BILL NUMBER: S8563

SPONSOR: SKOUFIS
 
TITLE OF BILL:

An act extending certain payments and debt collections for the COVID-19
covered period

 
PURPOSE:

To extend the grace period for certain payments of premiums and fees to
the end of the COVID-19 covered period. Individuals and small businesses
experiencing financial hardship due to COVID-19 may defer paying premi-
ums for life insurance, property and casualty insurance, including auto,
homeowners, renters, workers compensation, medical malpractice, livery
and taxi.

 
SUMMARY OF PROVISIONS:

Section 1: Establishes the "COVID-19 covered period" as the period from
March 7, 2020 until the date on which none of the provisions that closed
              

or otherwise restricted public or private businesses or places of public
accommodation, or required postponement or cancellation of all non-es-
sential gatherings of individuals of any size for any reason in execu-
tive orders 202.3, 202.4, 202.5, 202.6, 202.7, 202.8, 202.10, 202.11,
202.13 or 202.14, as extended by executive orders 202.28 and 202.31 and
as further extended by any future executive order, issued in response to
the COVID-19 pandemic continue to apply in the county of the insurer or
debtors residence.

Section 2: Extends the grace period for insurance policies covered under
sections 3203 and 4510 of the Insurance Law for the deferral of payment
of premiums to the end of the COVID-19 covered period, for any life
insurance policyholder or fraternal benefit society certificate holder,
as those terms are used in such sections, facing a financial hardship as
a result of the COVID-19 pandemic.

Section 3: Subject to the consideration by the superintendent of finan-
cial services of the liquidity and solvency of the applicable insurer,
corporations subject to article 43 of the insurance law, or health main-
tenance organizations certified pursuant to article 44 of the public
health law, covered under subparagraph (c) of paragraph 1 of subsection
(d) of section 3216 and subsection (g) of section 4306 of the insurance
law shall:

  (1) extend the period for the deferral of payment of premiums to the
end of the COVID-19 covered period for any comprehensive health insur-
ance policy holder or contract holder under an individual policy or
contract, as those terms are used in such sections, who is facing a
financial hardship as a result of the COVID-19 pandemic; and
  (2) require that the applicable insurer, corporation subject to arti-
cle 43 of the insurance law, or health maintenance organization certi-
fied pursuant to article 44 of the public health law shall be responsi-
ble for the payment of claims during such period and shall not
retroactively terminate the insurance policy or contract for nonpayment
of premium during such period.

Section 4: Mandates that no insurer covered under paragraphs 16, 17, 20,
21, 24, 26, and 30 of subsection 11 (a) of section 1113, section 1116
and articles 34, 53, 54, and 55 of the 12 insurance law and sections 54
and 226 of the workers' compensation law shall cancel, not renew, or
conditionally renew any insurance policy issued to an individual or
small business, or, in the case of a group insurance policy, insuring
certificate holders that are individuals or small businesses, until the
end of the COVID-19 covered period, for any policyholder, or in the case
of a group insurance policy, group policy-holder or certificate holder,
facing financial hardship as a result of the COVID-19 pandemic. The
foregoing relief will also apply to the kinds of insurance set forth in
the insurance law.

Section 5: Effective date.

 
JUSTIFICATION:

Due to the COVID-19 pandemic as well as the legally mandated closures of
businesses and public buildings and stay at home order, many New Yorkers
are experiencing significant financial stress and have been unable to
maintain required payments for insurance policies. In light of these
financial hardships it is imperative our constituents do not lose the
crucial protections and support insurance policies provide due to the
unforeseen and unprecedented global pandemic. This bill will codify
temporary provisions included in Executive Orders No.  202.13 and
202.14.

 
LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.