On December 12, the NYS Assembly passed Big I NY-supported legislation to eliminate an unnecessary burden on customers by repealing the anti-arson application statewide.
Section 3403 of the Insurance Law requires the completion of an “anti-arson application” for people seeking property insurance for fire or explosion to complete. If a policyholder fails to complete this application, which is required upon initial application for insurance and on each subsequent renewal of the policy, the insurer must cancel the policy.
Technology has advance dramatically since the application was first required, and the law has outlived its usefulness. Insurance companies today are required by law to have fraud prevention plans, which are filed with the State, on how they detect, investigate, and prevent fraudulent activities. These fraud prevention plans are far more effective than the anti-arson application form which simply asks a series of questions. The law is just a paperwork burden for policyholders who risk losing coverage if the paperwork is not completed. Recent legislation scaled back the current law to remove cities with a population of less than 1 million, leaving New York City as the last jurisdiction with this requirement.
Big I NY thanks the bill’s sponsor, Assemblyman Daniel Rosenthal (D, Brooklyn) for championing this critical pro-customer reform. The bill must now pass the Senate and be signed by the governor before becoming law.