Bill Text: NY S04711 | 2021-2022 | General Assembly | Introduced
Bill Title: Requires certain perils be covered under business interruption insurance during the coronavirus disease 2019 (COVID-19) pandemic.
Spectrum: Partisan Bill (Democrat 22-0)
Status: (Introduced - Dead) 2022-01-05 - REFERRED TO INSURANCE [S04711 Detail]
Download: New_York-2021-S04711-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 4711 2021-2022 Regular Sessions IN SENATE February 9, 2021 ___________ Introduced by Sens. GOUNARDES, ADDABBO, BIAGGI, GAUGHRAN, GIANARIS, HARCKHAM, HOYLMAN, JACKSON, KAPLAN, KENNEDY, MAY, MAYER, MYRIE, PARK- ER, PERSAUD, RAMOS, RIVERA, SALAZAR, SEPULVEDA, SKOUFIS, STAVISKY, THOMAS -- read twice and ordered printed, and when printed to be committed to the Committee 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. For the purposes of this act: 2 (a) "business" shall mean a business registered with the department of 3 tax and finance or not-for-profit corporation registered with the Attor- 4 ney General's charities bureau. 5 (b) "income" shall mean traditional business income as well as not- 6 for-profit revenue from donations, sponsorships, and grants. 7 (c) "net written premiums received" shall mean gross direct premiums 8 written, less return premiums thereon and dividends credited or paid to 9 policyholders, as reported on the company's annual financial statement. 10 (d) "premium taxes" shall mean payments required under subsection (d) 11 of section 2118 of the insurance law. 12 § 2. (a) Notwithstanding any provisions of law, rule or regulation to 13 the contrary, every policy of insurance insuring against loss or damage 14 to property, which includes, but is not limited to, the loss of use and 15 occupancy and business interruption, shall be construed to include among 16 the covered perils under that policy, coverage for business interruption 17 during a period of a declared state emergency due to the coronavirus 18 disease 2019 (COVID-19) pandemic. 19 (b) Every policy of insurance insuring against loss or damage to prop- 20 erty, which includes, but is not limited to, the loss of use and occu- 21 pancy and business interruption, whose policy expires during a period of EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD05440-01-1S. 4711 2 1 a declared state emergency due to the coronavirus disease 2019 (COVID- 2 19) pandemic, shall be subject to an automatic renewal of the policy at 3 the current rate of charge. 4 (c) Every policy of insurance or endorsement thereto insuring against 5 an insured's business income loss resulting from loss, damage, or 6 destruction of property owned by others, including direct suppliers of 7 goods or services to the insured and/or direct receivers of goods or 8 services manufactured or provided by the insured, shall be construed to 9 include among the covered perils under that policy, coverage for contin- 10 gent business interruption during a period of a declared state emergency 11 due the coronavirus disease 2019 (COVID-19) pandemic. 12 (d) Every policy of insurance or endorsement thereto insuring against 13 an insured's business income loss resulting from loss, damage, or 14 destruction of property owned by others, including direct suppliers of 15 goods or services to the insured and/or direct receivers of goods or 16 services manufactured or provided by the insured, whose policy expires 17 during a period of a declared state emergency due to the coronavirus 18 disease 2019 (COVID-19) pandemic, shall be subject to an automatic 19 renewal of the policy at the current rate of charge. 20 (e) Any clause or provision of a policy of insurance insuring against 21 loss or damage to property, which includes, but is not limited to, the 22 loss of use and occupancy and business interruption and contingent busi- 23 ness interruption, which allows the insurer to deny coverage based on a 24 virus, bacterium, or other microorganism that causes disease, illness, 25 or physical distress or that is capable of causing disease, illness, or 26 physical distress shall be null and void; provided, however, the remain- 27 ing clauses and provisions of the contract shall remain in effect for 28 the duration of the contract term. 29 (f) The coverage required by this section shall indemnify the insured, 30 subject to the limits under the policy, for any loss of business or 31 business interruption and contingent business interruption for the dura- 32 tion of a period of a declared state emergency due to the coronavirus 33 disease 2019 (COVID-19) pandemic. 34 (g) This section shall apply to policies issued to insureds with less 35 than 250 eligible employees in force on the effective date of this act. 36 "Eligible employee" means a full-time employee who works a normal work 37 week of 25 or more hours. 38 § 3. (a) An insurer, including excess lines insurers, which indem- 39 nifies an insured who has filed a claim pursuant to section two of this 40 act may apply to the superintendent of financial services for relief and 41 reimbursement by the department from funds collected and made available 42 for this purpose as provided in section four of this act. 43 (b) The superintendent of financial services shall establish proce- 44 dures for the submission and qualification of claims by insurers which 45 are eligible for reimbursement pursuant to this act. The superintendent 46 of financial services shall incorporate in these procedures such stand- 47 ards as are necessary to protect against the submission of fraudulent 48 claims by insureds, and appropriate safeguards for insurers to employ in 49 the review and payment of such claims. 50 § 4. (a) The superintendent of financial services is authorized to 51 impose upon, distribute among, and collect from the companies, including 52 excess lines insurers, engaged in business pursuant to the insurance 53 law, such additional amounts as may be necessary to recover the amounts 54 paid to insurers pursuant to section three of this act. 55 (b) The additional special purpose apportionment authorized pursuant 56 to subdivision (a) of this section shall be distributed in the propor-S. 4711 3 1 tion that the net written premiums, or premium taxes in the case of 2 excess lines insurers, received by each company subject to the appor- 3 tionment authorized by this section for insurance written or renewed on 4 risks in this state during the calendar year immediately preceding, 5 bears to the sum total of all such net written premiums, or premium 6 taxes in the case of excess lines insurers, received by all companies 7 writing that insurance or coverage within the state during that calendar 8 year, as reported. 9 § 5. This act shall take effect immediately, and shall be deemed to 10 have been in full force and effect on and after March 7, 2020 and shall 11 apply to insurance policies in force on that date.
