Bill Text: NY S08147 | 2017-2018 | General Assembly | Introduced
Bill Title: Authorizes catastrophic business disruption insurance as a non-basic type of insurance.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2018-06-19 - referred to insurance [S08147 Detail]
Download: New_York-2017-S08147-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 8147 IN SENATE April 9, 2018 ___________ Introduced by Sen. SEWARD -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance 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 32 of subsection (a) of section 1113 of the 2 insurance law, as renumbered by chapter 626 of the laws of 2006, is 3 renumbered paragraph 33 and a new paragraph 32 is added to read as 4 follows: 5 (32) "Catastrophic business disruption insurance," means insurance 6 against financial loss experienced by a corporate entity or a partner- 7 ship where an individual integral to the successful operation of such 8 corporate entity or partnership becomes disabled due to sickness, 9 ailment or bodily injury. Such insurance may be obtained in excess of a 10 primary business-related disability policy, or in the absence of such a 11 policy if coverage cannot be obtained from an authorized insurer. 12 Catastrophic business disruption insurance coverage may include, but is 13 not limited to, reimbursement for all overhead costs and expenses and 14 all capital outlays of a corporate entity or partnership which such 15 corporate entity or partnership incurs in the ordinary course of busi- 16 ness during the period of disability; and buy/sell arrangements in an 17 amount sufficient to purchase the disabled individual's interest share 18 in the corporate entity or partnership. 19 § 2. Subsection (a) of section 2105 of the insurance law, as amended 20 by section 9 of part I of chapter 61 of the laws of 2011, is amended to 21 read as follows: 22 (a) The superintendent may issue an excess line broker's license to 23 any person, firm, association or corporation who or which is licensed as 24 an insurance broker under section two thousand one hundred four of this 25 article, or who or which is licensed as an excess line broker in the 26 licensee's home state, provided, however, that the applicant's home 27 state grants non-resident licenses to residents of this state on the 28 same basis, except that reciprocity is not required in regard to the EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD14903-03-8S. 8147 2 1 placement of liability insurance on behalf of a purchasing group or any 2 of its members; authorizing such person, firm, association or corpo- 3 ration to procure, subject to the restrictions herein provided, policies 4 of insurance from insurers which are not authorized to transact business 5 in this state of the kind or kinds of insurance specified in paragraphs 6 four through fourteen, sixteen, seventeen, nineteen, twenty, twenty-two, 7 twenty-seven, twenty-eight [and], thirty-one and thirty-two of 8 subsection (a) of section one thousand one hundred thirteen of this 9 chapter and in subsection (h) of this section, provided, however, that 10 the provisions of this section and section two thousand one hundred 11 eighteen of this article shall not apply to ocean marine insurance and 12 other contracts of insurance enumerated in subsections (b) and (c) of 13 section two thousand one hundred seventeen of this article. Such license 14 may be suspended or revoked by the superintendent whenever in his or her 15 judgment such suspension or revocation will best promote the interests 16 of the people of this state. 17 § 3. Subsection (b) of section 4101 of the insurance law, as amended 18 by chapter 626 of the laws of 2006, is amended to read as follows: 19 (b) "Non-basic kinds of insurance" means the kinds of insurance 20 described in the following paragraphs of subsection (a) of section one 21 thousand one hundred thirteen of this chapter numbered therein as set 22 forth in parentheses below: 23 accident and health (item (i) of (3)); 24 non-cancellable disability (item (ii) of (3)); 25 miscellaneous property (5); 26 water damage (6); 27 collision (12); 28 property damage liability (14) - non-basic as to mutual companies 29 only; 30 motor vehicle and aircraft physical damage (19); 31 inland marine as specified in marine and inland marine (20); 32 marine protection and indemnity (21) - non-basic as to stock companies 33 only; 34 residual value (22); 35 credit unemployment (24); 36 gap (26); 37 prize indemnification (27); 38 service contract reimbursement (28); 39 legal services insurance (29); 40 involuntary unemployment insurance (30); 41 salary protection insurance (31)[.]; 42 catastrophic business disruption insurance (32). 43 § 4. Group A of table one as contained in paragraph 1 of subsection 44 (a) of section 4103 of the insurance law, as amended by chapter 626 of 45 the laws of 2006, is amended to read as follows: 46 Group A: 47 7 $300,000 $150,000 48 8, 9, 10, 11, or 14 - for each such kind $100,000 $ 50,000 49 13 or 15 - for each such kind $500,000 $250,000 50 16 $900,000 $450,000 51 17 $400,000 $200,000 52 Basic additional amount 53 required for any one 54 or more of the aboveS. 8147 3 1 kinds of insurance $100,000 $ 50,000 2 3(i), 3(ii), 6{1} or 12{2} - for each 3 such kind $100,000 $ 50,000 4 22 $2,000,000 $1,000,000 5 24 $400,000 $200,000 6 26(B) $200,000 $100,000 7 26(A), 26 (C) or 26(D) - 8 for each such kind $600,000 $300,000 9 27 $300,000 $150,000 10 28 $2,000,000 $1,000,000 11 30 $400,000 $200,000 12 31 $100,000 $ 50,000 13 32 $100,000 $50,000 14 § 5. Group C of table three as contained in subsection (b) of section 15 4107 of the insurance law, as amended by chapter 626 of the laws of 16 2006, is amended to read as follows: 17 Group C: 18 3(i) or 3(ii) - for each such kind $ 100,000 $ 100,000 19 22 $3,000,000 $2,000,000 20 24 $ 300,000 $ 300,000 21 26 (B) $ 300,000 $ 200,000 22 26(A), 26 (C) or 26(D) - 23 for each such kind $ 900,000 $ 600,000 24 28 $3,000,000 $2,000,000 25 6{5}, 12{6} or 14{2} - for 26 each such kind $ 50,000 $ 50,000 27 27 $ 300,000 $ 150,000 28 30 $ 300,000 $ 300,000 29 31 $ 100,000 $ 100,000 30 32 $100,000 $100,000 31 § 6. This act shall take effect immediately.
