Bill Text: NY A03222 | 2021-2022 | General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Introduced.html
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-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 3222 2021-2022 Regular Sessions IN ASSEMBLY January 22, 2021 ___________ Introduced by M. of A. HUNTER -- read once and referred to the Committee on Insurance 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) "Catastrophic business disruption insurance," means insurance 6 against financial loss experienced by a corporate entity or a partner- 7 ship where an individual integral to the successful operation of such 8 corporate entity or partnership becomes disabled due to sickness, 9 ailment or bodily injury. Such insurance may be obtained in excess of a 10 primary business-related disability policy, or in the absence of such a 11 policy if coverage cannot be obtained from an authorized insurer. 12 Catastrophic business disruption insurance coverage may include, but is 13 not limited to, reimbursement for all overhead costs and expenses and 14 all capital outlays of a corporate entity or partnership which such 15 corporate entity or partnership incurs in the ordinary course of busi- 16 ness during the period of disability; and buy/sell arrangements in an 17 amount sufficient to purchase the disabled individual's interest share 18 in the corporate 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 25 article, or who or which is licensed as an excess line broker in the EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD06807-01-1A. 3222 2 1 licensee's home state, provided, however, that the applicant's home 2 state grants non-resident licenses to residents of this state on the 3 same basis, except that reciprocity is not required in regard to the 4 placement of liability insurance on behalf of a purchasing group or any 5 of its members; authorizing such person, firm, association or corpo- 6 ration to procure, subject to the restrictions herein provided, policies 7 of insurance from insurers which are not authorized to transact business 8 in this state of the kind or kinds of insurance specified in paragraphs 9 four through fourteen, sixteen, seventeen, nineteen, twenty, twenty-two, 10 twenty-seven, twenty-eight, thirty-one, [and] thirty-two and thirty- 11 three of subsection (a) of section one thousand one hundred thirteen of 12 this chapter and in subsection (h) of this section, provided, however, 13 that the provisions of this section and section two thousand one hundred 14 eighteen of this article shall not apply to ocean marine insurance and 15 other contracts of insurance enumerated in subsections (b) and (c) of 16 section two thousand one hundred seventeen of this article. Such license 17 may be suspended or revoked by the superintendent whenever in his or her 18 judgment such suspension or revocation will best promote the interests 19 of the people of this state. 20 § 3. Subsection (b) of section 4101 of the insurance law, as amended 21 by section 25 of part L of chapter 56 of the laws of 2020, is amended to 22 read as follows: 23 (b) "Non-basic kinds of insurance" means the kinds of insurance 24 described in the following paragraphs of subsection (a) of section one 25 thousand one hundred thirteen of this chapter numbered therein as set 26 forth in parentheses below: 27 accident and health (item (i) of (3)); 28 non-cancellable disability (item (ii) of (3)); 29 miscellaneous property (5); 30 water damage (6); 31 collision (12); 32 property damage liability (14) - non-basic as to mutual companies 33 only; 34 motor vehicle and aircraft physical damage (19); 35 inland marine as specified in marine and inland marine (20); 36 marine protection and indemnity (21) - non-basic as to stock companies 37 only; 38 residual value (22); 39 credit unemployment (24); 40 gap (26); 41 prize indemnification (27); 42 service contract reimbursement (28); 43 legal services insurance (29); 44 involuntary unemployment insurance (30); 45 salary protection insurance (31); 46 donor medical expense insurance (32); 47 catastrophic business disruption insurance (32). 48 § 4. Group A of table one as contained in paragraph 1 of subsection 49 (a) of section 4103 of the insurance law, as amended by section 26 of 50 part L of chapter 56 of the laws of 2020, is amended to read as follows: 51 Group A: 52 7 $300,000 $150,000 53 8, 9, 10, 11, or 14 - for each such kind $100,000 $ 50,000 54 13 or 15 - for each such kind $500,000 $250,000A. 3222 3 1 16 $900,000 $450,000 2 17 $400,000 $200,000 3 Basic additional amount 4 required for any one 5 or more of the above 6 kinds of insurance $100,000 $ 50,000 7 3(i), 3(ii), 6{1} or 12{2} - for each 8 such kind $100,000 $ 50,000 9 22 $2,000,000 $1,000,000 10 24 $400,000 $200,000 11 26(B) $200,000 $100,000 12 26(A), 26(C) or 26(D) - 13 for each such kind $600,000 $300,000 14 27 $300,000 $150,000 15 28 $2,000,000 $1,000,000 16 30 $400,000 $200,000 17 31 $100,000 $ 50,000 18 32 $100,000 $ 50,000 19 33 $100,000 $ 50,000 20 § 5. Group C of table three as contained in subsection (b) of section 21 4107 of the insurance law, as amended by section 27 of part L of chapter 22 56 of the laws of 2020, is amended to read as follows: 23 Group C: 24 3(i) or 3(ii) - for each such kind $ 100,000 $ 100,000 25 22 $3,000,000 $2,000,000 26 24 $ 300,000 $ 300,000 27 26 (B) $ 300,000 $ 200,000 28 26(A), 26(C) or 26(D) - 29 for each such kind $ 900,000 $ 600,000 30 28 $3,000,000 $2,000,000 31 6{5}, 12{6} or 14{2} - for 32 each such kind $ 50,000 $ 50,000 33 27 $ 300,000 $ 150,000 34 30 $ 300,000 $ 300,000 35 31 $ 100,000 $ 100,000 36 32 $ 100,000 $ 100,000 37 33 $ 100,000 $ 100,000 38 § 6. This act shall take effect immediately; provided, however, that 39 if sections 23, 24, 25, 26 and 27 of part L of chapter 56 of the laws of 40 2020 shall not have taken effect on or before such date then this act 41 shall take effect on the same date and in the same manner as such 42 sections of such part of such chapter of the laws of 2020, takes effect.
