NY State Senate Bill 2011-S4926

Senate Bill S4926

2011-2012 Legislative Session

Requires insurers who underwrite property and casualty policies in the state to cover costs associated with bedbug infestations

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Archive: Last Bill Status - In Senate Committee Insurance 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

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 04, 2012	referred to insurance
Jun 21, 2011	print number 4926a
Jun 21, 2011	amend and recommit to insurance
Apr 29, 2011	referred to insurance

Bill Amendments

Original

A (Active)

2011-S4926 - Details

Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Amd §3407-a, Ins L

2011-S4926 - Summary

Requires insurers who underwrite property and casualty policies in the state to cover costs associated with bedbug infestations.

2011-S4926 - Sponsor Memo

                                BILL NUMBER:S4926

TITLE OF BILL:
An act
to amend the insurance law, in relation to requiring insurers who
underwrite property and casualty policies in the state to cover costs
associated with bedbug infestations
in residential buildings

PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to
require property/casualty insurers that underwrite residential
property damage coverages to offer an optional bedbug insurance
coverage damage rider for New Yorkers that wish to purchase such a
bedbug rider. This bill will allow those who experience a financial
loss as a result of a bedbug infestation in their residence to be
covered for those losses incurred due to such infestation. This
policy rider option must be made available to homeowners, renters,
condominium and co-op unit owners.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1: Amends Insurance Law section 3407-a to require that all
property/casualty insurers provide consumers with an option to
purchase a insurance contract rider that covers losses due to a home
bedbug infestation.

Under this rider, coverage will include compensation for costs related
to: a) extermination services, b) cleaning of the dwelling to rid the
place of bedbugs and bedbug waste products, c) cleaning an insured's
personal property located at the insured premises such as dry
cleaning of clothing and bedding, and d) the replacement of items
which are not able to be treated or cleaned, including, but not
limited to mattresses or furniture.

JUSTIFICATION:
Nearly every day, another report surfaces about a
bedbug infestation in New York City. In fact, a recent survey
conducted by the pest control company Terminix found that Manhattan
ranked number one in the list of the top 15 most bedbug infested
cities. Besides homes, bedbugs have also been found in upscale
department stores, movie theaters, hospitals, and the Brooklyn
District Attorney's Office.

Individuals report spending great sums of money to treat, clean and
replace infested items, usually totaling in the thousands of dollars.
The psychological, physical and financial toll of enduring a bedbug
infestation is well documented. By offering an optional insurance
contract rider against the damage caused by bedbugs, residents will
be given the opportunity to protect themselves in the event of an
infestation. The need for bedbug insurance should be viewed no
differently than those types of insurance which cover losses from
other fortuitous events such as theft, water damage, fire, or other
types of damage.

PRIOR LEGISLATIVE HISTORY:
New Bill.


FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This law shall take effect on the ninetieth day after
it shall have become law.

2011-S4926 - Bill Text download pdf

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

                                  4926

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             April 29, 2011
                               ___________

Introduced  by  Sen.  KLEIN  -- 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 requiring insurers who
  underwrite property and casualty policies in the state to cover  costs
  associated with bedbug infestations in residential buildings

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

  Section 1. Section 3407-a of the insurance law, as  added  by  chapter
306 of the laws of 2001, is amended to read as follows:
  S  3407-a.  Property/casualty  insurance  contract and policy standard
provisions. No property/casualty insurance policy or contract  shall  be
issued  or  issued  for  delivery  on a risk located or resident in this
state insuring against damage to the insured's real property  unless  it
contains  in  substance  the  following  [provision]  PROVISIONS  or  [a
provision] OTHER PROVISIONS which [is] ARE equal or  more  favorable  to
the insured:
  (A)  a  provision  that  in the event of a pending claim for damage to
real property, upon request, the insurer shall furnish to the  insured's
representative,  designated  in writing, or if none has been designated,
to the insured, a copy of any written estimate or estimates of the  cost
of  damages  to  real property resulting from the loss which the insurer
has independently prepared for its own purposes, or had prepared on  its
behalf  for  its  own  purposes,  specifying all appropriate deductions,
within thirty days after the request or preparation, whichever is later,
of such estimate or estimates. An  insurer  shall  not  be  required  to
provide an estimate on claims for damages to real property unless it has
independently  prepared  one  or  had one prepared on its behalf for the
insurer's own purposes; AND
  (B) FOR INSURANCE POLICIES ISSUED OR ISSUED FOR DELIVERY ON A RISK  TO
PROPERTY  ZONED,  FOR  RESIDENTIAL USE, IN WHOLE OR IN PART, A PROVISION
PROVIDING FOR OPTIONAL COVERAGE WHEREBY THE INSURER SHALL PAY THE  COSTS

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08378-01-1

S. 4926                             2

ASSOCIATED  WITH  THE  TREATMENT  OF  BEDBUG INFESTATIONS AT THE INSURED
PROPERTY, INCLUDING ALL COSTS  FOR  EXTERMINATION  SERVICES;  COSTS  FOR
CLEANING OF THE INSURED PROPERTY AND OF PERSONAL PROPERTY LOCATED AT THE
INSURED PREMISES INCLUDING THE DRY-CLEANING OF CLOTHING AND BEDDING; AND
THE  COST OF REPLACING ITEMS WHICH ARE NOT ABLE TO BE TREATED OR CLEANED
INCLUDING, BUT NOT LIMITED TO, MATTRESSES OR FURNITURE.  ALL SUCH INSUR-
ANCE COVERAGE SHALL BE PROVIDED ONLY AT THE OPTION OF  THE  INSURED  AND
SHALL  BE PROVIDED AT ADDITIONAL COST TO THE INSURED.  THE PROVISIONS OF
THIS  SUBSECTION  SHALL  APPLY  TO  ALL   HOMEOWNER'S,   RENTER'S,   AND
CONDO/CO-OP UNIT INSURANCE POLICIES ISSUED IN THE STATE.
  S  2.  This  act shall take effect on the ninetieth day after it shall
have become a law; provided, however, that  effective  immediately,  the
superintendent of insurance is authorized and directed to promulgate all
rules,  regulations  and  standards  necessary for the implementation of
this act on or before such effective date, including,  but  not  limited
to,  determining  procedures  for submission to and payment of claims by
insurers and for determining the extent of a bedbug infestation.

2011-S4926A (ACTIVE) - Details

Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Amd §3407-a, Ins L

2011-S4926A (ACTIVE) - Summary

Requires insurers who underwrite property and casualty policies in the state to cover costs associated with bedbug infestations.

2011-S4926A (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S4926A

TITLE OF BILL:
An act to amend the insurance law, in relation to requiring insurers who
underwrite property and casualty policies in the state to cover costs
associated with bedbug infestations in residential buildings

PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to require property/casualty insurers that
underwrite residential property damage coverages to offer an optional
bedbug insurance coverage damage rider for New Yorkers that wish to
purchase such a bedbug rider. This bill will allow those who experience
a financial loss as a result of a bedbug infestation in their residence
to be covered for those losses incurred due to such infestation. This
policy rider option must be made available to homeowners, renters,
condominium and co-op unit owners.

SUMMARY OF SPECIFIC PROVISIONS:
Section 1: Amends Insurance Law section 3407-a to require that all
property/casualty insurers provide consumers with an option to purchase
a insurance contract rider that covers losses due to a home bedbug
infestation. Under this rider, coverage will include compensation for
costs related to: a) extermination services, b) cleaning of the dwelling
to rid the place of bedbugs and bedbug waste products, c) cleaning an
insured's personal property located at the insured premises such as dry
cleaning of clothing and bedding, and d) the replacement of items which

are not able to be treated or cleaned, including, but not limited to
mattresses or furniture.

JUSTIFICATION:
Nearly every day, another report surfaces about a bedbug infestation in
New York City. In fact, a recent survey conducted by the pest control
company Terminix found that Manhattan ranked number one in the list of
the top 15 most bedbug infested cities. Besides homes, bedbugs have also
been found in upscale department stores, movie theaters, hospitals, and
the Brooklyn District Attorney's Office.

Individuals report spending great sums of money to treat, clean and
replace infested items, usually totaling in the thousands of dollars.
The psychological, physical and financial toll of enduring a bedbug
infestation is well documented. By offering an optional insurance
contract rider against the damage caused by bedbugs, residents will be
given the opportunity to protect themselves in the event of an infesta-
tion. The need for bedbug insurance should be viewed no differently than
those types of insurance which cover losses from other fortuitous events
such as theft, water damage, fire, or other types of damage.

This bill has been amended once for technical reasons and to include a
requirement that the exterminator be licensed and sets a limit to the
amount an insured can recover at five thousand dollars for residences
under two thousand square feet and ten thousand for those over.

PRIOR LEGISLATIVE HISTORY:
New Bill.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This law shall take effect on the 180th day after it shall have become
law.

2011-S4926A (ACTIVE) - Bill Text download pdf

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

                                 4926--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             April 29, 2011
                               ___________

Introduced  by  Sen.  KLEIN  -- read twice and ordered printed, and when
  printed to be committed to the Committee  on  Insurance  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN ACT to amend the insurance law, in relation to requiring insurers who
  underwrite  property and casualty policies in the state to cover costs
  associated with bedbug infestations in residential buildings

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

  Section  1.  Section  3407-a of the insurance law, as added by chapter
306 of the laws of 2001, is amended to read as follows:
  S 3407-a. Property/casualty insurance  contract  and  policy  standard
provisions.  No  property/casualty insurance policy or contract shall be
issued or issued for delivery on a risk  located  or  resident  in  this
state  insuring  against damage to the insured's real property unless it
contains  in  substance  the  following  [provision]  PROVISIONS  or  [a
provision]  OTHER  PROVISIONS  which [is] ARE equal or more favorable to
the insured:
  (A) a provision that in the event of a pending  claim  for  damage  to
real  property, upon request, the insurer shall furnish to the insured's
representative, designated in writing, or if none has  been  designated,
to  the insured, a copy of any written estimate or estimates of the cost
of damages to real property resulting from the loss  which  the  insurer
has  independently prepared for its own purposes, or had prepared on its
behalf for its own  purposes,  specifying  all  appropriate  deductions,
within thirty days after the request or preparation, whichever is later,
of  such  estimate  or  estimates.  An  insurer shall not be required to
provide an estimate on claims for damages to real property unless it has
independently prepared one or had one prepared on  its  behalf  for  the
insurer's own purposes; AND

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08378-07-1

S. 4926--A                          2

  (B) (1) FOR INSURANCE POLICIES ISSUED OR ISSUED FOR DELIVERY ON A RISK
TO PROPERTY ZONED, FOR RESIDENTIAL USE, IN WHOLE OR IN PART, A PROVISION
PROVIDING  FOR OPTIONAL COVERAGE WHEREBY THE INSURER SHALL PAY THE COSTS
ASSOCIATED WITH THE TREATMENT, BY A  LICENSED  EXTERMINATOR,  OF  BEDBUG
INFESTATIONS  AT  THE INSURED PROPERTY, INCLUDING ALL COSTS FOR EXTERMI-
NATION SERVICES; COSTS FOR CLEANING  OF  THE  INSURED  PROPERTY  AND  OF
PERSONAL PROPERTY LOCATED AT THE INSURED PREMISES INCLUDING THE DRY-CLE-
ANING OF CLOTHING AND BEDDING; AND THE COST OF REPLACING ITEMS WHICH ARE
NOT  ABLE  TO  BE  TREATED  OR  CLEANED  INCLUDING,  BUT NOT LIMITED TO,
MATTRESSES OR FURNITURE.  THE INSURED SHALL HAVE THE RIGHT TO SELECT HIS
OR HER PREFERRED METHOD OF EXTERMINATION FROM THE  SERVICES  OFFERED  BY
ANY LICENSED EXTERMINATOR.
  (2)  INSURANCE  COVERAGE TO REIMBURSE THE COSTS OF TREATMENT OF BEDBUG
INFESTATIONS AT AN INSURED  PROPERTY  SHALL  NOT  EXCEED  FIVE  THOUSAND
DOLLARS FOR RESIDENCES OF TWO THOUSAND SQUARE FEET OR LESS AND TEN THOU-
SAND DOLLARS FOR RESIDENCES OF OVER TWO THOUSAND SQUARE FEET.
  (3) ALL INSURANCE COVERAGE SHALL BE PROVIDED ONLY AT THE OPTION OF THE
INSURED AND SHALL BE PROVIDED AT ADDITIONAL COST TO THE INSURED.
  (4)  THE PROVISIONS OF THIS SUBSECTION SHALL APPLY TO ALL HOMEOWNER'S,
RENTER'S, AND CONDO/CO-OP UNIT INSURANCE POLICIES, OR RENEWALS  OF  SUCH
POLICIES,  ISSUED  IN  THE  STATE ON OR AFTER THE EFFECTIVE DATE OF THIS
SUBSECTION.
  S 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law; provided, however, that effective immediate-
ly, the superintendent  of  insurance  is  authorized  and  directed  to
promulgate all rules, regulations and standards necessary for the imple-
mentation  of  this act on or before such effective date, including, but
not limited to, determining procedures for submission to and payment  of
claims  by  insurers and for determining the extent of a bedbug infesta-
tion.

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