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

                                   693

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                             January 7, 2015
                               ___________

Introduced by M. of A. MILLER -- read once and referred to the Committee
  on Insurance

AN  ACT to amend the insurance law, in relation to the denial of certain
  insurance claims; and to amend the general municipal law, in  relation
  to requiring certain municipal and government entities to notify mort-
  gagees  and  lien  holders  when  such  entities  are denied access to
  inspect certain real properties

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The insurance law is amended by adding a new section 3407-b
to read as follows:
  S  3407-B.  DENIAL  OF CERTAIN CLAIMS FOR REAL PROPERTY. 1. AN INSURER
MAY DENY PAYMENTS FOR ANY CLAIM FOR REAL PROPERTY LOSS OR DAMAGE,  WHERE
SUCH REAL PROPERTY HAS BEEN ILLEGALLY CONVERTED OR ALTERED AND WHERE THE
OWNER  OF  SUCH  REAL PROPERTY DENIES A MUNICIPAL OR GOVERNMENTAL ENTITY
ACCESS TO SUCH REAL PROPERTY FOR THE PURPOSE  OF  INSPECTING  SUCH  REAL
PROPERTY FOR LOCAL CODE OF ORDINANCE VIOLATIONS.
  2.  FOR  PURPOSES  OF  THIS  SECTION, THE TERM "ILLEGALLY CONVERTED OR
ALTERED" SHALL INCLUDE THE CONVERSION OF ANY STRUCTURE INTO  A  RESIDEN-
TIAL  DWELLING  WHICH  VIOLATES  ANY APPLICABLE ZONING OR BUILDING ORDI-
NANCE, CODE OR LAW OR WHICH HAS NOT  RECEIVED  A  VALID  CERTIFICATE  OF
OCCUPANCY  OR  ANY  OTHER  CERTIFICATE,  NOTICE,  FORM OR OTHER DOCUMENT
RELATING TO AUTHORIZED OCCUPANCY OR PERMISSIBLE USAGE WHICH IS ISSUED BY
A  MUNICIPAL  OR  GOVERNMENTAL  ENTITY  HAVING  JURISDICTION  OVER  SUCH
MATTERS.
  S 2. The general municipal law is amended by adding a new section 99-x
to read as follows:
  S 99-X. INSPECTION FOR LOCAL CODE OR ORDINANCE VIOLATIONS. ANY MUNICI-
PAL  OR  GOVERNMENTAL ENTITY HAVING JURISDICTION OVER ZONING OR BUILDING
ORDINANCES, CODES OR LAWS OR CERTIFICATES  OF  OCCUPANCY  OR  ANY  OTHER
CERTIFICATES,  NOTICES,  FORMS OR OTHER DOCUMENTS RELATING TO AUTHORIZED

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02795-01-5
              

A. 693                              2

OCCUPANCY OR PERMISSIBLE USAGE, WHICH HAS BEEN DENIED ACCESS TO  INSPECT
A  PREMISES  WHICH  IS  SUSPECTED  TO  HAVE  BEEN ILLEGALLY CONVERTED OR
ALTERED, SHALL NOTIFY ALL MORTGAGEES OR ANY OTHER LIEN  HOLDERS  OF  THE
PROPERTY THAT SUCH INSPECTION HAS BEEN DENIED.
  S 3. This act shall take effect immediately.