S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3638
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             February 11, 2019
                                ___________
 
 Introduced  by  Sens. BRESLIN, 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD05106-01-9

 S. 3638                             2
 
 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
 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

 S. 3638                             3
 
 Basic additional amount
 required  for  any  one
 or  more  of  the above
 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.