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A07281 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          7281
 
                               2021-2022 Regular Sessions
 
                   IN ASSEMBLY
 
                                       May 3, 2021
                                       ___________
 
        Introduced  by  M.  of  A. ENGLEBRIGHT -- (at request of the State Comp-
          troller) -- read once and referred to the Committee  on  Environmental
          Conservation
 
        AN ACT to amend the navigation law, in relation to claims against insur-
          ers for petroleum spills
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Section 190 of the navigation law, as added by chapter  845
     2  of the laws of 1977, is amended to read as follows:
     3    § 190. Claims against insurers. 1. Any claims for costs of cleanup and
     4  removal,  civil  penalties  or  damages  by  the state and any claim for
     5  damages by any injured person, may be brought directly against the bond,
     6  the insurer, or any other person providing evidence of financial respon-
     7  sibility.
     8    2. Notwithstanding any provision of law to the contrary, all  homeown-
     9  ers'  policies  of  insurance  in  this state which shall insure against
    10  damage to property shall clearly provide that cleanup and removal  costs
    11  and all direct and indirect damages relating to a discharge of petroleum
    12  shall constitute property damage and shall be insurable within the mean-
    13  ing of the general liability portions of such insurance policy. The risk
    14  of damages caused by such discharges may not be an exclusion in any such
    15  policy issued in the state.
    16    3.  In  any  claim for coverage of the costs and damages relating to a
    17  discharge of petroleum, the insurer may raise  the  affirmative  defense
    18  that  the insured had actual knowledge of a condition which a reasonable
    19  person would have understood to pose an imminent risk of a discharge  of
    20  petroleum  and  that  the  insured  failed  to  take reasonable steps to
    21  prevent the discharge.
    22    4. Insurers shall provide the following notice in bold lettering of at
    23  least twelve point type font in every homeowner's policy,  newly  issued
    24  or renewed which insures against damage to property:
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10549-01-1

        A. 7281                             2
 
     1    YOU  HAVE  A RESPONSIBILITY TO PREVENT A DISCHARGE FROM YOUR PETROLEUM
     2  (OIL, KEROSENE, ETC.) TANKS AND ASSOCIATED PIPELINES. IF YOU KNOW  OF  A
     3  CONDITION  WHICH  COULD  RESULT  IN  A  DISCHARGE,  YOUR FAILURE TO TAKE
     4  REASONABLE STEPS TO  PREVENT  THE  DISCHARGE  COULD  VOID  THE  COVERAGE
     5  PROVIDED BY THIS POLICY.
     6    5.  Nothing in this section shall be construed to limit any pre-exist-
     7  ing right, whether actual or implied, in which the insured may have  had
     8  compensation  from  the  insurer  for  cleanup and removal costs and all
     9  direct and indirect damages relating to a discharge of petroleum.
    10    § 2. This act shall take effect on the first of January next  succeed-
    11  ing the date on which it shall have become a law.
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