S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10327
 
                           I N  A S S E M B L Y
 
                              April 22, 2020
                                ___________
 
 Introduced  by  M.  of  A. L. ROSENTHAL -- read once and referred to the
   Committee on Insurance
 
 AN ACT in relation to requiring certain perils be covered under business
   interruption insurance policies issued to certain human  services  and
   community-based  health  providers 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 insureds with such coverage who  oper-
 ate  programs and services including a mental health outpatient provider
 licensed or granted an operating certificate under  article  31  of  the
 mental hygiene law; a substance use disorder treatment provider licensed
 or  granted  an  operating  certificate  under  article 32 of the mental
 hygiene law; a provider dually licensed under article 28 of  the  public
 health  law  and  article  31 or article 32 of the mental hygiene law, a
 diagnostic and treatment center licensed or granted an operating certif-
 icate under article 28 of the public health law; a  clinic  licensed  or
 granted  an operating certificate under article 16 of the mental hygiene
 law; a community-based program funded under the office of mental health,
 the office for people with developmental  disabilities,  the  office  of
 addiction  services  and  supports or through a local government unit as
 defined under article 41 of the mental hygiene law; a home care provider
 certified or licensed pursuant to article 36 of the public health law; a
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD16118-01-0

 A. 10327                            2
 
 primary care physician or other provider including school  based  health
 centers;  a  provider  of  health home services authorized under section
 2703 of the federal  protection  and  affordable  care  act;  a  hospice
 provider  licensed  or granted an operating certificate under article 40
 of the public health law; a family and  child  service provider licensed
 under article 29-I of  the public health law, a provider licensed  under
 the office of children and family services; or a provider licensed under
 the office of temporary and disability assistance.
   § 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.
   §  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.