What's happening
This bill prohibits insurers from denying claims solely because an excluded event contributed to or occurred with a covered loss.
Why it matters
Limits insurer use of “anti-concurrent causation” clauses. , which have historically allowed insurers to deny claims if an excluded event (like flooding) happened at the same time as a covered event (like fire), even if the covered event caused the damage.
Increases consumer protection and potential payouts. by requiring insurers to pay claims where a covered and an excluded event both contributed to a loss—potentially resulting in more claims being paid, especially in complex disaster scenarios such as hurricanes or fires with multiple causes.
Could impact insurance premiums or policy offerings. , as insurers may adjust pricing or terms to account for the increased risk and broader obligation to pay claims involving concurrent causes.
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Who cares
Headline styles
Limit Insurance Denial Reasons
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to insurance
- Referred to insurance
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3500
2019-2020 Regular Sessions
IN SENATE
February 8, 2019
Introduced by Sens. BRESLIN, SEWARD -- 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 anti-concurrent causation clauses
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 3457 to read as follows:
§ 3457. Anti-concurrent causation clauses. An insurer shall not deny or exclude coverage for any claim for loss or damage that would otherwise be covered by a policy solely because an event or peril not covered under the policy or specifically excluded under the policy was a contributing factor in such loss or damage or occurred simultaneously with the event or peril that was covered.
§ 2. This act shall take effect immediately and shall apply to claims made on or after such effective date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06915-02-9
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 anti-concurrent causa- tion clauses
Summary of provisions
This bill would prohibit an insurance company from denying a claim that would normally be covered under the policy solely because a separate risk occurred at the same time or contributed to the loss but was not covered under the policy or was specifically excluded.
Justification
An anti-concurrent causation clause is a provision contained in many homeowners policies that states that if a loss is caused by two or more perils, one that is covered by the policy and one that is excluded, then the loss is excluded, regardless of which peril is the primary cause or whether the perils occurred concurrently or in a sequence. For example, if a policy covers wind damage but not flood damage, and both events happen at about the same time, then the damage to the property will not be covered. When insurers that use anti-concurrent causation clauses treat property damage as a single loss triggered by multiple perils the result is a complete denial of the claim. In the aftermath of Superstorm Sandy, many homeowners were surprised when insurance companies denied their claims for perils that should have been covered under the policy (such as windstorm damage) because the perils occurred at the same time as a flood, which is excluded under most homeowners policies. As a result, these homeowners found themselves without adequate insurance coverage at a time when they needed it the most. This bill would rectify this by prohibiting insurance companies from denying claims under these circumstances.
Legislative history
S.2810 of 2017-18; S.2351 of 2015-16; S.5581 of 2013-14.
Fiscal implications
None.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.