What's happening
This bill allows insurers to deny claims on illegally converted properties when inspection access is denied and requires municipalities to notify mortgagees if such access is blocked.
Why it matters
Insurers get new authority to deny claims. If a property has been illegally converted (like an unauthorized apartment or building use) and the owner blocks municipal inspectors from accessing the property, insurers can refuse to pay for any damages or losses claimed—potentially leaving owners financially responsible for repairs or losses.
Broader definition of illegal conversions. The bill defines "illegally converted or altered" properties as those lacking proper zoning, building approvals, or valid certificates of occupancy, expanding the range of properties that could be affected by these insurance restrictions.
Mortgagees and lien holders are looped in. If city or local inspectors are denied access to a property suspected of illegal conversion, municipalities must notify all mortgage and lien holders—alerting banks and other financial stakeholders that their collateral may be at risk due to potential insurance denial and code violations.
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Who cares
Headline styles
Deny Claims for Illegal Conversions
Plain English, a few words. Used as the page title.
Sponsors
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History
- Referred to insurance
- Referred to insurance
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
493
2017-2018 Regular Sessions
IN ASSEMBLY
January 9, 2017
Introduced by M. of A. M. G. MILLER -- read once and referred to the Committee on Insurance
AN ACT to amend the insurance law, in relation to the denial of certain insurance claims; and to amend the general municipal law, in relation to requiring certain municipal and government entities to notify mortgagees and lien holders when such entities are denied access to inspect certain real properties
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The insurance law is amended by adding a new section 3407-b to read as follows:
§ 3407-b. Denial of certain claims for real property. 1. An insurer may deny payments for any claim for real property loss or damage, where such real property has been illegally converted or altered and where the owner of such real property denies a municipal or governmental entity access to such real property for the purpose of inspecting such real property for local code of ordinance violations.
2. For purposes of this section, the term "illegally converted or altered" shall include the conversion of any structure into a residential dwelling which violates any applicable zoning or building ordinance, code or law or which has not received a valid certificate of occupancy or any other certificate, notice, form or other document relating to authorized occupancy or permissible usage which is issued by a municipal or governmental entity having jurisdiction over such matters.
§ 2. The general municipal law is amended by adding a new section 99-x to read as follows:
§ 99-x. Inspection for local code or ordinance violations. Any municipal or governmental entity having jurisdiction over zoning or building ordinances, codes or laws or certificates of occupancy or any other certificates, notices, forms or other documents relating to authorized
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02710-01-7
A. 493 2
occupancy or permissible usage, which has been denied access to inspect a premises which is suspected to have been illegally converted or altered, shall notify all mortgagees or any other lien holders of the property that such inspection has been denied.
§ 3. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.