§ 5401 — Definitions

New York § 5401

• Jurisdiction: New York
• Law ISC: Insurance
• Art. 54: New York Property Insurance Underwriting Association

Text

§ 5401. Definitions. In this article:\n (a) "Fire insurance" means coverage against loss of or damage to any\nproperty resulting from fire, as defined in paragraph four of subsection\n(a) of section one thousand one hundred thirteen of this chapter and\nimplemented by section three thousand four hundred four of this chapter.\n (b) "Extended coverage" means insurance against direct loss to\nproperty by windstorm, hail, explosion, riot, riot attending a strike,\ncivil commotion, aircraft, vehicles and smoke, as limited by paragraph\nfive of subsection (a) of section one thousand one hundred thirteen of\nthis chapter.\n (c) "Broad form coverage" includes extended coverage, as well as\ninsurance against direct loss to property by volcanic eruption, burglary\ndamage, weight of ice, snow or sleet, glass breakage, accidental\ndischarge or overflow of water or steam, falling objects, freezing,\nartificially generated electrical current, collapse, and tearing apart,\ncracking, burning or bulging.\n (d) "Additional perils coverage" means any of the following written in\nconnection with fire, extended coverage and broad form coverage policies\nissued pursuant to this article:\n (1) "Vandalism and malicious mischief insurance", means coverage\nagainst loss or damage to property resulting from vandalism or malicious\nmischief, as defined in subparagraph (D) of paragraph five of subsection\n(a) of section one thousand one hundred thirteen of this chapter,\nsubject to a reasonable graded deductible, of not less than two hundred\nfifty dollars.\n (2) "Sprinkler leakage insurance", means coverage against loss or\ndamage to property resulting from the breakage or leakage of sprinklers,\nas defined in paragraph six of subsection (a) of section one thousand\none hundred thirteen of this chapter.\n (3) "Rent insurance", means coverage against actual loss of rental\nincome resulting from property being rendered necessarily untenantable\ndue to its damage or destruction by a peril insured against.\n (4) "Business interruption insurance", means coverage against actual\nloss resulting from necessary interruption of business due to damage or\ndestruction of property by a peril insured against.\n (e) "Association" means the joint underwriting association continued\nby this article.\n (f) "Plan of operation" or "plan" means the plan of operation\ncomplying with section five thousand four hundred two of this article.\n (g) "Insurable property" means real property at fixed locations\nanywhere in this state, or the tangible personal property located\nthereon, which is determined by the association, after inspection and\npursuant to criteria specified in the plan, to be insurable.\nNeighborhood or area location shall not be considered in determining\ninsurable condition. Property is not insurable if it has\ncharacteristics of ownership, condition, occupancy or maintenance which\nviolate public policy.\n (h) "Net direct premiums" means gross direct premiums written on\nproperty in this state for fire and extended coverage insurance,\nincluding the fire and extended coverage components of homeowners and\ncommercial multiple peril package policies as computed by the\nsuperintendent, less return premiums or the unused or unabsorbed\nportions of premium deposits.\n (i) For the purposes of this section "homeowners insurance" means such\nhomeowners insurance policies defined in subsection (a) of section two\nthousand three hundred fifty-one of this chapter, as are determined by\nthe superintendent to be equivalent to any homeowners policies developed\nby a nationally recognized principal rate service organization, except\nthat where the market value of the insured property is less than its\nreplacement cost, then the coverage shall be provided in policies\ndetermined by the superintendent to be equivalent to that contained in\nmarket value (HO-8) policies.\n