1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 A BILL __________

_______________________________ Councilmember Kenyan R. McDuffie

IN THE COUNCIL OF THE DISTRICT OF COLUMBIA ____________________ Councilmember McDuffie introduced the following bill, which was referred to the Committee on _____. To amend the District of Columbia Fire and Casualty Act to require homeowners insurance companies to clearly state that homeowners insurance does not cover all risks and to list the additional optional coverage available to the homeowner; to require the homeowners insurance company to notify applicants that homeowners insurance does not cover losses from flood and to explain how flood insurance may be obtained. BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this act may be cited as the District of Columbia Fire and Casualty Amendment Act of 2012. Sec. 2. The Fire and Casualty Act, approved October 9, 1940 (54 Stat. 1063; D.C. Code 31-2502.01 et seq.), is amended as follow: (a) A new section 31-2502.46 is added to read as follows: 31-2502.46. Statement of optional coverage available. (a) An insurer that sells or negotiates homeowner's insurance in the District of Columbia shall provide an applicant, at the time of application for homeowner's insurance, with a written statement that lists all additional optional coverage available from the insurer to the applicant. (b) If an application for homeowners insurance pursuant to subsection (a) of this section is made by telephone, the insurer is deemed to be in compliance with this section if,

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within 7 calendar days after the date of application, the insurer sends by certificate of mailing the statement to the applicant or insured. (c) If an application is submitted online, the insurer is deemed to be in compliance with this section if the insurer provides the statement to the applicant prior to submission of the application. (d) The statement shall: (1) Be on a separate form; (2) Be titled, in at least 12 point type, Additional Optional Coverage Not Included in the Standard Homeowner's Insurance Policy; (3) Contain the following disclosure in at least 10 point type: Your standard homeowner's insurance policy does not cover all risks. You may need to obtain additional insurance to cover loss or damage to your home, property, and the contents of your home or to cover risks related to business or personal activities on your property. This statement provides a list of the types of additional insurance coverage that are available. Contact your insurance company, insurance producer, or insurance agent to discuss these additional coverages.; and (4) Contain a list of additional optional coverage. (e) A statement required to be sent by certificate of mailing under this section may be sent with the notice required under 31-2502.45 of this subtitle. (f) A statement provided under this section does not create a private right of action. (b) A new section 31-2502.47 is added to read as follows: 31-2502.45. Flood insurance notice requirements for the provision of homeowners insurance. (a) Any company authorized to sell or negotiate homeowner's insurance in the District of Columbia shall provide:

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(1) An applicant, at the time a policy of homeowners insurance is initially purchased, with a written notice that states that a standard homeowners insurance policy does not cover losses from flood. (2) If an application is made by telephone, the insurer is deemed to be in compliance with this section if, within 7 calendar days after the date of application, the insurer sends by certificate of mailing the notice to the applicant or insured. (3) If an application is made using the internet, the insurer is deemed to be in compliance with this section if the insurer provides the notice to the applicant prior to the submission of the application. (4) The notice shall contain, at a minimum, the following information: (A) Advise the applicant that flood insurance may be available for an additional premium and that a claim under a flood insurance policy may be adjusted and paid on a different basis than a claim under a homeowners insurance policy; (B) Advise the applicant that a separate application must be completed to purchase flood insurance; (C) State that flood insurance may be available through the National Flood Insurance Program or other sources; (D) Provide the applicant with the contact information for the National Flood Insurance Program; and (E) Advise the applicant to consult with the National Flood Insurance Program, the District Department of the Environment, or the applicant's mortgage lender about the risks of flooding and the potential costs and benefits of flood insurance. (5) A notice provided under this section does not create a private right of

Sec. 3. The Council adopts the fiscal impact statement in the committee report as the fiscal impact statement required by section 602(c)(3) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 813; D.C. Official Code 1-206.02(c)(3)). 3

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Sec. 4. This act shall take effect following approval by the Mayor (or in the event of veto by the Mayor, action by the Council to override the veto), a 30-day period of Congressional review as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 813; D.C. Official Code 1-206.02(c)(1)), and publication in the District of Columbia Register.