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.
Last modified: February 3, 2019