May 11, 2016
Assembly passes bill to create task force on disasters
The state Assembly this week passed legislation to create a task force on disasters. The bill (A.4172/S.3758) would create a task force to examine and report on whether policyholders and communities have adequate insurance coverage and if they are able to rely upon that coverage in the event of a disaster.
The task force would consist of 18 members, including the superintendent of the New York State Department of Financial Services and commissioner of the Department of Homeland Security and Emergency Services serving as co-chairs; five insurers who write policies that cover loss or damage to property, including at least one insurer who writes for the National Flood insurance Program; five local officers who respond to disasters and emergencies, including representatives from New York City, Long Island, the Hudson Valley and rural areas of the state that are prone to flooding; two organizations that represent independent and public adjusters; two nonprofits that have experience with disaster relief; and two consumer advocacy groups.
The task force would report to the governor, the speaker of the Assembly, the temporary president of the Senate and the chairs of the Assembly and Senate Insurance Committees one year after the effective date of its authorizing legislation.
The report would be required to include the following information:
- Steps insurers currently take in order to respond to disaster related claims in a timely fashion.
- Challenges insurers experience when responding to disasters.
- Steps insurers currently take to adequately assess damage so that homeowners and municipalities can remove debris and make repairs quickly.
- Additional steps insurers and state and local agencies can take to better respond to the needs of communities and policyholders affected by a disaster.
- Ways insurers and state and local agencies can proactively reach out to policyholders and communities following a disaster.
- Ways insurers assist homeowners and businesses affected by a disaster whose premiums are due.
- Steps insurers can take if their employees are affected by a disaster in order to ensure that they are still able to respond to claims in a timely fashion.
- Whether or not New Yorkers have adequate insurance coverage and if not, identifying what barriers exist that may prevent people from purchasing adequate coverage.
- Identifying measures to encourage homeowners and businesses to purchase flood insurance as needed.
- Steps insurers take to prevent disputes with policy holders and to resolve those which do occur as well as additional steps insurers can take.
- Legislative actions that can be considered to address such issues.