Relates to directing an examination by the superintendent of financial services concerning the treatment of concurrent causation provisions in homeowners insurance contracts for coverage of sewer backup.
TITLE OF BILL: An act directing the superintendent of financial services to examine and make recommendations regarding concurrent causation in relation to sewer backup insurance coverage
PURPOSE: To give the Legislature information on the potential effects of prohibiting anti-concurrent causation clauses in sewer backup insurance coverage policies.
SUMMARY OF PROVISIONS:
Section 1 directs the Superintendent of Financial Services to submit a report to the Legislature providing recommendations concerning the treatment of concurrent causation in relation to homeowners insurance coverage for sewer backup.
Section 2 provides that this act shall take effect immediately.
JUSTIFICATION: Anti-concurrent causation clauses in insurance policies operate to exclude coverage for loss caused by two or more concurrent factors, such as wind and flood damage, where at least one factor is covered in the policy. any people affected by Superstorm Sandy found that anti-concurrent causation causes in their policies prevented them from receiving coverage for property damage, especially damage to sewer lines. This bill will allow the Legislature to make an informed decision regarding the appropriate future treatment of these anti-concurrent causation clauses in policies for sewer backup insurance coverage.
LEGISLATIVE HISTORY: S5798 of 2013 - Referred to Insurance
FISCAL IMPLICATIONS: None
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 5798--A 2013-2014 Regular Sessions IN SENATE June 14, 2013 ___________Introduced by Sens. GOLDEN, ZELDIN, LANZA, SAVINO -- 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 directing the superintendent of financial services to examine and make recommendations regarding concurrent causation in relation to sewer backup insurance coverage THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The superintendent of financial services is hereby directed to examine and make recommendations concerning the treatment of concur- rent causation in relation to homeowners insurance coverage for sewer backup. Such study shall specifically include, among other issues, an analysis of the potential premium impact and potential impact on the availability of sewer backup insurance coverage of prohibiting anti-con- current causation clauses from applying relative to such coverage. The superintendent of financial services shall submit a report to the gover- nor and the legislature, on or before January 1, 2015, of findings and recommendations. S 2. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD11522-02-3