NY State Senate Bill 2023-S9435

Current 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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 15, 2024	referred to insurance

2023-S9435 (ACTIVE) - Details

Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Add Art 92 §§9201 - 9203, §§2354, 2355 & 215, amd §§107 & 3425, Ins L; amd §102, Fin Serv L

2023-S9435 (ACTIVE) - Summary

Establishes the climate protection insurance act to implement climate leadership and community protection act targets for insurers and establishes reporting requirements related to such targets; defines communities vulnerable to bluelining and identifies and protects such communities.

2023-S9435 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S9435

SPONSOR: HOYLMAN-SIGAL
 
TITLE OF BILL:

An act to amend the insurance law and the financial services law, in
relation to establishing the climate protection insurance act

 
PURPOSE:

This bill regulates New York-based insurers to help prevent global and
local catastrophe due to climate change and associated potentially
discriminatory effects. This bill aligns New York's insurance regu-
lations with the climate and equity objectives of the previously-enacted
Climate Leadership and Community Protection Act (CLCPA) of 2019 by:
preventing New York-based insurers from insuring polluting new fossil
fuel projects; aligning insurer policies with science-based objectives
for reducing climate-heating pollution; divesting insurance company
investment funds from oil, gas and coal companies; strengthening the
state's anti-discrimination requirements for insurance and climate risk;
and requiring the state's regulators to study the insurance markets to
assess climate risks to the insurance markets, the state, localities,
and equity in treatment of homeowners, and recommend potential legisla-

tive and regulatory action to protect New Yorkers from such risks.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 amends state insurance law to prevent New York-based insurers
from insuring more new oil, gas and coal projects, since they are incom-
patible with avoiding climate risk; requires insurers to align their
practices with science-based emissions reductions targets; and requires
them to divest their investment funds from oil, gas and coal. It also
requires the state's insurance regulator, the Department of Financial
Services (DFS) to report on its implementation of this section's
provisions.

Section 2 further aligns state regulation with the state's objectives of
reducing climate risks.

Section 3 defines a community vulnerable to blue lining.

Section 4 requires state regulators to identify communities vulnerable
to blue-lining and prohibits such discrimination. It also grants the
commissioner the authority to prohibit non-renewals of policies in such
communities based on certain conditions.

Section 5 requires at least one year of notice from an insurer to any
policyholder before it may not renew such a homeowner's insurance poli-
cy.

Section 6 requires DFS to study climate risks to homeowners and report
their findings to the public and legislature, including recommendations
for regulatory and legislative actions to ensure affordability and
prevent blue-lining.

 
JUSTIFICATION:

New York State is severely threatened by accelerating climate change,
whose primary cause is burning oil, gas and coal.  Insurance companies
cause climate change by insuring oil, gas and coal projects as well as
investing policyholder funds into oil and gas companies. After endanger-
ing policy-holders by furthering climate change, insurers raise rates or
entirely abandon local areas or even entire states due to the effects of
the resulting climate crisis:  flooding, sea level rise, wildfires and
extreme weather events, such as hurricanes.

New York enacted the Climate Leadership and Community Protection Act
(CLCPA) to reduce pollution in an equitable manner at the pace and speed
necessary to prevent global, statewide and local catastrophe and avoid
discriminatory practices (known as "blue-lining").

Currently, New York-based insurers are not aligned with the CLCPA's
provisions.

Complaints of rate hikes are already widespread in coastal parts of New
York.

Without proper and careful regulation, insurers may engage in discrimi-
natory practices in their insurance practices, such as discriminating by
race or income.

Many of the most climate-vulnerable parts of New York are inhabited by
predominantly low income families and/or people of color, who will face
greater hardship due to weaker financial resources as well as current
and historic discrimination.

Ending new fossil fuel projects is aligned with the state's CLCPA and
the International Energy Agency (IEA) analysis that no new large-scale
fossil fuel projects are needed to deliver the energy the world needs.
New projects started today are therefore at great risk of becoming
stranded assets that are non-performing financially as renewable energy
takes over.

The insurance industry is primarily regulated at the state level.
Therefore, this legislation would regulate insurers by aligning their
practices with New York's objectives of preventing catastrophe and
discrimination by:

*Ending New York based insurers and their New York subsidiaries insur-
ance for new large-scale new polluting oil, gas and coal infrastructure
projects worldwide, as well as in New York. New York-based insurers
would no longer provide policies for projects such as coal mines, oil
and gas pipelines, fracking projects, LNG terminals and so forth.

*Divesting insurers' investment funds, which are a top source of capital
finance worldwide, from oil, gas and coal.

*Requiring insurer's policies to match science-based climate objectives
to reduce pollution generated through business practices at the pace and
speed necessary to avoid global and local catastrophe.

*Strengthening New York's anti-discrimination requirements for insurance
to include climate risks.

*Requiring New York's insurance regulator, the Department of Financial
Services, to study and report on the impact of climate change on New

Yorkers through insurance, and recommend potential legislative and regu-
latory changes to handle the coming risks and accelerating crisis.

 
PRIOR LEGISLATIVE HISTORY:

None

 
FISCAL IMPLICATIONS:

TBD

 
EFFECTIVE DATE:
Immediately

2023-S9435 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9435
 
                             I N  S E N A T E
 
                               May 15, 2024
                                ___________
 
 Introduced  by Sen. HOYLMAN-SIGAL -- read twice and ordered printed, and
   when printed to be committed to the Committee on Insurance
 
 AN ACT to amend the insurance law and the  financial  services  law,  in
   relation to establishing the climate protection insurance act
 
   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 article 92  to
 read as follows:
                                 ARTICLE 92
                     CLIMATE PROTECTION INSURANCE ACT
 SECTION 9201. DEFINITIONS.
         9202. IMPLEMENTING  CLIMATE  LEADERSHIP AND COMMUNITY PROTECTION
                 ACT TARGETS FOR INSURERS.
         9203. REPORTING.
   § 9201. DEFINITIONS. IN THIS ARTICLE, UNLESS THE  CONTEXT  OR  SUBJECT
 MATTER OTHERWISE REQUIRES:
   (A)  "NEW  FOSSIL FUEL PROJECT" MEANS A PROJECT DESIGNED TO FACILITATE
 THE PRODUCTION OF FOSSIL FUELS IN EXCESS OF WHAT IS IN DEVELOPMENT AS OF
 THE EFFECTIVE DATE OF THIS ARTICLE, INCLUDING  PRODUCTION  OF  NEW  COAL
 INFRASTRUCTURE,  POWER  PLANTS, OR MINES. "NEW FOSSIL FUEL PROJECT" ALSO
 INCLUDES PROJECTS THAT WOULD SUPPORT EXPLORING NEW OIL AND GAS FIELDS OR
 OTHERWISE EXPANDING OIL AND GAS  RESERVES.  EXAMPLES  OF  SUCH  PROJECTS
 INCLUDE,  BUT ARE NOT LIMITED TO, NEW WELLS, PIPELINES, TERMINALS OR GAS
 POWER PLANTS.
   (B) "DEPARTMENT" MEANS THE DEPARTMENT OF FINANCIAL SERVICES.
   (C) "SUPERINTENDENT" MEANS THE SUPERINTENDENT  OF  THE  DEPARTMENT  OF
 FINANCIAL SERVICES.
   (D)  "PRECAUTIONARY  PRINCIPLE"  MEANS AN APPROACH TAKEN TO REGULATION
 WHICH MANDATES THAT WHEN ACTIVITIES  UNDER  CONSIDERATION  MAY  LEAD  TO
 UNACCEPTABLY SERIOUS OR IRREVERSIBLE HARM THAT IS SCIENTIFICALLY PLAUSI-
 BLE  BUT  UNCERTAIN,  ACTIONS  SHALL  BE TAKEN TO AVOID OR DIMINISH THAT
 HARM.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14599-03-4
 S. 9435                             2

 
   (E) "GUIDANCE" MEANS THE DEPARTMENT GUIDANCE  FOR  NEW  YORK  DOMESTIC
 INSURERS  ON  MANAGING THE FINANCIAL RISKS FROM CLIMATE CHANGE ISSUED BY
 THE DEPARTMENT OF FINANCIAL SERVICES.
   §  9202.  IMPLEMENTING CLIMATE LEADERSHIP AND COMMUNITY PROTECTION ACT
 TARGETS FOR INSURERS. (A) THE DEPARTMENT SHALL:
   (1) INTEGRATE THE PRECAUTIONARY  PRINCIPLE  INTO  ITS  REGULATION  AND
 SUPERVISION OF INSURERS BY:
   (A)  INCORPORATING  MEASURES  TO  ANTICIPATE, PREVENT, OR MINIMIZE THE
 EFFECTS OF CLIMATE RISK AND ITS ADVERSE EFFECTS; AND
   (B) IMPLEMENTING COST-EFFECTIVE MEASURES TO ADDRESS THE  CLIMATE  RISK
 EXPOSURE OF INSURERS, EVEN IN THE ABSENCE OF FULL ECONOMIC OR SCIENTIFIC
 CERTAINTY; AND
   (2)   ALIGN   INSURER  INVESTMENT  AND  UNDERWRITING  ACTIVITIES  WITH
 SCIENCE-BASED CLIMATE MITIGATION TARGETS CONSISTENT WITH  THE  EMISSIONS
 LIMITS  SET  IN SECTION 75-0107 OF THE ENVIRONMENTAL CONSERVATION LAW BY
 PROHIBITING UNDERWRITING FOR ANY NEW FOSSIL FUEL PROJECT  AND  DIRECTING
 INSURERS TO PHASE OUT EXISTING UNDERWRITING FOR EXPLORATION, EXTRACTION,
 PROCESSING,  EXPORTING,  TRANSPORTING,  AND ANY OTHER SIGNIFICANT ACTION
 WITH RESPECT TO OIL, NATURAL GAS, COAL, OR ANY BYPRODUCT THEREOF.
   (B) WITHIN TWELVE MONTHS OF THE EFFECTIVE DATE OF  THIS  ARTICLE,  THE
 SUPERINTENDENT SHALL DEVELOP AND IMPLEMENT CRITERIA FOR CERTAIN INSURERS
 DOING BUSINESS IN THIS STATE, AS DETERMINED BY THE SUPERINTENDENT PURSU-
 ANT  TO SUBSECTION (F) OF THIS SECTION, TO SUBMIT ANNUALLY TO THE SUPER-
 INTENDENT A REPORT DISCLOSING:
   (1) SUCH INSURER'S INVESTMENTS IN:
   (A) ANY COMPANY THAT DERIVES TEN  PERCENT  OR  MORE  OF  REVENUE  FROM
 EXPLORATION,  EXTRACTION,  PROCESSING,  EXPORTING, TRANSPORTING, AND ANY
 OTHER SIGNIFICANT ACTION WITH RESPECT TO OIL, NATURAL GAS, COAL, OR  ANY
 BYPRODUCT THEREOF;
   (B)   ANY  PROJECT  INTENDED  TO  FACILITATE  OR  EXPAND  EXPLORATION,
 EXTRACTION, PROCESSING, EXPORTING, TRANSPORTING, AND ANY  OTHER  SIGNIF-
 ICANT  ACTION  WITH  RESPECT TO OIL, NATURAL GAS, COAL, OR ANY BYPRODUCT
 THEREOF; AND
   (C) ANY PROJECT INTENDED TO CONSTRUCT ANY  INFRASTRUCTURE  RELATED  TO
 PROJECTS  UNDER SUBPARAGRAPH (B) OF THIS PARAGRAPH, SUCH AS WELLS, PIPE-
 LINES, TERMINALS OR REFINERIES;
   (2) THE FINANCED EMISSIONS FROM ALL OF THE  INSURER'S  INVESTMENTS  IN
 THE PREVIOUS REPORTING YEAR;
   (3)  INFORMATION  CONCERNING SUCH INSURER'S GROSS PREMIUM UNDERWRITING
 FOR:
   (A) ANY COMPANY THAT DERIVES TEN  PERCENT  OR  MORE  OF  REVENUE  FROM
 EXPLORATION,  EXTRACTION,  PROCESSING,  EXPORTING, TRANSPORTING, AND ANY
 OTHER SIGNIFICANT ACTION WITH RESPECT TO OIL, NATURAL GAS, COAL, OR  ANY
 BYPRODUCT THEREOF;
   (B)   ANY  PROJECT  INTENDED  TO  FACILITATE  OR  EXPAND  EXPLORATION,
 EXTRACTION, PROCESSING, EXPORTING, TRANSPORTING, AND ANY  OTHER  SIGNIF-
 ICANT  ACTION  WITH  RESPECT TO OIL, NATURAL GAS, COAL, OR ANY BYPRODUCT
 THEREOF; AND
   (C) ANY PROJECT  INTENDED  TO  CONSTRUCT  ANY  INFRASTRUCTURE  RELATED
 PROJECTS  UNDER SUBPARAGRAPH (B) OF THIS PARAGRAPH, SUCH AS WELLS, PIPE-
 LINES, TERMINALS OR REFINERIES;
   (4) THE INSURED EMISSIONS FROM ALL OF THE  INSURER'S  UNDERWRITING  IN
 THE PREVIOUS REPORTING YEAR;
   (5) AGGREGATED DATA ON HOMEOWNERS AND RENTERS PREMIUMS, CLAIMS, DEDUC-
 TIBLES  AND  OVERALL  INSURANCE EXPOSURES, AT A CENSUS-TRACT LEVEL, IN A
 S. 9435                             3
 
 MANNER THAT DOES NOT RISK PUBLIC DISCLOSURE OF  PERSONALLY  IDENTIFIABLE
 INFORMATION OF POLICYHOLDERS; AND
   (6)  ANY  OTHER  INFORMATION  THE DEPARTMENT DEEMS NECESSARY TO EFFEC-
 TIVELY IMPLEMENT AND ENFORCE ANY RULE OR REGULATION PROMULGATED PURSUANT
 TO THIS ARTICLE.
   (C)  THE  CRITERIA  DEVELOPED  BY  THE  SUPERINTENDENT   PURSUANT   TO
 SUBSECTION  (B)  OF THIS SECTION SHALL ENABLE THE SUPERINTENDENT TO POST
 THE INFORMATION REPORTED TO THE SUPERINTENDENT  PURSUANT  TO  SUBSECTION
 (D) OF THIS SECTION ON THE DEPARTMENT'S WEBSITE.
   (D)  WITHIN  TWELVE  MONTHS OF THE EFFECTIVE DATE OF THIS ARTICLE, AND
 ANNUALLY THEREAFTER, SUCH INSURERS DOING  BUSINESS  IN  THIS  STATE,  AS
 DETERMINED  BY  THE  SUPERINTENDENT  SUBJECT  TO  SUBSECTION (F) OF THIS
 SECTION, SHALL SUBMIT A REPORT  TO  THE  SUPERINTENDENT  DISCLOSING  THE
 INFORMATION  SET FORTH IN SUBSECTION (B) OF THIS SECTION FOR THE PRECED-
 ING CALENDAR YEAR.
   (E) WITHIN THREE MONTHS OF RECEIVING THE REPORT REQUIRED  PURSUANT  TO
 SUBSECTION (B) OF THIS SECTION, AND ANNUALLY THEREAFTER, THE SUPERINTEN-
 DENT  SHALL  COMPILE  AND  POST  THE  INFORMATION  IN SUCH REPORT ON THE
 DEPARTMENT'S WEBSITE.
   (F) THE SUPERINTENDENT MAY ENGAGE THE SERVICES OF  ATTORNEYS,  ACTUAR-
 IES,  ACCOUNTANTS  AND  OTHER EXPERTS NOT OTHERWISE A PART OF THE SUPER-
 INTENDENT'S STAFF, AT THE  REPORTING  INSURER'S  EXPENSE,  AS  SHALL  BE
 REASONABLY  NECESSARY  TO  ASSIST IN THE REVIEW OF SUCH INSURER'S FILING
 UNDER SUBSECTION (C) OF THIS SECTION. ALL PERSONS SO  ENGAGED  SHALL  BE
 UNDER THE DIRECTION AND CONTROL OF THE SUPERINTENDENT AND SHALL ACT IN A
 PURELY ADVISORY CAPACITY.
   (G) THE SUPERINTENDENT SHALL SUBJECT AN INSURER TO THE REQUIREMENTS OF
 THIS SECTION IF:
   (1) THE INSURER REPORTS OVER ONE HUNDRED MILLION DOLLARS ON ITS ANNUAL
 SCHEDULE T FILING WITH THE NATIONAL ASSOCIATION OF INSURANCE SUPERINTEN-
 DENTS; OR
   (2) THE INSURER'S ACTIVITIES OR INVESTMENTS MAY EXPOSE SUCH INSURER TO
 A  HEIGHTENED  LEVEL  OF RISK FROM THE PHYSICAL OR TRANSITION EFFECTS OF
 CLIMATE CHANGE; OR
   (3) THE SUPERINTENDENT OTHERWISE DETERMINES THAT DISCLOSURE  WOULD  BE
 IN THE PUBLIC INTEREST.
   (H)  THE  SUPERINTENDENT SHALL REVIEW AND UPDATE THE GUIDANCE AT LEAST
 ONCE EVERY TWO YEARS AND SHALL UPDATE THE GUIDANCE TO  REFLECT  DEVELOP-
 MENTS  ELSEWHERE IN THE WORLD, WITH THE INTENT OF INCORPORATING EMERGING
 BEST PRACTICES AND ENSURING THE SMOOTH FUNCTIONING OF NEW YORK INSURANCE
 MARKETS.
   (I) THE SUPERINTENDENT MAY ADOPT SUCH REGULATIONS AS  THE  SUPERINTEN-
 DENT DEEMS NECESSARY TO CARRY OUT THE PURPOSES OF THIS ARTICLE.
   (J)  WITHIN  FIVE  YEARS  OF  THE  EFFECTIVE DATE OF THIS ARTICLE, THE
 SUPERINTENDENT SHALL REQUIRE ANY INSURER TO DIVEST FROM:
   (1) ANY COMPANY THAT DERIVES TEN  PERCENT  OR  MORE  OF  REVENUE  FROM
 EXPLORATION,  EXTRACTION,  PROCESSING,  EXPORTING, TRANSPORTING, AND ANY
 OTHER SIGNIFICANT ACTION WITH RESPECT TO OIL, NATURAL GAS, COAL, OR  ANY
 BYPRODUCT THEREOF;
   (2)   ANY  PROJECT  INTENDED  TO  FACILITATE  OR  EXPAND  EXPLORATION,
 EXTRACTION, PROCESSING, EXPORTING, TRANSPORTING, AND ANY  OTHER  SIGNIF-
 ICANT  ACTION  WITH  RESPECT TO OIL, NATURAL GAS, COAL, OR ANY BYPRODUCT
 THEREOF; AND
   (3) ANY PROJECT INTENDED TO CONSTRUCT ANY  INFRASTRUCTURE  RELATED  TO
 PROJECTS  UNDER  PARAGRAPH  TWO OF THIS SUBSECTION, SUCH AS WELLS, PIPE-
 LINES, TERMINALS OR REFINERIES.
 S. 9435                             4
 
   § 9203. REPORTING. (A) WITHIN TWELVE MONTHS OF THE EFFECTIVE  DATE  OF
 THIS  ARTICLE,  AND  ONCE EVERY TWO YEARS THEREAFTER, THE SUPERINTENDENT
 SHALL SUBMIT A REPORT TO THE LEGISLATURE AND THE  GOVERNOR.  THE  REPORT
 SHALL  ALSO  BE  MADE  AVAILABLE TO THE PUBLIC AND POSTED ON THE DEPART-
 MENT'S  WEBSITE. THE REPORT SHALL DISCLOSE, FOR THE PRECEDING TWO CALEN-
 DAR YEARS, THE DEPARTMENT'S:
   (1) EFFORTS TO IMPLEMENT THE PROVISIONS OF SECTION NINE  THOUSAND  TWO
 HUNDRED TWO OF THIS ARTICLE;
   (2)  REGULATORY  AND SUPERVISORY ACTIONS TAKEN, IF ANY, TO BOLSTER THE
 RESILIENCE OF INSURERS TO THE PHYSICAL IMPACTS OF CLIMATE CHANGE;
   (3) REGULATORY AND SUPERVISORY ACTIONS PLANNED, IF ANY, TO BOLSTER THE
 RESILIENCE OF INSURERS TO THE PHYSICAL IMPACTS OF CLIMATE CHANGE;
   (4) THE EFFECTS, IF ANY, THAT THE INSURERS' EFFORTS TO ADDRESS CLIMATE
 RISK HAVE HAD ON THE AFFORDABILITY AND AVAILABILITY OF INSURANCE FOR LOW
 INCOME COMMUNITIES, COMMUNITIES OF COLOR AND OTHER TRADITIONALLY  UNDER-
 SERVED  COMMUNITIES  IN  THE  STATE, INCLUDING COMMUNITIES VULNERABLE TO
 BLUELINING AS DEFINED  IN  PARAGRAPH  FIFTY-SIX  OF  SUBSECTION  (A)  OF
 SECTION ONE HUNDRED SEVEN OF THIS CHAPTER.
   (B) SUCH REPORT SHALL ALSO SUMMARIZE AVAILABLE INFORMATION REGARDING:
   (1)  INSURER AND INSURANCE MARKET READINESS FOR CLIMATE CHANGE AND THE
 ENERGY TRANSITION;
   (2) MAJOR SOURCES OF CLIMATE RISK FACED BY NEW YORK INSURERS;
   (3) ANY GAPS RELATED TO CLIMATE RISK THAT THE  DEPARTMENT  INTENDS  TO
 ADDRESS; AND
   (4)  ANY  LEGISLATIVE  ACTION THAT MUST BE TAKEN IN ORDER TO ALLOW THE
 DEPARTMENT TO ADDRESS CLIMATE RISK.
   § 2. Subsections (k) and (l) of section 102 of the financial  services
 law are amended and a new subsection (m) is added to read as follows:
   (k)  To promote the reduction and elimination of fraud, criminal abuse
 and unethical conduct by, and with respect to,  banking,  insurance  and
 other financial services institutions and their customers; [and]
   (l)  To educate and protect users of banking, insurance, and financial
 services products and services  through  the  provision  of  timely  and
 understandable information[.]; AND
   (M)  TO  IDENTIFY,  SUPERVISE, REGULATE AND MANAGE EXPOSURE TO RISK IN
 NEW YORK'S BANKING, INSURANCE AND FINANCIAL SERVICES INDUSTRIES, INCLUD-
 ING RISKS RELATED TO CLIMATE CHANGE.
   § 3. Subsection (a) of section 107 of the insurance law is amended  by
 adding a new paragraph 56 to read as follows:
   (56)  "COMMUNITY  VULNERABLE  TO BLUELINING" MEANS A CENSUS TRACT THAT
 MEETS THE FOLLOWING:
   (A) QUALIFIES AS A LOW-TO-MODERATE INCOME COMMUNITY UNDER THE CRITERIA
 OF THE STATE'S  COMMUNITY REINVESTMENT ACT OR UNDER THE CRITERIA DEFINED
 IN SECTION  TWO THOUSAND THREE HUNDRED FIFTY-FIVE  OF  THIS  CHAPTER  OR
 QUALIFIES  AS A DISADVANTAGED COMMUNITY AS DEFINED IN SECTION 75-0101 OF
 THE ENVIRONMENTAL CONSERVATION LAW AND QUALIFIES AS A HIGH CLIMATE  RISK
 COMMUNITY BASED EITHER ON THE FEDERAL EMERGENCY MANAGEMENT AGENCY'S RISK
 INDEX  OR  OTHER  CRITERIA DEFINED IN SECTION TWO THOUSAND THREE HUNDRED
 FIFTY-FIVE OF THIS CHAPTER; OR
   (B) QUALIFIES BASED ON OTHER  CRITERIA  DEVELOPED  BY  THE  DEPARTMENT
 PURSUANT  TO SECTION TWO THOUSAND THREE HUNDRED FIFTY-FIVE OF THIS CHAP-
 TER.
   § 4. The insurance law is amended by adding two new sections 2354  and
 2355 to read as follows:
   § 2354. PROTECTING COMMUNITIES FROM BLUELINING. (A) THE SUPERINTENDENT
 SHALL HAVE THE AUTHORITY TO PLACE A MORATORIUM ON NON-RENEWALS IN UNDER-
 S. 9435                             5
 
 SERVED  COMMUNITIES THAT HAVE BEEN AFFECTED BY A CLIMATE DISASTER IN THE
 LAST YEAR.
   (B) NO INSURER SHALL REFUSE TO ISSUE OR RENEW OR SHALL CANCEL A POLICY
 OF  PROPERTY AND CASUALTY INSURANCE BASED SOLELY ON THE INSURED RESIDING
 IN AN AREA THAT IS DESIGNATED AS A COMMUNITY  VULNERABLE  TO  BLUELINING
 PURSUANT TO PARAGRAPH FIFTY-SIX OF SUBSECTION (A) OF SECTION ONE HUNDRED
 SEVEN  OR SECTION TWO THOUSAND THREE HUNDRED FIFTY-FIVE OF THIS CHAPTER.
 SUCH PROHIBITION SHALL NOT PRECLUDE AN INSURER FROM REFUSING TO ISSUE OR
 RENEW OR FROM CANCELING SUCH POLICIES BASED ON  SOUND  UNDERWRITING  AND
 ACTUARIAL  PRINCIPLES  REASONABLY  RELATED TO ACTUAL OR ANTICIPATED LOSS
 EXPERIENCE SUBJECT TO THE APPLICABLE PROVISIONS OF THIS SECTION  AND  OF
 SECTION THREE THOUSAND FOUR HUNDRED TWENTY-FIVE OF THIS CHAPTER.
   (C) NO INSURER SHALL REFUSE TO ISSUE OR RENEW OR SHALL CANCEL A POLICY
 OF  PROPERTY AND CASUALTY INSURANCE BASED SOLELY ON THE INSURED'S SOURCE
 OF INCOME, INCLUDING THE USE OF HOUSING VOUCHERS.
   § 2355. IDENTIFICATION OF COMMUNITIES VULNERABLE TO BLUELINING. (A) IN
 ADDITION TO THOSE COMMUNITIES WHICH QUALIFY AS COMMUNITIES VULNERABLE TO
 BLUELINING PURSUANT TO PARAGRAPH FIFTY-SIX OF SUBSECTION (A) OF  SECTION
 ONE HUNDRED SEVEN OF THIS CHAPTER, THE DEPARTMENT SHALL ESTABLISH CRITE-
 RIA AND A PROCESS TO IDENTIFY NEW COMMUNITIES VULNERABLE TO BLUELINING.
   (1)  SUCH CRITERIA SHALL IDENTIFY COMMUNITIES VULNERABLE TO BLUELINING
 BASED ON GEOGRAPHIC, PUBLIC HEALTH, ENVIRONMENTAL HAZARD, AND  SOCIOECO-
 NOMIC CRITERIA, WHICH SHALL INCLUDE, BUT ARE NOT LIMITED TO:
   (A)  AREAS  BURDENED  BY  CUMULATIVE ENVIRONMENTAL POLLUTION AND OTHER
 HAZARDS THAT CAN LEAD TO NEGATIVE PUBLIC HEALTH EFFECTS;
   (B) AREAS WITH CONCENTRATIONS OF PEOPLE THAT ARE OF LOW  INCOME,  HIGH
 UNEMPLOYMENT, HIGH RENT BURDEN, LOW LEVELS OF HOME OWNERSHIP, LOW LEVELS
 OF  EDUCATIONAL  ATTAINMENT, OR MEMBERS OF GROUPS THAT HAVE HISTORICALLY
 EXPERIENCED DISCRIMINATION ON THE BASIS OF RACE OR ETHNICITY;
   (C) AREAS VULNERABLE TO THE IMPACTS OF CLIMATE CHANGE SUCH  AS  FLOOD-
 ING, STORM SURGES, AND URBAN HEAT ISLAND EFFECTS; AND
   (D) ANY ADDITIONAL CRITERIA THAT THE DEPARTMENT MAY IDENTIFY.
   (2) BEFORE FINALIZING THE CRITERIA FOR IDENTIFYING COMMUNITIES VULNER-
 ABLE  TO  BLUELINING  PURSUANT  TO PARAGRAPH ONE OF THIS SUBSECTION, THE
 DEPARTMENT SHALL PUBLISH DRAFT CRITERIA AND A DRAFT LIST OF  COMMUNITIES
 VULNERABLE  TO  BLUELINING  AND  MAKE  SUCH INFORMATION AVAILABLE ON ITS
 WEBSITE.
   (B) THE DEPARTMENT SHALL ANNUALLY REVIEW THE  CRITERIA,  PROCESS,  AND
 METHODS  USED TO IDENTIFY COMMUNITIES VULNERABLE TO BLUELINING AND SHALL
 MODIFY SUCH METHODS TO INCORPORATE NEW DATA AND SCIENTIFIC FINDINGS.
   (C) THE DEPARTMENT SHALL REGULARLY REVIEW THE IDENTITIES  OF  COMMUNI-
 TIES VULNERABLE TO BLUELINING AND MODIFY SUCH IDENTITIES AS NEEDED.
   § 5. Subsection (d) of section 3425 of the insurance law is amended by
 adding a new paragraph 4 to read as follows:
   (4) WITH RESPECT TO CANCELLATION OF POLICIES IN COMMUNITIES VULNERABLE
 TO  BLUELINING  PURSUANT  TO  PARAGRAPH  FIFTY-SIX  OF SUBSECTION (A) OF
 SECTION ONE HUNDRED SEVEN OR SECTION TWO THOUSAND THREE  HUNDRED  FIFTY-
 FIVE OF THIS CHAPTER, IN ADDITION TO THE REQUIREMENTS CONTAINED IN PARA-
 GRAPH  ONE  OF THIS SUBSECTION, UNLESS THE INSURER, AT LEAST ONE YEAR IN
 ADVANCE OF THE END OF THE POLICY PERIOD, MAILS OR DELIVERS TO THE  NAMED
 INSURED,  AT  THE  ADDRESS  SHOWN IN THE POLICY, A WRITTEN NOTICE OF ITS
 INTENTION NOT TO RENEW A COVERED POLICY, OR  TO  CONDITION  ITS  RENEWAL
 UPON CHANGE OF LIMITS OR ELIMINATION OF ANY COVERAGES, THE NAMED INSURED
 SHALL BE ENTITLED TO RENEW THE POLICY UPON TIMELY PAYMENT OF THE PREMIUM
 BILLED TO THE INSURED FOR THE RENEWAL.
 S. 9435                             6
 
   §  6. The insurance law is amended by adding a new section 215 to read
 as follows:
   §  215. RATING AND AFFORDABILITY IMPROVEMENT STUDY. (A) THE DEPARTMENT
 SHALL CONDUCT A STUDY ON  METHODS  FOR  KEEPING  PROPERTY  AND  CASUALTY
 INSURANCE  LINES  AFFORDABLE  FOR  COMMUNITIES VULNERABLE TO BLUELINING,
 INCLUDING THE CONSIDERATION OF HOMEOWNER MITIGATION IN PREMIUM DISCOUNTS
 AND NON-RENEWAL AND CANCELLATIONS  DECISIONS,  ASSISTANCE  PROGRAMS  FOR
 LOW-INCOME  POLICYHOLDERS  SIMILAR  TO  THOSE  PROPOSED FOR THE NATIONAL
 FLOOD INSURANCE PROGRAM, AND A TAX ON HOMEOWNERS  INSURANCE  LINES  THAT
 DECLINES INTO A REBATE BASED ON INCOME.
   (B)  WITHIN  TWELVE  MONTHS OF THE EFFECTIVE DATE OF THIS SECTION, THE
 DEPARTMENT SHALL ISSUE A REPORT ON THEIR FINDINGS  WHICH  SHALL  PROVIDE
 RECOMMENDATIONS  FOR  REGULATORY  AND  LEGISLATIVE  ACTIONS  RELATING TO
 AFFORDABLE INSURANCE LINES IN COMMUNITIES VULNERABLE TO BLUELINING.
   § 7. This act shall take effect immediately.

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Senate Bill S9435

Sponsored By

Current Bill Status - In Senate Committee Insurance Committee

2023-S9435 (ACTIVE) - Details

2023-S9435 (ACTIVE) - Summary

2023-S9435 (ACTIVE) - Sponsor Memo

2023-S9435 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S9435

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Sponsored By

Brad Hoylman-Sigal

Current Bill Status - In Senate Committee Insurance Committee

2023-S9435 (ACTIVE) - Details

2023-S9435 (ACTIVE) - Summary

2023-S9435 (ACTIVE) - Sponsor Memo

2023-S9435 (ACTIVE) - Bill Text download pdf

Comments