S T A T E O F N E W Y O R K
________________________________________________________________________
71
2025-2026 Regular Sessions
I N A S S E M B L Y
(PREFILED)
January 8, 2025
___________
Introduced by M. of A. DINOWITZ, HUNTER -- read once and referred to the
Committee on Insurance
AN ACT to amend the insurance law, in relation to permitting certain
liability policies to provide coverage for punitive damages and civil
penalties
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The insurance law is amended by adding a new section 3423
to read as follows:
§ 3423. PUNITIVE DAMAGES AND CIVIL PENALTIES COVERAGE. 1. AN INSURER
MAY PROVIDE AND AN INSURED MAY PURCHASE INSURANCE AGAINST AN AWARD OF
PUNITIVE DAMAGES, OR CIVIL PENALTIES, OR OTHER NON-COMPENSATORY DAMAGES
IN ANY LIABILITY INSURANCE POLICY EXCEPT IN A POLICY OF PERSONAL LINES
INSURANCE ISSUED TO A NATURAL PERSON FOR NON-BUSINESS PURPOSES, OR A
COMMERCIAL AUTOMOBILE LIABILITY INSURANCE POLICY.
2. COVERAGE MAY PROVIDE PROTECTION FOR VICARIOUS LIABILITY RESULTING
FROM THE CONDUCT OF ANOTHER, OR WHEN ASSESSED AGAINST A PARTY DIRECTLY
FOR GROSS NEGLIGENCE OR RECKLESS CONDUCT. COVERAGE SHALL NOT APPLY WHERE
LIABILITY RESULTS FROM ACTION THAT WAS INTENDED TO CAUSE THE RESULTING
HARM, DAMAGE OR INJURY. COVERAGE SHALL APPLY ONLY WHEN EXPRESSLY
PROVIDED FOR BY THE INSURANCE POLICY.
3. THIS SECTION SHALL APPLY PROSPECTIVELY TO INSURANCE POLICIES WITH
EFFECTIVE DATES ON OR AFTER THE EFFECTIVE DATE OF THIS SECTION.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00799-01-5
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