S T A T E O F N E W Y O R K
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10337--A
I N A S S E M B L Y
May 23, 2016
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Introduced by M. of A. SCHIMMINGER -- read once and referred to the
Committee on Insurance -- 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 the owners of certain public vessels intending to operate on
the navigable waters of the state to obtain marine protection and
indemnity insurance
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The navigation law is amended by adding a new section 51
to read as follows:
S 51. OWNERS TO OBTAIN INSURANCE. 1. FOR THE PURPOSES OF THIS SECTION,
"PUBLIC VESSEL" SHALL MEAN AND INCLUDE EVERY VESSEL WHICH IS PROPELLED
IN WHOLE OR IN PART BY MECHANICAL POWER AND IS USED OR OPERATED FOR
COMMERCIAL PURPOSES ON THE NAVIGABLE WATERS OF THIS STATE; THAT IS
PRIMARILY CARRYING PASSENGERS; FOR WHICH COMPENSATION IS RECEIVED,
EITHER DIRECTLY OR WHERE PROVIDED AS AN ACCOMMODATION, ADVANTAGE, FACIL-
ITY OR PRIVILEGE AT ANY PLACE OF PUBLIC ACCOMMODATION, RESORT OR AMUSE-
MENT.
2. PRIOR TO THE OPERATION OF A PUBLIC VESSEL, 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 OBTAIN, FROM AN INSURANCE CARRIER
AUTHORIZED TO DO BUSINESS IN THIS STATE OR THROUGH AN EXCESS LINE
BROKER, PURSUANT TO SECTION TWO THOUSAND ONE HUNDRED EIGHTEEN OF THE
INSURANCE LAW, 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. NO OWNER OF A PUBLIC VESSEL SHALL
OPERATE OR PERMIT THE SAME TO BE OPERATED UPON NAVIGABLE WATERWAYS OF
THE STATE WITHOUT HAVING IN FULL FORCE AND EFFECT THE LIABILITY INSUR-
ANCE COVERAGE REQUIRED BY THIS SECTION, AND NO PERSON SHALL OPERATE A
PUBLIC VESSEL UPON THE NAVIGABLE WATERWAYS OF THIS STATE WITH KNOWLEDGE
THAT SUCH INSURANCE IS NOT IN FULL FORCE AND EFFECT.
3. THE OWNER OF SUCH PUBLIC VESSEL SHALL FILE WITH THE COMMISSIONER,
FOR EACH PUBLIC VESSEL INTENDED TO BE SO OPERATED, EVIDENCE OF INSURANCE
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15020-06-6
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AS REQUIRED PURSUANT TO SUBDIVISION ONE OF THIS SECTION, AS PRESCRIBED
BY THE COMMISSIONER.
4. THE MINIMUM COVERAGE FOR SUCH INSURANCE AS REQUIRED PURSUANT TO
SUBDIVISION ONE OF THIS SECTION SHALL BE EQUAL TO ONE MILLION DOLLARS
PER OCCURRENCE. OWNERS MAY VOLUNTARILY PROCURE COVERAGE IN EXCESS OF
SUCH AMOUNT.
5. A VIOLATION OF THIS SECTION IS A MISDEMEANOR PUNISHABLE AS SET
FORTH IN SUBDIVISION TWO OF SECTION SEVENTY-THREE-B OF THIS ARTICLE.
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. PROOF
OF INSURANCE ON A PUBLIC VESSEL, AS DEFINED AND REQUIRED BY SECTION
FIFTY-ONE OF THIS PART, SHALL ACCOMPANY SUCH NOTIFICATION. Upon receipt
of such notification AND, IF REQUIRED, PROOF OF INSURANCE, 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 INSURED PURSUANT TO THIS SECTION, AND 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.
S 3. The navigation law is amended by adding a new section 63-a to
read as follows:
S 63-A. PROOF OF INSURANCE. 1. PROOF OF INSURANCE AS REQUIRED BY THIS
PART SHALL BE PRODUCED AND DISPLAYED BY THE OWNER OR OPERATOR OF A
PUBLIC VESSEL, AS DEFINED IN SUBDIVISION ONE OF SECTION FIFTY-ONE OF
THIS ARTICLE, 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
PRESUMPTIVE EVIDENCE THAT THE PUBLIC VESSEL IS BEING OPERATED WITHOUT
HAVING SUCH INSURANCE IN FORCE AND EFFECT.
2. PROOF OF 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 OR CLAIMS TO HAVE SUFFERED EITHER PERSONAL INJU-
RY OR PROPERTY DAMAGE AS A RESULT OF THE OPERATION OF SUCH PUBLIC VESSEL
BY THE OWNER OR OPERATOR. IT SHALL BE AN AFFIRMATIVE 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 DAMAGE, OR THE CLAIM OF SUCH INJURY OR DAMAGE.
S 4. Section 73-b of the navigation law, as amended by chapter 320 of
the laws of 2007, is amended to read as follows:
S 73-b. Misdemeanors. 1. Every person convicted of a misdemeanor
pursuant to any of the provisions of this chapter for which another
penalty is not provided shall for a first conviction thereof be punished
by a fine of not less than two hundred fifty nor more than five hundred
dollars or by a period of imprisonment of not more than thirty days or
by both such fine and imprisonment; for a conviction of a second
violation, both of which were committed within a period of twenty-four
months, such person shall be punished by a fine of not less than five
hundred nor more than one thousand five hundred dollars or by a period
of imprisonment of not more than sixty days or by both such fine and
imprisonment; upon a conviction of a third or subsequent violation, all
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of which were committed within a period of twenty-four months, such
person shall be punished by a fine of not less than one thousand five
hundred nor more than two thousand five hundred dollars or by a period
of imprisonment of not more than one hundred twenty days or by both such
fine and imprisonment.
2. EVERY PERSON CONVICTED OF A MISDEMEANOR FOR A VIOLATION OF SECTION
FIFTY-ONE OF THIS ARTICLE SHALL FOR A FIRST CONVICTION THEREOF BE
PUNISHED BY A FINE OF NOT LESS THAN FIVE THOUSAND NOR MORE THAN TEN
THOUSAND DOLLARS, OR BY A PERIOD OF IMPRISONMENT OF NOT MORE THAN NINETY
DAYS, OR BY BOTH SUCH FINE AND IMPRISONMENT.
S 5. The navigation law is amended by adding a new section 73-d to
read as follows:
S 73-D. OPERATING WITHOUT INSURANCE. IN ADDITION TO THE PENALTIES SET
FORTH IN THIS PART, ANY OWNER FOUND TO BE OPERATING A PUBLIC VESSEL
WITHOUT INSURANCE AS SET FORTH IN SECTION FIFTY-ONE OF THIS ARTICLE,
SHALL HAVE THE CERTIFICATE OF INSPECTION OR TEMPORARY PERMIT FOR SUCH
VESSEL REVOKED FOR A PERIOD OF NO LESS THAN ONE YEAR.
S 6. Section 13 of the navigation law, as amended by chapter 843 of
the laws of 1980, is amended to read as follows:
S 13. Inspector; duties. The inspector shall annually, and at such
other times as he shall deem it expedient, or as the commissioner may
direct, inspect every public vessel, except vessels which navigate on
waters over which the United States exercises active control. The
inspector shall carefully examine the hull, the propelling and auxiliary
machinery, the electrical apparatus and the vessel's equipment. He shall
require such changes, repairs and improvements to be made as he may deem
expedient for the contemplated route. No vessel, or propelling machinery
thereof shall be allowed to be used if constructed in whole, or in part,
of defective material, or which because of its form, design, workman-
ship, age, use or for any other reason is unsafe. He shall also fix the
number of passengers that may be transported. The inspector shall
require that the boilers, on all public vessels which are propelled by
steam engines, be inspected and approved for safety of operations by
inspectors of the New York State Department of Labor, Bureau of Boilers.
Every boiler and appurtenances thereof shall be constructed, maintained
and operated in accordance with the Department of Labor rules and regu-
lations pertaining to boilers. THE INSPECTOR SHALL ASCERTAIN WHETHER
THE VESSEL HAS INSURANCE COVERAGE AS REQUIRED BY THIS CHAPTER. The
inspector shall also, whenever he deems it expedient, visit any vessel
licensed under this chapter and examine into her condition for the
purpose of ascertaining whether or not any party thereon, having a
certificate, or license, from the inspector, has conformed to and obeyed
the conditions of such certificate, and the provisions of this chapter.
The owner, master, pilot, engineer or joint pilot and engineer of such
vessel, shall answer all reasonable questions and give all the informa-
tion in his or their power in regard to said vessel, or its machinery or
equipment and the manner of managing the same. The inspector provided
for in this chapter is authorized to make further rules and regulations
applying generally to all vessels, or especially to one or more of them.
In framing rules for the government of managers and employees on
vessels, the inspector shall, as far as practicable, be governed by the
general rules and regulations prescribed by the United States coast
guard. The inspector shall have the power to issue a uniform navigation
summons and/or complaint for violations of the provisions of article
four of this chapter which are applicable to vessels.
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S 7. Section 63 of the navigation law, as amended by chapter 672 of
the laws of 1962, is amended to read as follows:
S 63. Certificate of inspection. The inspector, if satisfied that a
public vessel is in all respects safe and conforms to the requirement of
this chapter, shall make and subscribe duplicate certificates setting
forth the name and number of the vessel, its age, the date of
inspection, the name of the owner, the number of licensed officers and
crew necessary to manage the vessel with safety, equipment required,
NUMBER OF INSURANCE POLICY AS REQUIRED BY SECTION FIFTY-ONE OF THIS
PART, AND NAME OF SUCH INSURER, and any special restrictions or remarks
pertaining to the operation of the vessel and the number of passengers
she can safely carry, and, if a steam vessel, the age of the boiler and
the pressure of steam she is authorized to carry. One of said certif-
icates shall be kept posted in some conspicuous place on the vessel to
be designated by the inspector and the other copy shall be kept by the
inspector and by him recorded in a book to be kept for that purpose. If
the inspector refuses to grant a certificate of approval, he shall make
a statement in writing, giving his reasons for such refusal, and deliver
the same to the owner or master of the vessel. The posting of certif-
icates of inspection shall not be required on vessels of less than ten
tons burden. However said certificates must be aboard whenever the
vessel is in operation.
S 8. Subsection (b) of section 1115 of the insurance law, as amended
by chapter 727 of the laws of 2006, is amended to read as follows:
(b) This section shall not apply to the insurance of marine risks,
marine protection and indemnity risks ASSOCIATED WITH MARINE PROTECTION
AND INDEMNITY INSURANCE WHICH IS NOT REQUIRED UNDER ARTICLE FOUR OF THE
NAVIGATION LAW, workers' compensation, employers' liability risks, mort-
gage guaranty risks, financial guaranty risks, risks insured for any
dollar level of first party benefits provided pursuant to article
fifty-one of this chapter, certificates of title, guaranties of title or
policies of title insurance, or those insurers subject to the provisions
of subsection (c) of section two thousand three hundred forty-three of
this chapter.
S 9. Paragraph 5 of subsection (a) of section 2302 of the insurance
law, as amended by chapter 614 of the laws of 1997, is amended to read
as follows:
(5) marine protection and indemnity insurance, WHICH IS NOT REQUIRED
UNDER THE PROVISIONS OF ARTICLE FOUR OF THE NAVIGATION LAW;
S 10. 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
A. 10337--A 5
HUNDRED THIRTEEN OF THIS CHAPTER, THAT ARE REQUIRED UNDER ARTICLE FOUR
OF THE NAVIGATION LAW.
S 11. Section 4101 of the insurance law, subsection (b) as amended by
chapter 626 of the laws of 2006, is amended to read as follows:
S 4101. Definitions. In this article: (a) "Basic kinds of insurance"
means the kinds of insurance described in the following paragraphs of
subsection (a) of section one thousand one hundred thirteen of this
chapter numbered therein as set forth in parentheses below:
fire (4);
burglary and theft (7);
glass (8);
boiler and machinery (9);
elevator (10);
animal (11);
personal injury liability (13);
property damage liability (14) - basic as to stock companies only;
workers' compensation and employers' liability (15);
fidelity and surety (16);
credit (17);
marine and inland marine (20);
marine protection and indemnity (21) [- basic as to mutual companies
only].
(b) "Non-basic kinds of insurance" means the kinds of insurance
described in the following paragraphs of subsection (a) of section one
thousand one hundred thirteen of this chapter numbered therein as set
forth in parentheses below:
accident and health (item (i) of (3));
non-cancellable disability (item (ii) of (3));
miscellaneous property (5);
water damage (6);
collision (12);
property damage liability (14) - non-basic as to mutual companies
only;
motor vehicle and aircraft physical damage (19);
inland marine as specified in marine and inland marine (20);
[marine protection and indemnity (21) - non-basic as to stock compa-
nies only;]
residual value (22);
credit unemployment (24);
gap (26);
prize indemnification (27);
service contract reimbursement (28);
legal services insurance (29);
involuntary unemployment insurance (30);
salary protection insurance (31).
S 12. Subsection (a) of section 2105 of the insurance law, as amended
by section 9 of part I of chapter 61 of the laws of 2011, 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 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-resident 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
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of its members; authorizing such person, firm, association or corpo-
ration 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 enumerated 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 or her judgment such
suspension or revocation will best promote the interests of the people
of this state.
S 13. This act shall take effect on the sixtieth day after it shall
have become a law; provided, however, that effective immediately, the
addition, amendment and/or repeal of any rule or regulation necessary
for the implementation of this act on its effective date are authorized
and directed to be made and completed on or before such effective date.