Relates to flood insurance notice in communities bordering Lake Ontario; requires the department of financial services to publish an annual notice with the department's contact information and a statement about flood insurance and how it relates to standard homeowners insurance policies in local newspapers that serve the communities bordering Lake Ontario.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A6367
SPONSOR: Barclay
 
TITLE OF BILL:
An act to amend the insurance law, in relation to flood insurance notice
in communities bordering Lake Ontario
 
TITLE OF BILL:
An act to amend the insurance law, in relation to flood insurance notice
in communities bordering Lake Ontario
 
PURPOSE OR GENERAL IDEA OF BILL:
The bill would require the department of financial services to publish
information about flood insurance and how it relates to standard home-
owners insurance policies in New York and necessary contact information
such as their disaster hotline.
 
SUMMARY OF PROVISIONS:
Section 1 of the bill would amend the insurance law by adding a new
subdivision 3 to section 3444. Subdivision three of section 3444 would
require the department of financial services to publish an annual notice
in the newspapers that serve the communities surrounding Lake Ontario.
The notice would contain the departments natural disaster contact infor-
mation and a statement about flood insurance and how it relates to stan-
dard homeowners insurance policies in New York.
Section 2 of the bill would provide for an immediate effective date.
 
JUSTIFICATION:
Lake Ontario water levels are rising to the highest levels in nearly 20
years and as a result, the communities along the southern and eastern
shore are bracing for flooding. On May 2, 2017, Governor Cuomo official-
ly declared a state of emergency along Lake Ontario's shoreline and has
announced he is forming a special response team to work with county and
local officials on their response to the flooding. In the event that a
resident falls victim to flood damage because of the heightened water
levels in Lake Ontario, this bill would increase the chance of resi-
dent's having the appropriate contact information. Furthermore, the bill
would also inform residents about the lack of coverage for flood damage
in standard homeowner's insurance policies in New York and how insurance
for flood damage is generally available under a separate policy issued
through the National Flood Insurance Program (NFIB).
 
PRIOR LEGISLATIVE HISTORY:
A5070 of 2019-20 Passed Assembly
A8058 of 2017-18 Held for consideration in Codes
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
minimal
 
EFFECTIVE DATE:
Immediately
STATE OF NEW YORK
________________________________________________________________________
6367
2021-2022 Regular Sessions
IN ASSEMBLY
March 16, 2021
___________
Introduced by M. of A. BARCLAY, HAWLEY, NORRIS, MORINELLO, SALKA,
LEMONDES, DeSTEFANO, J. M. GIGLIO, BLANKENBUSH -- Multi-Sponsored by
-- M. of A. BROWN, MANKTELOW -- read once and referred to the Commit-
tee on Insurance
AN ACT to amend the insurance law, in relation to flood insurance notice
in communities bordering Lake Ontario
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 3444 of the insurance law is amended by adding a
2 new subdivision 3 to read as follows:
3 3. The department of financial services shall publish an annual notice
4 that contains the department's contact information and a statement about
5 flood insurance and how it relates to standard homeowners insurance
6 policies in New York state in local newspapers that serve the communi-
7 ties bordering Lake Ontario. Such notice may include: (a) the depart-
8 ment's disaster hotline and other relevant contact information; (b) a
9 web link to the department's disaster and flood resource center on their
10 website; and (c) the following statement or a substantially similar
11 statement: "While floods are the most common natural disaster in the
12 United States, insurance coverage for losses from floods is not provided
13 in standard homeowners or tenants policies. Insurance for flood damages
14 is generally available under a separate policy issued through the
15 National Flood Insurance Program (NFIP) and available to homeowners,
16 renters and businesses. DFS can answer questions about agents, brokers
17 and adjustors, the claims process (including hurricane and wind deduct-
18 ibles), policy cancellation, and non-renewal, and coverage for addi-
19 tional living expenses (which you may be entitled to if you are
20 displaced after a disaster). If your business has been affected by a
21 disaster, we can also answer questions about coverage, business inter-
22 ruption insurance and off-premises service interruption coverage."
23 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD02909-01-1