Bill Text: NY A00090 | 2013-2014 | General Assembly | Introduced

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Bill Title: Prohibits discrimination in the issuance of homeowner's insurance policies based upon the subject property's location or age of structures contained thereon; makes various provisions clarifying prohibition on refusal to issue or renew certain policies including homeowner's fire and extended coverage based solely on geographical location.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced - Dead) 2014-02-26 - reported referred to codes [A00090 Detail]

Download: New_York-2013-A00090-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                          90
                              2013-2014 Regular Sessions
                                 I N  A S S E M B L Y
                                      (PREFILED)
                                    January 9, 2013
                                      ___________
       Introduced  by M. of A. GANTT -- read once and referred to the Committee
         on Insurance
       AN ACT to amend the insurance law, in relation to prohibiting  discrimi-
         nation  in  the  issuance or renewal of homeowners' insurance policies
         and to the geographical location of risk of certain policies
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.  Section  3429  of the insurance law is amended to read as
    2  follows:
    3    S 3429. Geographical location of risks; HOMEOWNERS';  fire,  fire  and
    4  extended coverage policies; private passenger automobile insurance poli-
    5  cies.  (a)  No insurer shall REJECT ANY APPLICATION FOR, refuse to issue
    6  or renew, LIMIT THE TYPE OR AMOUNT OF COVERAGE OFFERED or shall cancel a
    7  policy of:
    8    (1) HOMEOWNERS' INSURANCE, fire insurance or fire and extended  cover-
    9  age insurance, or
   10    (2)  automobile  insurance  subject  to  section  three  thousand four
   11  hundred twenty-five of this article
   12  based solely on the geographical location, AGE OR MARKET  VALUE  of  the
   13  risk  OR PROPERTY within this state. Such prohibition shall not preclude
   14  an insurer from REJECTING AN APPLICATION FOR SUCH COVERAGE BASED ON  THE
   15  UNREASONABLE  DISTANCE  OF THE RISK OR PROPERTY FROM THE INSURER'S ORDI-
   16  NARY SERVICE AREA, OR FROM refusing to issue or renew, LIMITING THE TYPE
   17  OR AMOUNT OF COVERAGE OFFERED or from cancelling such policies [based on
   18  sound underwriting and actuarial principles] IF ITS ACTION IS  SUPPORTED
   19  BY  ACTUARIALLY  SOUND  STATISTICAL DATA reasonably related to actual or
   20  anticipated loss experience subject  to  the  applicable  provisions  of
   21  section  three  thousand  four  hundred twenty-five of this article, AND
   22  SUCH ACTION IS CONSISTENT WITH ITS TREATMENT OF RISKS  OF  SUBSTANTIALLY
   23  SIMILAR HAZARD IN ALL GEOGRAPHICAL LOCATIONS IT SERVES IN THIS STATE.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD03517-01-3
       A. 90                               2
    1    (b)  The  superintendent shall by regulation establish procedures with
    2  respect to notification to insureds of the insurer's specific reason  or
    3  reasons  for refusal to issue or renew or for cancellation of such poli-
    4  cy.
    5    S  2. Section 3430 of the insurance law, paragraph 1 of subsection (a)
    6  as amended by chapter 259 of the laws of 2005, is  amended  to  read  as
    7  follows:
    8    S  3430.  Right  of  insured,  agent  or  broker aggrieved on basis of
    9  geographical location of property or risks. (a) An insured aggrieved  by
   10  an inability to obtain OR RETAIN A TYPE OR AMOUNT OF:
   11    (1)  homeowner's  insurance,  including  fire  insurance  or  fire and
   12  extended coverage insurance, other  than  from  the  New  York  property
   13  insurance underwriting association, or
   14    (2)  automobile  insurance  subject  to  section  three  thousand four
   15  hundred twenty-five of this article, other than  through  the  New  York
   16  automobile insurance plan,
   17  from any insurer or through any insurance agent or broker because of the
   18  geographical location, AGE OR MARKET VALUE of the risk or property with-
   19  in the state or a licensed agent or broker whose contract or account was
   20  terminated  or  not  renewed because of the geographical location of the
   21  agent or broker or the geographical location, AGE OR MARKET VALUE of the
   22  risks within the state for which coverage is afforded through the  agent
   23  or  broker  [and  the grievance was not the result of the application of
   24  sound underwriting and actuarial principles reasonably related to actual
   25  or anticipated loss experience] may file a complaint to that effect with
   26  the superintendent on a form prescribed by him.
   27    (b) The superintendent shall investigate  the  complaint  pursuant  to
   28  rules and regulations promulgated by him. In addition to any other power
   29  or  procedure  authorized by this chapter, the superintendent SHALL TAKE
   30  SUCH ACTION AND REQUIRE SUCH DOCUMENTATION AS DEEMED NECESSARY TO DETER-
   31  MINE COMPLIANCE WITH SECTION THREE THOUSAND FOUR HUNDRED TWENTY-NINE AND
   32  THREE THOUSAND FOUR  HUNDRED  THIRTY-THREE  OF  THIS  ARTICLE,  AND  may
   33  require  the physical inspection of the risk or property or hold a hear-
   34  ing, or both, for the purpose of assisting him in his  determination  of
   35  the issues raised by the complaint.
   36    S 3. Section 3433 of the insurance law is amended to read as follows:
   37    S  3433.  Termination  of  contracts or accounts of licensed agents or
   38  brokers; prohibition; geographical location. (a) No insurer shall termi-
   39  nate or refuse to renew a contract or account of  a  licensed  agent  or
   40  broker who negotiated policies of:
   41    (1)  HOMEOWNERS' INSURANCE, fire insurance or fire and extended cover-
   42  age insurance or
   43    (2) automobile  insurance  subject  to  section  three  thousand  four
   44  hundred  twenty-five of this article when such termination or refusal to
   45  renew is based solely on the  geographical  location  of  the  agent  or
   46  broker  or  GEOGRAPHICAL  LOCATION, AGE OR MARKET VALUE of the risks for
   47  which coverage is afforded through such  agent  or  broker  UNLESS  SUCH
   48  ACTION  IS  SUPPORTED  BY  ACTUARIALLY SOUND STATISTICAL DATA REASONABLY
   49  RELATED TO ACTUAL OR ANTICIPATED LOSS EXPERIENCE OF SUCH RISKS, AND SUCH
   50  ACTION IS CONSISTENT WITH ITS TREATMENT OF LICENSED  AGENTS  OR  BROKERS
   51  WHO NEGOTIATED POLICIES FOR RISKS OF SUBSTANTIALLY SIMILAR HAZARD IN ALL
   52  GEOGRAPHICAL LOCATIONS IT SERVES IN THIS STATE.
   53    (b)  The  superintendent  shall  by  regulation  establish  procedures
   54  requiring notification to  such  agents  or  brokers  of  the  insurer's
   55  specific  reason  or  reasons  for  termination  or refusal to renew the
   56  agent's or broker's contract or account.
       A. 90                               3
    1    S 4. This act shall take effect on the thirtieth day after   it  shall
    2  have  become  a  law  and  shall  apply to all contracts and policies of
    3  insurance issued or renewed on and after such date.