Authorizes insurers to provide no or low cost loss prevention programs to policyholders, pursuant to regulations.
Summary
This bill amends the Insurance Law to expressly allow insurers to offer loss mitigation or loss control programs to policyholders at no cost or reduced cost, so long as those programs are provided under regulations issued by the Superintendent of Financial Services. The measure is aimed at clarifying that such prevention-oriented services are permissible under the insurance code.
The bill is narrow in scope and does not mandate that insurers provide these programs; rather, it removes any legal uncertainty that might discourage insurers from offering them. It also leaves implementation details to the superintendent through regulation and retains the existing penalty structure for violations of the section.
Impact
If enacted, the bill would modify section 2324 of the Insurance Law to carve out an explicit exception for insurer-provided loss prevention, loss mitigation, and loss control programs offered at no or reduced cost. The practical effect would be to support insurer-sponsored risk reduction efforts for policyholders, potentially affecting homeowners, commercial insureds, and other policyholders who could benefit from preventive services. It would also reinforce the superintendent’s regulatory authority over how such programs are offered.
Sentiment
Based on the bill text and the limited available context, the bill appears to be generally favorable and noncontroversial in purpose, with a consumer- and risk-reduction-oriented framing. There is no recorded committee debate or vote history in the provided materials, so no formal opposition or support can be identified from the transcript record. The overall tone suggests a technical insurance-policy clarification rather than a major policy dispute.
Contention
No specific points of contention are reflected in the available materials. The main issue the bill addresses is whether insurers should be permitted to provide low- or no-cost prevention programs without running afoul of existing insurance restrictions. Any disagreement would likely center on regulatory oversight, the scope of permissible insurer incentives, or whether such programs could create uneven treatment among policyholders, but none of those concerns are documented in the provided record.
Ensures that insurers are permitted to offer loss prevention programs as long as such programs are offered to the general public and the insurer's policyholders.
Ensures that insurers are permitted to offer loss prevention programs as long as such programs are offered to the general public and the insurer's policyholders.
Ensures that insurers are permitted to offer loss prevention programs as long as such programs are offered to the general public and the insurer's policyholders.
Ensures that insurers are permitted to offer loss prevention programs as long as such programs are offered to the general public and the insurer's policyholders.
Provides that certain provisions relating to rebating and discrimination regarding insurance contracts shall not prohibit any insurer from providing loss mitigation or loss control programs at no cost or a reduced cost to policyholders.
Provides for the establishment of residential home safety and loss prevention courses certified by the superintendent of financial services; requires insurers to provide actuarially appropriate discounts on fire and homeowners insurance premiums to those homeowners who have completed a residential home safety and loss prevention course; directs the superintendent of financial services to promulgate such rules and regulations as are necessary to implement such program and specifies certain matters which must be included in such rules and regulations; requires the superintendent of financial services to issue a report thereon.
Relates to prohibiting the exclusion of coverage for losses or damages caused by exposure to lead-based paint; provides that no insurer licensed or permitted by the superintendent to provide liability coverage to rental property owners shall exclude coverage for losses or damages caused by exposure to lead-based paint.