What's happening
This bill requires insurance companies to clearly disclose to homeowners if their policies exclude coverage for removal of buried oil tanks.
Why it matters
Helps homeowners avoid unexpected costs. By requiring clear disclosure, the bill ensures that homeowners are aware if their insurance won't cover expensive buried oil tank removal, allowing them to plan or seek additional coverage if needed.
Promotes transparency and informed decision-making. The standardized, easily understandable disclosure in bold, large print makes it less likely that critical exclusions are missed in fine print, empowering consumers to make more informed choices about their insurance.
Could influence insurance market practices. Insurers may need to adjust policy documents and customer communications, possibly leading some to revisit how they structure or market policies relating to older properties with buried oil tanks.
Addresses environmental and financial risks. Buried oil tanks can pose significant environmental hazards if they leak, and remediation is costly. By making exclusions clear, the bill reduces the risk of homeowners being caught off guard by both environmental responsibilities and uncovered expenses.
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Who cares
Homeowners with buried oil tanks
They would receive a clear, prominent notice explaining that their homeowner’s policy does not cover removal of buried oil tanks.
Homeowners insurance companies
Insurers would have to provide the prescribed disclosure in plain language, boldface and type of at least 12 points.
State insurance regulators
The superintendent would have to establish disclosure requirements and prescribe the form of the notice insurers provide to policyholders.
Headline styles
Disclose Oil Tank Insurance Exclusions
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 38
No co-sponsors yet.
History
- Referred to insurance
- Referred to insurance
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3479
2019-2020 Regular Sessions
IN SENATE
February 7, 2019
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. 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 to be made and completed on or before such date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06235-01-9
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 policy- holders are at least aware of whether they are covered or not in the event of a leak.
Legislative history
2017-18: S379/A2958 - INSURANCE/insurance 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.