Bill Text: NY S04977 | 2021-2022 | General Assembly | Introduced

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Bill Title: Creates a homeowners' bill of rights; directs the superintendent of financial services to issue a consumer guide on insuring against catastrophic losses.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2022-01-05 - REFERRED TO INSURANCE [S04977 Detail]

Download: New_York-2021-S04977-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          4977

                               2021-2022 Regular Sessions

                    IN SENATE

                                    February 22, 2021
                                       ___________

        Introduced  by  Sen.  LANZA  -- 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 creating a homeowners'
          bill of rights and a consumer guide on insuring  against  catastrophic
          loss caused by natural disasters

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. The insurance law is amended by adding a new section 3444-a
     2  to read as follows:
     3    § 3444-a. Homeowners' bill of rights.  (a)  Any  insurer  that  writes
     4  personal  lines  insurance  or  commercial lines insurance policies that
     5  cover loss of or damage to real property, personal  property,  or  other
     6  liabilities  for  loss of or damage to property shall, upon issuance and
     7  renewal of any such policy or contract, provide to an insured or  poten-
     8  tial  insured  written  detailed  disclosure  in  a notice prescribed or
     9  approved by the superintendent describing clearly and in plain  language
    10  the following:
    11    (1)  any  and  all  coverage  for  loss caused by certain occurrences,
    12  including but not limited to fire, wind, windstorm, mudslide, hurricane,
    13  snow, ice, water surge, or flood, coverages provided under  the  policy,
    14  any limitations on or exclusions from coverage, circumstances that would
    15  invalidate  coverage  under  the policy, any applicable deductibles, and
    16  when such deductibles shall be triggered;
    17    (2) all information related to claims  investigation  and  processing,
    18  including but not limited to the process by which the insured may file a
    19  claim,  all  applicable  time frames required by law and regulation, all
    20  necessary proof of loss information and other  information  the  insurer
    21  may  require from the insured, the process by which the insured may file
    22  a complaint with the department, and any other information deemed neces-
    23  sary by the superintendent;

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06999-01-1
        S. 4977                             2

     1    (3) any and all rights a claimant has under the laws and policy when a
     2  claim is denied or when the claimant rejects a settlement offer from the
     3  insurer, including their right to file a complaint with the department;
     4    (4)  that  the  provisions  of  this policy may be modified or changed
     5  pursuant to state or federal law when a  local  state  of  emergency  is
     6  declared  pursuant to section twenty-four of the executive law, when the
     7  governor declares a disaster emergency pursuant to section  twenty-eight
     8  of  the executive law, or when the President of the United States issues
     9  a major disaster or emergency declaration  pursuant  to  the  Robert  T.
    10  Stafford  Disaster Relief and Emergency Assistance Act (P.L. 93-288) and
    11  how the insured may obtain information about any such  modifications  or
    12  changes;
    13    (5)  information on how the insured may contact the insurer, including
    14  the insurer's business hours, mailing address, phone number, fax number,
    15  website address and email; and
    16    (6) information on how the insured can obtain the  consumer  guide  on
    17  insuring  against catastrophic losses created by the department pursuant
    18  to section three hundred thirty-eight of  this  chapter  and  any  other
    19  guides, pamphlets, or other information the department has made publicly
    20  available that would be beneficial to the insured.
    21    (b)  In  the  event  that  a  policy subject to subsection (a) of this
    22  section does not include coverage for damage  as  a  result  of  weather
    23  conditions,  natural  disasters, or other occurrences, including but not
    24  limited to fire, wind, windstorm, mudslide, hurricane, snow, ice,  water
    25  surge,  or  flood,  the  insurer  or  producer  shall, upon issuance and
    26  renewal of any such policy or contract, provide to an insured or  poten-
    27  tial  insured  information on any additional coverage options, including
    28  additional policies and riders, the New York Property  Insurance  Under-
    29  writing Association, the Coastal Market Assistance Program, the National
    30  Flood  Insurance  Program,  and any other options authorized by state or
    31  federal law.
    32    § 2. Paragraphs 7 and 8 of subsection  (a)  of  section  2601  of  the
    33  insurance  law, paragraph 7 as amended and paragraph 8 as added by chap-
    34  ter 458 of the laws of 2018, are amended and a new paragraph 9 is  added
    35  to read as follows:
    36    (7)  submitting  reasonably rendered claims to the independent dispute
    37  resolution process  established  under  article  six  of  the  financial
    38  services law; [or]
    39    (8)  artificially  deflating  or otherwise lowering cost data used for
    40  adjusted claims, or using cost data that  is  not  appropriate  for  the
    41  region  of  the state where the loss occurred; this shall include but is
    42  not limited to claims adjusted by a person  issued  a  temporary  permit
    43  pursuant  to subsection (n) of section two thousand one hundred eight of
    44  this chapter[.]; or
    45    (9) knowingly misrepresenting or failing to provide pertinent facts of
    46  policy provisions to claimants as required  by  section  three  thousand
    47  four  hundred  forty-four-a  of this chapter and not complying with such
    48  policy provisions, including established time frames for  investigation,
    49  claims processing and settlement, and payment of claims.
    50    §  3. The insurance law is amended by adding a new section 338 to read
    51  as follows:
    52    § 338. Consumer guide on insuring against catastrophic losses. (a) Six
    53  months after the effective date  of  this  section,  the  superintendent
    54  shall  issue  and  update,  as  necessary,  a consumer guide on insuring
    55  against catastrophic losses that shall contain comprehensive information
        S. 4977                             3

     1  written in plain language in a clear and understandable format,  includ-
     2  ing the following:
     3    (1)  the  ways in which different types of weather conditions, natural
     4  disasters, or other occurrences can cause catastrophic losses, including
     5  but not limited to damage from fire, wind, windstorm,  mudslide,  hurri-
     6  cane, snow, ice, extreme cold, water surge, and flood;
     7    (2)  the  types  of  insurance available that provide coverage against
     8  catastrophic losses for both homeowners and  businesses,  a  listing  of
     9  companies that provide such coverage, and recommendations as to how best
    10  to  shop for and compare prices, service and quality of insurance cover-
    11  age;
    12    (3) a list of the exclusions typically  found  in  such  coverage  and
    13  information  on  how a consumer may obtain coverage for such exclusions,
    14  including a listing of companies  that  provide  such  coverage  and  an
    15  explanation of, information on, and the types of coverage available from
    16  the  New  York  Property Insurance Underwriters Association, the Coastal
    17  Market Assistance Program, and the National Flood Insurance Program, and
    18  other options authorized by state or federal law;
    19    (4) steps a consumer can take to prepare for  a  natural  disaster  or
    20  other catastrophic loss;
    21    (5)  steps  a consumer can take following a catastrophic loss in order
    22  to facilitate the timely processing of the  consumer's  insurance  claim
    23  and an explanation of policyholders' rights as provided in law and regu-
    24  lation; and
    25    (6)  a  department  toll  free  consumer  hot-line and website address
    26  through which consumers may initiate  complaints,  and  request  general
    27  information about insurance.
    28    (b)  The  requirements set forth in subsection (a) of this section may
    29  be satisfied by separate or supplemental publications and updates.
    30    (c) The superintendent shall  post  the  consumer  guide  on  insuring
    31  against catastrophic losses on the department's website.
    32    § 4. This act shall take effect immediately.