Provides for the establishment of residential home safety and loss prevention courses certified by the superintendent of insurance; requires insurers to provide actuarially appropriate discounts on fire and homeowners insurance premiums to those homeowners who have completed a residential home safety and loss prevention course; directs the superintendent of insurance to promulgate such rules and regulations as are necessary to implement such program and specifies certain matters which must be included in such rules and regulations; requires the superintendent of insurance to issue a report thereon.
TITLE OF BILL: An act to amend the insurance law, in relation to establishing residential home safety and loss prevention courses and providing for an associated reduction in certain insurance premiums and providing for the repeal of such provisions upon expiration thereof
PURPOSE: To permit the superintendent of insurance to provide an actuarially appropriate reduction in insurance premiums to those individuals that take a certified Home Safety and Loss Prevention Course.
SUMMARY OF PROVISIONS: Section 1. Amends section 2346 of the Insurance Law by adding subsection (5) to provide that an appropriate premium discount be given by insurers to fire and homeowners insurance policy holders for a three year period after successfully completing a course in home safety and accident prevention. The discount shall be based on sound actuarial practices. Such courses shall be certified by the Insurance Department pursuant to Insurance Law, section 2346-1.
Section 2: A new section 2346-b of the Insurance Law is added to establish standards that residential home safety and loss prevention courses must satisfy to be certified. Only certified courses may conduct classes that will enable students to receive the premium discount. The insurance Department shall consult with the Office of Fire Prevention and Control of the Division of Homeland Security and Emergency Services.
Section 3: Not less than 180 days before the expiration of this section the superintendent of insurance shall issue a report to the Governor, temporary president of the senate, speaker of the assembly, and the chairs of the committees on insurance of both the senate and assembly, stating his or her findings on the effect of this course.
Section 4: Effective Date
JUSTIFICATION: Currently, when policy holders take a home safety and accident prevention course, there is no discount at all for the holder concerning their homeowners or tire insurance policy. This legislation will allow for an actuarially appropriate reduction to be awarded to the policy holder. This legislation will encourage policy holders to take a course on home safety and loss prevention, thus reducing property and personal injury loss and consequentially reducing the cost of claims paid by insurance companies. This in turn will permit insurers to lower rates for those who take these classes.
LEGISLATIVE HISTORY: S.2376
EFFECTIVE DATE: This act shall take effect 180 days after it shall have become a law and shall be deemed repealed three years after such date; provided however, any rules or regulations necessary for the timely implementation of the provisions of this act shall be promulgated on or before such date.
STATE OF NEW YORK ________________________________________________________________________ 4403--A 2011-2012 Regular Sessions IN SENATE April 4, 2011 ___________Introduced by Sens. O'MARA, DeFRANCISCO, MAZIARZ, RANZENHOFER, ZELDIN -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the insurance law, in relation to establishing residen- tial home safety and loss prevention courses and providing for an associated reduction in certain insurance premiums and providing for the repeal of such provisions upon expiration thereof THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 2346 of the insurance law is amended by adding a new subsection 5 to read as follows: 5. THE SUPERINTENDENT SHALL PROVIDE FOR AN ACTUARIALLY APPROPRIATE REDUCTION IN THE RATES OF FIRE INSURANCE PREMIUMS OR HOMEOWNERS INSUR- ANCE PREMIUMS APPLICABLE TO RESIDENTIAL REAL PROPERTY FOR ANY INSURED FOR A THREE YEAR PERIOD AFTER SUCCESSFULLY COMPLETING A RESIDENTIAL HOME SAFETY AND LOSS PREVENTION COURSE CERTIFIED PURSUANT TO SECTION TWO THOUSAND THREE HUNDRED FORTY-SIX-B OF THIS ARTICLE. S 2. The insurance law is amended by adding a new section 2346-b to read as follows: S 2346-B. CERTIFICATION OF RESIDENTIAL HOME SAFETY AND LOSS PREVENTION COURSES. (A) THE DEPARTMENT, IN CONSULTATION WITH THE OFFICE OF FIRE PREVENTION AND CONTROL OF THE DIVISION OF HOMELAND SECURITY AND EMERGEN- CY SERVICES AND ANY ADDITIONAL STATE ENTITY IT DEEMS APPROPRIATE, SHALL CERTIFY ALL RESIDENTIAL HOME SAFETY AND LOSS PREVENTION COURSES THAT ARE AUTHORIZED TO OFFER CLASSES THROUGH WHICH THE INSURED SHALL BE ELIGIBLE TO RECEIVE AN INSURANCE PREMIUM REDUCTION PURSUANT TO SUBSECTION FIVE OF SECTION TWO THOUSAND THREE HUNDRED FORTY-SIX OF THIS ARTICLE. (B) FOR THE PURPOSES OF THIS SECTION: (1) "RESIDENTIAL HOME SAFETY AND LOSS PREVENTION COURSE" OR "COURSE" SHALL MEAN AN INSTRUCTIONAL PROGRAM THAT PRESENTS INFORMATION AND METH-EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD05010-03-1 S. 4403--A 2
ODS THAT CAN HELP AN INSURED TO SIGNIFICANTLY PREVENT OR MINIMIZE PERSONAL INJURIES AND PROPERTY LOSSES IN RESIDENTIAL REAL PROPERTY DUE TO THE OCCURRENCE OF FIRE, THEFT, BURGLARY, ACCIDENTS AND WEATHER RELATED EVENTS, INCLUDING, BUT NOT LIMITED TO, HOW TO MITIGATE PROPERTY DAMAGE FROM HURRICANES, ICE STORMS, TORNADOES AND OTHER NATURAL DISAS- TERS; AND (2) "COURSE SPONSOR" SHALL MEAN ANY INDIVIDUAL, COMPANY OR ORGANIZA- TION THAT HAS DEVELOPED OR OWNS A RESIDENTIAL HOME SAFETY AND LOSS PREVENTION COURSE AND ALL AGENTS OF SUCH SPONSOR INCLUDING INDEPENDENT CONTRACTORS THAT CONDUCT CLASSES FOR SUCH SPONSOR AND CLASS INSTRUCTORS. (C) THE DEPARTMENT SHALL PROMULGATE SUCH RULES AND REGULATIONS AS ARE NECESSARY TO IMPLEMENT THE PROVISIONS OF THIS SECTION. SUCH RULES SHALL, AT A MINIMUM, PROVIDE FOR: (1) COURSE SPONSOR APPLICATION PROCEDURES THAT AN APPLICANT SHALL FOLLOW TO OBTAIN COURSE CERTIFICATION APPROVAL; (2) CURRICULUM STANDARDS THAT THE COURSE SPONSORS AND INSTRUCTORS SHALL UTILIZE, BASED UPON SUBMISSIONS FROM ANY COURSE SPONSOR AS DEFINED IN PARAGRAPH TWO OF SUBSECTION (B) OF THIS SECTION, INCLUDING TEACHING METHODS AND TIME REQUIREMENTS WHICH SHALL BE IN EXCESS OF THREE HOURS; (3) STANDARDS, BASED UPON SUBMISSIONS FROM ANY COURSE SPONSOR AS DEFINED IN PARAGRAPH TWO OF SUBSECTION (B) OF THIS SECTION, THAT COURSE SPONSORS SHALL SATISFY TO ENSURE THAT CLASS INSTRUCTORS ARE ADEQUATELY TRAINED; (4) A DEMONSTRATION BY THE COURSE SPONSOR THAT SUCCESSFULLY COMPLETING SUCH COURSE WILL SIGNIFICANTLY REDUCE FIRE, THEFT, LIABILITY AND WEATHER RELATED LOSSES IN THE RESIDENCE; (5) STANDARDS, BASED UPON SUBMISSIONS FROM ANY COURSE SPONSOR AS DEFINED IN PARAGRAPH TWO OF SUBSECTION (B) OF THIS SECTION, TO ENSURE THAT INDIVIDUALS THAT COMPLETE SUCH COURSE SHALL RECEIVE CERTIFICATES THAT CAN BE SUBMITTED TO AN INSURER TO DEMONSTRATE SUCCESSFUL COMPLETION OF THE CLASS. SUCH CERTIFICATES OF COMPLETION SHALL BE TAMPER PROOF AND DESIGNED SO THAT THEY CAN NOT BE FRAUDULENTLY REPRODUCED OR FORGED BY AN UNAUTHORIZED ISSUER; AND (6) PROCEDURES FOR ON-GOING SURVEILLANCE OF COURSE PRESENTATION AND ADMINISTRATION TO ENSURE THAT THE INSURANCE PREMIUM REDUCTION AWARDED IS, AND CONTINUES TO BE, PROPORTIONALLY RELATED TO THE ACTUARIALLY CALCULABLE DECREASE IN LOSSES ATTRIBUTABLE TO THE COURSE. (D) THE DEPARTMENT IS AUTHORIZED TO SUSPEND OR REVOKE THE CERTIFICATE OF APPROVAL OF ANY COURSE SPONSOR IF THE DEPARTMENT DETERMINES THAT SUCH SPONSOR HAS VIOLATED THE PROVISIONS OF THIS SECTION OR HAS MISREPRE- SENTED INFORMATION ON THE INITIAL APPLICATION OR IN PERIODIC REPORTS SUBMITTED TO THE DEPARTMENT. (E) THE DEPARTMENT MAY INCREASE OR DECREASE THE INSURANCE PREMIUM DISCOUNT AWARDED TO SUCH COURSE IF IT IS FOUND THAT SUCH DISCOUNT IS NOT ACTUARIALLY APPROPRIATE. S 3. Not less than 180 days before the expiration of the provision of this act, the superintendent of insurance shall issue a report to the governor, temporary president of the senate, speaker of the assembly, and the chairs of the committees on insurance of the senate and assembly stating his or her findings on the effect of residential home safety and loss prevention courses in reducing homeowners insurance claims. S 4. This act shall take effect on the one hundred eightieth day after it shall have become a law and shall expire and be deemed repealed 3 years after such effective date; provided, however, any rules or regu- lations necessary for the timely implementation of the provisions of this act shall be promulgated on or before such date.