Bill Text: NY A10226 | 2019-2020 | General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Requires certain perils be covered under business interruption insurance during the coronavirus disease 2019 (COVID-19) pandemic.
Spectrum: Partisan Bill (Democrat 42-2)
Status: (Introduced - Dead) 2020-04-29 - print number 10226b [A10226 Detail]
Download: New_York-2019-A10226-Introduced.html
Bill Title: Requires certain perils be covered under business interruption insurance during the coronavirus disease 2019 (COVID-19) pandemic.
Spectrum: Partisan Bill (Democrat 42-2)
Status: (Introduced - Dead) 2020-04-29 - print number 10226b [A10226 Detail]
Download: New_York-2019-A10226-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 10226 IN ASSEMBLY March 27, 2020 ___________ Introduced by M. of A. CARROLL -- read once and referred to the Commit- tee on Insurance 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. (a) Notwithstanding any provisions of law, rule or regu- 2 lation to the contrary, every policy of insurance insuring against loss 3 or damage to property, which includes the loss of use and occupancy and 4 business interruption, shall be construed to include among the covered 5 perils under that policy, coverage for business interruption during a 6 period of a declared state emergency due to the coronavirus disease 2019 7 (COVID-19) pandemic. 8 (b) The coverage required by this section shall indemnify the insured, 9 subject to the limits under the policy, for any loss of business or 10 business interruption for the duration of a period of a declared state 11 emergency due to the coronavirus disease 2019 (COVID-19) pandemic. 12 (c) This section shall apply to policies issued to insureds with less 13 than 100 eligible employees in force on the effective date of this act. 14 "Eligible employee" means a full-time employee who works a normal work 15 week of 25 or more hours. 16 § 2. (a) An insurer which indemnifies an insured who has filed a claim 17 pursuant to section one of this act may apply to the superintendent of 18 financial services for relief and reimbursement by the department from 19 funds collected and made available for this purpose as provided in 20 section three of this act. 21 (b) The superintendent of financial services shall establish proce- 22 dures for the submission and qualification of claims by insurers which 23 are eligible for reimbursement pursuant to this act. The superintendent 24 of financial services shall incorporate in these procedures such stand- 25 ards as are necessary to protect against the submission of fraudulent 26 claims by insureds, and appropriate safeguards for insurers to employ in 27 the review and payment of such claims. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD16053-01-0A. 10226 2 1 § 3. (a) The superintendent of financial services is authorized to 2 impose upon, distribute among, and collect from the companies engaged in 3 business pursuant to the insurance law, such additional amounts as may 4 be necessary to recover the amounts paid to insurers pursuant to section 5 two of this act. 6 (b) The additional special purpose apportionment authorized pursuant 7 to subdivision (a) of this section shall be distributed in the propor- 8 tion that the net written premiums received by each company subject to 9 the apportionment authorized by this section for insurance written or 10 renewed on risks in this state during the calendar year immediately 11 preceding, bears to the sum total of all such net written premiums 12 received by all companies writing that insurance or coverage within the 13 state during that calendar year, as reported. 14 (c) For the purposes of this section, "net written premiums received" 15 means gross direct premiums written, less return premiums thereon and 16 dividends credited or paid to policyholders, as reported on the compa- 17 ny's annual financial statement. 18 § 4. This act shall take effect immediately, and shall be deemed to 19 have been in full force and effect on and after March 7, 2020 and shall 20 apply to insurance policies in force on that date.