Senate Bill S10226

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10226
 
                             I N  S E N A T E
 
                                May 7, 2026
                                ___________
 
 Introduced  by  Sen.  BAILEY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Insurance
 
 AN ACT to amend the insurance law, in relation to providing  for  insur-
   ance  against expenses and business income losses from acts or threats
   of violence, including while not on the insured's premises, and adding
   representations and warranties and tax interpretation  insurance;  and
   to repeal certain provisions of such law relating thereto
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subparagraph (D)  of  paragraph  7  of  subsection  (a)  of
 section 1113 of the insurance law, as amended by chapter 318 of the laws
 of 2008, is amended to read as follows:
   (D) Insurance covering LOSS OF OR DAMAGE TO PROPERTY AS A RESULT OF AN
 ACT  OR  THREATENED  ACT OF VIOLENCE, BULLYING, OR STALKING; a ransom or
 reward payment incurred as the result of an abduction or  the  theft  of
 property;  travel  and  lodging  expense  and lost wages incurred as the
 result of an act or threatened act of violence, BULLYING,  STALKING,  OR
 ABDUCTION;  expense incurred to locate or identify a missing or abducted
 person; or other expenses to respond to [a violent] AN act or threatened
 act OF VIOLENCE, BULLYING, STALKING, OR ABDUCTION, or to prevent a reoc-
 currence thereof, INCLUDING EXPENSES TO HIRE A PUBLIC RELATIONS FIRM  OR
 SECURITY  FIRM  IN  RESPONSE  TO  AN  ACT OR THREATENED ACT OF VIOLENCE,
 BULLYING, STALKING, OR ABDUCTION; and
   § 2. Paragraphs 13 and 14 of subsection (a) of  section  1113  of  the
 insurance  law,  paragraph  13  as amended by chapter 534 of the laws of
 1985 and paragraph 14 as amended by chapter 614 of the laws of 1997, are
 amended to read as follows:
   (13) "Personal injury liability insurance,"  means  insurance  against
 legal  OR CONTRACTUAL liability of the insured, and against loss, damage
 or expense incident to a claim of such liability (including  the  insur-
 er's  obligation to pay medical, hospital, surgical and disability bene-
 fits to injured persons, and funeral and death benefits  to  dependents,
 beneficiaries  or  personal  representatives  of persons who are killed,
 irrespective of legal liability of the insured), arising out of death or
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD15757-01-6
 S. 10226                            2
 
 injury of any person, or arising out of injury to the economic interests
 of any person, as the result of negligence in rendering expert,  fiduci-
 ary  or professional service, but excluding any kind of insurance speci-
 fied  in  paragraph  fifteen,  except  insurance  to  protect an insured
 against liability for indemnification or contribution to a  third  party
 held responsible for injury to the insured's employee arising out of and
 in  the  course of employment when such insurance is written pursuant to
 this paragraph and not written pursuant to  paragraph  fifteen  of  this
 subsection.
   (14)  "Property  damage  liability insurance," means insurance against
 legal OR CONTRACTUAL liability of the insured, and against loss,  damage
 or  expense  incident  to  a claim of such liability, arising out of the
 loss or destruction of, or damage to, the property of any other  person,
 but not including any kind of insurance specified in paragraph thirteen,
 fifteen or twenty-eight of this subsection.
   §  3.  Paragraph 34 of subsection (a) of section 1113 of the insurance
 law, as added by chapter 369 of the laws of 2024, is amended to read  as
 follows:
   (34) "Business interruption insurance" means insurance against loss of
 use  and  occupancy,  rents,  and  profits resulting from a REDUCTION IN
 BUSINESS OR business closure, INCLUDING EXPENSES TO REMEDIATE THE  PROP-
 ERTY,  due to: (A) loss of or damage to insured or neighboring property;
 (B) an act or threatened act of violence [while the perpetrator  is  on]
 OR  ABDUCTION  AFFECTING  the  business  [premises] OPERATIONS; or (C) a
 government order.
   § 4. Paragraphs 34 and 35 of subsection (a) of  section  1113  of  the
 insurance  law, paragraph 34 as added by chapter 569 of the laws of 2024
 and paragraph 35 as renumbered by chapter 369 of the laws of  2024,  are
 renumbered  paragraphs  35  and  38 and two new paragraphs 36 and 37 are
 added to read as follows:
   (36) "REPRESENTATIONS AND WARRANTIES INSURANCE" MEANS  INSURANCE:  (A)
 AGAINST  LEGAL  LIABILITY  OF  THE  INSURED AND AGAINST LOSS, DAMAGE, OR
 EXPENSE INCIDENT TO A CLAIM OF SUCH LIABILITY ARISING OUT OF  INJURY  TO
 THE  ECONOMIC INTERESTS OF A BUYER, AS THE RESULT OF A BREACH OF A SELL-
 ER'S REPRESENTATIONS OR WARRANTIES IN A CORPORATE MERGER OR  ACQUISITION
 TRANSACTION,  WHEN  THE SELLER IS THE INSURED; OR (B) AGAINST LOSS OF OR
 DAMAGE TO PROPERTY, INCLUDING INJURY TO THE ECONOMIC  INTERESTS  OF  THE
 INSURED,  AS  A  RESULT  OF  A  BREACH  OF A SELLER'S REPRESENTATIONS OR
 WARRANTIES IN A CORPORATE MERGER OR ACQUISITION  TRANSACTION,  WHEN  THE
 BUYER IS THE INSURED.
   (37)  "TAX  INTERPRETATION  INSURANCE"  MEANS  INSURANCE  AGAINST: (A)
 EXPENSES INCURRED, OTHER THAN LEGAL EXPENSES OR ADMINISTRATIVE PENALTIES
 IMPOSED BY A GOVERNMENTAL TAX AUTHORITY, AS A RESULT OF A  DETERMINATION
 BY  A  GOVERNMENTAL  TAX  AUTHORITY  THAT A TAX TREATMENT FOR A BUSINESS
 ENTITY IS INVALID; AND (B) THE INCREASE IN TAX, INCLUDING INTEREST, THAT
 A BUSINESS ENTITY IS LEGALLY OBLIGATED TO PAY A GOVERNMENTAL TAX AUTHOR-
 ITY UPON A DETERMINATION BY A COURT OF COMPETENT JURISDICTION, OR UPON A
 SETTLEMENT WITH A GOVERNMENTAL TAX AUTHORITY, THAT THE TAX TREATMENT  IS
 INVALID.
   § 5. Subsection (a) of section 2105 of the insurance law, as separate-
 ly  amended  by  chapters 369 and 569 of the laws of 2024, is amended to
 read as follows:
   (a) The superintendent may issue an excess line  broker's  license  to
 any person, firm, association or corporation who or which is licensed as
 an  insurance broker under section two thousand one hundred four of this
 article, or who or which is licensed as an excess  line  broker  in  the
 S. 10226                            3
 
 licensee's  home  state,  provided,  however,  that the applicant's home
 state grants non-resident licenses to residents of  this  state  on  the
 same  basis,  except  that  reciprocity is not required in regard to the
 placement  of liability insurance on behalf of a purchasing group or any
 of its members; authorizing such person,  firm,  association  or  corpo-
 ration to procure, subject to the restrictions herein provided, policies
 of  insurance from insurers that are not authorized to transact business
 in this state of the kind or kinds of insurance specified in  paragraphs
 four through fourteen, sixteen, seventeen, nineteen, twenty, twenty-two,
 twenty-seven,  twenty-eight, thirty-one, thirty-two, thirty-three, [and]
 thirty-four, THIRTY-FIVE, THIRTY-SIX, AND THIRTY-SEVEN of subsection (a)
 of section one thousand one hundred thirteen of  this  chapter,  and  in
 subsection  (h)  of this section, provided, however, that the provisions
 of this section and section two thousand one hundred  eighteen  of  this
 article shall not apply to ocean marine insurance and other contracts of
 insurance  enumerated in subsections (b) and (c) of section two thousand
 one hundred seventeen of this article. Such license may be suspended  or
 revoked  by the superintendent whenever in the superintendent's judgment
 such suspension or revocation will best promote  the  interests  of  the
 people of this state.
   § 6. Subparagraph (D) of paragraph 2 of subsection (a) of section 3425
 of  the insurance law, as amended by chapter 569 of the laws of 2024, is
 amended to read as follows:
   (D) parametric insurance, as defined in paragraph [thirty-four]  THIR-
 TY-FIVE  of  subsection (a) of section one thousand one hundred thirteen
 of this chapter.
   § 7. Section 3450 of the insurance law is REPEALED.
   § 8.  Subsection (b) of section 4101 of the insurance law, as  amended
 by chapter 569 of the laws of 2024, is amended to read as follows:
   (b)  "Non-basic  kinds  of  insurance"  means  the  kinds of insurance
 described in the following paragraphs of subsection (a) of  section  one
 thousand  one  hundred  thirteen of this chapter numbered therein as set
 forth in parentheses below:
   accident and health (item (i) of (3));
   non-cancellable disability (item (ii) of (3));
   miscellaneous property (5);
   water damage (6);
   collision (12);
   property damage liability (14) -  non-basic  as  to  mutual  companies
 only;
   motor vehicle and aircraft physical damage (19);
   inland marine as specified in marine and inland marine (20);
   marine protection and indemnity (21) - non-basic as to stock companies
 only;
   residual value (22);
   credit unemployment (24);
   gap (26);
   prize indemnification (27);
   service contract reimbursement (28);
   legal services insurance (29);
   involuntary unemployment insurance (30);
   salary protection insurance (31);
   donor medical expense insurance (32);
   excess business disability insurance (33);
   parametric insurance [(34)] (35);
   REPRESENTATIONS AND WARRANTIES INSURANCE (36);
 S. 10226                            4
 
   TAX INTERPRETATION INSURANCE (37).
   §  9.    Paragraphs  1  and 2 of subsection (b) of section 4102 of the
 insurance law, paragraph 1 as amended by chapter 326 of the laws of 2004
 and paragraph 2 as amended by chapter 569  of  the  laws  of  2024,  are
 amended to read as follows:
   (1) If licensed to write burglary and theft (7), glass (8), boiler and
 machinery  (9),  elevator  (10),  animal (11), personal injury liability
 (13), property damage liability (14), workers' compensation and  employ-
 ers' liability (15), fidelity and surety (16), or credit (17), it may be
 licensed to write accident and health (item (i) of (3)), non-cancellable
 disability  (item  (ii) of (3)), water damage (6), collision (12), resi-
 dual value (22), credit unemployment (24), gap (26), prize  indemnifica-
 tion  (27), service contract reimbursement (28) [and], involuntary unem-
 ployment (30), SALARY  PROTECTION  (31),  DONOR  MEDICAL  EXPENSE  (32),
 EXCESS  BUSINESS  DISABILITY INSURANCE (33), REPRESENTATIONS AND WARRAN-
 TIES (36), AND TAX INTERPRETATION (37);
   (2) If licensed to write fire (4), it may be licensed to write miscel-
 laneous property (5), water damage (6), collision  (12),  motor  vehicle
 and  aircraft physical damage (19), inland marine as specified in marine
 and inland marine (20) and parametric [(34)] (35);
   § 10. Group A of table one of paragraph 1 of subsection (a) of section
 4103 of the insurance law, as amended by chapter  369  of  the  laws  of
 2024, is amended to read as follows:

                                  Group A:
 
 7                                                $300,000       $150,000
 8, 9, 10, 11, or 14 - for each such kind         $100,000       $ 50,000
 13 or 15 - for each such kind                    $500,000       $250,000
 16                                               $900,000       $450,000
 17                                               $400,000       $200,000
 Basic additional amount
 required  for  any  one
 or  more  of  the above
 kinds of insurance                               $100,000       $ 50,000
 3(i), 3(ii), 6{1} or 12{2} - for each
 such kind                                        $100,000       $ 50,000
 22                                             $2,000,000     $1,000,000
 24                                               $400,000       $200,000
 26(B)                                            $200,000       $100,000
 26(A), 26(C) or 26(D) -
 for each such kind                               $600,000       $300,000
 27                                               $300,000       $150,000
 28                                             $2,000,000     $1,000,000
 30                                               $400,000       $200,000
 31                                               $100,000       $ 50,000
 32                                               $100,000       $ 50,000
 33                                               $100,000       $ 50,000
 34                                             $2,000,000  [$1,000,0000]
                                                               $1,000,000
 36                                            $35,000,000    $17,500,000
 37                                            $35,000,000    $17,500,000
   §  11. Note 3 of table one of paragraph 1 of subsection (a) of section
 4103 of the insurance law, as amended by chapter  569  of  the  laws  of
 2024, is amended to read as follows:
 S. 10226                            5
 
   {3}  If  licensed  to write paragraph 4, no additional paid-in capital
 and surplus is required for a license to write paragraphs 5, 6, 12,  19,
 20, (inland marine only) and [34] 35.
   §  12. Note 1 of table two of paragraph 1 of subsection (a) of section
 4107 of the insurance law, as amended by chapter  569  of  the  laws  of
 2024, is amended to read as follows:
   {1}  If  licensed  to  write  paragraph  4,  no  additional surplus is
 required for a license to write paragraphs 5, 6,  12,  19,  20,  (inland
 marine only) and [34] 35.
   §  13. Group C of table three of subsection (b) of section 4107 of the
 insurance law, as amended by chapter 359 of the laws of 2021, is amended
 to read as follows:
                                  Group C:
 
 3(i) or 3(ii) - for each such kind             $  100,000     $  100,000
 22                                             $3,000,000     $2,000,000
 24                                             $  300,000     $  300,000
 26 (B)                                         $  300,000     $  200,000
 26(A), 26(C) or 26(D) -
 for each such kind                             $  900,000     $  600,000
 28                                             $3,000,000     $2,000,000
 6{5}, 12{6}  or 14{2}  - for
 each such kind                                 $   50,000     $   50,000
 27                                             $  300,000     $  150,000
 30                                             $  300,000     $  300,000
 31                                             $  100,000     $  100,000
 32                                             $  100,000     $  100,000
 33                                             $  100,000     $  100,000
 36                                            $35,000,000    $35,000,000
 37                                            $35,000,000    $35,000,000
 
   § 14. Note 3 of table three of subsection (b) of section 4107  of  the
 insurance law, as amended by chapter 569 of the laws of 2024, is amended
 to read as follows:
   {3}  If  licensed  to  write  paragraph  4,  no  additional surplus is
 required for a license to write paragraphs 5, 6,  12,  19,  20,  (inland
 marine only) and [34] 35.
   §  15.  This act shall take effect on the thirtieth day after it shall
 have become a law. Effective immediately, the addition, amendment and/or
 repeal of any rule or regulation necessary  for  the  implementation  of
 this  act  on its effective date are authorized to be made and completed
 on or before such effective date.