S T A T E O F N E W Y O R K
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5203--B
Cal. No. 376
2009-2010 Regular Sessions
I N S E N A T E
April 27, 2009
___________
Introduced by Sen. BRESLIN -- 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
-- reported favorably from said committee and committed to the Commit-
tee on Codes -- committee discharged, bill amended, ordered reprinted
as amended and recommitted to said committee -- reported favorably
from said committee, ordered to first and second report, ordered to a
third reading, amended and ordered reprinted, retaining its place in
the order of third reading
AN ACT to amend the insurance law and the navigation 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. 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-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11265-03-0
S. 5203--B 2
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 2. 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 OR SHE intends to
operate on the navigable waters of the state to notify the inspector of
such intention 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 OR HER office. A temporary permit to operate such
vessel pending inspection may be issued by the inspector, if he OR SHE
finds through documentary 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.
S 3. 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. EVERY PUBLIC VESSEL
CERTIFIED BY THE OFFICE OF PARKS, RECREATION AND HISTORIC PRESERVATION
TO CARRY PASSENGERS THAT IS OPERATED ON THE NAVIGABLE WATERS OF THE
STATE, EXCEPT VESSELS THAT NAVIGATE ON WATERS WHICH THE UNITED STATES
EXERCISES ACTIVE CONTROL, SHALL BE COVERED BY A SURETY BOND THAT MAY BE
PURCHASED BY A SELF-INSURED PUBLIC VESSEL OWNER APPROVED AS A SELF-IN-
SURER PURSUANT TO SECTION FIFTY-TWO OF THIS PART, OR A POLICY OF MARINE
PROTECTION AND INDEMNITY INSURANCE AS DEFINED IN PARAGRAPH TWENTY-ONE OF
SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN OF THE
INSURANCE LAW. SUCH POLICY MAY BE OBTAINED FROM AN AUTHORIZED INSURER OR
THROUGH A LICENSED EXCESS LINE BROKER IN ACCORDANCE WITH AND IN THE
MANNER PRESCRIBED IN THE INSURANCE LAW. PUBLIC VESSELS CERTIFIED BY THE
OFFICE OF PARKS, RECREATION AND HISTORIC PRESERVATION TO CARRY PASSEN-
GERS SHALL PROVIDE COVERAGE OF AT LEAST ONE MILLION DOLLARS PER OCCUR-
RENCE BECAUSE OF INJURY TO OR DEATH OF ANY PERSON ARISING OUT OF THE
NEGLIGENT OPERATION OF SAID PUBLIC VESSEL.
2. PROOF OF SURETY 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.
3. PROOF OF SURETY BOND OR INSURANCE 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
S. 5203--B 3
SUCH PROOF WAS SO PRODUCED OR DISPLAYED WITHIN TWENTY-FOUR HOURS OF
RECEIVING NOTICE OF SUCH INJURY, OR THE CLAIM OF SUCH INJURY.
4. NO OWNER OF A PUBLIC VESSEL SHALL OPERATE OR PERMIT SUCH VESSEL 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.
5. THE 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.
6. A CERTIFICATE OF INSURANCE EVIDENCING PUBLIC VESSEL LIABILITY
INSURANCE COVERAGE SHALL BE PROVIDED TO THE COMMISSIONER, EXCEPT FOR
PUBLIC VESSEL OWNERS WHO QUALIFY TO SELF-INSURE PURSUANT TO SECTION
FIFTY-TWO OF THIS PART. SELF-INSURED PUBLIC VESSEL OWNERS SHALL PROVIDE
PROOF OF A SURETY BOND OR OTHER EVIDENCE REQUIRED BY THE COMMISSIONER TO
SELF-INSURE. IN THE EVENT OF AN INSURANCE POLICY OR SURETY BOND TERMI-
NATION, WHETHER INITIATED BY THE SURETY, 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 COMMIS-
SIONER 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 THE 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
HEARING, THE COMMISSIONER MAY, IN HIS OR HER DISCRETION AND UPON REASON-
ABLE GROUNDS, CANCEL A CERTIFICATE OF SELF-INSURANCE.
S 4. This act shall take effect on the one hundred eightieth day after
it shall have become a law.
