2023 New York Laws › ISC - Insurance › Article 34 - Insurance Contracts-Property/casualty › 3403 - Anti-Arson Application.

§ 3403. Anti-arson application. (a) In this section:
(1) "Anti-arson  application"  means  any application for insurance or
renewal of insurance, covering the  peril  of  fire  or  explosion  that
includes  certain questions contained in subsection (c) of this section,
which shall be answered by  the  applicant  in  addition  to  the  basic
information normally supplied to an insurer by an applicant.
(2) "Insurance  policy"  and  "contract"  shall  not  mean an existing
property insurance policy or contract, provided however that  assignment
of  the  policy or contract because of the transfer of a major financial
interest in the insured real property shall  require  completion  of  an
anti-arson application if otherwise required under this section.
(3) "Property"  means real property and the buildings and improvements
thereon.
(b) Except as provided in subsection (g) of this section  the  use  of
the anti-arson application shall be mandatory for all property insurance
policies covering the peril of fire or explosion.
(c)  The  superintendent,  in  promulgating the anti-arson application
form, shall consider generally recognized two-tier application forms. If
the  initial  first-tier  application  elicits   certain   predesignated
answers,   then   the  administration  of  a  second-tier  supplementary
application  shall  be  mandatory.  The  superintendent  shall  consider
securing the disclosure of the following types of information including,
but not limited to:
(1)  the  name and address of the applicant and any mortgagees and any
other parties who have an ownership interest in  the  property  and  any
other  parties  who  have  a  real  interest  in  the property or in the
proceeds of the claim;
(2) the amount of insurance requested and the method of valuation used
to establish the amount of insurance;
(3) the dates and selling prices of the property in  all  real  estate
transactions involving such property during the last three years;
(4)  the  applicant's  loss  history over at least the last five years
with regard to any property in which he held an  equity  interest  or  a
mortgage  and  where  any  such  loss  exceeded  one thousand dollars in
damages;
(5) all taxes unpaid or  overdue  for  one  or  more  years,  and  any
mortgage payments overdue by three months or more;
(6)  all  current  violations  of  fire,  safety, health, building, or
construction codes on the property to be insured; and
(7) the present occupancy of the structure.
(d) No insurer, broker or authorized agent may enter into  a  contract
to  insure  any  building, against the peril of fire or explosion unless
such insurer, broker or authorized agent, first receives  an  anti-arson
application  signed  and  affirmed  by  the  insured, if required by the
superintendent in  accordance  with  the  provisions  of  this  section.
Nothing  herein shall be construed to restrict the insurance of property
by binder pursuant to  rules  and  regulations  as  promulgated  by  the
superintendent.
(e)  A  material misrepresentation in the anti-arson application shall
be grounds to rescind the insurance policy.
(f) Insureds shall notify their insurer in writing of  any  change  in
the information contained in the anti-arson application, upon renewal or
annually,  whichever  is  sooner.  A  material misrepresentation in such
notification shall be grounds to rescind the insurance policy.
(g) (1) The  provisions  of  this  section  shall  not  apply  to  any
insurance  policy  or  contract  covering the peril of fire or explosion
with respect to owner-occupied  real  property  used  predominantly  for

residential  purposes  which  consists  of  not  more than four dwelling
units.
(2)  The  provisions of this section shall only apply to cities with a
population of one million or more  persons  according  to  the  nineteen
hundred  seventy  census,  except  that  within  a reasonable time after
receiving a petition  by  the  governing  board  of  a  local  municipal
corporation  as  those  terms  are defined in article one of the general
municipal  law,  the  superintendent  shall  mandate  the  use  of   the
anti-arson  application  within  specific designations contained in such
petition.
(h) The  superintendent  may  suspend  or  waive  the  requirement  of
subsection  (f)  of  this  section  if  an  insurer can demonstrate that
information that is substantially equivalent to the information obtained
pursuant  to  the  two-tier  application  form  completed  upon   policy
inception is available to the insurer by other means.