S T A T E O F N E W Y O R K
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4697
2009-2010 Regular Sessions
I N A S S E M B L Y
February 5, 2009
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Introduced by M. of A. SCHIMMINGER, MORELLE, REILLY, DelMONTE, GALEF,
PHEFFER -- read once and referred to the Committee on Insurance
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.
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-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00379-02-9
A. 4697 2
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.
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
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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.