Bill Text: NY A03802 | 2015-2016 | General Assembly | Introduced

New York Assembly Bill 3802 (Prior Session Legislation)

Introduced

Bill Title: Provides that when a flood event not covered under a policy or specifically excluded is a contributing factor in or occurs simultaneously as a covered event or peril, the insurer shall not deny or exclude coverage for the loss or damage caused by the covered event or peril.

Spectrum: Moderate Partisan Bill (Democrat 9-2)

Status: (Introduced - Dead) 2016-11-10 - enacting clause stricken [A03802 Detail]

Download: New_York-2015-A03802-Introduced.html

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         3802
                              2015-2016 Regular Sessions
                                 I N  A S S E M B L Y
                                   January 27, 2015
                                      ___________
       Introduced  by M. of A. GOLDFEDER, ABINANTI, TITONE, SKOUFIS, MALLIOTAK-
         IS, TITUS, SALADINO, CUSICK, MOYA, WEPRIN -- Multi-Sponsored by --  M.
         of A. PERRY -- read once and referred to the Committee on Insurance
       AN ACT to amend the insurance law, in relation to anti-concurrent causa-
         tion clauses
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. The insurance law is amended by adding a new  section  3455
    2  to read as follows:
    3    S  3455. ANTI-CONCURRENT CAUSATION CLAUSES. (A) WHEN A FLOOD EVENT NOT
    4  COVERED UNDER A POLICY OR SPECIFICALLY EXCLUDED  UNDER  A  POLICY  IS  A
    5  CONTRIBUTING  FACTOR  IN  OR OCCURS SIMULTANEOUSLY AS A COVERED EVENT OR
    6  PERIL, THE INSURER SHALL NOT DENY OR EXCLUDE COVERAGE FOR  THE  LOSS  OR
    7  DAMAGE  CAUSED  BY  THE  COVERED  EVENT OR PERIL. HOWEVER, NOTHING SHALL
    8  OBLIGATE THE INSURER TO PAY FOR ANY LOSS OR DAMAGE CAUSED BY  THE  FLOOD
    9  EVENT THAT IS NOT COVERED OR IS EXCLUDED.
   10    (B)  IF  AN  INSURER  ISSUES  A  POLICY THAT INCLUDES A PROVISION THAT
   11  ALLOWS THE INSURER TO DETERMINE WHETHER  LOSS  OR  DAMAGE  CAUSED  BY  A
   12  COVERED  PERIL  MAY OR MAY NOT BE COVERED PARTIALLY OR WHOLLY BASED UPON
   13  WHETHER A PERIL THAT IS EXCLUDED OR NOT COVERED UNDER THE POLICY WAS THE
   14  PROXIMATE OR REMOTE CAUSE OF THE COVERED LOSS  OR  DAMAGE,  THE  INSURER
   15  MUST  CLEARLY  STATE  IN  THE  POLICY:  (1)  WHICH PERIL EXCLUDED OR NOT
   16  COVERED UNDER THE  POLICY  MUST  CAUSE,  PROXIMATELY  OR  REMOTELY,  THE
   17  COVERED  PERIL OR PERILS; AND (2) IN EACH SPECIFIC INSTANCE, WHETHER THE
   18  CAUSATION MUST BE PROXIMATE OR REMOTE  TO  RESULT  IN  A  LIMITATION  IN
   19  COVERAGE.   THE INSURER MUST DISCLOSE THIS PROVISION TO THE POLICYHOLDER
   20  PRIOR TO THE SALE OR PURCHASE OF THE POLICY.
   21    S 2. This act shall take effect immediately and  shall  apply  to  all
   22  policies issued or renewed after such effective date.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD06383-01-5