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

                                  9085

                          I N  A S S E M B L Y

                            January 25, 2016
                               ___________

Introduced  by  M.  of  A. CRESPO, SEPULVEDA, RODRIGUEZ -- read once and
  referred to the Committee on Insurance

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  preparedness,  home
  safety and loss prevention course

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

  Section 1.   Legislative intent. The  legislature  declares  that  the
purpose  of  this  act  is to clearly provide in statute for insurers to
offer and for  homeowners,  condominium  owners,  cooperative  apartment
owners,  and  renters to obtain a financial incentive if they complete 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  2.  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.
  (2)  "NATURAL  DISASTER"  MEANS  THE  OCCURRENCE OR IMMINENT THREAT OF
WIDESPREAD CATASTROPHIC OR SEVERE DAMAGE, INJURY, OR  LOSS  OF  LIFE  OR
PROPERTY RESULTING 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  CONTAM-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03953-03-6
              

A. 9085                             2

INATION,  BLIGHT,  DROUGHT, INFESTATION, EXPLOSION, WATER CONTAMINATION,
BRIDGE FAILURE, OR BRIDGE COLLAPSE.
  (3)  "HOMEOWNER  NATURAL  DISASTER  PREPAREDNESS, HOME SAFETY AND LOSS
PREVENTION COURSE" MEANS A NATURAL DISASTER  PREPAREDNESS,  HOME  SAFETY
AND LOSS PREVENTION COURSE THAT HAS BEEN SUBMITTED TO THE SUPERINTENDENT
FOR  APPROVAL BY AN APPLICANT, AND WHICH HAS BEEN APPROVED BY THE SUPER-
INTENDENT, PURSUANT TO PARAGRAPH (D) OF THIS SUBSECTION.    SUCH  COURSE
SHALL PROVIDE USEFUL INFORMATION TO PARTICIPANTS ON ITEMS INCLUDING, 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 INFOR-
MATION 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.
  (4) "APPLICANT" MEANS AN INSURER,  OR  ANY  OTHER  PERSON,  AGENCY  OR
ORGANIZATION   WHICH  SUBMITS  A  PROPOSED  HOMEOWNER  NATURAL  DISASTER
PREPAREDNESS, HOME SAFETY AND LOSS PREVENTION COURSE TO THE  SUPERINTEN-
DENT  FOR APPROVAL PURSUANT TO PARAGRAPH (D) OF THIS SUBSECTION, AND WHO
OR WHICH IS PREPARED AND ABLE TO OFFER SUCH COURSE TO INSUREDS UPON  THE
APPROVAL THEREOF.
  (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 MAY ESTABLISH, BY RULE OR OTHERWISE, STANDARDS
OR GUIDELINES TO BE USED BY  THE  SUPERINTENDENT  FOR  APPROVAL  OF  THE
PROPOSED  HOMEOWNER  NATURAL DISASTER PREPAREDNESS, HOME SAFETY AND LOSS
PREVENTION COURSES.  EVERY SUCH COURSE SUBMITTED BY AN APPLICANT TO  THE
SUPERINTENDENT  FOR  APPROVAL  MUST  BE REVIEWED AND SHALL BE SUBJECT TO
APPROVAL BY THE SUPERINTENDENT.
  S 3. 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.