TITLE OF BILL:
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
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
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.
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
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
2007-2008 - Insurance.
2010 - Insurance
None to the state.
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.