S T A T E   O F   N E W   Y O R K
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                                 7455--A
                                                        Cal. No. 442

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                              May 17, 2013
                               ___________

Introduced by M. of A. GOLDFEDER, ABINANTI, TITONE, SKOUFIS, MALLIOTAKIS
  --  read  once  and referred to the Committee on Insurance -- reported
  from committee, advanced to  a  third  reading,  amended  and  ordered
  reprinted, retaining its place on the order of third reading

AN ACT to amend the insurance law, in relation to anti-concurrent causa-
  tion clauses

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The insurance law is amended by adding a new  section  3455
to read as follows:
  S  3455. ANTI-CONCURRENT CAUSATION CLAUSES. (A) WHEN A FLOOD EVENT NOT
COVERED UNDER A POLICY OR SPECIFICALLY EXCLUDED  UNDER  A  POLICY  IS  A
CONTRIBUTING  FACTOR  IN  OR OCCURS SIMULTANEOUSLY AS A COVERED EVENT OR
PERIL, THE INSURER SHALL NOT DENY OR EXCLUDE COVERAGE FOR  THE  LOSS  OR
DAMAGE  CAUSED  BY  THE  COVERED  EVENT OR PERIL. HOWEVER, NOTHING SHALL
OBLIGATE THE INSURER TO PAY FOR ANY LOSS OR DAMAGE CAUSED BY  THE  FLOOD
EVENT THAT IS NOT COVERED OR IS EXCLUDED.
  (B)  IF  AN  INSURER  ISSUES  A  POLICY THAT INCLUDES A PROVISION THAT
ALLOWS THE INSURER TO DETERMINE WHETHER  LOSS  OR  DAMAGE  CAUSED  BY  A
COVERED  PERIL  MAY OR MAY NOT BE COVERED PARTIALLY OR WHOLLY BASED UPON
WHETHER A PERIL THAT IS EXCLUDED OR NOT COVERED UNDER THE POLICY WAS THE
PROXIMATE OR REMOTE CAUSE OF THE COVERED LOSS  OR  DAMAGE,  THE  INSURER
MUST  CLEARLY  STATE  IN  THE  POLICY:  (1)  WHICH PERIL EXCLUDED OR NOT
COVERED UNDER THE  POLICY  MUST  CAUSE,  PROXIMATELY  OR  REMOTELY,  THE
COVERED  PERIL OR PERILS; AND (2) IN EACH SPECIFIC INSTANCE, WHETHER THE
CAUSATION MUST BE PROXIMATE OR REMOTE  TO  RESULT  IN  A  LIMITATION  IN
COVERAGE.   THE INSURER MUST DISCLOSE THIS PROVISION TO THE POLICYHOLDER
PRIOR TO THE SALE OR PURCHASE OF THE POLICY.
  S 2. This act shall take effect immediately and  shall  apply  to  all
policies issued or renewed after such effective date.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11120-02-3