S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6251
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               March 4, 2019
                                ___________
 
 Introduced by M. of A. DINOWITZ -- read once and referred to the Commit-
   tee on Insurance
 
 AN  ACT  to  amend  the insurance law, in relation to permitting certain
   liability policies to provide coverage for punitive damages and  civil
   penalties
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The insurance law is amended by adding a new  section  3421
 to read as follows:
   §  3421.  PUNITIVE DAMAGES AND CIVIL PENALTIES COVERAGE. 1. AN INSURER
 MAY PROVIDE AND AN INSURED MAY PURCHASE INSURANCE AGAINST  AN  AWARD  OF
 PUNITIVE  DAMAGES, OR CIVIL PENALTIES, OR OTHER NON-COMPENSATORY DAMAGES
 IN ANY LIABILITY INSURANCE POLICY EXCEPT IN A POLICY OF  PERSONAL  LINES
 INSURANCE  ISSUED  TO  A  NATURAL PERSON FOR NON-BUSINESS PURPOSES, OR A
 COMMERCIAL AUTOMOBILE LIABILITY INSURANCE POLICY.
   2. COVERAGE MAY PROVIDE PROTECTION FOR VICARIOUS  LIABILITY  RESULTING
 FROM  THE  CONDUCT OF ANOTHER, OR WHEN ASSESSED AGAINST A PARTY DIRECTLY
 FOR GROSS NEGLIGENCE OR RECKLESS CONDUCT. COVERAGE SHALL NOT APPLY WHERE
 LIABILITY RESULTS FROM ACTION THAT WAS INTENDED TO CAUSE  THE  RESULTING
 HARM,  DAMAGE  OR  INJURY.  COVERAGE  SHALL  APPLY  ONLY  WHEN EXPRESSLY
 PROVIDED FOR BY THE INSURANCE POLICY.
   3. THIS SECTION SHALL APPLY PROSPECTIVELY TO INSURANCE  POLICIES  WITH
 EFFECTIVE DATES ON OR AFTER THE EFFECTIVE DATE OF THIS SECTION.
   § 2. This act shall take effect immediately.
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06423-01-9