OGC Op. No. 09-12-03
The Office of General Counsel issued the following opinion on December 21, 2009, representing the position of the New York State Insurance Department.
RE: Hurricane deductibles in policies covering owner-occupied condominium and co-operative units
May a policy insuring an owner-occupied condominium or owner-occupied co-operative (“co-op”) apartment include a “hurricane” deductible (hereafter, referred to as “windstorm deductible”)?
Pursuant to N.Y. Ins. Law
The inquirer is the General Counsel for the ABC Board. The inquire asks generally, without reference to particular facts, whether a hurricane deductible may be applied to a policy insuring an owner-occupied condominium or to an owner-occupied co-op apartment.
The New York Insurance Law and regulations promulgated thereunder do not specifically address whether an insurer may include a windstorm deductible as part of a condominium or co-op homeowner’s insurance policy. However, Insurance Law
Except as otherwise provided herein, no policy form shall be delivered or issued for delivery unless it has been filed with the superintendent and either he has approved it, or thirty days have elapsed and he has not disapproved it as misleading or violative of public policy.
With respect to windstorm deductibles in general, Circular Letter No. 11 (1993) provides guidance to insurers as to the factors that the Superintendent considers in reviewing policy form submissions, consistent with the standard of review set forth in Insurance Law
For further information you may contact Senior Attorney Camielle A. Campbell at the New York City office.