NY State Senate Bill S8178

Archive: Last Bill Status - Stricken

Introduced
In Committee
On Floor Calendar
- Passed Senate
- Passed Assembly
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Signed/Vetoed by Governor

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Actions

view actions (2)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Apr 17, 2020	recommit, enacting clause stricken
Apr 13, 2020	referred to insurance

Co-Sponsors

S8178 (ACTIVE) - Details

Current Committee:
Law Section:: Insurance

S8178 (ACTIVE) - Summary

Requires certain perils be covered under business interruption insurance during the coronavirus disease 2019 (COVID-19) pandemic.

S8178 (ACTIVE) - Sponsor Memo

 
BILL NUMBER: S8178

SPONSOR: MAYER
 
TITLE OF BILL:

An act in relation to requiring certain perils be covered under business
interruption insurance during the coronavirus disease 2019 (COVID-19)
pandemic

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill is intended to hold harmless businesses who currently hold
business interruption insurance, for losses sustained as a result of the
current COVID-19 health emergency, but for which no such coverage is
currently offered.

 
SUMMARY OF PROVISIONS:

Section 1 provides a mechanism by which certain businesses that suffer
losses due to interruption as a result of the COVID-2019 pandemic may
recover those losses from their insurer if they had a policy of business

interruption insurance in force on March 7, 2020, the date on which the
Governor declared a Public Health Emergency and State of Emergency in
Executive Order 202. The bill would apply to businesses covered by such
a policy with less than 100 eligible employees in the State of New York.
"Eligible employee" is defined as a full-time employee who works a
normal work week of 25 or more hours.

Section 2 provides that an insurer which indemnifies an insured who has
filed a claim pursuant to its provisions may apply to the Superintendent
of the Department of Financial Services for relief and reimbursement
from funds collected and made available for this purpose as provided in
the bill, pursuant to an additional special purpose assessment under the
general scheme already established by law to recover the general
expenses of the Department of Financial Services as the regulator of the
insurance industry in this State.  The superintendent shall establish
procedures for the submission and qualification of claims by insurers
which are eligible for reimbursement, incorporating such standards 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.

Section 3 authorizes the superintendent to impose upon, distribute
among, and collect from insurance companies, other than life and health
insurance companies, the additional amounts as may be necessary to
recover the amounts paid pursuant to the bill. The additional special
purpose apportionment authorized by the bill shall be distributed
according to essentially the same procedures and calculations as are
provided currently for the existing special purpose apportionment.

Section 4 sets the effective date.

 
JUSTIFICATION:

Industry sources have indicated that global virus transmission and
pandemic are generally excluded from the list of covered perils under
the existing standard business interruption insurance policy. The Insur-
ance Services Office, ISO, has developed a rider to provide an insured
with the option of purchasing such coverage, but to date, no states have
yet approved the form. This bill is intended to hold harmless businesses
who currently hold business interruption insurance, for losses sustained
as a result of the current COVID-19 health emergency, but for which no
such coverage is currently offered.

 
PRIOR LEGISLATIVE HISTORY:

None

 
FISCAL IMPLICATIONS:

To be determined

 
EFFECTIVE DATE:
This act shall take effect immediately, shall be retroactive to March 7,
2020.

S8178 (ACTIVE) - Bill Text download pdf


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

                                  8178

                            I N  S E N A T E

                             April 13, 2020
                               ___________

Introduced  by  Sen.  MAYER  -- read twice and ordered printed, and when
  printed to be committed to the Committee 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

S. 8178                             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.

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The New York State Senate

senate Bill S8178

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Archive: Last Bill Status - Stricken

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Co-Sponsors

S8178 (ACTIVE) - Details

S8178 (ACTIVE) - Summary

S8178 (ACTIVE) - Sponsor Memo

S8178 (ACTIVE) - Bill Text download pdf

Comments

senate Bill S8178

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Sponsored By

Shelley B. Mayer

Archive: Last Bill Status - Stricken

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Co-Sponsors

Brad Hoylman-Sigal

James Skoufis

S8178 (ACTIVE) - Details

S8178 (ACTIVE) - Summary

S8178 (ACTIVE) - Sponsor Memo

S8178 (ACTIVE) - Bill Text download pdf

Comments