(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.
(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.
§ 9203. 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;
(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; AND
(3) DEVELOP A PROCESS FOR INSURANCE COMPANIES TO CERTIFY AS A CONDI-
TION OF LICENSURE THAT THEY MEET CERTAIN CRITERIA RELATED TO THEIR
INVESTMENT AND UNDERWRITING ACTIVITY, AND TO REVIEW THEIR CERTIFICATION.
(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
A. 3842 3
(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
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) THE SUPERINTENDENT SHALL DEVELOP A PROCESS FOR FOREIGN INSURANCE
COMPANIES TO CERTIFY AS A CONDITION OF LICENSURE THAT THEY MEET CERTAIN
CRITERIA RELATED TO THEIR INVESTMENT AND UNDERWRITING ACTIVITY, AND TO
REVIEW THEIR CERTIFICATION.
A. 3842 4
(K) WITHIN FIVE YEARS OF THE EFFECTIVE DATE OF THIS ARTICLE, THE
SUPERINTENDENT SHALL REQUIRE ANY INSURER DOING BUSINESS IN THE STATE TO
CERTIFY THAT THEY HAVE DIVESTED 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.
§ 9204. 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 THREE 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. 3842 5
(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-
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.
A. 3842 6
(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.
§ 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.