On June 5, 2024, the New York legislature enacted law AB-A5073 that limits the amount of flood insurance required by a mortgagee on residential real estate to no more than the outstanding principal balance as of the beginning of the year the insurance policy takes effect.

Chief Compliance Officer Kirk Stephens, CRCM, explains the ins and outs of the law, which is awaiting signature by the Governor.

He also discusses how OSC is preparing for the new law, including reviewing business rules regarding the calculation of required flood coverage for all residential property portfolios.

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