S T A T E O F N E W Y O R K
________________________________________________________________________
8147
I N S E N A T E
April 9, 2018
___________
Introduced by Sen. SEWARD -- 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 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
S. 8147 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
S. 8147 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.
