S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1082
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 14, 2019
                                ___________
 
 Introduced  by  M.  of  A. M. G. MILLER -- read once and referred to the
   Committee on Insurance
 
 AN ACT to amend the insurance law, in relation to the denial of  certain
   insurance  claims; and to amend the general municipal law, in relation
   to requiring certain municipal and government entities to notify mort-
   gagees and lien holders  when  such  entities  are  denied  access  to
   inspect certain real properties
 
   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 3407-b
 to read as follows:
   § 3407-B. DENIAL OF CERTAIN CLAIMS FOR REAL PROPERTY.  1.  AN  INSURER
 MAY  DENY PAYMENTS FOR ANY CLAIM FOR REAL PROPERTY LOSS OR DAMAGE, WHERE
 SUCH REAL PROPERTY HAS BEEN ILLEGALLY CONVERTED OR ALTERED AND WHERE THE
 OWNER OF SUCH REAL PROPERTY DENIES A MUNICIPAL  OR  GOVERNMENTAL  ENTITY
 ACCESS  TO  SUCH  REAL  PROPERTY FOR THE PURPOSE OF INSPECTING SUCH REAL
 PROPERTY FOR LOCAL CODE OF ORDINANCE VIOLATIONS.
   2. FOR PURPOSES OF THIS SECTION,  THE  TERM  "ILLEGALLY  CONVERTED  OR
 ALTERED"  SHALL  INCLUDE THE CONVERSION OF ANY STRUCTURE INTO A RESIDEN-
 TIAL DWELLING WHICH VIOLATES ANY APPLICABLE  ZONING  OR  BUILDING  ORDI-
 NANCE,  CODE  OR  LAW  OR  WHICH HAS NOT RECEIVED A VALID CERTIFICATE OF
 OCCUPANCY OR ANY OTHER  CERTIFICATE,  NOTICE,  FORM  OR  OTHER  DOCUMENT
 RELATING TO AUTHORIZED OCCUPANCY OR PERMISSIBLE USAGE WHICH IS ISSUED BY
 A  MUNICIPAL  OR  GOVERNMENTAL  ENTITY  HAVING  JURISDICTION  OVER  SUCH
 MATTERS.
   § 2. The general municipal law is amended by adding a new section 99-x
 to read as follows:
   § 99-X. INSPECTION FOR LOCAL CODE OR ORDINANCE VIOLATIONS. ANY MUNICI-
 PAL OR GOVERNMENTAL ENTITY HAVING JURISDICTION OVER ZONING  OR  BUILDING
 ORDINANCES,  CODES  OR  LAWS  OR  CERTIFICATES OF OCCUPANCY OR ANY OTHER
 CERTIFICATES, NOTICES, FORMS OR OTHER DOCUMENTS RELATING  TO  AUTHORIZED
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD00146-01-9

 A. 1082                             2
 
 OCCUPANCY  OR PERMISSIBLE USAGE, WHICH HAS BEEN DENIED ACCESS TO INSPECT
 A PREMISES WHICH IS  SUSPECTED  TO  HAVE  BEEN  ILLEGALLY  CONVERTED  OR
 ALTERED,  SHALL  NOTIFY  ALL MORTGAGEES OR ANY OTHER LIEN HOLDERS OF THE
 PROPERTY THAT SUCH INSPECTION HAS BEEN DENIED.
   § 3. This act shall take effect immediately.