Directs 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.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A8942
SPONSOR: Weprin
 
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
recent weather-related events have had on the property insurance market
in New. York State.
 
SUMMARY OF PROVISIONS:
Section 1. The Department of Financial Services to conduct a study exam-
ining the increasing costs of insurance premiums, the lack of availabil-
ity 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; and
(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. The Department of Financial Services shall prepare a report
with findings and recommendations for potential legislative and regula-
tory actions within 11 months after the effective date of this act.
Section 3. Effective Date
 
JUSTIFICATION:
With the frequency and severity of weather-related events seemingly
increasing every year, 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 and report
their findings to the Legislature on the impact from these storms, 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:
New bill.
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None
 
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
8942
IN ASSEMBLY
January 30, 2024
___________
Introduced by M. of A. WEPRIN -- read once and referred to the Committee
on Insurance
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 flood-
ing, and the possibility of supporting a private flood insurance
market in the state
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The department of financial services shall conduct a study
2 to examine any increases in property insurance premiums that may affect
3 affordability of property insurance coverage, any lack of availability
4 of property insurance coverage for losses from flooding in New York
5 state, and the possibility of supporting a private flood insurance
6 market in the state. Such department shall:
7 (a) analyze any factors that have increased property insurance costs
8 for such losses from flooding and analyze any factors that have limited
9 insurers from property insurance coverage for losses from flooding;
10 (b) identify the potential impact, over the next ten years, of the
11 cost of property insurance and the unavailability of property insurance
12 coverage for losses from flooding and any other topic or issue that is
13 determined to be relevant to the completion of the study by the depart-
14 ment; and
15 (c) analyze the possibility of supporting a private flood insurance
16 market in the state as a supplement to the existing National Flood
17 Insurance Program.
18 § 2. The department of financial services shall prepare a report which
19 shall be submitted to the governor, the temporary president of the
20 senate, the speaker of the assembly, the minority leader of the senate
21 and the minority leader of the assembly, within eleven months after the
22 effective date of this act, containing findings and recommendations for
23 potential legislative and regulatory actions to address any increased
24 costs, affordability, or any unavailability of property insurance, and
25 the possibility of supporting a private flood insurance market in the
26 state.
27 § 3. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD13697-01-3