NY State Senate Bill 2009-S8110

Senate Bill S8110

2009-2010 Legislative Session

Directs the special advisory panel on homeowners' insurance/catastrophe coverage to study certain facets of profitability of insurance in coastal areas

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Archive: Last Bill Status - In Assembly Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 18, 2010	referred to insurance delivered to assembly passed senate ordered to third reading cal.1060
Jun 17, 2010	committee discharged and committed to rules
Jun 08, 2010	referred to insurance

Votes

- Jun 18, 2010 - Floor Vote
  S8110
  
  58
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  4
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 18, 2010
      
      aye (58)
      
      Adams
      
      Addabbo Jr.
      
      Alesi
      
      Aubertine
      
      Bonacic
      
      Breslin
      
      DeFrancisco
      
      Diaz
      
      Dilan
      
      Duane
      
      Espada
      
      Farley
      
      Flanagan
      
      Foley
      
      Fuschillo
      
      Griffo
      
      Hannon
      
      Hassell-Thompson
      
      Huntley
      
      Johnson
      
      Johnson
      
      Klein
      
      Krueger
      
      Kruger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Leibell
      
      Libous
      
      Little
      
      Marcellino
      
      Maziarz
      
      McDonald
      
      Montgomery
      
      Nozzolio
      
      Onorato
      
      Padavan
      
      Parker
      
      Peralta
      
      Perkins
      
      Ranzenhofer
      
      Robach
      
      Saland
      
      Sampson
      
      Savino
      
      Serrano
      
      Seward
      
      Skelos
      
      Smith
      
      Squadron
      
      Stachowski
      
      Stavisky
      
      Stewart-Cousins
      
      Thompson
      
      Valesky
      
      Volker
      
      Winner
      
      Young
      
      excused (4)
      
      Golden
      
      Morahan
      
      Oppenheimer
      
      Schneiderman
  Jun 18, 2010 - Rules Committee Vote
  S8110
  
  22
  
  Aye
  
  0
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 18, 2010
      
      aye (22)
      
      Dilan
      
      Duane
      
      Espada
      
      Farley
      
      Hannon
      
      Hassell-Thompson
      
      Johnson
      
      Klein
      
      Krueger
      
      LaValle
      
      Larkin
      
      Montgomery
      
      Padavan
      
      Parker
      
      Saland
      
      Serrano
      
      Skelos
      
      Smith
      
      Stachowski
      
      Stewart-Cousins
      
      Valesky
      
      Volker
      
      aye wr (1)
      
      Seward

co-Sponsors

2009-S8110 (ACTIVE) - Details

See Assembly Version of this Bill:: A11486
Current Committee:: Assembly Insurance
Law Section:: Insurance
Laws Affected:: Amd §12, Chap 42 of 1996; amd §23, Chap 136 of 2008
Versions Introduced in Other Legislative Sessions:: 2011-2012: S1027, A5215
2013-2014: S2338, A5312
2015-2016: S856, A6385
2017-2018: S3971, A7469

2009-S8110 (ACTIVE) - Summary

Directs the special advisory panel on homeowners' insurance/catastrophe coverage to study certain facets of profitability of insurance in coastal areas.

2009-S8110 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S8110

TITLE OF BILL:
An act to amend chapter 42 of the laws of 1996 amending the insurance
law relating to homeowners' insurance and a temporary panel on homeown-
ers' 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 extending the
effectiveness of certain stand-by powers of the New York property insur-
ance underwriting association, in relation to the program designed to
attract more competitors to the homeowners' insurance market

PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to expand the charge of the Temporary Panel
on Homeowners' Insurance coverage (the Panel) to devote particular
attention to the market dynamics in the coastal homeowners' insurance
market and to review federal legislation, in addition to state legisla-
tive activities regarding catastrophe related insurance coverages.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1: Amends Chapter 136 of the Laws of 2008 to expand the charge
of the Panel to include: A) reviewing federal legislative activities, in
addition to state legislative activities, related to catastrophe related
insurance coverages, B)evaluating the effectiveness of the voluntary
market assistance program with particular attention devoted to market

dynamics in the coastal homeowners insurance market, C) evaluating the
governmental capacity and effectiveness in responding to a catastrophic
weather event, D) evaluating the profitability of insurers that write
homeowners' insurance in this state and the profits or losses such
insurers sustain by writing coverages along this State's coast line, and
E) looking into the estimated cost of obtaining comparable homeowners'
insurance if their previous coverage has been cancelled.

Section 2: Amends section 23 of Chapter 136 of the Laws of 2008 to
encourage the Superintendent of Insurance to seek to new ways to identi-
fy new insurance carriers that may want to write homeowners' insurance
in the State's coastal areas to help replace those carriers that are
slowing withdrawing from this market. Encouraging more private carriers
to write coastal homeowners' insurance should help to increase the
availability of coastal homeowners' insurance and give consumers more
choice in this tightening market.

JUSTIFICATION:

For more than a decade, some of New York's largest homeowner insurance
carriers have been either gradually withdrawing or curtailing the issu-
ance of new policies in the coastal homeowner's insurance market.
While, due to national trends related to excess liability exposure in
coastal areas, it is prudent for some of these larger carriers to reduce
their liability exposure in coastal areas, it is important that New York

homeowners are able to access a variety of insurance products at afford-
able prices to cover their diverse insurance needs.

This bill expands the scope of the Panel to ensure that the Insurance
Department has sufficient information so that the Department can encour-
age other insurers to expand writings in this area or to enter the coas-
tal homeowners insurance market to replace, in an orderly manner, those
who are withdrawing from the market. Under current law, insurers are
required by law to notify the State Insurance Department of their plans
to withdraw from the market and to file a withdrawal plan. Further,
insurers are encouraged to take steps to ensure that their departure
from this segment of the market is conducted in an orderly manner to
minimize the disruption that is sure to be caused by so many homeowners
scrambling to secure replacement coverage.

This bill expands the scope of the Panel so that the insurance industry
(including insurance agents, brokers and carriers in both the admitted
and non-admitted market), in cooperation with the Department, can create
an environment that encourages more writings of homeowners insurance in
the State's coastal areas.

PRIOR LEGISLATIVE HISTORY:
New Bill.

FISCAL IMPLICATION:
None.

EFFECTIVE DATE:
Immediate.

2009-S8110 (ACTIVE) - Bill Text download pdf

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

                                  8110

                            I N  S E N A T E

                              June 8, 2010
                               ___________

Introduced  by  Sens.  KLEIN, BRESLIN -- read twice and ordered printed,
  and when printed to be committed 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.

                                                           LBD17451-02-0

S. 8110                             2

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.

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Senate Bill S8110

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Sponsored By

Jeffrey D. Klein