This legislation represents a significant shift in the insurance law of New York, with the potential to enhance policyholders' rights during claim assessments. By ensuring that coverage is guaranteed when a covered peril simultaneously occurs with a non-covered event, the bill aims to protect consumers from losing out on valid claims due to the complexities of concurrent causation. This could lead to increased accountability for insurers and may affect their claims handling processes and underwriting practices at large, potentially resulting in higher premiums or changes in coverage options offered to consumers.
Summary
Bill A10872, introduced in the New York Assembly, addresses the handling of insurance claims related to flood events in conjunction with other covered perils. The bill specifically aims to clarify situations in which insurers can deny claims when a non-covered flood event is a contributing factor to a loss that is covered under the policy. It stipulates that if a flood not covered by the policy occurs simultaneously with a covered peril, insurers are prohibited from denying the claim based on the flood's contribution, although they retain the right to deny coverage for the flood-related damages themselves.
Contention
The introduction of A10872 may spark debate among stakeholders in the insurance industry. Proponents of the bill argue that it serves consumer interests by promoting fairness in claims handling, especially for those affected by devastating flood events. However, opponents may raise concerns about the financial implications for insurance companies, fearing that this could lead to increased litigation or higher costs associated with claims. The bill's framing of the anti-concurrent causation clauses could also cause ripple effects in the industry as companies may need to reevaluate their policy terms and risk assessments to align with the forthcoming legal parameters.
Same As
Provides that when a flood event not covered under a policy or specifically excluded 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.
Requires property/casualty insurance companies to submit certain zip code-level data to the department of financial services on nonrenewal rates, nonpayment cancellation rates, other cancellation rates, claim frequency rates, average claim amounts, paid loss ratios, and average premiums; requires property/casualty insurance companies that use a natural disaster risk model or scoring method to assign risk, information about such model or scoring method; authorizes a premium discount to policyholders of homeowners insurance or property/casualty insurance applicable to residential real property who demonstrate certain mitigation actions; requires insurers to post about such discounts on their public websites; relates to the timing of cancellation and nonrenewal notices for certain insurance policies; relates to increasing membership of the board governing the New York property insurance underwriting association; requires a quadrennial report on the activities of such association; increases such board membership to 23 including 6 directors appointed by the legislature and 4 directors appointed by the governor.
Requires property/casualty insurance companies to submit certain zip code-level data to the department of financial services on nonrenewal rates, nonpayment cancellation rates, other cancellation rates, claim frequency rates, average claim amounts, paid loss ratios, and average premiums; requires property/casualty insurance companies that use a natural disaster risk model or scoring method to assign risk, information about such model or scoring method; authorizes a premium discount to policyholders of homeowners insurance or property/casualty insurance applicable to residential real property who demonstrate certain mitigation actions; requires insurers to post about such discounts on their public websites; relates to the timing of cancellation and nonrenewal notices for certain insurance policies; relates to increasing membership of the board governing the New York property insurance underwriting association; requires a quadrennial report on the activities of such association; increases such board membership to 23 including 6 directors appointed by the legislature and 4 directors appointed by the governor.
Requires health care professional to order bi-lateral ultrasounds concurrently when ordering mammograms; requires insurers to cover concurrent mammograms and bi-lateral ultrasounds.
Enacts into law components of legislation relating to disaster relief for extreme weather events in Central New York, long-term climate resilience property improvements, and insurance discounts for climate mitigation efforts; establishes the central New York extreme weather relief and resiliency grant program to provide grants to certain persons and entities that suffered damage from covered events (Part A); expands and strengthens the resilient and ready program by providing grants to homeowners impacted by extreme weather events and providing grants for long-term climate resilience improvements for snow and tornado-related weather hazards (Part B); establishes the central New York property/casualty insurance resiliency incentive program to facilitate property/casualty insurance discounts for mitigation efforts (Part C).
Enacts into law components of legislation relating to disaster relief for extreme weather events in Central New York, long-term climate resilience property improvements, and insurance discounts for climate mitigation efforts; establishes the central New York extreme weather relief and resiliency grant program to provide grants to certain persons and entities that suffered damage from covered events (Part A); expands and strengthens the resilient and ready program by providing grants to homeowners impacted by extreme weather events and providing grants for long-term climate resilience improvements for snow and tornado-related weather hazards (Part B); establishes the central New York property/casualty insurance resiliency incentive program to facilitate property/casualty insurance discounts for mitigation efforts (Part C).