Bill Text: NY S06344 | 2011-2012 | General Assembly | Introduced

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Bill Title: Relates to claims against insurers for petroleum spills.

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Introduced - Dead) 2012-01-30 - REFERRED TO TRANSPORTATION [S06344 Detail]

Download: New_York-2011-S06344-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         6344
                                   I N  S E N A T E
                                   January 30, 2012
                                      ___________
       Introduced  by Sen. GRISANTI -- (at request of the State Comptroller) --
         read twice and ordered printed, and when printed to  be  committed  to
         the Committee on Transportation
       AN ACT to amend the navigation law, in relation to claims against insur-
         ers for petroleum spills
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Section 190 of the navigation law, as added by chapter  845
    2  of the laws of 1977, is amended to read as follows:
    3    S 190. Claims against insurers. 1. Any claims for costs of cleanup and
    4  removal,  civil  penalties  or  damages  by  the state and any claim for
    5  damages by any injured person, may be brought directly against the bond,
    6  the insurer, or any other person providing evidence of financial respon-
    7  sibility.
    8    2. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, ALL  HOMEOWN-
    9  ERS'  POLICIES  OF  INSURANCE  IN  THIS STATE WHICH SHALL INSURE AGAINST
   10  DAMAGE TO PROPERTY SHALL CLEARLY PROVIDE THAT CLEANUP AND REMOVAL  COSTS
   11  AND ALL DIRECT AND INDIRECT DAMAGES RELATING TO A DISCHARGE OF PETROLEUM
   12  SHALL CONSTITUTE PROPERTY DAMAGE AND SHALL BE INSURABLE WITHIN THE MEAN-
   13  ING OF THE GENERAL LIABILITY PORTIONS OF SUCH INSURANCE POLICY. THE RISK
   14  OF DAMAGES CAUSED BY SUCH DISCHARGES MAY NOT BE AN EXCLUSION IN ANY SUCH
   15  POLICY ISSUED IN THE STATE.
   16    3.  IN  ANY  CLAIM FOR COVERAGE OF THE COSTS AND DAMAGES RELATING TO A
   17  DISCHARGE OF PETROLEUM, THE INSURER MAY RAISE  THE  AFFIRMATIVE  DEFENSE
   18  THAT  THE INSURED HAD ACTUAL KNOWLEDGE OF A CONDITION WHICH A REASONABLE
   19  PERSON WOULD HAVE UNDERSTOOD TO POSE AN IMMINENT RISK OF A DISCHARGE  OF
   20  PETROLEUM  AND  THAT  THE  INSURED  FAILED  TO  TAKE REASONABLE STEPS TO
   21  PREVENT THE DISCHARGE.
   22    4. INSURERS SHALL PROVIDE THE FOLLOWING NOTICE IN BOLD LETTERING OF AT
   23  LEAST TWELVE POINT TYPE FONT IN EVERY HOMEOWNER'S POLICY,  NEWLY  ISSUED
   24  OR RENEWED WHICH INSURES AGAINST DAMAGE TO PROPERTY:
   25    YOU  HAVE  A RESPONSIBILITY TO PREVENT A DISCHARGE FROM YOUR PETROLEUM
   26  (OIL, KEROSENE, ETC.) TANKS AND ASSOCIATED PIPELINES. IF YOU KNOW  OF  A
   27  CONDITION  WHICH  COULD  RESULT  IN  A  DISCHARGE,  YOUR FAILURE TO TAKE
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD11121-01-1
       S. 6344                             2
    1  REASONABLE STEPS TO  PREVENT  THE  DISCHARGE  COULD  VOID  THE  COVERAGE
    2  PROVIDED BY THIS POLICY.
    3    5.  NOTHING IN THIS SECTION SHALL BE CONSTRUED TO LIMIT ANY PRE-EXIST-
    4  ING RIGHT, WHETHER ACTUAL OR IMPLIED, IN WHICH THE INSURED MAY HAVE  HAD
    5  COMPENSATION  FROM  THE  INSURER  FOR  CLEANUP AND REMOVAL COSTS AND ALL
    6  DIRECT AND INDIRECT DAMAGES RELATING TO A DISCHARGE OF PETROLEUM.
    7    S 2. This act shall take effect on the first of January next  succeed-
    8  ing the date on which it shall have become a law.