S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2884
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 28, 2019
                                ___________
 
 Introduced by M. of A. PICHARDO -- read once and referred to the Commit-
   tee on Insurance
 
 AN  ACT  to  amend  the  insurance  law, in relation to commercial crime
   coverage exclusions
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  The insurance law is amended by adding a new section 3457
 to read as follows:
   § 3457. COMMERCIAL CRIME COVERAGE EXCLUSIONS. (A) DEFINITIONS. AS USED
 IN THIS SECTION:
   (1) "COMMERCIAL CRIME COVERAGE"  MEANS  COVERAGE  UNDER  A  POLICY  OF
 COMMERCIAL  RISK INSURANCE THAT PROVIDES BURGLARY AND THEFT INSURANCE OR
 FIDELITY INSURANCE; AND
   (2) "COMMERCIAL RISK INSURANCE" SHALL HAVE THE  SAME  MEANING  AS  SET
 FORTH  IN PARAGRAPH FORTY-SEVEN OF SUBSECTION (A) OF SECTION ONE HUNDRED
 SEVEN OF THIS CHAPTER.
   (B) NO POLICY ISSUED, RENEWED OR DELIVERED IN THIS STATE THAT PROVIDES
 COMMERCIAL CRIME COVERAGE MAY EXCLUDE OR  LIMIT  COVERAGE  FOR  LOSS  OR
 DAMAGE CAUSED BY AN EMPLOYEE IF:
   (1)  THE  EMPLOYEE  WAS  CONVICTED OF ONE OR MORE CRIMINAL OFFENSES IN
 THIS STATE OR ANY OTHER JURISDICTION PRIOR  TO  BEING  EMPLOYED  BY  THE
 EMPLOYER; AND
   (2)  AFTER  LEARNING  ABOUT  AN EMPLOYEE'S PAST CRIMINAL CONVICTION OR
 CONVICTIONS, THE EMPLOYER MADE A DETERMINATION TO  HIRE  OR  RETAIN  THE
 EMPLOYEE PURSUANT TO ARTICLE TWENTY-THREE-A OF THE CORRECTION LAW.
   (C) A VIOLATION OF THIS SECTION SHALL BE DEEMED TO BE AN UNFAIR METHOD
 OF COMPETITION OR AN UNFAIR OR DECEPTIVE ACT AND PRACTICE IN THE CONDUCT
 OF  THE BUSINESS OF INSURANCE IN THIS STATE, AND SHALL BE DEEMED TO BE A
 TRADE PRACTICE  CONSTITUTING  A  DETERMINED  VIOLATION,  AS  DEFINED  IN
 SUBSECTION (C) OF SECTION TWO THOUSAND FOUR HUNDRED TWO OF THIS CHAPTER,
 IN VIOLATION OF SECTION TWO THOUSAND FOUR HUNDRED THREE OF THIS CHAPTER.
   § 2. This act shall take effect immediately.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD06399-01-9