Bill Text: NY S09420 | 2023-2024 | General Assembly | Introduced
Bill Title: Relates to parametric insurance; requires insurers providing parametric insurance include certain disclosures in the application for the policy; makes related provisions.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-05-22 - ADVANCED TO THIRD READING [S09420 Detail]
Download: New_York-2023-S09420-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 9420 IN SENATE May 15, 2024 ___________ Introduced by Sen. SKOUFIS -- (at request of the Department of Financial Services) -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance AN ACT to amend the insurance law, in relation to parametric insurance The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraph 34 of subsection (a) of section 1113 of the 2 insurance law is renumbered paragraph 35 and a new paragraph 34 is added 3 to read as follows: 4 (34) "Parametric insurance" means insurance against the occurrence of 5 a weather-related event, such as windstorm, flood, snow, wildfire, 6 tornado, cyclone, or earthquake, where the indemnification is based on 7 the proximity and magnitude of the event as measured and reported by a 8 state or federal government agency. 9 § 2. Subsection (a) of section 2105 of the insurance law, as amended 10 by chapter 359 of the laws of 2021, is amended to read as follows: 11 (a) The superintendent may issue an excess line broker's license to 12 any person, firm, association or corporation who or which is licensed as 13 an insurance broker under section two thousand one hundred four of this 14 article, or who or which is licensed as an excess line broker in the 15 licensee's home state, provided, however, that the applicant's home 16 state grants non-resident licenses to residents of this state on the 17 same basis, except that reciprocity is not required in regard to the 18 placement of liability insurance on behalf of a purchasing group or any 19 of its members; authorizing such person, firm, association or corpo- 20 ration to procure, subject to the restrictions herein provided, policies 21 of insurance from insurers [which] that are not authorized to transact 22 business in this state of the kind or kinds of insurance specified in 23 paragraphs four through fourteen, sixteen, seventeen, nineteen, twenty, 24 twenty-two, twenty-seven, twenty-eight, thirty-one, thirty-two [and], 25 thirty-three, and thirty-four of subsection (a) of section one thousand 26 one hundred thirteen of this chapter and in subsection (h) of this 27 section, provided, however, that the provisions of this section and 28 section two thousand one hundred eighteen of this article shall not EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD14183-02-4S. 9420 2 1 apply to ocean marine insurance and other contracts of insurance enumer- 2 ated in subsections (b) and (c) of section two thousand one hundred 3 seventeen of this article. Such license may be suspended or revoked by 4 the superintendent whenever in [his or her] the superintendent's judg- 5 ment such suspension or revocation will best promote the interests of 6 the people of this state. 7 § 3. The insurance law is amended by adding a new section 3416 to read 8 as follows: 9 § 3416. Parametric insurance. (a) Except as provided in subsection (b) 10 of this section, an insurer that issues a parametric insurance policy 11 shall disclose the following information in the application for the 12 insurance policy and in a prominent writing upon policy issuance and 13 renewal: 14 (1) the policy is not a substitute for property insurance or flood 15 insurance, as relevant, which generally provide more comprehensive 16 coverage in the event of a loss; and 17 (2) a mortgagee or loss payee may not accept a parametric insurance 18 policy. 19 (b) An excess line broker who procures a parametric insurance policy 20 pursuant to section two thousand one hundred five of this chapter shall 21 provide the disclosures required by subsection (a) of this section on 22 behalf of the insurer. 23 § 4. Paragraph 2 of subsection (a) of section 3425 of the insurance 24 law, as amended by chapter 235 of the laws of 1989, is amended to read 25 as follows: 26 (2) "Covered policy" also means a contract of insurance, referred to 27 in this section as "personal lines insurance", other than a contract of 28 insurance defined in paragraph one hereof, issued or issued for delivery 29 in this state, on a risk located or resident in this state, insuring any 30 of the following contingencies: 31 (A) loss of or damage to real property used predominantly for residen- 32 tial purposes and [which] that consists of not more than four dwelling 33 units, other than hotels and motels; 34 (B) loss of or damage to personal property in which natural persons 35 have an insurable interest, except personal property used in the conduct 36 of a business; [and] 37 (C) other liabilities for loss of, damage to, or injury to persons or 38 property, not arising from the conduct of a business, when a natural 39 person is the named insured under the policy; and 40 (D) parametric insurance, as defined in paragraph thirty-four of 41 subsection (a) of section one thousand one hundred thirteen of this 42 chapter. 43 § 5. Subsection (b) of section 4101 of the insurance law, as amended 44 by chapter 359 of the laws of 2021, is amended to read as follows: 45 (b) "Non-basic kinds of insurance" means the kinds of insurance 46 described in the following paragraphs of subsection (a) of section one 47 thousand one hundred thirteen of this chapter numbered therein as set 48 forth in parentheses below: 49 accident and health (item (i) of (3)); 50 non-cancellable disability (item (ii) of (3)); 51 miscellaneous property (5); 52 water damage (6); 53 collision (12); 54 property damage liability (14) - non-basic as to mutual companies 55 only; 56 motor vehicle and aircraft physical damage (19);S. 9420 3 1 inland marine as specified in marine and inland marine (20); 2 marine protection and indemnity (21) - non-basic as to stock companies 3 only; 4 residual value (22); 5 credit unemployment (24); 6 gap (26); 7 prize indemnification (27); 8 service contract reimbursement (28); 9 legal services insurance (29); 10 involuntary unemployment insurance (30); 11 salary protection insurance (31); 12 donor medical expense insurance (32); 13 excess business disability insurance (33); 14 parametric insurance (34). 15 § 6. Paragraph 2 of subsection (b) of section 4102 of the insurance 16 law is amended to read as follows: 17 (2) If licensed to write fire (4), it may be licensed to write miscel- 18 laneous property (5), water damage (6), collision (12), motor vehicle 19 and aircraft physical damage (19) [and], inland marine as specified in 20 marine and inland marine (20) and parametric (34); 21 § 7. Note 3 of table one of paragraph 1 of subsection (a) of section 22 4103 of the insurance law, as amended by chapter 293 of the laws of 23 1986, is amended to read as follows: 24 {3} If licensed to write paragraph 4, no additional paid-in capital 25 and surplus is required for a license to write paragraphs 5, 6, 12, 19 26 [and], 20, (inland marine only) and 34. 27 § 8. Note 1 of table two of paragraph 1 of subsection (a) of section 28 4107 of the insurance law, as amended by chapter 805 of the laws of 29 1984, is amended to read as follows: 30 {1} If licensed to write paragraph 4, no additional surplus is 31 required for a license to write [pargraphs] paragraphs 5, 6, 12, 19 32 [and], 20, (inland marine only) and 34. 33 § 9. Note 3 of table three of subsection (b) of section 4107 of the 34 insurance law, as amended by chapter 293 of the laws of 1986, is amended 35 to read as follows: 36 {3} If licensed to write paragraph 4, no additional surplus is 37 required for a license to write paragraphs 5, 6, 12, 19 [and], 20, 38 (inland marine only) and 34. 39 § 10. This act shall take effect on the thirtieth day after it shall 40 have become a law.
