S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3222
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 22, 2021
                                ___________
 
 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  33  of  subsection  (a) of section 1113 of the
 insurance law, as renumbered by section 23 of part L of  chapter  56  of
 the  laws  of 2020, is renumbered paragraph 34 and a new paragraph 33 is
 added to read as follows:
   (33) "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 24 of part L of chapter 56 of the laws of 2020, 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.
              

                                                            LBD06807-01-1

 A. 3222                             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, thirty-one,  [and]  thirty-two  AND  THIRTY-
 THREE  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 section 25 of part L of chapter 56 of the laws of 2020, 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);
   donor medical expense insurance (32);
   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  section  26  of
 part L of chapter 56 of the laws of 2020, 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

 A. 3222                             3
 
 16                                             $900,000       $450,000
 17                                             $400,000       $200,000
 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
 33                                             $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 section 27 of part L of chapter
 56 of the laws of 2020, 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
 33                                            $  100,000   $  100,000
   § 6. This act shall take effect immediately; provided,  however,  that
 if sections 23, 24, 25, 26 and 27 of part L of chapter 56 of the laws of
 2020  shall  not  have taken effect on or before such date then this act
 shall take effect on the same date  and  in  the  same  manner  as  such
 sections of such part of such chapter of the laws of 2020, takes effect.