DFS Floats Hurricane Deductible Trigger Regulation
The New York State Department of Financial Services (DFS) has posted a draft of an amended regulation on hurricane deductible triggers. The department has invited interested parties to share their initial reactions.
The draft regulation would implement a law enacted last year. That law, which Big I New York supported, requires the department to “by regulation establish standards for hurricane windstorm deductibles, which create, to the greatest extent possible, uniformity in the operation of such deductibles with respect to the triggering event.” The law was intended to respond to concerns that homeowners in the same town or village might face vastly different hurricane deductibles because of the difference in policy conditions regarding what triggers them. Big I New York is reviewing the draft and may provide general comments to the department for their consideration as they finalize the proposal. Once they publish a formal proposal, we will perform a thorough analysis and provide detailed comments during the public comment period.
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