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A10226 Summary:

BILL NOA10226B
 
SAME ASSAME AS S08211-A
 
SPONSORCarroll
 
COSPNSRFahy, Griffin, Simotas, Epstein, Lentol, Miller MG, Pheffer Amato, Wright, Dinowitz, Ortiz, Thiele, Cusick, Barrett, Colton, Malliotakis, Magnarelli, Fall, Frontus, Glick, Rozic, Jones, Jacobson, Niou, Simon, Otis, Woerner, Seawright, Lupardo, D'Urso, Rosenthal L, Eichenstein, Mosley, Jaffee, Bronson, Steck, Galef, Reyes, Rivera, Taylor, Davila
 
MLTSPNSREnglebright, Lavine, McDonough
 
 
Requires certain perils be covered under business interruption insurance during the coronavirus disease 2019 (COVID-19) pandemic.
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A10226 Actions:

BILL NOA10226B
 
03/27/2020referred to insurance
04/08/2020amend and recommit to insurance
04/08/2020print number 10226a
04/29/2020amend and recommit to insurance
04/29/2020print number 10226b
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A10226 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                        10226--B
 
                   IN ASSEMBLY
 
                                     March 27, 2020
                                       ___________
 
        Introduced by M. of A. CARROLL, FAHY, GRIFFIN, SIMOTAS, EPSTEIN, LENTOL,
          M. G. MILLER,  PHEFFER AMATO, WRIGHT, DINOWITZ, ORTIZ, THIELE, CUSICK,
          BARRETT,  COLTON,  MALLIOTAKIS,  MAGNARELLI,  FALL,  FRONTUS,   GLICK,
          PAULIN,  ROZIC,  JONES, JACOBSON, NIOU, SIMON -- Multi-Sponsored by --
          M. of A. ENGLEBRIGHT, McDONOUGH --  read  once  and  referred  to  the
          Committee  on Insurance -- committee discharged, bill amended, ordered
          reprinted as amended  and  recommitted  to  said  committee  --  again
          reported  from  said  committee  with amendments, ordered reprinted as
          amended and recommitted to said committee
 
        AN ACT in relation to requiring certain perils be covered under business
          interruption insurance during the coronavirus disease 2019  (COVID-19)
          pandemic
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1.  For the purposes of this act:
     2    (a) "business" shall mean a business registered with the department of
     3  tax and finance or not-for-profit corporation registered with the Attor-
     4  ney General's charities bureau.
     5    (b) "income" shall mean traditional business income as  well  as  not-
     6  for-profit revenue from donations, sponsorships, and grants.
     7    (c)  "net  written premiums received" shall mean gross direct premiums
     8  written, less return premiums thereon and dividends credited or paid  to
     9  policyholders, as reported on the company's annual financial statement.
    10    (d) "premium taxes" shall mean payments required under subdivision (d)
    11  of section 2118 of the insurance law.
    12    §  2. (a) Notwithstanding any provisions of law, rule or regulation to
    13  the contrary, every policy of insurance insuring against loss or  damage
    14  to  property, which includes, but is not limited to, the loss of use and
    15  occupancy and business interruption, shall be construed to include among
    16  the covered perils under that policy, coverage for business interruption
    17  during a period of a declared state emergency  due  to  the  coronavirus
    18  disease 2019 (COVID-19) pandemic.
    19    (b) Every policy of insurance insuring against loss or damage to prop-
    20  erty,  which  includes, but is not limited to, the loss of use and occu-
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD16053-05-0

        A. 10226--B                         2
 
     1  pancy and business interruption, whose policy expires during a period of
     2  a declared state emergency due to the coronavirus disease  2019  (COVID-
     3  19)  pandemic, shall be subject to an automatic renewal of the policy at
     4  the current rate of charge.
     5    (c)  Every policy of insurance or endorsement thereto insuring against
     6  an insured's business  income  loss  resulting  from  loss,  damage,  or
     7  destruction  of  property owned by others, including direct suppliers of
     8  goods or services to the insured and/or direct  receivers  of  goods  or
     9  services  manufactured or provided by the insured, shall be construed to
    10  include among the covered perils under that policy, coverage for contin-
    11  gent business interruption during a period of a declared state emergency
    12  due the coronavirus disease 2019 (COVID-19) pandemic.
    13    (d) Every policy of insurance or endorsement thereto insuring  against
    14  an  insured's  business  income  loss  resulting  from  loss, damage, or
    15  destruction of property owned by others, including direct  suppliers  of
    16  goods  or  services  to  the insured and/or direct receivers of goods or
    17  services manufactured or provided by the insured, whose  policy  expires
    18  during  a  period  of  a declared state emergency due to the coronavirus
    19  disease 2019 (COVID-19) pandemic,  shall  be  subject  to  an  automatic
    20  renewal of the policy at the current rate of charge.
    21    (e)  Any clause or provision of a policy of insurance insuring against
    22  loss or damage to property, which includes, but is not limited  to,  the
    23  loss of use and occupancy and business interruption and contingent busi-
    24  ness  interruption, which allows the insurer to deny coverage based on a
    25  virus, bacterium, or other microorganism that causes  disease,  illness,
    26  or  physical distress or that is capable of causing disease, illness, or
    27  physical distress shall be null and void; provided, however, the remain-
    28  ing clauses and provisions of the contract shall remain  in  effect  for
    29  the duration of the contract term.
    30    (f) The coverage required by this section shall indemnify the insured,
    31  subject  to  the  limits  under  the policy, for any loss of business or
    32  business interruption and contingent business interruption for the dura-
    33  tion of a period of a declared state emergency due  to  the  coronavirus
    34  disease 2019 (COVID-19) pandemic.
    35    (g)  This section shall apply to policies issued to insureds with less
    36  than 250 eligible employees in force on the effective date of this  act.
    37  "Eligible  employee"  means a full-time employee who works a normal work
    38  week of 25 or more hours.
    39    § 3. (a) An insurer, including excess  lines  insurers,  which  indem-
    40  nifies  an insured who has filed a claim pursuant to section two of this
    41  act may apply to the superintendent of financial services for relief and
    42  reimbursement by the department from funds collected and made  available
    43  for this purpose as provided in section four of this act.
    44    (b)  The  superintendent  of financial services shall establish proce-
    45  dures for the submission and qualification of claims by  insurers  which
    46  are  eligible for reimbursement pursuant to this act. The superintendent
    47  of financial services shall incorporate in these procedures such  stand-
    48  ards  as  are  necessary to protect against the submission of fraudulent
    49  claims by insureds, and appropriate safeguards for insurers to employ in
    50  the review and payment of such claims.
    51    § 4. (a) The superintendent of financial  services  is  authorized  to
    52  impose upon, distribute among, and collect from the companies, including
    53  excess  lines  insurers,  engaged  in business pursuant to the insurance
    54  law, such additional amounts as may be necessary to recover the  amounts
    55  paid to insurers pursuant to section three of this act.

        A. 10226--B                         3

     1    (b)  The  additional special purpose apportionment authorized pursuant
     2  to subdivision (a) of this section shall be distributed in  the  propor-
     3  tion  that  the  net  written  premiums, or premium taxes in the case of
     4  excess lines insurers, received by each company subject  to  the  appor-
     5  tionment  authorized by this section for insurance written or renewed on
     6  risks in this state during  the  calendar  year  immediately  preceding,
     7  bears  to  the  sum  total  of all such net written premiums, or premium
     8  taxes in the case of excess lines insurers, received  by  all  companies
     9  writing that insurance or coverage within the state during that calendar
    10  year, as reported.
    11    §  5.  This  act shall take effect immediately, and shall be deemed to
    12  have been in full force and effect on and after March 7, 2020 and  shall
    13  apply to insurance policies in force on that date.
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