S T A T E O F N E W Y O R K
________________________________________________________________________
6782--B
I N S E N A T E
March 10, 2014
___________
Introduced by Sens. KLEIN, SAVINO, AVELLA -- read twice and ordered
printed, and when printed to be committed to the Committee on Insur-
ance -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee -- committee discharged,
bill amended, ordered reprinted as amended and recommitted to said
committee
AN ACT to amend the insurance law, in relation to reduction in rates of
property/casualty insurance on residential property for insureds who
complete an approved homeowner natural disaster, home safety and loss
prevention preparedness course
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Short title. This act shall be known and may be cited as
the "homeowner natural disaster, home safety and loss prevention
preparedness program".
S 2. Legislative intent. The legislature declares that the purposes of
this act are to provide homeowners, condominium owners, cooperative
apartment owners, and renters with an incentive to take a course of
instruction on how to make their residence more resilient to a natural
disaster, reduce the potential loss of life or property damage that
could result from a natural disaster, reduce the risk of fire, theft,
burglary, personal injury or property damage, and raise their awareness
of natural disaster preparedness by offering property/casualty insurance
premium reductions.
S 3. The section heading of section 2346 of the insurance law, as
amended by chapter 637 of the laws of 1993, is amended and a new
subsection 5 is added to read as follows:
Reduction in rates of fire insurance [or], homeowners insurance OR
PROPERTY/CASUALTY premiums for residential property.
5. (A) DEFINITIONS. FOR THE PURPOSES OF THIS SUBSECTION, THE FOLLOWING
TERMS SHALL HAVE THE FOLLOWING MEANINGS:
(1) "COMPLETION CERTIFICATE" MEANS A DOCUMENT WHICH CANNOT BE ALTERED
AND WHICH IS PROVIDED TO A PERSON WHO SUCCESSFULLY COMPLETES A HOMEOWNER
NATURAL DISASTER PREPAREDNESS, HOME SAFETY AND LOSS PREVENTION COURSE.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13992-06-4
S. 6782--B 2
(2) "NATURAL DISASTER" MEANS THE OCCURRENCE OR IMMINENT THREAT OF
WIDESPREAD OR SEVERE DAMAGE, INJURY, OR LOSS OF LIFE OR PROPERTY RESULT-
ING FROM ANY NATURAL CAUSE INCLUDING, BUT NOT LIMITED TO, FIRE, FLOOD,
EARTHQUAKE, HURRICANE, TORNADO, HIGH WATER, LANDSLIDE, MUDSLIDE, WIND,
STORM, WAVE ACTION, ICE STORM, EPIDEMIC, AIR CONTAMINATION, BLIGHT,
DROUGHT, INFESTATION, EXPLOSION, WATER CONTAMINATION, BRIDGE FAILURE, OR
BRIDGE COLLAPSE.
(3) "HOMEOWNER NATURAL DISASTER, HOME SAFETY AND LOSS PREVENTION
PREPAREDNESS COURSE" MEANS A NATURAL DISASTER PREPAREDNESS, HOME SAFETY
AND LOSS PREVENTION COURSE APPROVED BY THE SUPERINTENDENT, IN CONSULTA-
TION WITH THE COMMISSIONER OF THE DIVISION OF HOMELAND SECURITY AND
EMERGENCY SERVICES, PURSUANT TO PARAGRAPH (D) OF THIS SUBSECTION. SUCH
COURSE SHALL PROVIDE USEFUL INFORMATION TO PARTICIPANTS ON ITEMS INCLUD-
ING, BUT NOT LIMITED TO: COURSES OF ACTION THAT CAN BE TAKEN BEFORE,
DURING AND AFTER THE OCCURRENCE OF A NATURAL DISASTER, STRATEGIES TO
REDUCE RISK EXPOSURE TO INSURED RESIDENTIAL PROPERTY OWNERS AND RENTERS,
AND INFORMATION ABOUT THE INSTALLATION OF EQUIPMENT, DEVICES OR OTHER
CAPITAL IMPROVEMENTS TO REAL PROPERTY WHICH CAN HELP TO ELIMINATE OR
MITIGATE DAMAGE TO REAL OR PERSONAL PROPERTY, PERSONAL INJURY OR THE
LOSS OF LIFE CAUSED BY A NATURAL DISASTER OR OTHER INSURABLE EVENT OR
OCCURRENCE OF A FIRE, THEFT, BURGLARY, PERSONAL INJURY OR PROPERTY
DAMAGE.
(B) THE SUPERINTENDENT MAY PROVIDE FOR AN ACTUARIALLY APPROPRIATE
REDUCTION FOR A PERIOD OF THREE YEARS IN RATES OF HOMEOWNER'S INSURANCE
AND PROPERTY/CASUALTY INSURANCE PREMIUMS APPLICABLE TO RESIDENTIAL REAL
PROPERTY FOR EACH TRIENNIAL COMPLETION OF A HOMEOWNER NATURAL DISASTER
PREPAREDNESS, HOME SAFETY AND LOSS PREVENTION COURSE BY THE INSURED
OCCUPANT OF SUCH RESIDENTIAL REAL PROPERTY. IN ADDITION, THE SUPER-
INTENDENT MAY ALSO PROVIDE FOR ACTUARIALLY APPROPRIATE REDUCTIONS IN
SUCH RATES FOR THE INSTALLATION OF EQUIPMENT, DEVICES OR OTHER CAPITAL
IMPROVEMENTS TO REAL PROPERTY WHICH CAN HELP TO ELIMINATE OR MITIGATE
NATURAL DISASTER DAMAGE, IMPROVE HOME SAFETY OR PREVENT OTHER LOSSES.
(C) AN INSURER, UPON APPROVAL OF THE SUPERINTENDENT, MAY UPON
SUBMISSION OF A COMPLETION CERTIFICATE BY AN INSURED, PROVIDE AN ACTUAR-
IALLY APPROPRIATE REDUCTION, FOR A PERIOD OF THREE YEARS, OF THE PREMIUM
FOR SUCH INSURED'S HOMEOWNER'S INSURANCE OR PROPERTY/CASUALTY INSURANCE
ON THE RESIDENTIAL REAL PROPERTY WHICH IS THE INSURED'S PLACE OF RESI-
DENCE.
(D) THE SUPERINTENDENT, IN CONSULTATION WITH THE COMMISSIONER OF THE
DIVISION OF HOMELAND SECURITY AND EMERGENCY SERVICES, SHALL ESTABLISH,
BY RULE, STANDARDS AND A CURRICULUM FOR HOMEOWNER NATURAL DISASTER
PREPAREDNESS, HOME SAFETY AND LOSS PREVENTION COURSES. EVERY SUCH
COURSE SHALL BE APPROVED BY THE SUPERINTENDENT AND SUCH COMMISSIONER.
S 4. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law; provided, however,
that effective immediately, any actions necessary to be taken for the
implementation of the provisions of this act on its effective date are
authorized and directed to be completed on or before such effective
date.
