The New York State Insurance Department ("NYID") issued a news release on September 22, 2010 (the "News Release") announcing proposed measurers aimed at ensuring the availability and affordability of homeowners insurance in coastal areas of New York. Such proposals include the creation of a catastrophe pool to be funded by insurer assessments and used to help cover the cost of hurricanes and other catastrophes. According to the News Release, the catastrophe fund would decrease the need for premium increases after such events. Another of the proposed measures is an amendment to Regulation 159 (the "Proposed Amendment"), which would limit windstorm deductibles so that they only apply to hurricanes and are displayed clearly to customers. Lastly, the NYID has also proposed a reduction in the number of homeowners policy nonrenewals an insurer may issue in a given county without notifying the NYID, thus putting the NYID on notice should insurers issue a significant number of non-renewals in coastal counties such as Suffolk or Nassau County.
According to the News Release, Superintendent James Wrynn has scheduled a meeting of the Temporary Panel on Homeowners Insurance Coverage on October 13, 2010 to discuss these proposals.
Comments regarding the Proposed Amendment may be submitted to the NYID until October 8, 2010. If you would like EAPD to assist you with preparing and submitting comments, please click the "Email the Editor" button and provide your contact information for follow-up by an EAPD attorney.