senate Bill S2436

2011-2012 Legislative Session

Prohibits refusal to issue or renew certain insurance policies solely on the ground of the nature of the occupation of the applicant

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 04, 2012 referred to insurance
Jan 21, 2011 referred to insurance

S2436 - Bill Details

Current Committee:
Law Section:
Insurance Law
Laws Affected:
Amd ยง3425, Ins L
Versions Introduced in 2009-2010 Legislative Session:
S780

S2436 - Bill Texts

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Provides that no insurer shall refuse to issue or renew a covered policy of property/casualty insurance or include a provision therein limiting coverage solely on the ground of the nature of the occupation of the applicant or insured; applies to personal lines insurance including personal umbrella policies as well as automobile liability policies.

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BILL NUMBER:S2436

TITLE OF BILL:
An act
to amend the insurance law, in relation to prohibited
basis for refusal to issue or renew a covered
policy of property/casualty insurance or for limiting
coverage therein

PURPOSE:
To prohibit insurance companies from denying the application
for or renewal of a personal umbrella liability insurance policy
based on an applicant's occupation.

SUMMARY OF PROVISIONS:
Section 1: Amends section 3425 of the insurance
law by adding a new subsection (i-1) which would prohibit an insurer
from refusing to issue or renew a covered policy or include a
provision in the insurance contract limiting coverage under the
contract, based on the nature of the occupation of the applicant or
insured.

EXISTING LAW:
Currently, all insurance contracts for personal umbrella
liability insurance prohibit a person from applying or having their
insurance contract renewed if they are public office holders, seeking
public office, professional entertainers, professional athletes,
radio and television broadcasters, newspaper publishers, editors and
reporters, individuals convicted of libel or slander, labor leaders,
private detectives, sheriffs and police officers.

JUSTIFICATION:
Personal umbrella liability insurance
is designed to
cover personal (non business) liability of individuals. Currently,
certain individuals because of their occupations are not able to
apply for or even renew an existing personal umbrella liability
insurance policy. The following occupations because they are
considered to be a high risk group are denied umbrella insurance
coverage: public office holders, professional entertainers,
professional athletes, radio and television broadcasters, newspaper
publishers, editors and reporters, individuals convicted of libel or
slander, labor leaders, private detectives, sheriffs and police
officers.

Recognizing that public office holders should not be discriminated
against, states such as Oregon and Texas have enacted statutes to
exempt public office holders from this high risk group, permitting
them to apply for personal liability insurance.

The decision to grant insurance coverage or not should be made on a
case by case basis weighing various risk factors, not based on a
wholesale exclusion of a certain classes of people. Therefore, this
legislation does not mandate that insurance companies grant
individuals working in an excluded profession an umbrella policy. It
merely allows these individuals to apply for such coverage and be


granted or denied coverage based on their individual backgrounds and
experiences.

LEGISLATIVE HISTORY:
2007-2008 - Insurance.
2010 - Insurance

FISCAL IMPLICATIONS:
None to the state.

EFFECTIVE DATE:
This act shall take effect on the first day of the
calendar month next succeeding the 30th day after it shall have
become a law.

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

                                  2436

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            January 21, 2011
                               ___________

Introduced  by  Sen.  ALESI  -- 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 prohibited  basis  for
  refusal to issue or renew a covered policy of property/casualty insur-
  ance or for limiting coverage therein

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

  Section 1. Section 3425 of the insurance law is amended  by  adding  a
new subsection (i-1) to read as follows:
  (I-1)  NO  INSURER SHALL REFUSE TO ISSUE OR RENEW A COVERED POLICY, OR
INCLUDE A PROVISION IN THE INSURANCE CONTRACT  LIMITING  COVERAGE  UNDER
THE  CONTRACT,  SOLELY  ON THE GROUND OF THE NATURE OF THE OCCUPATION OF
THE APPLICANT OR INSURED.
  S 2. This act shall take effect on the first  of  the  calendar  month
next succeeding the thirtieth day after it shall have become a law.






 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08243-01-1

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