S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 290--A

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 7, 2009
                               ___________

Introduced  by  Sen.  LITTLE -- read twice and ordered printed, and when
  printed to be committed to the Committee on  Tourism,  Recreation  and
  Sports  Development -- recommitted to the Committee on Tourism, Recre-
  ation and Sports Development in accordance with Senate Rule 6, sec.  8
  --  committee  discharged  and said bill committed to the Committee on
  Cultural  Affairs,  Tourism,  Parks  and   Recreation   --   committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN  ACT to   amend the navigation law and the insurance law, in relation
  to requiring certain policies of insurance for  public  vessels  which
  carry passengers

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 50 of the navigation law, as amended by chapter 672
of the laws of 1962, is amended to read as follows:
  S 50. Owners to notify inspector and apply for inspection. It shall be
the duty of the owner of a public vessel which he intends to operate  on
the navigable waters of the state to notify the inspector of such inten-
tion  at  least  one  month  before it is desired to place the vessel in
operation and to request an inspection of such vessel. Upon  receipt  of
such  notification  the  inspector  shall  enter  the application on the
records of his office. A temporary permit to operate such vessel pending
inspection may be issued by the inspector, if he finds through  documen-
tary  evidence  that such vessel is properly equipped and manned for the
safety of life and property. No public vessel shall be used or  operated
without  a  certificate  of  inspection  or a temporary permit as herein
provided.  NO CERTIFICATE OF INSPECTION OR  TEMPORARY  PERMIT  SHALL  BE
ISSUED  UNLESS  THE OWNER OF A PUBLIC VESSEL PRODUCES PROOF OF INSURANCE
TO THE INSPECTOR IN ACCORDANCE WITH SECTION FIFTY-ONE OF THIS PART.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00973-02-0
              

S. 290--A                           2

  S 2. Subsection (a) of section 2105 of the insurance law,  as  amended
by chapter 626 of the laws of 2006, is amended to read as follows:
  (a)  The  superintendent  may issue an excess line broker's license to
any person, firm, association or corporation who or which  is  domiciled
or  maintains  an  office  in this state and is licensed as an insurance
broker under section two thousand one hundred four of this  article,  or
who or which is licensed as an excess line broker in the licensee's home
state, provided, however, that the applicant's home state grants non-re-
sident  licenses  to  residents  of this state on the same basis, except
that reciprocity is not required in regard to the placement of liability
insurance on behalf of a purchasing group or any of its members; author-
izing such person, firm, association or corporation to procure,  subject
to the restrictions herein provided, policies of insurance from insurers
which  are not authorized to transact business in this state of the kind
or kinds of insurance specified in  paragraphs  four  through  fourteen,
sixteen,  seventeen,  nineteen,  twenty, TWENTY-ONE, twenty-two, twenty-
seven, twenty-eight and thirty-one of  subsection  (a)  of  section  one
thousand  one  hundred thirteen of this chapter and in subsection (h) of
this section, provided, however, that the provisions of this section and
section two thousand one hundred eighteen  of  this  article  shall  not
apply to ocean marine insurance and other contracts of insurance enumer-
ated  in  subsections  (b)  and  (c) of section two thousand one hundred
seventeen of this article. Such license may be suspended or  revoked  by
the  superintendent  whenever in his judgment such suspension or revoca-
tion will best promote the interests of the people of this state.
  S 3.  Subsection (b) of section 3103 of the insurance law  is  amended
to read as follows:
  (b)  No policy of insurance or contract of annuity delivered or issued
for delivery in this state shall provide that the rights or  obligations
of  the  insured  or  of any person rightfully claiming thereunder, with
respect to:
  (1) a policy of life, accident and health  insurance  or  contract  of
annuity upon a person resident in this state,
  (2) a policy of insurance upon property then in this state, or
  (3)  the  liabilities  to  be  incurred  by the insured as a result of
activity then carried on by the insured in this state,
shall be governed by the laws of any jurisdiction other than this state.
This subsection shall not apply to policies of marine AND INLAND  MARINE
insurance  AS  DEFINED  IN PARAGRAPH TWENTY OF SUBSECTION (A) OF SECTION
ONE THOUSAND ONE HUNDRED THIRTEEN OF THIS CHAPTER, BUT  SHALL  APPLY  TO
THOSE  POLICIES OF MARINE PROTECTION AND INDEMNITY INSURANCE, AS DEFINED
IN PARAGRAPH TWENTY-ONE OF SUBSECTION (A) OF SECTION  ONE  THOUSAND  ONE
HUNDRED  THIRTEEN  OF THIS CHAPTER, THAT ARE REQUIRED TO BE PURCHASED BY
PUBLIC VESSEL OPERATORS UNDER ARTICLE FOUR OF THE NAVIGATION LAW.
  S 4.  The navigation law is amended by adding two new sections 51  and
52 to read as follows:
  S  51.  LIABILITY  INSURANCE  ON  PUBLIC VESSELS. 1. A.   EVERY PUBLIC
VESSEL CERTIFIED TO CARRY PASSENGERS WHICH IS OPERATED ON THE  NAVIGABLE
WATERS  OF  THE STATE, EXCEPT VESSELS WHICH NAVIGATE ON WATERS WHICH THE
UNITED STATES EXERCISES ACTIVE CONTROL, SHALL BE COVERED BY A BOND OR  A
POLICY  OF INSURANCE.   PUBLIC VESSELS CERTIFIED BY THE OFFICE OF PARKS,
RECREATION AND HISTORIC PRESERVATION TO CARRY PASSENGERS  SHALL  PROVIDE
COVERAGE OF AT LEAST ONE MILLION DOLLARS PER OCCURRENCE BECAUSE OF INJU-
RY  TO  OR DEATH OF ANY PERSON ARISING OUT OF THE NEGLIGENT OPERATION OF
SAID PUBLIC VESSEL.

S. 290--A                           3

  EVERY SUCH BOND OR INSURANCE POLICY SHALL CONTAIN A  PROVISION  FOR  A
CONTINUING  LIABILITY  THEREUNDER, NOTWITHSTANDING ANY RECOVERY THEREON,
AND SHALL BE IN FULL FORCE AND EFFECT  WHENEVER  THE  PUBLIC  VESSEL  IS
UNDERWAY.
  B.  SHOULD THE AVAILABLE LIMIT UNDER SUCH BOND OR INSURANCE POLICY FOR
ANY ONE OCCURRENCE BECOME LESS THAN REQUIRED BY THIS SECTION, BECAUSE OF
AN AGGREGATE LIMIT OF LIABILITY APPLICABLE  TO  THE  BOND  OR  INSURANCE
POLICY,  THE  VESSEL SHALL NOT BE PLACED UNDERWAY UNTIL A REPLACEMENT OR
REINSTATED BOND OR INSURANCE POLICY IS IN EFFECT PROVIDING AN UNIMPAIRED
PER OCCURRENCE LIMIT IN THE FULL AMOUNT REQUIRED IN THIS SECTION.
  2. NO POLICY OR CONTRACT SHALL BE ISSUED OR DELIVERED  IN  THIS  STATE
PURSUANT  TO THIS SECTION UNLESS IT CONTAINS IN SUBSTANCE THE PROVISIONS
OF SECTION THREE HUNDRED TWENTY OF THE INSURANCE LAW.
  3. PROOF OF BOND OR  INSURANCE  REQUIRED  BY  THIS  SECTION  SHALL  BE
PRODUCED  AND  DISPLAYED  BY THE OWNER OR OPERATOR OF SUCH PUBLIC VESSEL
UPON  THE  REQUEST  OF  ANY  PERSON  HAVING  AUTHORITY  TO  ENFORCE  THE
PROVISIONS  OF  THIS CHAPTER. THE FAILURE TO PRODUCE SUCH PROOF UPON THE
REQUEST OF ANY SUCH PERSON SHALL NOT BE AN OFFENSE BUT SHALL BE PRESUMP-
TIVE EVIDENCE THAT THE PUBLIC VESSEL IS BEING  OPERATED  WITHOUT  HAVING
SUCH BOND OR INSURANCE IN FORCE AND EFFECT.
  4.  PROOF  OF  BOND  OR INSURANCE AS REQUIRED BY THIS SECTION SHALL BE
PRODUCED AND DISPLAYED BY THE OWNER OR OPERATOR OF SUCH PUBLIC VESSEL TO
ANY PERSON WHO HAS SUFFERED PERSONAL INJURY AS A RESULT OF THE OPERATION
OF SUCH PUBLIC VESSEL BY THE OWNER OR OPERATOR. IT SHALL BE AN  AFFIRMA-
TIVE DEFENSE TO ANY PROSECUTION FOR A VIOLATION OF THIS SUBDIVISION THAT
SUCH  PROOF  WAS  SO  PRODUCED  OR DISPLAYED WITHIN TWENTY-FOUR HOURS OF
RECEIVING NOTICE OF SUCH INJURY, OR THE CLAIM OF SUCH INJURY.
  5. NO OWNER OF A PUBLIC VESSEL SHALL OPERATE OR PERMIT THE SAME TO  BE
OPERATED  UPON  THE  NAVIGABLE WATERS OF THIS STATE, EXCLUDING WATERS ON
WHICH THE UNITED STATES EXERCISES ACTIVE CONTROL, WITHOUT HAVING IN FULL
FORCE AND EFFECT THE  LIABILITY  INSURANCE  COVERAGE  REQUIRED  BY  THIS
SECTION,  AND NO PERSON SHALL OPERATE A PUBLIC VESSEL UPON THE NAVIGABLE
WATERS OF THIS STATE WITH KNOWLEDGE THAT SUCH INSURANCE IS NOT  IN  FULL
FORCE AND EFFECT.
  6.  OPERATION  OF  A PUBLIC VESSEL IN VIOLATION OF THE REQUIREMENTS OF
THIS SECTION SHALL BE PUNISHABLE AS A  MISDEMEANOR  IN  ACCORDANCE  WITH
SECTION SEVENTY-THREE-B OF THIS ARTICLE.
  7.  IN  THE  EVENT  OF AN INSURANCE POLICY OR SURETY BOND TERMINATION,
WHETHER INITIATED BY THE INSURER SURETY AND  INSURER  OR  PUBLIC  VESSEL
OWNER,  THE  PUBLIC VESSEL OWNER MUST NOTIFY THE COMMISSIONER IN WRITING
OF SUCH TERMINATION AND PROVIDE PROOF OF INSURANCE OR SURETY BOND TO THE
COMMISSIONER WITH RESPECT TO REPLACEMENT COVERAGE PRIOR TO  A  LAPSE  IN
COVERAGE OCCURRING.
  S  52.  SELF-INSURERS. THE COMMISSIONER MAY, IN HIS OR HER DISCRETION,
UPON THE APPLICATION OF AN OWNER OF A PUBLIC VESSEL TO HAVE SUCH  PUBLIC
VESSEL  CERTIFIED,  ISSUE A CERTIFICATE OF SELF-INSURANCE WHEN HE OR SHE
IS REASONABLY SATISFIED THAT SUCH PERSON IS POSSESSED AND WILL  CONTINUE
TO  BE  POSSESSED  OF FINANCIAL ABILITY TO RESPOND TO JUDGMENTS OBTAINED
AGAINST SUCH PERSON, ARISING OUT OF THE OWNERSHIP, MAINTENANCE,  USE  OR
OPERATION  OF ANY SUCH PERSON'S PUBLIC VESSEL. UPON DUE NOTICE AND HEAR-
ING, THE COMMISSIONER MAY, IN HIS OR HER DISCRETION AND UPON  REASONABLE
GROUNDS, CANCEL A CERTIFICATE OF SELF-INSURANCE.
  S  5.  This  act shall take effect on the ninetieth day after it shall
have become a law.