INSURANCE DEPARTMENT
OF THE STATE OF NEW YORK

THIRD AMENDMENT TO REGULATION 57
11 NYCRR 160

RESPONSIBILITIES IN CONSTRUCTION AND APPLICATION OF RATES

 

I, Neil D. Levin, Superintendent of Insurance of the State of New York, pursuant to the authority granted by Section 201, 301, 2346 and 2346-a of the Insurance Law, do hereby promulgate the third amendment to Part 160 of Title 11 of the Official Compilation of Codes, Rules and Regulations of the State of New York (Regulation 57), to take effect upon publication in the State Register, to read as follows:

(ALL MATERIAL IS NEW)

New subdivisions (e), (f), (g), and (h) are added to Section 160.1 to read as follows:

(e) Commercial risk insurance has the meaning assigned it in section 107(a)(47) of the Insurance Law.

(f) A dead bolt lock is a lock component, as defined in American National Standard for Auxiliary Locks and Associated Products (ANSI/BHMA A156.5-1992), sponsored and published by the Builders Hardware Manufacturers Association, Inc., 355 Lexington Avenue, New York, NY 10017 having an end which protrudes from, or is withdrawn into, the lock front by action of the lock mechanism. When the door is closed and the dead bolt thrown, it extends into a hole provided in the strike, locks the door, and does not retract with end pressure.

(g) Homeowners insurance has the meaning assigned it in section 2351 (a) of the Insurance Law.

(h) Public entity and public entity insurance have the meanings assigned them, respectively, in section 107(a)(51) and section 107(a)(50) of the Insurance Law.

A new Section 160.6 is added to read as follows:

Section 160.6 Premium reductions for loss prevention measures.

(a) (1) Insurers may provide for a reduction in the rates of homeowners insurance premiums where all entrances leading to the insured residence premises from commonly accessible areas are equipped with dead bolt locks. The amount of reduction shall be determined in accordance with the standards set forth in section 160.2 of this Part.

(2) In order to qualify for a premium reduction, the locks shall be installed in accordance with the manufacturer's specifications, and shall meet the applicable operational and security standards for such devices prevailing in the building hardware manufacturing industry for a Grade 3 lock. A Grade 3 lock is described in Appendix A of ANSI/BHMA A156.5-1992 as generally adequate to withstand an attack of opportunity and where the attack is expected to be of short duration.

(b) (1) Insurers shall provide for a reduction in the rates of homeowners insurance premiums where hurricane/storm shutters or hurricane resistant laminated glass windows or doors have been installed on all exterior wall openings in the structure of the dwelling.

(2) The shutters or laminated materials must be designed and properly installed in accordance with the manufacturer's specifications to withstand external pressure and wind borne debris from a storm with sustained wind speed of at least 110 miles per hour or a storm surge of 8 feet above normal.

(3) The amount of the reduction shall be determined in accordance with the standards set forth in section 160.2 of this Part. In establishing the premium reduction differentials applicable to systems qualifying for a reduction, insurers shall consider the effectiveness of permanently installed systems relative to those that require manual action in order for the system to be operative.

(c) (1) Insurers shall provide for a reduction in the rates applicable to coverage for the real property component of policies providing commercial risk insurance and public entity insurance where hurricane resistant laminated glass windows or doors have been installed on all exterior wall openings in the building structure. The amount of the reduction shall be determined in accordance with the standards set forth in section 160.2 of this Part.

(2) The laminated materials must be designed and properly installed in accordance with the manufacturer's specifications to withstand external pressure and wind borne debris from a storm with sustained wind speed of at least 110 miles per hour or a storm surge of 8 feet above normal.

 

I, Neil D. Levin, Superintendent of Insurance of the State of New York, do hereby certify that the foregoing is the Third Amendment to 11 NYCRR 160 (Regulation 57), promulgated by me on October 22, 1998, pursuant to the authority granted by Sections 201, 301, 2346 and 2346-a of the Insurance Law, to take effect upon publication in the State Register.

Pursuant to the provisions of the State Administrative Procedure Act, prior notice of the proposed amendment was published in the State Register on July 22, 1998. No other publication or prior notice is required by statute. 

_____________________
Neil D. Levin
Superintendent of Insurance

October 22, 1998