NY State Senate Bill 2019-S3499

Archive: Last Bill Status - In Senate Committee Insurance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to insurance
Feb 08, 2019	referred to insurance

co-Sponsors

2019-S3499 (ACTIVE) - Details

Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Amd §3426, Ins L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S5580
2015-2016: S2350
2017-2018: S2811

2019-S3499 (ACTIVE) - Summary

Relates to business interruption insurance.

2019-S3499 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S3499

SPONSOR: BRESLIN
 
TITLE OF BILL:

An act to amend the insurance law, in relation to business interruption
insurance

 
SUMMARY OF PROVISIONS:

This bill would prohibit an insurance company that provides business
interruption insurance from denying or excluding coverage for a claim
for loss or damage that is caused by a peril insured against solely
because the insured peril resulted from a peril that is not insured
against or is excluded under the policy, resulted from an action that
was intended to mitigate loss from a peril that is not insured against
or is excluded under the policy, or occurred within a reasonable amount
of time either before or after a peril that is not insured against or is
excluded under the policy.

 
JUSTIFICATION:

When Superstorm Sandy struck, one of the effects was a massive power
outage in New York City. In the aftermath of Sandy, many business owners
submitted claims under their business interruption insurance for losses
caused by the outage and were surprised when the insurance company
denied the claims on the grounds that their policies excluded coverage
for loss or damage caused by a flood. When many of these business owners
pointed out that their premises were not actually flooded and that their
policies include coverage for losses caused by a power outage, the
insurance companies argued that they could deny coverage because the
power outage was caused by a flood. This bill would rectify this inequi-
ty by prohibiting insurers from denying business interruption claims for
losses that are covered under the policy because those losses were
caused by something that is excluded from coverage. This will ensure
that business owners are able to receive the coverage that they paid for
when they purchased their policy, thereby allowing them to recover their
losses and reopen for business in a timely manner.

 
LEGISLATIVE HISTORY:

S.2811 of 2017-18;
S.2350 of 2015-16;
S.5580 of 2013-14.

 
FISCAL IMPLICATIONS:

None noted.

 
EFFECTIVE DATE:
Immediately.

2019-S3499 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3499
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             February 8, 2019
                                ___________
 
 Introduced  by  Sens. BRESLIN, SEWARD -- 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 business  interruption
   insurance
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The section heading of section 3426 of the  insurance  law,
 as  amended  by  chapter  235 of the laws of 1989, is amended to read as
 follows:
   Commercial lines insurance; cancellation and renewal provisions; BUSI-
 NESS INTERRUPTION INSURANCE.
   § 2. Subsection (a) of section 3426 of the insurance law is amended by
 adding a new paragraph 12 to read as follows:
   (12) "BUSINESS INTERRUPTION INSURANCE" SHALL HAVE THE SAME MEANING  AS
 PARAGRAPH  FOUR  OF SUBSECTION (D) OF SECTION FIVE THOUSAND FOUR HUNDRED
 ONE OF THIS CHAPTER.
   § 3. Section 3426 of the insurance law is  amended  by  adding  a  new
 subsection (p) to read as follows:
   (P) NO INSURER WRITING A POLICY ISSUED OR DELIVERED IN THIS STATE THAT
 PROVIDES  FOR  BUSINESS  INTERRUPTION  INSURANCE  SHALL  DENY OR EXCLUDE
 COVERAGE FOR A CLAIM FOR LOSS OR  DAMAGE  THAT  IS  CAUSED  BY  A  PERIL
 INSURED AGAINST BY THE POLICY SOLELY BECAUSE THE INSURED PERIL:
   (1)  RESULTED  FROM  A PERIL NOT INSURED AGAINST OR EXPRESSLY EXCLUDED
 UNDER THE POLICY; OR
   (2) RESULTED FROM AN ACTION INTENDED TO MITIGATE LOSS FROM A PERIL NOT
 INSURED AGAINST OR EXPRESSLY EXCLUDED UNDER THE POLICY; OR
   (3) OCCURRED WITHIN A REASONABLE AMOUNT OF TIME EITHER BEFORE OR AFTER
 A PERIL NOT INSURED AGAINST OR EXPRESSLY EXCLUDED UNDER THE POLICY.
   § 4. This act shall take effect immediately and shall apply to  claims
 made on or after such effective date.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09758-01-9

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Senate Bill S3499

Sponsored By

Archive: Last Bill Status - In Senate Committee Insurance Committee

co-Sponsors

2019-S3499 (ACTIVE) - Details

2019-S3499 (ACTIVE) - Summary

2019-S3499 (ACTIVE) - Sponsor Memo

2019-S3499 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S3499

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Sponsored By

Neil D. Breslin

Archive: Last Bill Status - In Senate Committee Insurance Committee

co-Sponsors

James L. Seward

2019-S3499 (ACTIVE) - Details

2019-S3499 (ACTIVE) - Summary

2019-S3499 (ACTIVE) - Sponsor Memo

2019-S3499 (ACTIVE) - Bill Text download pdf

Comments