BILL NUMBER: S7827
SPONSOR: SCARCELLA-SPANTON
 
TITLE OF BILL:
An act to amend the insurance law, in relation to establishing residen-
tial home safety and loss prevention courses and providing for an asso-
ciated reduction in certain insurance premiums and providing for the
repeal of such provisions upon expiration thereof
 
PURPOSE:
To permit the superintendent of insurance to provide an actuarially
appropriate reduction in insurance premiums to those individuals that
take a certified Home Safety and Loss Prevention Course.
 
SUMMARY OF PROVISIONS:
Section 1: Amends section 2346 of the Insurance Law by adding subsection
(6) to provide that an appropriate premium discount be given by insurers
to fire and homeowner's insurance policy holders for a three-year period
after successfully completing a course in home safety and accident
prevention. The discount shall be based on sound actuarial practices.
Such courses shall be certified by the Insurance Department pursuant to
Insurance Law, section 2346-1).
Section 2: A new section 2346-b of the Insurance Law is added to estab-
lish standards that residential home safety and loss prevention courses
must satisfy to be certified. Only certified courses may conduct classes
that will enable students to receive a premium discount. The Insurance
Department shall consult with the Office of Fire Prevention and Control
of the Division of Homeland Security and Emergency Services before
certifying such courses.
Section 3: Not less than 180 days before the expiration of this section
the superintendent of insurance shall issue a report to the Governor,
temporary president of the senate, speaker of the assembly, and the
chairs of the committees on insurance of both the senate and assembly,
stating his or her findings on the effect of this course.
Section 4: This act shall take effect on the 1801h day and shall expire
in 5 years.
 
JUSTIFICATION:
Currently, when policy holders take a home safety and accident
prevention course there is no discount at all for the holder concerning
their homeowners or fire insurance policy. This legislation will allow
for an actuarially appropriate reduction to be awarded to the policy
holder. This legislation will encourage policy holders to take a course
on home safety and loss prevention, thus reducing property and personal
injury loss and consequently reducing the cost of claims paid by insur-
ance companies. This in turn will permit insurers to lower rates for
those who take these classes.
 
PRIOR LEGISLATIVE HISTORY:
2024: A.2436/ Insurance
2022: A.4032/Insurance
2020: A.4813/Insurance
2018: A.3835/Insurance
 
FISCAL IMPLICATIONS:
NONE.
 
EFFECTIVE DATE:,:
This act shall take effect on the one hundred eightieth days after it
shall have become a law and shall expire and be deemed repealed 5 years
after such effective date; provided however, any rules or regulations
necessary for the timely implementation of the provisions of this act
shall be promulgated on or before such date.

Statutes affected:
S7827: 2346 insurance law