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.
Impact
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.
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.
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.
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.
Restricts private vehicle property damage insurance coverage for a rental passenger vehicle, to the named insured and drivers on that private policy, unless the designated driver is specifically excluded.
Restricts private vehicle property damage insurance coverage for a rental passenger vehicle, to the named insured and drivers listed on that private policy, unless the designated driver is specifically excluded.
Addresses non-covered dental services by requiring all policies providing coverage of and all contracts for dental services issued to include a disclosure stating that a participating provider may charge their normal fee for services that are not covered; requires a cost estimate to be provided.
Addresses non-covered dental services by requiring all policies providing coverage of and all contracts for dental services issued to include a disclosure stating that a participating provider may charge their normal fee for services that are not covered; requires a cost estimate to be provided.
Provides that dental insurance coverage shall include coverage for night guards; defines dental night guards; provides that dental night guards shall be covered under Medicaid.
Provides that dental insurance coverage shall include coverage for night guards; defines dental night guards; provides that dental night guards shall be covered under Medicaid.
Provides that dental insurance coverage shall include coverage for night guards; defines dental night guards; provides that dental night guards shall be covered under Medicaid.