Authorizes and directs the superintendent of financial services to conduct a study concerning the potential effect of a disaster on the insurance industry of this state.
TITLE OF BILL: An act in relation to authorizing and directing the superintendent of financial services to conduct a study concerning the potential effect of a disaster on the insurance industry of this state
PURPOSE: The purpose of the bill is to require a study on the effect of disasters on the insurance industry of New York state.
SUMMARY OF PROVISIONS: Section 1.1: The superintendent of insurance is hereby authorized and directed to conduct a study concerning the potential effect of disasters on the insurance industry of New York State.
EXISTING LAW: 2010: S.6465 - Held in Insurance
JUSTIFICATION: Insurance is a product that everyone purchases and no one hopes to use. However, after massive disasters such as hurricanes, earthquakes, and terrorist attacks many thousands of people may receive payment for damages they have experienced. often times this process can overwhelm companies and exhaust reserves. It is imperative that before disaster strikes we have a better understanding of how to prepare the insurance industry for such an event and what, if anything, the state of New York can do.
FISCAL IMPLICATIONS: Minimal.
LOCAL FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 3604--A 2011-2012 Regular Sessions IN SENATE February 28, 2011 ___________Introduced by Sen. ADAMS -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance -- recommitted to the Committee on Insurance in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT in relation to authorizing and directing the superintendent of financial services to conduct a study concerning the potential effect of a disaster on the insurance industry of this state THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Notwithstanding any other provision of law, the superinten- dent of financial services, in consultation with the office of homeland security, is hereby authorized and directed to prepare or cause to be prepared a study to examine, evaluate and make recommendations concern- ing the potential effect of a disaster, catastrophic event, state of emergency or any other event of major destructive consequences on the insurance industry of this state. Such study shall include the effect of both natural and man-made disasters within its scope. Natural disasters to be studied shall include, but not be limited to, disasters occurring from rain, sleet, ice, snow, wind or extreme heat or cold. Man-made disasters to be studied shall include, but not be limited to, acts of terrorism, acts of war, strikes or mass riots. Such study shall focus primarily on the preparedness and ability of the insurance industry to function in the event of such a disaster and what procedures and proto- cols may be implemented to improve such functionality, as well as any other issues the superintendent of financial services deems relevant. S 2. The superintendent of financial services shall report to the governor and the legislature the findings of the study required by section one of this act along with his or her recommendations on or before January 1, 2013. S 3. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD07638-02-1