Bill Text: NY A10226 | 2019-2020 | General Assembly | Amended

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 43-2)

Status: (Introduced) 2020-04-29 - print number 10226b [A10226 Detail]

Download: New_York-2019-A10226-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                        10226--A

                   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 --  Multi-Sponsored  by
          -- M. of A.  ENGLEBRIGHT -- read once and referred to the Committee on
          Insurance  -- committee discharged, bill amended, 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. (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, but is not limited to,  the  loss
     4  of  use  and  occupancy and business interruption, shall be construed to
     5  include among the covered perils under that policy, coverage  for  busi-
     6  ness  interruption  during a period of a declared state emergency due to
     7  the coronavirus disease 2019 (COVID-19) pandemic.
     8    (b) Every policy of insurance insuring against loss or damage to prop-
     9  erty, which includes, but is not limited to, the loss of use  and  occu-
    10  pancy and business interruption, whose policy expires during a period of
    11  a  declared  state emergency due to the coronavirus disease 2019 (COVID-
    12  19) pandemic, shall be subject to an automatic renewal of the policy  at
    13  the current rate of charge.
    14    (c)  Any clause or provision of a policy of insurance insuring against
    15  loss or damage to property, which includes, but is not limited  to,  the
    16  loss  of  use  and occupancy and business interruption, which allows the
    17  insurer to deny coverage based on a virus, bacterium, or other  microor-
    18  ganism  that  causes  disease,  illness, or physical distress or that is
    19  capable of causing disease illness, or physical distress shall  be  null
    20  and void; provided, however, the remaining clauses and provisions of the
    21  contract shall remain in effect for the duration of the contract term.
    22    (d) The coverage required by this section shall indemnify the insured,
    23  subject  to  the  limits  under  the policy, for any loss of business or

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD16053-03-0

        A. 10226--A                         2

     1  business interruption for the duration of a period of a  declared  state
     2  emergency due to the coronavirus disease 2019 (COVID-19) pandemic.
     3    (e)  This section shall apply to policies issued to insureds with less
     4  than 250 eligible employees in force on the effective date of this  act.
     5  "Eligible  employee"  means a full-time employee who works a normal work
     6  week of 25 or more hours.
     7    § 2. (a) An insurer which indemnifies an insured who has filed a claim
     8  pursuant to section one of this act may apply to the  superintendent  of
     9  financial  services  for relief and reimbursement by the department from
    10  funds collected and made available  for  this  purpose  as  provided  in
    11  section three of this act.
    12    (b)  The  superintendent  of financial services shall establish proce-
    13  dures for the submission and qualification of claims by  insurers  which
    14  are  eligible for reimbursement pursuant to this act. The superintendent
    15  of financial services shall incorporate in these procedures such  stand-
    16  ards  as  are  necessary to protect against the submission of fraudulent
    17  claims by insureds, and appropriate safeguards for insurers to employ in
    18  the review and payment of such claims.
    19    § 3. (a) The superintendent of financial  services  is  authorized  to
    20  impose upon, distribute among, and collect from the companies engaged in
    21  business  pursuant  to the insurance law, such additional amounts as may
    22  be necessary to recover the amounts paid to insurers pursuant to section
    23  two of this act.
    24    (b) The additional special purpose apportionment  authorized  pursuant
    25  to  subdivision  (a) of this section shall be distributed in the propor-
    26  tion that the net written premiums received by each company  subject  to
    27  the  apportionment  authorized  by this section for insurance written or
    28  renewed on risks in this state  during  the  calendar  year  immediately
    29  preceding,  bears  to  the  sum  total  of all such net written premiums
    30  received by all companies writing that insurance or coverage within  the
    31  state during that calendar year, as reported.
    32    (c)  For the purposes of this section, "net written premiums received"
    33  means gross direct premiums written, less return  premiums  thereon  and
    34  dividends  credited  or paid to policyholders, as reported on the compa-
    35  ny's annual financial statement.
    36    § 4. This act shall take effect immediately, and shall  be  deemed  to
    37  have  been in full force and effect on and after March 7, 2020 and shall
    38  apply to insurance policies in force on that date.
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