S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1937
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 13, 2021
                                ___________
 
 Introduced  by  M. of A. CARROLL, FAHY, GRIFFIN, EPSTEIN, PHEFFER AMATO,
   DINOWITZ, CUSICK,  BARRETT,  COLTON,  THIELE,  FALL,  FRONTUS,  GLICK,
   ROZIC,  JONES, JACOBSON, NIOU, SIMON, OTIS, WOERNER, SEAWRIGHT, LUPAR-
   DO, L. ROSENTHAL, ANDERSON, EICHENSTEIN, BRONSON, STECK, GALEF, REYES,
   J. RIVERA, TAYLOR, DAVILA -- Multi-Sponsored by --  M.  of  A.  ENGLE-
   BRIGHT,  LAVINE,  McDONOUGH -- read once and referred 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.  For the purposes of this act:
   (a) "business" shall mean a business registered with the department of
 tax and finance or not-for-profit corporation registered with the Attor-
 ney General's charities bureau.
   (b) "income" shall mean traditional business income as  well  as  not-
 for-profit revenue from donations, sponsorships, and grants.
   (c)  "net  written premiums received" shall mean gross direct premiums
 written, less return premiums thereon and dividends credited or paid  to
 policyholders, as reported on the company's annual financial statement.
   (d)  "premium taxes" shall mean payments required under subsection (d)
 of section 2118 of the insurance law.
   § 2. (a) Notwithstanding any provisions of law, rule or regulation  to
 the  contrary, every policy of insurance insuring against loss or damage
 to property, which includes, but is not limited to, 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05440-01-1
              

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   (b) Every policy of insurance insuring against loss or damage to prop-
 erty, which includes, but is not limited to, the loss of use  and  occu-
 pancy and business interruption, whose policy expires during a period of
 a  declared  state emergency due to the coronavirus disease 2019 (COVID-
 19)  pandemic, shall be subject to an automatic renewal of the policy at
 the current rate of charge.
   (c) Every policy of insurance or endorsement thereto insuring  against
 an  insured's  business  income  loss  resulting  from  loss, damage, or
 destruction of property owned by others, including direct  suppliers  of
 goods  or  services  to  the insured and/or direct receivers of goods or
 services manufactured or provided by the insured, shall be construed  to
 include among the covered perils under that policy, coverage for contin-
 gent business interruption during a period of a declared state emergency
 due the coronavirus disease 2019 (COVID-19) pandemic.
   (d)  Every policy of insurance or endorsement thereto insuring against
 an insured's business  income  loss  resulting  from  loss,  damage,  or
 destruction  of  property owned by others, including direct suppliers of
 goods or services to the insured and/or direct  receivers  of  goods  or
 services  manufactured  or provided by the insured, whose policy expires
 during a period of a declared state emergency  due  to  the  coronavirus
 disease  2019  (COVID-19)  pandemic,  shall  be  subject to an automatic
 renewal of the policy at the current rate of charge.
   (e) Any clause or provision of a policy of insurance insuring  against
 loss  or  damage to property, which includes, but is not limited to, the
 loss of use and occupancy and business interruption and contingent busi-
 ness interruption, which allows the insurer to deny coverage based on  a
 virus,  bacterium,  or other microorganism that causes disease, illness,
 or physical distress or that is capable of causing disease, illness,  or
 physical distress shall be null and void; provided, however, the remain-
 ing  clauses  and  provisions of the contract shall remain in effect for
 the duration of the contract term.
   (f) 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 and contingent business interruption for the dura-
 tion  of  a  period of a declared state emergency due to the coronavirus
 disease 2019 (COVID-19) pandemic.
   (g) This section shall apply to policies issued to insureds with  less
 than  250 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.
   §  3.  (a)  An  insurer, including excess lines insurers, which indem-
 nifies an insured who has filed a claim pursuant to section two 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 four 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.
   §  4.  (a)  The  superintendent of financial services is authorized to
 impose upon, distribute among, and collect from the companies, including
 excess lines insurers, engaged in business  pursuant  to  the  insurance

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 law,  such additional amounts as may be necessary to recover the amounts
 paid to insurers pursuant to section three 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, or premium taxes in the case of
 excess lines insurers, received by each company subject  to  the  appor-
 tionment  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, or premium
 taxes in the case of excess lines insurers, received  by  all  companies
 writing that insurance or coverage within the state during that calendar
 year, as reported.
   §  5.  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.