It was a busy Friday afternoon for Governor Hochul as she acted on several bills sent to her desk for action.
Hurricane Windstorm Deductible Trigger: Gov. Hochul APPROVED A.2866/S.4199, which directs the superintendent of the New York State Department of Financial Services (DFS) to “establish standards for windstorm deductibles, which create, to the greatest extent possible, uniformity in the operation of such deductibles with respect to the triggering event."
The new law requires the DFS to issue and adopt regulations regarding how triggering events are defined. Currently, carriers utilize a variety of triggers and language, which can create confusion for consumers as they compare coverage options. Big I NY will continue to contribute to this important conversation throughout the regulatory rulemaking process.
Backup of Sewer and Drain Anti-Concurrent Causation Clauses: Gov. Hochul VETOED A.10343/S.9421, which prohibited policies from excluding coverage for backup of sewer and drain on the grounds that the loss was caused by an excluded peril (i.e. flood) concurrently or in any sequence to the loss.
In the veto message, Gov. Hochul stated that while the bill addresses an important homeowner issue, “it requires additional study and consideration as to its impact on insured premiums and market participation."
Additional Action: Gov. Hochul vetoed several other bills, including one directing the DFS to study the private flood insurance market. The veto included 28 other bills creating new commissions and studies, which the Governor noted would come with a collective cost of $24 million. Also rejected was a bill creating the position of “Insurance Liaison" to the state Disaster Preparedness Commission, citing the Commission’s direct focus on emergency response and not insurance matters.
Wrongful Death: While there are still several bills awaiting action, one of the most consequential is the wrongful death bill (A.9232B/S.8485B). Big I NY continues to collaborate with a broad coalition of stakeholders to oppose this bill, which will drive costs for consumers across the board. This is the third time that the Legislature has passed a version of the bill, which dramatically expands the types of damages that a plaintiff may recover in a wrongful death suit. You can learn more and urge the Governor to veto the bill by visiting www.NotOneMoreCostHike.org.