Bill Text: NY A10690 | 2015-2016 | General Assembly | Introduced
Bill Title: Creates a homeowners' bill of rights; directs the superintendent of financial services to issue a consumers' guide on insuring against catastrophic loss.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2016-06-16 - ordered to third reading rules cal.477 [A10690 Detail]
Download: New_York-2015-A10690-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 10690 IN ASSEMBLY June 13, 2016 ___________ Introduced by COMMITTEE ON RULES -- (at request of M. of A. Cancel) -- read once and referred to the Committee on Insurance AN ACT to amend the insurance law, in relation to creating a homeowners' bill of rights and a consumer guide on insuring against catastrophic loss caused by natural disasters 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 3444-a 2 to read as follows: 3 § 3444-a. Homeowners' bill of rights. Any insurer that writes personal 4 lines insurance as defined in paragraph two of subsection (a) of section 5 three thousand four hundred twenty-five of this article or commercial 6 lines insurance policies that cover loss of or damage to real property, 7 personal property, or other liabilities for loss of or damage to proper- 8 ty shall, upon issuance and renewal of any such policy or contract, 9 provide to an insured or potential insured written detailed disclosure 10 in a notice prescribed or approved by the superintendent describing 11 clearly and in plain language the following: 12 (a) any and all coverage for loss caused by certain occurrences, 13 including but not limited to fire, wind, windstorm, mudslide, hurricane, 14 snow, ice, water surge, or flood, coverages provided under the policy, 15 any limitations on or exclusions from coverage, circumstances that would 16 invalidate coverage under the policy, any applicable deductibles, and 17 when such deductibles shall be triggered; 18 (b) all information related to claims investigation and processing, 19 including but not limited to the process by which the insured may file a 20 claim, all applicable time frames required by law and regulation, all 21 necessary proof of loss information and other information the insurer 22 may require from the insured, the process by which the insured may file 23 a complaint with the department, and any other information deemed neces- 24 sary by the superintendent; 25 (c) any and all rights a claimant has under the laws and policy when a 26 claim is denied or when the claimant rejects a settlement offer from the 27 insurer, including their right to file a complaint with the department; EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD01131-04-6A. 10690 2 1 (d) that the provisions of this policy may be modified or changed 2 pursuant to state or federal law when a local state of emergency is 3 declared pursuant to section twenty-four of the executive law, when the 4 governor declares a disaster emergency pursuant to section twenty-eight 5 of the executive law, or when the President of the United States issues 6 a major disaster or emergency declaration pursuant to the Robert T. 7 Stafford Disaster Relief and Emergency Assistance Act (P.L. 93-288) and 8 how the insured may obtain information about any such modifications or 9 changes; 10 (e) information on how the insured may contact the insurer, including 11 the insurer's business hours, mailing address, phone number, fax number, 12 website address and email; and 13 (f) information on how the insured can obtain the consumers guide on 14 insuring against catastrophic losses created by the department pursuant 15 to section three hundred thirty-eight of this chapter and any other 16 guides, pamphlets, or other information the department has made publicly 17 available that would be beneficial to the insured. 18 § 2. Section 3444 of the insurance law, as amended by chapter 21 of 19 the laws of 2008, is amended to read as follows: 20 § 3444. Flood insurance notice and flood zone disclosure. 1. Insurers 21 shall provide to their homeowners and dwelling fire personal lines 22 insureds an annual notice prescribed or approved by the superintendent, 23 explaining clearly and in plain language that: (a) such policies do not 24 provide coverage for loss caused by mudslide or flood; and (b) insurance 25 is available under separate policies issued in accordance with the 26 National Flood Insurance Program, 42 U.S.C. § 4001 et seq., including 27 information regarding flood insurance eligibility and access. 28 2. The policyholder notice required by subsection one of this section 29 shall accompany all new homeowners and dwelling fire personal lines 30 policies and all renewal homeowners and dwelling fire policies. 31 3. (a) An insurer or producer shall, prior to the time a policy 32 subject to section three thousand four hundred forty-four-a of this 33 article is sold or purchased and upon renewal of any such policy, 34 disclose to the potential insured that the real property which would be 35 covered by the policy is in a flood zone, which flood zone the real 36 property is located in, and what the level of risk associated with that 37 flood zone is, as determined by the Federal Emergency Management Agency. 38 This disclosure shall be in a form and manner prescribed or approved by 39 the superintendent. 40 (b) At the time of the disclosure required by paragraph (a) of this 41 subsection, an insurer or producer shall notify potential insureds, in a 42 form and manner prescribed or approved by the superintendent, of the 43 availability of additional coverage options for damage as a result of 44 weather conditions, natural disasters, or other occurrences, including 45 but not limited to fire, wind, windstorm, mudslide, hurricane, snow, 46 ice, water surge, and flood. Such notification shall contain information 47 on additional available policies and riders, the New York Property 48 Insurance Underwriting Association, the Coastal Market Assistance 49 Program, the National Flood Insurance Program, and any other options 50 authorized by state or federal law. The notification must include a 51 concise statement that additional types of coverage are available and 52 the types of coverage that can be purchased from the insurer and from 53 another party. 54 (c) The potential insured shall acknowledge receipt of the disclosure 55 and notification required by paragraphs (a) and (b) of this subsection 56 through a signed writing, electronic signature, or any other meansA. 10690 3 1 prescribed or approved by the superintendent, evidencing that the poten- 2 tial insured has received the disclosure. Such acknowledgment shall be 3 presumptive evidence that the obligations of disclosure and notification 4 stated within this subsection have been fulfilled by the insurer or 5 producer and shall not be required upon renewal. 6 4. (a) If the flood zone in which the insured real property is located 7 changes, the insurer or producer shall, prior to the renewal of the 8 policy, provide the insured with an updated disclosure informing the 9 insured of the new flood zone and what the level of risk associated with 10 that flood zone is, as determined by the Federal Emergency Management 11 Agency. This updated disclosure shall be provided in a form and manner 12 prescribed or approved by the superintendent. 13 (b) The insured shall acknowledge receipt of the updated disclosure 14 required by paragraph (a) of this subsection through a signed writing, 15 electronic signature, or any other means prescribed or approved by the 16 superintendent, evidencing that the potential insured has received the 17 disclosure. Such acknowledgment shall be presumptive evidence that the 18 obligations of disclosure and notification stated within this subsection 19 have been fulfilled by the insurer or producer. 20 § 3. Paragraphs 6 and 7 of subsection (a) of section 2601 of the 21 insurance law, paragraph 6 as amended and paragraph 7 as added by 22 section 27 of part H of chapter 60 of the laws of 2014, are amended and 23 a new paragraph 8 is added to read as follows: 24 (6) failing to promptly disclose coverage pursuant to subsection (d) 25 or subparagraph (A) of paragraph two of subsection (f) of section three 26 thousand four hundred twenty of this chapter; [or] 27 (7) submitting reasonably rendered claims to the independent dispute 28 resolution process established under article six of the financial 29 services law[.]; or 30 (8) knowingly misrepresenting or failing to provide pertinent facts of 31 policy provisions to claimants as required by section three thousand 32 four hundred forty-four-a of this chapter and not complying with such 33 policy provisions, including established time frames for investigation, 34 claims processing and settlement, and payment of claims. 35 § 4. The insurance law is amended by adding a new section 338 to read 36 as follows: 37 § 338. Consumer guide on insuring against catastrophic losses. (a) Six 38 months after the effective date of this section, the superintendent 39 shall issue and update, as necessary, a consumer guide on insuring 40 against catastrophic losses that shall contain comprehensive information 41 written in plain language in a clear and understandable format, includ- 42 ing the following: 43 (1) the ways in which different types of weather conditions, natural 44 disasters, or other occurrences can cause catastrophic losses, including 45 but not limited to damage from fire, wind, windstorm, mudslide, hurri- 46 cane, snow, ice, extreme cold, water surge, and flood; 47 (2) the types of insurance available that provide coverage against 48 catastrophic losses for both homeowners and businesses, a listing of 49 companies that provide such coverage, and recommendations as to how best 50 to shop for and compare prices, service and quality of insurance cover- 51 age; 52 (3) a list of the exclusions typically found in such coverage and 53 information on how a consumer may obtain coverage for such exclusions, 54 including a listing of companies that provide such coverage and an 55 explanation of, information on, and the types of coverage available from 56 the New York Property Insurance Underwriters Association, the CoastalA. 10690 4 1 Market Assistance Program, and the National Flood Insurance Program, and 2 other options authorized by state or federal law; 3 (4) steps a consumer can take to prepare for a natural disaster or 4 other catastrophic loss; 5 (5) steps a consumer can take following a catastrophic loss in order 6 to facilitate the timely processing of the consumer's insurance claim 7 and an explanation of policyholders' rights as provided in law and regu- 8 lation; and 9 (6) a department toll free consumer hot-line and website address 10 through which consumers may initiate complaints, and request general 11 information about insurance. 12 (b) The requirements set forth in subsection (a) of this section may 13 be satisfied by separate or supplemental publications and updates. 14 (c) The superintendent shall post the consumer guide on insuring 15 against catastrophic losses on the department's website. 16 § 5. This act shall take effect immediately.
