S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   146

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 7, 2015
                               ___________

Introduced  by  M. of A. GANTT, 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 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:

  Section  1.  Section  3429  of the insurance law is amended to read as
follows:
  S 3429. Geographical location of risks; HOMEOWNERS';  fire,  fire  and
extended coverage policies; private passenger automobile insurance poli-
cies.  (a)  No insurer shall REJECT ANY APPLICATION FOR, refuse to issue
or renew, LIMIT THE TYPE OR AMOUNT OF COVERAGE OFFERED or shall cancel a
policy of:
  (1) HOMEOWNERS' INSURANCE, fire insurance or fire and extended  cover-
age insurance, or
  (2)  automobile  insurance  subject  to  section  three  thousand four
hundred twenty-five of this article
based solely on the geographical location, AGE OR MARKET  VALUE  of  the
risk  OR PROPERTY within this state. Such prohibition shall not preclude
an insurer from REJECTING AN APPLICATION FOR SUCH COVERAGE BASED ON  THE
UNREASONABLE  DISTANCE  OF THE RISK OR PROPERTY FROM THE INSURER'S ORDI-
NARY SERVICE AREA, OR FROM refusing to issue or renew, LIMITING THE TYPE
OR AMOUNT OF COVERAGE OFFERED or from cancelling such policies [based on
sound underwriting and actuarial principles] IF ITS ACTION IS  SUPPORTED
BY  ACTUARIALLY  SOUND  STATISTICAL DATA reasonably related to actual or
anticipated loss experience subject  to  the  applicable  provisions  of
section  three  thousand  four  hundred twenty-five of this article, AND
SUCH ACTION IS CONSISTENT WITH ITS TREATMENT OF RISKS  OF  SUBSTANTIALLY
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.
              

                                                           LBD02108-01-5

A. 146                              2

  (b)  The  superintendent shall by regulation establish procedures with
respect to notification to insureds of the insurer's specific reason  or
reasons  for refusal to issue or renew or for cancellation of such poli-
cy.
  S  2. Section 3430 of the insurance law, paragraph 1 of subsection (a)
as amended by chapter 259 of the laws of 2005, is  amended  to  read  as
follows:
  S  3430.  Right  of  insured,  agent  or  broker aggrieved on basis of
geographical location of property or risks. (a) An insured aggrieved  by
an inability to obtain OR RETAIN A TYPE OR AMOUNT OF:
  (1)  homeowner's  insurance,  including  fire  insurance  or  fire and
extended coverage insurance, other  than  from  the  New  York  property
insurance underwriting association, or
  (2)  automobile  insurance  subject  to  section  three  thousand four
hundred twenty-five of this article, other than  through  the  New  York
automobile insurance plan,
from any insurer or through any insurance agent or broker because of the
geographical location, AGE OR MARKET VALUE of the risk or property with-
in the state or a licensed agent or broker whose contract or account was
terminated  or  not  renewed because of the geographical location of the
agent or broker or the geographical location, AGE OR MARKET VALUE of the
risks within the state for which coverage is afforded through the  agent
or  broker  [and  the grievance was not the result of the application of
sound underwriting and actuarial principles reasonably related to actual
or anticipated loss experience] may file a complaint to that effect with
the superintendent on a form prescribed by him.
  (b) The superintendent shall investigate  the  complaint  pursuant  to
rules and regulations promulgated by him. In addition to any other power
or  procedure  authorized by this chapter, the superintendent SHALL TAKE
SUCH ACTION AND REQUIRE SUCH DOCUMENTATION AS DEEMED NECESSARY TO DETER-
MINE COMPLIANCE WITH SECTION THREE THOUSAND FOUR HUNDRED TWENTY-NINE AND
THREE THOUSAND FOUR  HUNDRED  THIRTY-THREE  OF  THIS  ARTICLE,  AND  may
require  the physical inspection of the risk or property or hold a hear-
ing, or both, for the purpose of assisting him in his  determination  of
the issues raised by the complaint.
  S 3. Section 3433 of the insurance law is amended to read as follows:
  S  3433.  Termination  of  contracts or accounts of licensed agents or
brokers; prohibition; geographical location. (a) No insurer shall termi-
nate or refuse to renew a contract or account of  a  licensed  agent  or
broker who negotiated policies of:
  (1)  HOMEOWNERS' INSURANCE, fire insurance or fire and extended cover-
age insurance or
  (2) automobile  insurance  subject  to  section  three  thousand  four
hundred  twenty-five of this article when such termination or refusal to
renew is based solely on the  geographical  location  of  the  agent  or
broker  or  GEOGRAPHICAL  LOCATION, AGE OR MARKET VALUE of the risks for
which coverage is afforded through such  agent  or  broker  UNLESS  SUCH
ACTION  IS  SUPPORTED  BY  ACTUARIALLY SOUND STATISTICAL DATA REASONABLY
RELATED TO ACTUAL OR ANTICIPATED LOSS EXPERIENCE OF SUCH RISKS, AND SUCH
ACTION IS CONSISTENT WITH ITS TREATMENT OF LICENSED  AGENTS  OR  BROKERS
WHO NEGOTIATED POLICIES FOR RISKS OF SUBSTANTIALLY SIMILAR HAZARD IN ALL
GEOGRAPHICAL LOCATIONS IT SERVES IN THIS STATE.
  (b)  The  superintendent  shall  by  regulation  establish  procedures
requiring notification to  such  agents  or  brokers  of  the  insurer's
specific  reason  or  reasons  for  termination  or refusal to renew the
agent's or broker's contract or account.

A. 146                              3

  S 4. This act shall take effect on the thirtieth day after   it  shall
have  become  a  law  and  shall  apply to all contracts and policies of
insurance issued or renewed on and after such date.