BILL NUMBER: S5325
SPONSOR: BAILEY
 
TITLE OF BILL:
An act in relation to directing the department of financial services to
conduct a study examining the increasing costs of insurance premiums,
the lack of availability of insurance coverage for losses from flooding,
and the possibility of supporting a private flood insurance market in
the state
 
PURPOSE OR GENERAL IDEA OF BILL:
To direct the Department of Financial Services to study the impacts that
recent weather-related events have had on the property insurance market
in New York State.
 
SUMMARY OF PROVISIONS:
Section 1 directs the Department of Financial Services (DFS) to conduct
a study examining the increasing costs of insurance premiums, the lack
of availability of insurance coverage for losses from flooding, and the
possibility of supporting a private flood insurance market in the state.
(a) Analyze factors that have increased property insurance costs for
such losses from flooding and factors that have limited insurers from
property insurance coverage for losses from flooding;
(b) Identify potential impact, over the next ten years, of the cost of
property insurance and unavailability of coverage for losses from flood-
ing and other relent topics;
(c) Analyze the possibility of supporting a private flood insurance
market in New York State as a supplement to the existing national Flood
Insurance Program.
Section 2 directs DFS to prepare a report with findings and recommenda-
tions for potential legislative and regulatory actions within 11 months
after the effective date of this act.
 
JUSTIFICATION:
With the frequency and severity of weather-related events increasing, it
is important to examine the impact they are having on both affordability
and availability of property insurance, with a strong focus on flooding.
By directing the Department of Financial Services to study the impact of
these events and report its findings to the Legislature, we will be able
to better determine what measures we need to take to make sure that New
York homeowners are protected.
 
PRIOR LEGISLATIVE HISTORY:
2023-24: S8167 - Vetoed
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.
 
EFFECTIVE DATE:
Immediately.