Provides permanent authority for the joint underwriting association to issue broad form insurance coverage.
TITLE OF BILL: An act to amend the insurance law, in relation to providing permanent authority for the joint underwriting association to issue broad form insurance coverage
PURPOSE: To make permanent an important consumer provision of the insurance law which allows the New York Property Insurance Underwriting Association (NYPIUA) to write an enhanced form of coverage known as broad form coverage.
SUMMARY OF PROVISIONS: Section 1 of the bill would make provisions of the insurance law permanent which allow the New York Property Insurance Underwriting Association to write broad form coverage for consumers.
JUSTIFICATION: This legislation makes permanent an important provision of the insurance law which authorizes NYPTUA to off more expansive coverage in coastal and other areas of the state where property and homeowners insurance availability problems may exist Legislation enacted in 2008 authorized NYPIUA to write broad form coverage for five years subject to review and a report by the Department of Financial Services.
Until 2008 NYPIUA policies included fire and extended coverage which includes damage from perils such as fire, lightning, explosion, hail, smoke, civil commotion, vandalism and malicious mischief. Broad form coverage allows consumers to be covered for property damage by burglars, falling objects, weight of ice and snow, accidental water or steam discharge, freezing, and sudden damage from artificial electric currents.
This enhanced coverage has been very helpful to consumers and two thirds of the policies written by NYPIUA are written with broad form coverage.
LEGISLATIVE HISTORY: New bill.
FISCAL IMPLICATIONS: None
EFFECTIVE DATE: Immediately
STATE OF NEW YORK ________________________________________________________________________ 4103 2013-2014 Regular Sessions IN SENATE March 8, 2013 ___________Introduced by Sen. SEWARD -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance AN ACT to amend the insurance law, in relation to providing permanent authority for the joint underwriting association to issue broad form insurance coverage THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subsection (g) of section 5402 of the insurance law, as added by chapter 136 of the laws of 2008, is amended to read as follows: (g) In addition to fire insurance, extended coverage, coverage for additional perils and homeowners insurance should the same be made available through the association in accordance with a determination of necessity pursuant to section five thousand four hundred twelve of this article, the association may offer broad form coverage to applicants seeking to insure real property at fixed locations of this state, or the tangible personal property located thereon.
[The association may offer broad form coverage for a period of five years after the effective date of this subsection. The superintendent shall require the association to report to him or her annually during that five-year period as to the number of policies written pursuant to this subsection and paragraph three of subsection (f) of section five thousand four hundred five of this article in the previous year, and any other information the super- intendent may require. The superintendent shall then report to the governor and the legislature regarding the number of policies issued pursuant to this subsection and such paragraph annually for the first four years such coverage is offered. On or before January first, two thousand thirteen, the superintendent shall make a final, cumulative report to the governor and the legislature which shall include recommen- dations as to the continuation of such insurance offerings.]S 2. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD09625-01-3