What's happening
This bill requires insurance companies to clearly disclose to homeowners if their policy excludes coverage for removal of buried oil tanks.
Why it matters
Increases transparency for homeowners. By mandating clear, bold disclosures if insurance policies exclude coverage for removal of buried oil tanks, the bill helps homeowners understand what risks they are—and aren’t—protected against.
Prevents costly surprises. Many homeowners may assume their insurance covers the expensive process of removing buried oil tanks. This requirement means they’ll be informed upfront, reducing the risk of unexpected out-of-pocket costs if a buried tank is discovered.
Promotes better consumer decision-making. With standardized disclosure, homeowners can more easily compare insurance policies, ask questions, or seek out additional coverage if necessary, leading to more informed choices about protecting their property.
Empowers regulatory oversight. The bill directs the insurance superintendent to establish and enforce these disclosure requirements, potentially improving industry compliance and accountability.
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Who cares
Headline styles
Disclose Buried Oil Tank Exclusions
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred 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.
Disclose Oil Tank Exclusions
In Assembly Committee · Insurance · Sponsor James Skoufis
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
379
2017-2018 Regular Sessions
IN SENATE (Prefiled)
January 4, 2017
Introduced by Sen. CARLUCCI -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance
AN ACT to amend the insurance law, in relation to disclosure of the exclusion of buried oil tanks in property/casualty insurance contracts
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. Property/casualty insurance contract and policy standard provisions for the exclusion of buried oil tanks. The superintendent shall by regulation establish disclosure requirements with respect to the disclosure in a homeowner's insurance policy which applies to the exclusion of buried oil tanks. Such regulations shall prescribe the form of a disclosure to be provided by an insurer to an insured. Such disclosure notice shall explain in clear and plain language, and in prominent, boldface type and twelve point type or larger that the removal of buried oil tanks is not covered by such policy.
§ 2. This act shall take effect on the one hundred twentieth day after it shall have become a law; provided, however, that effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized and directed to be made and completed on or before such effective date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01826-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the insurance law, in relation to disclosure of the exclusion of buried oil tanks in property/casualty insurance contracts
Purpose
To establish a means by which those who have underground oil tanks are aware of whether they are properly insured for a leak or not
Summary of provisions
Section 1. Adds a new section 3407-b to the insurance law to direct the superintendent to establish, by regulation, disclosure requirements with respect to the exclusion of coverage related to buried oil tanks.
Section 2. Effective date.
Justification
There are many people in New York State who use underground oil tanks, mostly at their residence. Insurers may well exclude coverage of an insured's oil tank leaking from his or her policy, often unbeknownst to the insured. Oil tank leaks often involve very extensive cleanup and DEC intervention, costing in the thousands, if not tens of thousands, of dollars if not covered by insurance. This bill will ensure that policyholders are at least aware of whether they are covered or not in the event of a leak.
Legislative history
2015-16: S1711/A2533 - Insurance Committee/Insurance Committee 2013-14: S5598/A6785 - Insurance Committee/Insurance Committee
Fiscal implications
None
Effective date
This act shall take effect on the one hundred twentieth day after it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.