S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3543
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 27, 2021
                                ___________
 
 Introduced  by  M.  of  A.  RODRIGUEZ  --  read once and referred to the
   Committee on Insurance
 
 AN ACT to amend the insurance law, in relation to anti-concurrent causa-
   tion clauses
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  The insurance law is amended by adding a new section 3457
 to read as follows:
   § 3457. ANTI-CONCURRENT CAUSATION CLAUSES. (A) WHEN A FLOOD EVENT  NOT
 COVERED  UNDER  A  POLICY  OR  SPECIFICALLY EXCLUDED UNDER A POLICY IS A
 CONTRIBUTING FACTOR IN OR OCCURS SIMULTANEOUSLY AS A  COVERED  EVENT  OR
 PERIL,  THE  INSURER  SHALL NOT DENY OR EXCLUDE COVERAGE FOR THE LOSS OR
 DAMAGE CAUSED BY THE COVERED EVENT  OR  PERIL.  HOWEVER,  NOTHING  SHALL
 OBLIGATE  THE  INSURER TO PAY FOR ANY LOSS OR DAMAGE CAUSED BY THE FLOOD
 EVENT THAT IS NOT COVERED OR IS EXCLUDED.
   (B) IF AN INSURER ISSUES A  POLICY  THAT  INCLUDES  A  PROVISION  THAT
 ALLOWS  THE  INSURER  TO  DETERMINE  WHETHER  LOSS OR DAMAGE CAUSED BY A
 COVERED PERIL MAY OR MAY NOT BE COVERED PARTIALLY OR WHOLLY  BASED  UPON
 WHETHER A PERIL THAT IS EXCLUDED OR NOT COVERED UNDER THE POLICY WAS THE
 PROXIMATE  OR  REMOTE  CAUSE  OF THE COVERED LOSS OR DAMAGE, THE INSURER
 MUST CLEARLY STATE IN THE  POLICY:  (1)  WHICH  PERIL  EXCLUDED  OR  NOT
 COVERED  UNDER  THE  POLICY  MUST  CAUSE,  PROXIMATELY  OR REMOTELY, THE
 COVERED PERIL OR PERILS; AND (2) IN EACH SPECIFIC INSTANCE, WHETHER  THE
 CAUSATION  MUST  BE  PROXIMATE  OR  REMOTE  TO RESULT IN A LIMITATION IN
 COVERAGE.  THE INSURER MUST DISCLOSE THIS PROVISION TO THE  POLICYHOLDER
 PRIOR TO THE SALE OR PURCHASE OF THE POLICY.
   §  2.  This  act  shall take effect immediately and shall apply to all
 policies issued or renewed after such effective date.
 

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03007-01-1