Bill S241-2009

Provides that the maximum deductible allowed on policies for windstorms shall not be greater than $1,500

Provides that the maximum deductible allowed in catastrophic windstorms shall not be greater than fifteen hundred dollars and shall be stated in the policy in numerical terms; also provides that deductibles shall only be applicable to losses incurred in windstorms with speeds greater than 125 miles per hour.






TITLE OF BILL : An act to amend the insurance law, in relation to windstorm insurance notice regarding deductibles

PURPOSE : To clearly define the "trigger" or conditions defining the term catastrophic windstorm in the insurance law and place a maximum amount deductible on windstorm damage in homeowner's policies.

SUMMARY OF PROVISIONS : Amends §3446 of the Insurance Law to clarify that catastrophic windstorm damage deductibles shall only be applicable to hurricanes with windspeeds of 125 miles per hour or greater and limits the deductible to a maximum of $1500.

JUSTIFICATION : The residents of the coastal areas of the state have been for the past few years, subject to a homeowner's insurance market that has vacillated and fluctuated. Without real damage experience in these areas, insurance companies have instituted policies of huge deductibles predicated on hurricanes with minimum windspeeds. This bill will provide those residents with a stable market with reasonable coverage.

LEGISLATIVE HISTORY : S.139, 2007-08; S.716, 2005-06; S.724, 2003-04; S.2080, 2001-02; 1999-00, S.4982.


EFFECTIVE DATE : This act shall take effect immediately.


STATE OF NEW YORK ________________________________________________________________________ S. 241 A. 337 2009-2010 Regular Sessions S E N A T E - A S S E M B L Y (PREFILED) January 7, 2009 ___________
IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print- ed, and when printed to be committed to the Committee on Insurance IN ASSEMBLY -- Introduced by M. of A. THIELE -- read once and referred to the Committee on Insurance AN ACT to amend the insurance law, in relation to windstorm insurance notice regarding deductibles THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 3445 of the insurance law, as added by chapter 44 of the laws of 1998, is amended to read as follows: S 3445. Windstorm insurance notice. 1. The superintendent shall by regulation establish disclosure requirements with respect to the opera- tion of any deductible in a homeowner's insurance policy or dwelling fire personal lines policy which applies as the result of a windstorm. Such regulations shall prescribe the form of a notice to be provided by an insurer to an insured. The notice shall explain in clear and plain language the amount of the deductible SUBJECT TO SUBSECTION THREE OF THIS SECTION, the circumstances under which the deductible applies and any other matters which the superintendent, in his or her discretion, shall deem necessary or appropriate. 2. A CATASTROPHIC WINDSTORM DEDUCTIBLE APPLICABLE TO A HOMEOWNER'S INSURANCE POLICY OR DWELLING FIRE PERSONAL LINES POLICY SHALL NOT BE APPROVED BY THE DEPARTMENT UNLESS THE DEDUCTIBLE IS APPLICABLE ONLY TO LOSSES INCURRED IN A HURRICANE WHICH CAUSES WIND SPEEDS OF ONE HUNDRED TWENTY-FIVE MILES OR GREATER PER HOUR TO OCCUR WITHIN THE STATE. 3. THE MAXIMUM DEDUCTIBLE ALLOWED SHALL NOT BE GREATER THAN FIFTEEN HUNDRED DOLLARS AND SHALL BE STATED ON THE POLICY IN NUMERICAL TERMS. S 2. This act shall take effect immediately.


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