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Sponsors
2 Co-sponsors
History
- Referred to insurance
- Delivered to assembly
- Passed senateVote 58–0
- Ordered to third reading cal.1446
- Committee discharged and committed to rules
- Print number 6782b
- Amend (t) and recommit to insurance
- Print number 6782a
- Amend (t) and recommit to insurance
- Referred to insurance
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Provides for the reduction of property/casualty insurance premiums on residential real property when the insured occupant completed a homeowner natural disaster preparedness, home safety & loss prevention course
In Assembly Committee · Insurance · Sponsor Marcos Crespo
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S6782B
Title of bill
An act to amend the insurance law, in relation to reduction in rates of property/casualty insurance on residential property for insureds who complete an approved homeowner natural disaster, home safety and loss prevention preparedness course
Purpose of bill
The purpose of this bill is to provide for an actuarially appropriate reduction in homeowners insurance and insurance that covers property damage for condominiums, cooperative residential units and for renters caused by a natural disaster or other insurable events. A residential property owner could obtain such an actuarially appropriate premium reduction upon completion of a natural disaster preparedness, home safety and loss prevention course that is approved by the Superintendent of the Financial Services Department. The goal of the bill is to raise the awareness of natural disaster preparedness and losses by other insurable events by offering such a course for residential property owners. The ultimate goal being to help reduce the risk exposure faced by property owners from damage caused by a wide spread natural disaster such as a hurricane, ice storm, flood, tornado, or other disasters caused by nature or by other insurable events such as fire, theft, burglary, personal injury or property damage.
Read the full memo (831 words)
Summary of specific provisions
Section 1: Enacts the "Homeowner Natural Disaster, Home Safety and Loss Prevention Preparedness Program."
Section 2: Legislative intent.
Section 3: Amends Insurance Law section 2346 to add a new subsection (5) that provides for this actuarially appropriate reduction in homeowners insurance and for others who live in condominiums, cooperates, or are renters.
-Provides for a definition of "completion certificate", "natural disaster" and "homeowner natural disaster, home safety and loss prevention preparedness course".
-Authorizes the Superintendent of Financial Services to provide for an actuarially appropriate reduction on residential property insurance premiums for a period of 3 years upon the completion of a homeowner natural disaster preparedness, home safety and loss prevention course. The Superintendent may also provide for an actuarially appropriate reduction in premium rates for the installation of equipment, devices, or other capital improvements that can help to eliminate or mitigate natural disaster damage or losses from other insurable events.
-Such coarse, after being submitted for approval to the Superintendent by a property/casualty insurer, shall provide useful information related to courses of action that can be taken by a homeowner before, during and after the occurrence of a natural disaster; strategies to reduce risk exposure to residential property owners, and information on the kinds of equipment, devices and other capital improvements made to real property to help reduce the risk of damage to real property, personal injury or loss of life. The emphasis of the course is to be
on reducing the risk of damage from natural disasters, but it shall also include information about increasing home safety and other loss prevention techniques.
-The insurer would provide for the reduction in insurance premiums upon completion of such a natural disaster, home safety and loss prevention preparedness course. A completion certificate would need to be issued by the approved natural disaster preparedness course sponsor and submitted to the insurance carrier.
-The Superintendent, in consultation with the Commissioner of the Division of Homeland Security and Emergency Services, would establish standards and the curriculum to be used in such homeowner natural disaster, home safety and loss prevention preparedness course.
Justification
Over the last decade or so, it seems that more and more catastrophic weather events have struck the Northeastern portions of the United States. The purpose of this bill is to encourage homeowners to take a natural disaster preparedness course to help reduce the risk of property damage, personal injury, and loss of life that can occur as the result of these increasingly catastrophic weather events. In addition, by encouraging residential property owners to take such a class, it is the sponsor's hope to help reduce the economic and personal injuries that occur due to these weather events. In addition, such course, to increase the cost savings to consumers and insurance carriers can include items related to home safety and other loss prevention techniques.
This bill will not adversely affect insurers, in that they would only give an actuarially appropriate premium reduction that is demonstrated to reflect real potential property/casualty losses that could be curbed. Further, this is not a mandate bill in that only those insurers that wish to offer the course or sanction such a course to provide for such a premium reduction would need to participate in the program.
New York State law already provides for an actuarially appropriate reduction on auto insurance rates to those that take a defensive driving course. This bill merely extends this concept to homeowners' insurance. Also, as is the case with the driver safety auto insurance premium reduction course that is already in state law, such premium reduction is for a three year period of time.
Legislative history
New Bill.
Fiscal implications for state and local governments
None.
Effective date
January first, next succeeding when the law shall have gone into effect.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.