A07110 Summary:

BILL NOA07110
 
SAME ASSAME AS S04081
 
SPONSORGunther
 
COSPNSR
 
MLTSPNSR
 
Amd §6605, Ins L
 
Grants authority to assessment corporations to write specified kinds of standalone liability insurance.
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A07110 Actions:

BILL NOA07110
 
04/08/2019referred to insurance
01/08/2020referred to insurance
07/14/2020reported referred to rules
07/21/2020reported
07/21/2020rules report cal.235
07/21/2020substituted by s4081
 S04081 AMEND= SKOUFIS
 02/27/2019REFERRED TO INSURANCE
 03/11/20191ST REPORT CAL.251
 03/12/20192ND REPORT CAL.
 03/13/2019ADVANCED TO THIRD READING
 03/14/2019PASSED SENATE
 03/14/2019DELIVERED TO ASSEMBLY
 03/14/2019referred to insurance
 01/08/2020died in assembly
 01/08/2020returned to senate
 01/08/2020REFERRED TO INSURANCE
 01/27/20201ST REPORT CAL.291
 01/28/20202ND REPORT CAL.
 01/29/2020ADVANCED TO THIRD READING
 03/10/2020PASSED SENATE
 03/10/2020DELIVERED TO ASSEMBLY
 03/10/2020referred to insurance
 07/21/2020substituted for a7110
 07/21/2020ordered to third reading rules cal.235
 07/21/2020passed assembly
 07/21/2020returned to senate
 12/11/2020DELIVERED TO GOVERNOR
 12/23/2020SIGNED CHAP.366
 12/23/2020APPROVAL MEMO.63
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A07110 Committee Votes:

INSURANCE Chair:Cahill DATE:07/14/2020AYE/NAY:20/0 Action: Favorable refer to committee Rules
CahillAyeGarbarinoAye
CookAyeHawleyAye
PretlowAyeBlankenbushAye
RiveraAbsentFinchAbsent
CymbrowitzAyePalmesanoAye
LavineAyeByrneAye
SteckAyeSchmittAye
DilanAye
HunterAye
SimotasAye
NiouAye
RosenthalAye
SternAye
McDonaldAye
JacobsonAye

RULES Chair:Heastie DATE:07/21/2020AYE/NAY:26/0 Action: Favorable
HeastieExcusedBarclayAye
GottfriedAyeCrouchAye
LentolAyeFinchExcused
NolanAyeHawleyAye
WeinsteinAyeGiglioAye
OrtizExcusedMalliotakisAye
PretlowAyeBlankenbushAye
CookExcusedNorrisAye
GlickAye
AubryAye
EnglebrightAye
DinowitzAye
ColtonAye
MagnarelliAye
PerryAye
PaulinAye
Peoples-StokesAye
BenedettoAye
LavineAye
LupardoAye
ZebrowskiAye
ThieleAye

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A07110 Floor Votes:

There are no votes for this bill in this legislative session.
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A07110 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A7110
 
SPONSOR: Gunther
  TITLE OF BILL: An act to amend the insurance law, in relation to the organization of assessment corporations   PURPOSE OR GENERAL IDEA OF BILL: To clarify that assessment cooperative property and casualty insurance companies are authorized to write umbrella insurance policies and stand- alone liability coverage.   SUMMARY OF PROVISIONS: Sections 1, 2 and 3: Amend section 6605 of the Insurance Law to clarify that assessment cooperative property and casualty insurance companies can write both personal and commercial umbrella liability coverage and standalone liability insurance policies. Section 4: Effective date.   JUSTIFICATION: Assessment cooperatives are property and casualty insurance companies that have been covering thousands of homeowners, renters, small busi- nesses and farms in Upstate New York for decades and, in many cases, for over a century. These companies have been writing liability policies for over 50 years. Unfortunately, the current law restricts assessment cooperative insur- ance companies from writing umbrella insurance policies for their poli- cyholders who have an underlying policy with the assessment corporation. As a result, assessment cooperatives are at an unfair disadvantage in the insurance markets they serve, primarily rural and underserved areas of Upstate New York. This fact is also needlessly causing a tremendous disservice to the policyholders who rely on smaller insurance companies to fill this market need. Failing to correct this unnecessary restriction in current state law would result in the market options shrinking considerably with the policy holders very possibly facing price increases due to the lack of options. For example, thousands of tenant and homeowner policies would be nega- tively impacted without any corresponding benefit. Similarly, small businesses who rely on the assessment cooperatives to write coverage in Manufacturers & Contractors policies would also be harmed, again without any corresponding benefit. In fact, assessment cooperatives and advance premium cooperatives in New York cove over 71,000 New York small busi- nesses. As a result, this bill is needed to ensure a stable, competitive and vibrant property and casualty insurance market in New York, a market that will benefit New Yorkers and especially those individuals and busi- nesses residing in Upstate New York.   LEGISLATIVE HISTORY: 2017-18: A8361 referred to Insurance/S4010A committed to Rules   FISCAL IMPLICATIONS: None   EFFECTIVE DATE: This act shall take effect immediately.
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A07110 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          7110
 
                               2019-2020 Regular Sessions
 
                   IN ASSEMBLY
 
                                      April 8, 2019
                                       ___________
 
        Introduced  by M. of A. GUNTHER -- read once and referred to the Commit-
          tee on Insurance
 
        AN ACT to amend the insurance law, in relation to  the  organization  of
          assessment corporations
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. The opening paragraph of subsection (a) of section 6605  of
     2  the  insurance  law,  as  added  by  chapter 137 of the laws of 1986, is
     3  amended to read as follows:
     4    An assessment corporation may be organized and licensed in the  manner
     5  prescribed in section six thousand six hundred three of this article and
     6  may do, in addition to the kind of insurance specified in paragraph four
     7  of  subsection  (a) of section one thousand one hundred thirteen of this
     8  chapter, any one or more of the kinds of insurance  specified  in  para-
     9  graphs five, six, seven and eight of such subsection [solely in conjunc-
    10  tion  with fire insurance written under the same policy and covering the
    11  same premises] and insurance against loss or damage to  property  caused
    12  by aircraft or vehicles in compliance with the following prerequisites:
    13    §  2.  Subsection (b) of section 6605 of the insurance law, as amended
    14  by chapter 379 of the laws of 2001, is amended to read as follows:
    15    (b) Any licensed assessment corporation may amend its charter  and  be
    16  licensed  to  do  the  kinds  of insurance specified in paragraphs nine,
    17  thirteen, fourteen and fifteen (except workers' compensation  insurance)
    18  of  subsection  (a) of section one thousand one hundred thirteen of this
    19  chapter [solely in conjunction with fire  insurance  written  under  the
    20  same  policy  and  covering the same premises] and may be licensed to do
    21  the kinds of insurance specified in paragraphs twelve, nineteen (exclud-
    22  ing aircraft physical damage insurance) and twenty (inland marine  only)
    23  of  such  subsection.  An  assessment  corporation licensed to write the
    24  kinds of insurance specified in  paragraphs  thirteen  and  fourteen  of
    25  subsection  (a)  of  section  one  thousand one hundred thirteen of this
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06612-01-9

        A. 7110                             2
 
     1  chapter is authorized to write personal or commercial umbrella liability
     2  insurance or any other type of standalone liability insurance, excluding
     3  automobile insurance.
     4    §  3.  Section  6605  of  the insurance law is amended by adding a new
     5  subsection (d) to read as follows:
     6    (d) An assessment corporation licensed to write the kinds of insurance
     7  specified in paragraphs thirteen  and  fourteen  of  subsection  (a)  of
     8  section  one thousand one hundred thirteen of this chapter is authorized
     9  to write personal or commercial  umbrella  liability  insurance  or  any
    10  other  type  of  standalone  liability  insurance,  excluding automobile
    11  insurance. Except as herein provided, the corporation must  maintain  an
    12  additional  surplus  or fifty thousand dollars if the corporation writes
    13  umbrella liability insurance. The additional surplus is not necessary if
    14  the whole risk for this peril  is  reinsured  in  an  insurance  company
    15  authorized  to do business in this state, or in an accredited reinsurer,
    16  as defined in subsection (a) of section one hundred seven of this  chap-
    17  ter.
    18    § 4. This act shall take effect immediately.
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A07110 LFIN:

 NO LFIN
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A07110 Chamber Video/Transcript:

7-21-20Video (@ 09:37:18)Transcript pdf Transcript html
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