S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  11486

                          I N  A S S E M B L Y

                              June 17, 2010
                               ___________

Introduced  by COMMITTEE ON RULES -- (at request of M. of A. Latimer) --
  read once and referred to the Committee on Insurance

AN ACT to amend chapter 42 of the laws of 1996  amending  the  insurance
  law  relating  to homeowners' insurance and a temporary panel on home-
  owners' insurance coverage, in relation to the special advisory  panel
  on  homeowners'  insurance/catastrophe  coverage; and to amend chapter
  136 of the laws of 2008 amending the insurance law relating to extend-
  ing the effectiveness of certain stand-by powers of the New York prop-
  erty insurance underwriting association, in relation  to  the  program
  designed  to  attract  more  competitors  to the homeowners' insurance
  market

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

  Section  1.  Subdivision  1 of section 12 of chapter 42 of the laws of
1996 amending the insurance law relating to homeowners' insurance and  a
temporary panel on homeowners' insurance coverage, as amended by chapter
136 of the laws of 2008, is amended to read as follows:
  (1)  The  superintendent  of insurance is hereby directed to convene a
special advisory panel on homeowners' insurance/catastrophe coverage, to
examine and assess the problems affecting the availability and  afforda-
bility  of  homeowners'  insurance  in this state and the effect thereon
created by any potential major weather catastrophe.    The  panel  shall
study  and  report  on  the  following  issues on or before November 30,
[2009] 2010, and on an [annual] BIENNIAL basis thereafter:
  (a) a review of  FEDERAL  LEGISLATION  AND  other  states'  activities
regarding  catastrophe related coverage, including but not limited to an
evaluation of the experience under the California  Earthquake  Authority
and  the  Florida  [Commission on Hurricane Loss Projection Methodology]
HURRICANE CATASTROPHE FUND;
  (b) an evaluation of the effectiveness of any voluntary market assist-
ance program in effect in New York WITH PARTICULAR ATTENTION DEVOTED  TO
MARKET DYNAMICS IN THE COASTAL HOMEOWNERS' INSURANCE MARKET;
  (c) an evaluation of the feasibility or experience, if any, of the New
York  property  insurance  underwriting  association writing homeowners'

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

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insurance policies or reinsuring  such  policies  when  written  in  the
voluntary market under certain market conditions;
  (d)  an  evaluation of the feasibility of the New York property insur-
ance underwriting association issuing bonds or establishing other finan-
cial mechanisms for catastrophe insurance coverage; and an evaluation of
the feasibility of establishing a state-wide catastrophe insurance fund;
  (e) an evaluation of the feasibility of the New York  property  insur-
ance underwriting association acting as a servicing carrier for policies
written  pursuant  to parts 61 and 62 of title 44 of the Code of Federal
Regulations;
  (f) an evaluation of existing state and local building codes  and  the
feasibility  of  implementing  new  building  practices  and  structural
improvement retrofitting, to mitigate damage from a major weather catas-
trophe;
  (g) an evaluation of insurer AND GOVERNMENTAL capacity and  effective-
ness  in the event of a catastrophic weather occurrence, including rein-
surance capacity and effectiveness, windstorm deductibles and multi-tier
programs, AND OTHER RISK SHARING MECHANISMS;
  (h) an evaluation of insurer preparedness in the recovery,  rebuilding
and renewal processes following weather-related losses; [and]
  (i)  an  evaluation of public awareness of storm risks and programs to
educate the public of storm risks and mitigation techniques[.]; AND
  (J) AN EVALUATION OF THE PROFITABILITY OF INSURERS THAT WRITE HOMEOWN-
ER'S INSURANCE IN COASTAL AREAS OF THIS STATE AND THE PROFITS OR  LOSSES
SUCH  INSURERS  SUSTAIN  BY WRITING COVERAGES ALONG THIS STATE'S COASTAL
AREAS. THE PANEL SHALL SPECIFICALLY ANALYZE THE REASONS WHY AND RATE  AT
WHICH INSURERS MAY BE WITHDRAWING FROM THE COASTAL HOMEOWNERS' INSURANCE
MARKET  AND  INORDINARILY  CANCELLING  SUCH  POLICIES  OR  SUBSTANTIALLY
INCREASING INSURANCE PREMIUM RATES IN SUCH MARKET.  FURTHER,  THE  PANEL
SHALL  STUDY  THE  COST  OF OBTAINING COMPARABLE REPLACEMENT HOMEOWNER'S
COVERAGE FOR THOSE INSUREDS WHO HAVE  BEEN  CANCELLED  IN  SUCH  COASTAL
AREAS.  FOR  THE PURPOSES OF THIS SUBDIVISION, THE TERM COASTAL HOMEOWN-
ERS' INSURANCE MARKET SHALL MEAN THOSE AREAS THAT ARE WITHIN ONE MILE OF
A SALTWATER OCEAN, SOUND, INLET OR BAY IN THE  COUNTIES  OF  THE  BRONX,
KINGS, NASSAU, QUEENS, RICHMOND, SUFFOLK, AND WESTCHESTER.
  S 2. Subdivision (a) of section 23 of chapter 136 of the laws of 2008,
amending  the  insurance  law relating to extending the effectiveness of
certain stand-by powers of the New York property insurance  underwriting
association, is amended to read as follows:
  (a) The superintendent of insurance shall implement a program designed
to  attract more competitors to the state's homeowners' insurance market
PARTICULARLY WITH RESPECT TO THOSE COMMUNITIES THAT ARE WITHIN ONE  MILE
OF  A SALTWATER OCEAN, SOUND, INLET OR BAY IN THE COUNTIES OF THE BRONX,
KINGS, NASSAU, QUEENS, RICHMOND, SUFFOLK, AND WESTCHESTER.  The  program
shall include, but shall not be limited to:
  (1)  identifying,  contacting  and  soliciting feedback from national,
regional and other insurance carriers not currently  writing  homeowners
insurance in the state to determine their interest in selling homeowners
insurance in the state;
  (2)  adopting  specific  measures  to  encourage such insurers to sell
homeowners' insurance in the state; and
  (3) documenting those issues or concerns such  insurers  may  cite  as
barriers to selling homeowners insurance in the state.
  S 3. This act shall take effect immediately.