The New York State Senate

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10226
 
                           I N  A S S E M B L Y
 
                              March 27, 2020
                                ___________
 
 Introduced  by M. of A. CARROLL -- read once and referred to the Commit-
   tee on Insurance
 
 AN ACT in relation to requiring certain perils be covered under business
   interruption insurance during the coronavirus disease 2019  (COVID-19)
   pandemic
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. (a) Notwithstanding any provisions of law,  rule  or  regu-
 lation  to the contrary, every policy of insurance insuring against loss
 or damage to property, which includes the loss of use and occupancy  and
 business  interruption,  shall be construed to include among the covered
 perils under that policy, coverage for business  interruption  during  a
 period of a declared state emergency due to the coronavirus disease 2019
 (COVID-19) pandemic.
   (b) The coverage required by this section shall indemnify the insured,
 subject  to  the  limits  under  the policy, for any loss of business or
 business interruption for the duration of a period of a  declared  state
 emergency due to the coronavirus disease 2019 (COVID-19) pandemic.
   (c)  This section shall apply to policies issued to insureds with less
 than 100 eligible employees in force on the effective date of this  act.
 "Eligible  employee"  means a full-time employee who works a normal work
 week of 25 or more hours.
   § 2. (a) An insurer which indemnifies an insured who has filed a claim
 pursuant to section one of this act may apply to the  superintendent  of
 financial  services  for relief and reimbursement by the department from
 funds collected and made available  for  this  purpose  as  provided  in
 section three of this act.
   (b)  The  superintendent  of financial services shall establish proce-
 dures for the submission and qualification of claims by  insurers  which
 are  eligible for reimbursement pursuant to this act. The superintendent
 of financial services shall incorporate in these procedures such  stand-
 ards  as  are  necessary to protect against the submission of fraudulent
 claims by insureds, and appropriate safeguards for insurers to employ in
 the review and payment of such claims.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD16053-01-0

 A. 10226                            2
 
   § 3. (a) The superintendent of financial  services  is  authorized  to
 impose upon, distribute among, and collect from the companies engaged in
 business  pursuant  to the insurance law, such additional amounts as may
 be necessary to recover the amounts paid to insurers pursuant to section
 two of this act.
   (b)  The  additional special purpose apportionment authorized pursuant
 to subdivision (a) of this section shall be distributed in  the  propor-
 tion  that  the net written premiums received by each company subject to
 the apportionment authorized by this section for  insurance  written  or
 renewed  on  risks  in  this  state during the calendar year immediately
 preceding, bears to the sum total  of  all  such  net  written  premiums
 received  by all companies writing that insurance or coverage within the
 state during that calendar year, as reported.
   (c) For the purposes of this section, "net written premiums  received"
 means  gross  direct  premiums written, less return premiums thereon and
 dividends credited or paid to policyholders, as reported on  the  compa-
 ny's annual financial statement.
   §  4.  This  act shall take effect immediately, and shall be deemed to
 have been in full force and effect on and after March 7, 2020 and  shall
 apply to insurance policies in force on that date.

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                 10226--A
 
                           I N  A S S E M B L Y
 
                              March 27, 2020
                                ___________
 
 Introduced by M. of A. CARROLL, FAHY, GRIFFIN, SIMOTAS, EPSTEIN, LENTOL,
   M. G. MILLER,  PHEFFER AMATO, WRIGHT, DINOWITZ, ORTIZ, THIELE, CUSICK,
   BARRETT, COLTON, MALLIOTAKIS, MAGNARELLI, FALL --  Multi-Sponsored  by
   -- M. of A.  ENGLEBRIGHT -- read once and referred to the Committee on
   Insurance  -- committee discharged, bill amended, ordered reprinted as
   amended and recommitted to said committee

 AN ACT in relation to requiring certain perils be covered under business
   interruption insurance during the coronavirus disease 2019  (COVID-19)
   pandemic
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. (a) Notwithstanding any provisions of law,  rule  or  regu-
 lation  to the contrary, every policy of insurance insuring against loss
 or damage to property, which includes, but is not limited to,  the  loss
 of  use  and  occupancy and business interruption, shall be construed to
 include among the covered perils under that policy, coverage  for  busi-
 ness  interruption  during a period of a declared state emergency due to
 the coronavirus disease 2019 (COVID-19) pandemic.
   (b) Every policy of insurance insuring against loss or damage to prop-
 erty, which includes, but is not limited to, the loss of use  and  occu-
 pancy and business interruption, whose policy expires during a period of
 a  declared  state emergency due to the coronavirus disease 2019 (COVID-
 19) pandemic, shall be subject to an automatic renewal of the policy  at
 the current rate of charge.
   (c)  Any clause or provision of a policy of insurance insuring against
 loss or damage to property, which includes, but is not limited  to,  the
 loss  of  use  and occupancy and business interruption, which allows the
 insurer to deny coverage based on a virus, bacterium, or other  microor-
 ganism  that  causes  disease,  illness, or physical distress or that is
 capable of causing disease illness, or physical distress shall  be  null
 and void; provided, however, the remaining clauses and provisions of the
 contract shall remain in effect for the duration of the contract term.
   (d) The coverage required by this section shall indemnify the insured,
 subject  to  the  limits  under  the policy, for any loss of business or
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD16053-03-0

 A. 10226--A                         2
 
 business interruption for the duration of a period of a  declared  state
 emergency due to the coronavirus disease 2019 (COVID-19) pandemic.
   (e)  This section shall apply to policies issued to insureds with less
 than 250 eligible employees in force on the effective date of this  act.
 "Eligible  employee"  means a full-time employee who works a normal work
 week of 25 or more hours.
   § 2. (a) An insurer which indemnifies an insured who has filed a claim
 pursuant to section one of this act may apply to the  superintendent  of
 financial  services  for relief and reimbursement by the department from
 funds collected and made available  for  this  purpose  as  provided  in
 section three of this act.
   (b)  The  superintendent  of financial services shall establish proce-
 dures for the submission and qualification of claims by  insurers  which
 are  eligible for reimbursement pursuant to this act. The superintendent
 of financial services shall incorporate in these procedures such  stand-
 ards  as  are  necessary to protect against the submission of fraudulent
 claims by insureds, and appropriate safeguards for insurers to employ in
 the review and payment of such claims.
   § 3. (a) The superintendent of financial  services  is  authorized  to
 impose upon, distribute among, and collect from the companies engaged in
 business  pursuant  to the insurance law, such additional amounts as may
 be necessary to recover the amounts paid to insurers pursuant to section
 two of this act.
   (b) The additional special purpose apportionment  authorized  pursuant
 to  subdivision  (a) of this section shall be distributed in the propor-
 tion that the net written premiums received by each company  subject  to
 the  apportionment  authorized  by this section for insurance written or
 renewed on risks in this state  during  the  calendar  year  immediately
 preceding,  bears  to  the  sum  total  of all such net written premiums
 received by all companies writing that insurance or coverage within  the
 state during that calendar year, as reported.
   (c)  For the purposes of this section, "net written premiums received"
 means gross direct premiums written, less return  premiums  thereon  and
 dividends  credited  or paid to policyholders, as reported on the compa-
 ny's annual financial statement.
   § 4. This act shall take effect immediately, and shall  be  deemed  to
 have  been in full force and effect on and after March 7, 2020 and shall
 apply to insurance policies in force on that date.