S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10698
 
                           I N  A S S E M B L Y
 
                               May 10, 2018
                                ___________
 
 Introduced by M. of A. HUNTER -- read once and referred to the Committee
   on Insurance
 
 AN  ACT  to  amend  the  insurance law, in relation to excess disability
   insurance
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Paragraph  32  of  subsection  (a) of section 1113 of the
 insurance law, as renumbered by chapter 626 of  the  laws  of  2006,  is
 renumbered  paragraph  33  and  a  new  paragraph 32 is added to read as
 follows:
   (32) "CATASTROPHIC BUSINESS  DISRUPTION  INSURANCE,"  MEANS  INSURANCE
 AGAINST  FINANCIAL  LOSS EXPERIENCED BY A CORPORATE ENTITY OR A PARTNER-
 SHIP WHERE AN INDIVIDUAL INTEGRAL TO THE SUCCESSFUL  OPERATION  OF  SUCH
 CORPORATE  ENTITY  OR  PARTNERSHIP  BECOMES  DISABLED  DUE  TO SICKNESS,
 AILMENT OR BODILY INJURY. SUCH INSURANCE MAY BE OBTAINED IN EXCESS OF  A
 PRIMARY  BUSINESS-RELATED DISABILITY POLICY, OR IN THE ABSENCE OF SUCH A
 POLICY IF COVERAGE  CANNOT  BE  OBTAINED  FROM  AN  AUTHORIZED  INSURER.
 CATASTROPHIC  BUSINESS DISRUPTION INSURANCE COVERAGE MAY INCLUDE, BUT IS
 NOT LIMITED TO, REIMBURSEMENT FOR ALL OVERHEAD COSTS  AND  EXPENSES  AND
 ALL  CAPITAL  OUTLAYS  OF  A  CORPORATE ENTITY OR PARTNERSHIP WHICH SUCH
 CORPORATE ENTITY OR PARTNERSHIP INCURS IN THE ORDINARY COURSE  OF  BUSI-
 NESS  DURING  THE  PERIOD OF DISABILITY; AND BUY/SELL ARRANGEMENTS IN AN
 AMOUNT SUFFICIENT TO PURCHASE THE DISABLED INDIVIDUAL'S  INTEREST  SHARE
 IN THE CORPORATE ENTITY OR PARTNERSHIP.
   §  2.  Subsection (a) of section 2105 of the insurance law, as amended
 by section 9 of part I of chapter 61 of the laws of 2011, 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
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD14903-03-8

 A. 10698                            2
 
 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 which 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  [and],   thirty-one   AND   THIRTY-TWO   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 his or her
 judgment such suspension or revocation will best promote  the  interests
 of the people of this state.
   §  3.  Subsection (b) of section 4101 of the insurance law, as amended
 by chapter 626 of the laws of 2006, 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)[.];
   CATASTROPHIC BUSINESS DISRUPTION INSURANCE (32).
   § 4. Group A of table one as contained in paragraph  1  of  subsection
 (a)  of  section 4103 of the insurance law, as amended by chapter 626 of
 the laws of 2006, 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

 A. 10698                            3
 
 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
   §  5. Group C of table three as contained in subsection (b) of section
 4107 of the insurance law, as amended by chapter  626  of  the  laws  of
 2006, 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
   § 6. This act shall take effect immediately.