Relates to authority for the joint underwriting association to issue broad form insurance coverage

BILL NUMBER:S4103

Title of bill

An act to amend the insurance law, in relation to providing permanent authority for the joint underwriting association to issue broad form insurance coverage

Purpose

To make permanent an important consumer provision of the insurance law which allows the New York Property Insurance Underwriting Association (NYPIUA) to write an enhanced form of coverage known as broad form coverage.

Summary of provisions

Section 1 of the bill would make provisions of the insurance law permanent which allow the New York Property Insurance Underwriting Association to write broad form coverage for consumers.

Justification

This legislation makes permanent an important provision of the insurance law which authorizes NYPTUA to off more expansive coverage in coastal and other areas of the state where property and homeowners insurance availability problems may exist Legislation enacted in 2008 authorized NYPIUA to write broad form coverage for five years subject to review and a report by the Department of Financial Services.

Until 2008 NYPIUA policies included fire and extended coverage which includes damage from perils such as fire, lightning, explosion, hail, smoke, civil commotion, vandalism and malicious mischief. Broad form coverage allows consumers to be covered for property damage by burglars, falling objects, weight of ice and snow, accidental water or steam discharge, freezing, and sudden damage from artificial electric currents.

This enhanced coverage has been very helpful to consumers and two thirds of the policies written by NYPIUA are written with broad form coverage.

Legislative history

New bill.

Fiscal implications

None

Effective date

Immediately