalities have maritime police and patrols and emergency response units, but there is not enough emphasis placed on accident prevention through education. The State Office of Parks, Recreation and Historic Preservation maintains a list of offerings of the New York State Safety Boating Course,

but related sections of the Navigation Law are focused on youthful boat operators and operators of personal watercraft.

Both New jersey and Connecticut already require that the operator of a boat possess a certificate showing that he or she has passed an approved boating safety course. However, legislative proposals to require New York boat operators to pass boating safety courses have so far not met with approval.

This legislation would encourage New York boat owners to take boating safety courses by qualifying them for reduced liability insurance premiums. The result will be better educated boaters and safer waterways.

Prior legislative history

S.2811 - 2008 - Referred to Insurance S.4465 - 2006 - Referred to Insurance S.4247 - 2004 - Referred to Insurance

Fiscal implications

There are no fiscal implications.

Effective date

This act shall take effect immediately and shall apply to all policies and contracts issued, renewed, modified or altered on and after such effective date.