S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                 10226--A
 
                           I N  A S S E M B L Y
 
                              March 27, 2020
                                ___________
 
 Introduced by M. of A. CARROLL, FAHY, GRIFFIN, SIMOTAS, EPSTEIN, LENTOL,
   M. G. MILLER,  PHEFFER AMATO, WRIGHT, DINOWITZ, ORTIZ, THIELE, CUSICK,
   BARRETT, COLTON, MALLIOTAKIS, MAGNARELLI, FALL --  Multi-Sponsored  by
   -- M. of A.  ENGLEBRIGHT -- read once and referred to the Committee on
   Insurance  -- committee discharged, bill amended, ordered reprinted as
   amended and recommitted to said committee

 AN ACT in relation to requiring certain perils be covered under business
   interruption insurance 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, but is not limited to,  the  loss
 of  use  and  occupancy and business interruption, shall be construed to
 include among the covered perils under that policy, coverage  for  busi-
 ness  interruption  during a period of a declared state emergency due to
 the coronavirus disease 2019 (COVID-19) pandemic.
   (b) Every policy of insurance insuring against loss or damage to prop-
 erty, which includes, but is not limited to, the loss of use  and  occu-
 pancy and business interruption, whose policy expires during a period of
 a  declared  state emergency due to the coronavirus disease 2019 (COVID-
 19) pandemic, shall be subject to an automatic renewal of the policy  at
 the current rate of charge.
   (c)  Any clause or provision of a policy of insurance insuring against
 loss or damage to property, which includes, but is not limited  to,  the
 loss  of  use  and occupancy and business interruption, which allows the
 insurer to deny coverage based on a virus, bacterium, or other  microor-
 ganism  that  causes  disease,  illness, or physical distress or that is
 capable of causing disease illness, or physical distress shall  be  null
 and void; provided, however, the remaining clauses and provisions of the
 contract shall remain in effect for the duration of the contract term.
   (d) The coverage required by this section shall indemnify the insured,
 subject  to  the  limits  under  the policy, for any loss of business or
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD16053-03-0

 A. 10226--A                         2
 
 business interruption for the duration of a period of a  declared  state
 emergency due to the coronavirus disease 2019 (COVID-19) pandemic.
   (e)  This section shall apply to policies issued to insureds with less
 than 250 eligible employees in force on the effective date of this  act.
 "Eligible  employee"  means a full-time employee who works a normal work
 week of 25 or more hours.
   § 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.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                 10226--B
 
                           I N  A S S E M B L Y
 
                              March 27, 2020
                                ___________
 
 Introduced by M. of A. CARROLL, FAHY, GRIFFIN, SIMOTAS, EPSTEIN, LENTOL,
   M. G. MILLER,  PHEFFER AMATO, WRIGHT, DINOWITZ, ORTIZ, THIELE, CUSICK,
   BARRETT,  COLTON,  MALLIOTAKIS,  MAGNARELLI,  FALL,  FRONTUS,   GLICK,
   PAULIN,  ROZIC,  JONES, JACOBSON, NIOU, SIMON -- Multi-Sponsored by --
   M. of A. ENGLEBRIGHT, McDONOUGH --  read  once  and  referred  to  the
   Committee  on Insurance -- committee discharged, bill amended, ordered
   reprinted as amended  and  recommitted  to  said  committee  --  again
   reported  from  said  committee  with amendments, ordered reprinted as
   amended and recommitted to said committee
 
 AN ACT in relation to requiring certain perils be covered under business
   interruption insurance 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.  For the purposes of this act:
   (a) "business" shall mean a business registered with the department of
 tax and finance or not-for-profit corporation registered with the Attor-
 ney General's charities bureau.
   (b) "income" shall mean traditional business income as  well  as  not-
 for-profit revenue from donations, sponsorships, and grants.
   (c)  "net  written premiums received" shall mean gross direct premiums
 written, less return premiums thereon and dividends credited or paid  to
 policyholders, as reported on the company's annual financial statement.
   (d) "premium taxes" shall mean payments required under subdivision (d)
 of section 2118 of the insurance law.
   §  2. (a) Notwithstanding any provisions of law, rule or regulation to
 the contrary, every policy of insurance insuring against loss or  damage
 to  property, which includes, but is not limited to, 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) Every policy of insurance insuring against loss or damage to prop-
 erty,  which  includes, but is not limited to, the loss of use and occu-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD16053-05-0

 A. 10226--B                         2
 
 pancy and business interruption, whose policy expires during a period of
 a declared state emergency due to the coronavirus disease  2019  (COVID-
 19)  pandemic, shall be subject to an automatic renewal of the policy at
 the current rate of charge.
   (c)  Every policy of insurance or endorsement thereto insuring against
 an insured's business  income  loss  resulting  from  loss,  damage,  or
 destruction  of  property owned by others, including direct suppliers of
 goods or services to the insured and/or direct  receivers  of  goods  or
 services  manufactured or provided by the insured, shall be construed to
 include among the covered perils under that policy, coverage for contin-
 gent business interruption during a period of a declared state emergency
 due the coronavirus disease 2019 (COVID-19) pandemic.
   (d) Every policy of insurance or endorsement thereto insuring  against
 an  insured's  business  income  loss  resulting  from  loss, damage, or
 destruction of property owned by others, including direct  suppliers  of
 goods  or  services  to  the insured and/or direct receivers of goods or
 services manufactured or provided by the insured, whose  policy  expires
 during  a  period  of  a declared state emergency due to the coronavirus
 disease 2019 (COVID-19) pandemic,  shall  be  subject  to  an  automatic
 renewal of the policy at the current rate of charge.
   (e)  Any clause or provision of a policy of insurance insuring against
 loss or damage to property, which includes, but is not limited  to,  the
 loss of use and occupancy and business interruption and contingent busi-
 ness  interruption, which allows the insurer to deny coverage based on a
 virus, bacterium, or other microorganism that causes  disease,  illness,
 or  physical distress or that is capable of causing disease, illness, or
 physical distress shall be null and void; provided, however, the remain-
 ing clauses and provisions of the contract shall remain  in  effect  for
 the duration of the contract term.
   (f) 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 and contingent business interruption for the dura-
 tion of a period of a declared state emergency due  to  the  coronavirus
 disease 2019 (COVID-19) pandemic.
   (g)  This section shall apply to policies issued to insureds with less
 than 250 eligible employees in force on the effective date of this  act.
 "Eligible  employee"  means a full-time employee who works a normal work
 week of 25 or more hours.
   § 3. (a) An insurer, including excess  lines  insurers,  which  indem-
 nifies  an insured who has filed a claim pursuant to section two 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 four 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.
   § 4. (a) The superintendent of financial  services  is  authorized  to
 impose upon, distribute among, and collect from the companies, including
 excess  lines  insurers,  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 three of this act.

 A. 10226--B                         3

   (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, or premium taxes in the case of
 excess lines insurers, received by each company subject  to  the  appor-
 tionment  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, or premium
 taxes in the case of excess lines insurers, received  by  all  companies
 writing that insurance or coverage within the state during that calendar
 year, as reported.
   §  5.  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.