Provides for actuarially appropriate discounts on fire and homeowners insurance after completion of certified residential home safety and loss prevention course

2 Co-sponsors

• John A. DeFrancisco
• Michael H. Ranzenhofer

BILL NUMBER:S3286A

Title of bill

An act to amend the insurance law, in relation to establishing residential home safety and loss prevention courses and providing for an associated reduction in certain insurance premiums and providing for the repeal of such provisions upon expiration thereof

Purpose

To permit the superintendent of insurance to provide an actuarially appropriate reduction in insurance premiums to those individuals that take a certified Home Safety and Loss Prevention Course.

Summary of provisions

Section 1. Amends section 2346 of the Insurance Law by adding subsection (5) to provide that an appropriate premium discount be given by insurers to fire and homeowners insurance policy holders for a three year period after successfully completing a course in home safety and accident prevention. The discount shall be based on sound actuarial practices. Such courses shall be certified by the Insurance Department pursuant to Insurance Law, section 2346-1.

Section 2: A new section 2346-b of the Insurance Law is added to establish standards that residential home safety and loss prevention courses must satisfy to be certified. Only certified courses may conduct classes that will enable students to receive the premium discount. The insurance Department shall consult with the Office of Fire Prevention and Control of the Division of Homeland Security and Emergency Services.

Section 3: Not less than 180 days before the expiration of this section the superintendent of insurance shall issue a report to the Governor, temporary President of the senate, speaker of the assembly, and the chairs of the committees on insurance of both the senate and assembly, stating his or her findings on the effect of this course.

Section 4: Effective Date

Justification

Currently, when policy holders take a home safety and accident Prevention course, there is no discount at all for the holder concerning their homeowners or tire insurance policy. This legislation will allow for an actuarially appropriate reduction to be awarded to the policy holder. This legislation will encourage policy holders to take a course on home safety and loss prevention, thus reducing property and personal injury loss and consequentially reducing the cost of claims paid by insurance companies. This in turn will permit insurers to lower rates for those who take these classes.

Legislative history

S.2376

Fiscal implications

None.

Effective date

This act shall take effect 180 days after it shall have become a law and shall be deemed repealed five years after such date; provided however, any rules or regulations necessary for the timely implementation of the provisions of this act shall be promulgated on or before such date.