The New York State Senate

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  10327

                          I N  A S S E M B L Y

                             April 22, 2020
                               ___________

Introduced  by  M.  of  A. L. ROSENTHAL -- read once and referred to the
  Committee on Insurance

AN ACT in relation to requiring certain perils be covered under business
  interruption insurance policies issued to certain human  services  and
  community-based  health  providers 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 insureds with such coverage who  oper-
ate  programs and services including a mental health outpatient provider
licensed or granted an operating certificate under  article  31  of  the
mental hygiene law; a substance use disorder treatment provider licensed
or  granted  an  operating  certificate  under  article 32 of the mental
hygiene law; a provider dually licensed under article 28 of  the  public
health  law  and  article  31 or article 32 of the mental hygiene law, a
diagnostic and treatment center licensed or granted an operating certif-
icate under article 28 of the public health law; a  clinic  licensed  or
granted  an operating certificate under article 16 of the mental hygiene
law; a community-based program funded under the office of mental health,
the office for people with developmental  disabilities,  the  office  of
addiction  services  and  supports or through a local government unit as
defined under article 41 of the mental hygiene law; a home care provider
certified or licensed pursuant to article 36 of the public health law; a

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                      [ ] is old law to be omitted.
                                                           LBD16118-01-0

A. 10327                            2

primary care physician or other provider including school  based  health
centers;  a  provider  of  health home services authorized under section
2703 of the federal  protection  and  affordable  care  act;  a  hospice
provider  licensed  or granted an operating certificate under article 40
of the public health law; a family and  child  service provider licensed
under article 29-I of  the public health law, a provider licensed  under
the office of children and family services; or a provider licensed under
the office of temporary and disability assistance.
  § 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.