N.Y. Insurance Law § 5401: Definitions

§ 5401. Definitions. In this article:

(a) "Fire insurance" means coverage against loss of or damage to any

property resulting from fire, as defined in paragraph four of subsection

(a) of section one thousand one hundred thirteen of this chapter and

implemented by section three thousand four hundred four of this chapter.

(b) "Extended coverage" means insurance against direct loss to

property by windstorm, hail, explosion, riot, riot attending a strike,

civil commotion, aircraft, vehicles and smoke, as limited by paragraph

five of subsection (a) of section one thousand one hundred thirteen of

this chapter.

(c) "Broad form coverage" includes extended coverage, as well as

insurance against direct loss to property by volcanic eruption, burglary

damage, weight of ice, snow or sleet, glass breakage, accidental

discharge or overflow of water or steam, falling objects, freezing,

artificially generated electrical current, collapse, and tearing apart,

cracking, burning or bulging.

(d) "Additional perils coverage" means any of the following written in

connection with fire, extended coverage and broad form coverage policies

issued pursuant to this article:

(1) "Vandalism and malicious mischief insurance", means coverage

against loss or damage to property resulting from vandalism or malicious

mischief, as defined in subparagraph (D) of paragraph five of subsection

(a) of section one thousand one hundred thirteen of this chapter,

subject to a reasonable graded deductible, of not less than two hundred

fifty dollars.

(2) "Sprinkler leakage insurance", means coverage against loss or

damage to property resulting from the breakage or leakage of sprinklers,

as defined in paragraph six of subsection (a) of section one thousand

one hundred thirteen of this chapter.

(3) "Rent insurance", means coverage against actual loss of rental

income resulting from property being rendered necessarily untenantable

due to its damage or destruction by a peril insured against.

(4) "Business interruption insurance", means coverage against actual

loss resulting from necessary interruption of business due to damage or

destruction of property by a peril insured against.

(e) "Association" means the joint underwriting association continued

by this article.

(f) "Plan of operation" or "plan" means the plan of operation

complying with section five thousand four hundred two of this article.

(g) "Insurable property" means real property at fixed locations

anywhere in this state, or the tangible personal property located

thereon, which is determined by the association, after inspection and

pursuant to criteria specified in the plan, to be insurable.

Neighborhood or area location shall not be considered in determining

insurable condition. Property is not insurable if it has

characteristics of ownership, condition, occupancy or maintenance which

violate public policy.

(h) "Net direct premiums" means gross direct premiums written on

property in this state for fire and extended coverage insurance,

including the fire and extended coverage components of homeowners and

commercial multiple peril package policies as computed by the

superintendent, less return premiums or the unused or unabsorbed

portions of premium deposits.

(i) For the purposes of this section "homeowners insurance" means such

homeowners insurance policies defined in subsection (a) of section two

thousand three hundred fifty-one of this chapter, as are determined by

the superintendent to be equivalent to any homeowners policies developed

by a nationally recognized principal rate service organization, except

that where the market value of the insured property is less than its

replacement cost, then the coverage shall be provided in policies

determined by the superintendent to be equivalent to that contained in

market value (HO-8) policies.