Bill Text: NY S05760 | 2021-2022 | General Assembly | Amended
Bill Title: Authorizes excess business disability insurance as a non-basic type of insurance.
Spectrum: Bipartisan Bill
Status: (Passed) 2021-08-02 - SIGNED CHAP.359 [S05760 Detail]
Download: New_York-2021-S05760-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 5760--A Cal. No. 743 2021-2022 Regular Sessions IN SENATE March 18, 2021 ___________ Introduced by Sens. BRESLIN, GAUGHRAN, HELMING, JORDAN -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance -- reported favorably from said committee, ordered to first and second report, ordered to a third reading, passed by Senate and delivered to the Assembly, recalled, vote reconsidered, restored to third reading, amended and ordered reprinted, retaining its place in the order of third reading 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) "Excess business disability insurance," means insurance against 6 financial loss experienced by a corporate entity or a partnership where 7 an individual integral to the successful operation of such corporate 8 entity or partnership becomes disabled due to sickness, ailment or bodi- 9 ly injury. Such insurance may be obtained in excess of a primary busi- 10 ness-related disability policy, or in the absence of such a policy if 11 coverage cannot be obtained from an authorized insurer. Excess business 12 disability insurance coverage may include, but is not limited to, 13 reimbursement for all overhead costs and expenses and all capital 14 outlays of a corporate entity or partnership which such corporate entity 15 or partnership incurs in the ordinary course of business during the 16 period of disability; and buy/sell arrangements in an amount sufficient 17 to purchase the disabled individual's interest share in the corporate 18 entity or partnership. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD06807-03-1S. 5760--A 2 1 § 2. Subsection (a) of section 2105 of the insurance law, as amended 2 by section 24 of part L of chapter 56 of the laws of 2020, is amended to 3 read as follows: 4 (a) The superintendent may issue an excess line broker's license to 5 any person, firm, association or corporation who or which is licensed as 6 an insurance broker under section two thousand one hundred four of this 7 article, or who or which is licensed as an excess line broker in the 8 licensee's home state, provided, however, that the applicant's home 9 state grants non-resident licenses to residents of this state on the 10 same basis, except that reciprocity is not required in regard to the 11 placement of liability insurance on behalf of a purchasing group or any 12 of its members; authorizing such person, firm, association or corpo- 13 ration to procure, subject to the restrictions herein provided, policies 14 of insurance from insurers which are not authorized to transact business 15 in this state of the kind or kinds of insurance specified in paragraphs 16 four through fourteen, sixteen, seventeen, nineteen, twenty, twenty-two, 17 twenty-seven, twenty-eight, thirty-one, [and] thirty-two and thirty- 18 three of subsection (a) of section one thousand one hundred thirteen of 19 this chapter and in subsection (h) of this section, provided, however, 20 that the provisions of this section and section two thousand one hundred 21 eighteen of this article shall not apply to ocean marine insurance and 22 other contracts of insurance enumerated in subsections (b) and (c) of 23 section two thousand one hundred seventeen of this article. Such license 24 may be suspended or revoked by the superintendent whenever in his or her 25 judgment such suspension or revocation will best promote the interests 26 of the people of this state. 27 § 3. Subsection (b) of section 4101 of the insurance law, as amended 28 by section 25 of part L of chapter 56 of the laws of 2020, is amended to 29 read as follows: 30 (b) "Non-basic kinds of insurance" means the kinds of insurance 31 described in the following paragraphs of subsection (a) of section one 32 thousand one hundred thirteen of this chapter numbered therein as set 33 forth in parentheses below: 34 accident and health (item (i) of (3)); 35 non-cancellable disability (item (ii) of (3)); 36 miscellaneous property (5); 37 water damage (6); 38 collision (12); 39 property damage liability (14) - non-basic as to mutual companies 40 only; 41 motor vehicle and aircraft physical damage (19); 42 inland marine as specified in marine and inland marine (20); 43 marine protection and indemnity (21) - non-basic as to stock companies 44 only; 45 residual value (22); 46 credit unemployment (24); 47 gap (26); 48 prize indemnification (27); 49 service contract reimbursement (28); 50 legal services insurance (29); 51 involuntary unemployment insurance (30); 52 salary protection insurance (31); 53 donor medical expense insurance (32); 54 excess business disability insurance (33).S. 5760--A 3 1 § 4. Group A of table one as contained in paragraph 1 of subsection 2 (a) of section 4103 of the insurance law, as amended by section 26 of 3 part L of chapter 56 of the laws of 2020, is amended to read as follows: 4 Group A: 5 7 $300,000 $150,000 6 8, 9, 10, 11, or 14 - for each such kind $100,000 $ 50,000 7 13 or 15 - for each such kind $500,000 $250,000 8 16 $900,000 $450,000 9 17 $400,000 $200,000 10 Basic additional amount 11 required for any one 12 or more of the above 13 kinds of insurance $100,000 $ 50,000 14 3(i), 3(ii), 6{1} or 12{2} - for each 15 such kind $100,000 $ 50,000 16 22 $2,000,000 $1,000,000 17 24 $400,000 $200,000 18 26(B) $200,000 $100,000 19 26(A), 26(C) or 26(D) - 20 for each such kind $600,000 $300,000 21 27 $300,000 $150,000 22 28 $2,000,000 $1,000,000 23 30 $400,000 $200,000 24 31 $100,000 $ 50,000 25 32 $100,000 $ 50,000 26 33 $100,000 $ 50,000 27 § 5. Group C of table three as contained in subsection (b) of section 28 4107 of the insurance law, as amended by section 27 of part L of chapter 29 56 of the laws of 2020, is amended to read as follows: 30 Group C: 31 3(i) or 3(ii) - for each such kind $ 100,000 $ 100,000 32 22 $3,000,000 $2,000,000 33 24 $ 300,000 $ 300,000 34 26 (B) $ 300,000 $ 200,000 35 26(A), 26(C) or 26(D) - 36 for each such kind $ 900,000 $ 600,000 37 28 $3,000,000 $2,000,000 38 6{5}, 12{6} or 14{2} - for 39 each such kind $ 50,000 $ 50,000 40 27 $ 300,000 $ 150,000 41 30 $ 300,000 $ 300,000 42 31 $ 100,000 $ 100,000 43 32 $ 100,000 $ 100,000 44 33 $ 100,000 $ 100,000 45 § 6. This act shall take effect immediately.
