Bill Text: NY A03222 | 2021-2022 | General Assembly | Amended
Bill Title: Authorizes excess business disability insurance as a non-basic type of insurance.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2021-06-02 - substituted by s5760a [A03222 Detail]
Download: New_York-2021-A03222-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 3222--A 2021-2022 Regular Sessions IN ASSEMBLY January 22, 2021 ___________ Introduced by M. of A. HUNTER -- read once and referred to the Committee on Insurance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the insurance law, in relation to excess disability insurance The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraph 33 of subsection (a) of section 1113 of the 2 insurance law, as renumbered by section 23 of part L of chapter 56 of 3 the laws of 2020, is renumbered paragraph 34 and a new paragraph 33 is 4 added to read as follows: 5 (33) "Excess business disability insurance," means insurance against 6 financial loss experienced by a corporate entity or a partnership where 7 an individual integral to the successful operation of such corporate 8 entity or partnership becomes disabled due to sickness, ailment or bodi- 9 ly injury. Such insurance may be obtained in excess of a primary busi- 10 ness-related disability policy, or in the absence of such a policy if 11 coverage cannot be obtained from an authorized insurer. Excess business 12 disability insurance coverage may include, but is not limited to, 13 reimbursement for all overhead costs and expenses and all capital 14 outlays of a corporate entity or partnership which such corporate entity 15 or partnership incurs in the ordinary course of business during the 16 period of disability; and buy/sell arrangements in an amount sufficient 17 to purchase the disabled individual's interest share in the corporate 18 entity or partnership. 19 § 2. Subsection (a) of section 2105 of the insurance law, as amended 20 by section 24 of part L of chapter 56 of the laws of 2020, is amended to 21 read as follows: 22 (a) The superintendent may issue an excess line broker's license to 23 any person, firm, association or corporation who or which is licensed as 24 an insurance broker under section two thousand one hundred four of this EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD06807-02-1A. 3222--A 2 1 article, or who or which is licensed as an excess line broker in the 2 licensee's home state, provided, however, that the applicant's home 3 state grants non-resident licenses to residents of this state on the 4 same basis, except that reciprocity is not required in regard to the 5 placement of liability insurance on behalf of a purchasing group or any 6 of its members; authorizing such person, firm, association or corpo- 7 ration to procure, subject to the restrictions herein provided, policies 8 of insurance from insurers which are not authorized to transact business 9 in this state of the kind or kinds of insurance specified in paragraphs 10 four through fourteen, sixteen, seventeen, nineteen, twenty, twenty-two, 11 twenty-seven, twenty-eight, thirty-one, [and] thirty-two and thirty- 12 three of subsection (a) of section one thousand one hundred thirteen of 13 this chapter and in subsection (h) of this section, provided, however, 14 that the provisions of this section and section two thousand one hundred 15 eighteen of this article shall not apply to ocean marine insurance and 16 other contracts of insurance enumerated in subsections (b) and (c) of 17 section two thousand one hundred seventeen of this article. Such license 18 may be suspended or revoked by the superintendent whenever in his or her 19 judgment such suspension or revocation will best promote the interests 20 of the people of this state. 21 § 3. Subsection (b) of section 4101 of the insurance law, as amended 22 by section 25 of part L of chapter 56 of the laws of 2020, is amended to 23 read as follows: 24 (b) "Non-basic kinds of insurance" means the kinds of insurance 25 described in the following paragraphs of subsection (a) of section one 26 thousand one hundred thirteen of this chapter numbered therein as set 27 forth in parentheses below: 28 accident and health (item (i) of (3)); 29 non-cancellable disability (item (ii) of (3)); 30 miscellaneous property (5); 31 water damage (6); 32 collision (12); 33 property damage liability (14) - non-basic as to mutual companies 34 only; 35 motor vehicle and aircraft physical damage (19); 36 inland marine as specified in marine and inland marine (20); 37 marine protection and indemnity (21) - non-basic as to stock companies 38 only; 39 residual value (22); 40 credit unemployment (24); 41 gap (26); 42 prize indemnification (27); 43 service contract reimbursement (28); 44 legal services insurance (29); 45 involuntary unemployment insurance (30); 46 salary protection insurance (31); 47 donor medical expense insurance (32); 48 excess business disability insurance (33). 49 § 4. Group A of table one as contained in paragraph 1 of subsection 50 (a) of section 4103 of the insurance law, as amended by section 26 of 51 part L of chapter 56 of the laws of 2020, is amended to read as follows: 52 Group A: 53 7 $300,000 $150,000 54 8, 9, 10, 11, or 14 - for each such kind $100,000 $ 50,000A. 3222--A 3 1 13 or 15 - for each such kind $500,000 $250,000 2 16 $900,000 $450,000 3 17 $400,000 $200,000 4 Basic additional amount 5 required for any one 6 or more of the above 7 kinds of insurance $100,000 $ 50,000 8 3(i), 3(ii), 6{1} or 12{2} - for each 9 such kind $100,000 $ 50,000 10 22 $2,000,000 $1,000,000 11 24 $400,000 $200,000 12 26(B) $200,000 $100,000 13 26(A), 26(C) or 26(D) - 14 for each such kind $600,000 $300,000 15 27 $300,000 $150,000 16 28 $2,000,000 $1,000,000 17 30 $400,000 $200,000 18 31 $100,000 $ 50,000 19 32 $100,000 $ 50,000 20 33 $100,000 $ 50,000 21 § 5. Group C of table three as contained in subsection (b) of section 22 4107 of the insurance law, as amended by section 27 of part L of chapter 23 56 of the laws of 2020, is amended to read as follows: 24 Group C: 25 3(i) or 3(ii) - for each such kind $ 100,000 $ 100,000 26 22 $3,000,000 $2,000,000 27 24 $ 300,000 $ 300,000 28 26 (B) $ 300,000 $ 200,000 29 26(A), 26(C) or 26(D) - 30 for each such kind $ 900,000 $ 600,000 31 28 $3,000,000 $2,000,000 32 6{5}, 12{6} or 14{2} - for 33 each such kind $ 50,000 $ 50,000 34 27 $ 300,000 $ 150,000 35 30 $ 300,000 $ 300,000 36 31 $ 100,000 $ 100,000 37 32 $ 100,000 $ 100,000 38 33 $ 100,000 $ 100,000 39 § 6. This act shall take effect immediately.
