Bill Text: NY S00423 | 2017-2018 | General Assembly | Amended

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Bill Title: Permits a liability policy to provide coverage for punitive damages, civil penalties and other non-compensatory damages.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced - Dead) 2018-03-06 - PRINT NUMBER 423B [S00423 Detail]

Download: New_York-2017-S00423-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                         423--B
                               2017-2018 Regular Sessions
                    IN SENATE
                                       (Prefiled)
                                     January 4, 2017
                                       ___________
        Introduced  by  Sens.  SEWARD, GOLDEN -- read twice and ordered printed,
          and when printed to be committed to  the  Committee  on  Insurance  --
          recommitted  to  the  Committee on Insurance in accordance with Senate
          Rule  6,  sec.  8  --  committee  discharged,  bill  amended,  ordered
          reprinted  as  amended  and recommitted to said committee -- committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee
        AN ACT to amend the insurance law, in  relation  to  permitting  certain
          liability  policies to provide coverage for punitive damages and civil
          penalties
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  The insurance law is amended by adding a new section 3421
     2  to read as follows:
     3    § 3421. Punitive damages and civil penalties coverage. 1.  An  insurer
     4  may  provide  and  an insured may purchase insurance against an award of
     5  punitive damages, or civil penalties, or other non-compensatory  damages
     6  in  any  liability insurance policy except in a policy of personal lines
     7  insurance issued to a natural person for  non-business  purposes,  or  a
     8  commercial automobile liability insurance policy.
     9    2.  Coverage  may provide protection for vicarious liability resulting
    10  from the conduct of another, or when assessed against a  party  directly
    11  for gross negligence or reckless conduct. Coverage shall not apply where
    12  liability  results  from action that was intended to cause the resulting
    13  harm, damage  or  injury.  Coverage  shall  apply  only  when  expressly
    14  provided for by the insurance policy.
    15    3.  This  section shall apply prospectively to insurance policies with
    16  effective dates on or after the effective date of this section.
    17    § 2. This act shall take effect immediately.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01964-08-8