What's happening
This bill repeals section 3403 of the insurance law, eliminating requirements related to anti-arson applications in New York.
Why it matters
Removes a unique state requirement. Section 3403 required property owners in certain parts of New York, especially in New York City, to submit anti-arson applications when getting or renewing fire insurance. Repealing this section eliminates an extra layer of paperwork and compliance that did not exist in most other states.
Potentially impacts fraud prevention. The anti-arson application process was designed to help prevent insurance fraud and arson-for-profit schemes by collecting information on property ownership and history. Its repeal could change how arson risk is monitored and investigated, potentially shifting more responsibility to insurers or law enforcement.
Could affect insurance accessibility and pricing. Removing the anti-arson application requirement may streamline the insurance process for property owners, possibly making it easier or faster to obtain coverage. However, it also raises questions about whether insurers might adjust their risk assessment or premiums in areas previously covered by this law.
Signals a shift in regulatory approach. The bill directs the state’s top financial regulator to repeal all related rules, indicating a comprehensive move away from this method of arson prevention and reflecting a potential shift in how New York balances consumer protection with regulatory burden.
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Who cares
Headline styles
End Anti-Arson Applications
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- 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.
End Anti-Arson Insurance Forms
In Assembly Committee · Insurance · Sponsor Daniel Rosenthal
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7767
IN SENATE
February 21, 2018
Introduced by Sen. SEWARD -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance
AN ACT to repeal certain provisions of the insurance law relating to anti-arson applications
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 3403 of the insurance law is REPEALED.
§ 2. The superintendent of financial services shall repeal all rules and regulations which implement the provisions of section 3403 of the insurance law.
§ 3. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14026-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to repeal certain provisions of the insurance law relating to anti-arson applications
Purpose
The purpose of this bill is to repeal section 3403 of the insurance law and its accompanying regulations.
Summary of provisions
Section one repeals section 3403 of the insurance law and all promulgat- ed rules and regulations necessary to administer section 3403.
Section two establishes the effective date.
Justification
In 1981 when New York first enacted its anti-arson application law (originally section 168-j of the insurance law, now section 3403), arson for profit was a significant economic and societal problem. New York's anti-arson application law was enacted to give insurers ownership and property valuation information to assist in the investigation of arson for profit and to require property owners to sign a fraud statement.
However, present-day arson investigation techniques no longer rely on the anti-arson application form to determine ownership and property valuation and fraud statements are collected through other means when adjusting a loss. Insurers have access to a multitude of third-party sources to determine ownership and property values. Since the informa- tion collected on the form is no longer used, completing and collecting the form (which is required for both new and renewed insurance policies) creates a significant burden for both consumers and insurers. Consumers suffer because completing the form is burdensome and insurance carriers must cancel inforce policies when the form is not returned, which means that the policyholder may be without coverage.
Furthermore, consumers bear the ultimate administrative cost of having insurers reinstate policies that have been cancelled when they fail to renew the anti-arson application. Insurers are burdened by the inordi- nate amount of time spent tracking down the anti-arson application from property owners. Recognizing that the reason that this law was originally enacted no longer exists, both Rochester and Buffalo repealed the law in the most recent legislative session. In short, this law which requires creation and maintenance of a document that no one uses, creates a financial and administrative burden to both consumers and insurers.
Legislative history
New Bill.
Fiscal implications
None.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.