S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    41
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced by M. of A. CAHILL -- read once and referred to the Committee
   on Insurance
 
 AN  ACT  to  direct  the  department  of financial services to study and
   report upon the adequacy and affordability  of  business  interruption
   insurance  coverage  for  pandemics,  viruses  and other public health
   emergencies; and providing for the  repeal  of  such  provisions  upon
   expiration thereof
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The legislature  hereby  finds  that  significant  economic
 liabilities  surrounding  quarantines  and shutdowns associated with the
 COVID-19 outbreak have sparked debate as to  the  exact  terms,  overall
 costs  and  general adequacy of business interruption insurance policies
 related  to  coverage  for  pandemics,  viruses  and  other   infectious
 diseases.    The tremendous financial impact upon the business community
 due to the ongoing public health crisis highlights the need  to  examine
 the  current  status  and sufficiency of business interruption insurance
 coverage related to this health epidemic  and  potentially  other  wide-
 spread events in the future.
   §  2. The superintendent of financial services shall review and report
 on the adequacy, reasonableness and  affordability  of  business  inter-
 ruption  insurance  coverage  as  it  relates  to  losses resulting from
 pandemics, viruses and other  infectious  diseases.  Such  report  shall
 include but not be limited to:
   (a)  the  present  state of the marketplace regarding pandemic-related
 insurance coverage for business interruption policies;
   (b) prevailing reasons for the denial of insurance coverage for  busi-
 ness  interruption  policies  related  to pandemics, viruses, infectious
 diseases and other common exclusions;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD01709-01-1

 A. 41                               2
 
   (c) the  general  appropriateness,  significance  and  credibility  of
 rating  variables  used  to  determine  premiums  and  the cost of risks
 covered by business interruption insurance policies;
   (d)  the  experience  of  states  and jurisdictions as far as business
 interruption insurance coverage for pandemic-related events;
   (e) the experience of states and jurisdictions as far as the projected
 costs, implications and concerns associated with  mandating  retroactive
 business interruption insurance coverage;
   (f)  analysis  as to the necessity and role of federal intervention to
 ensure business interruption  insurance  coverage  for  pandemic-related
 events, including proposed legislation;
   (g)  the  overall  immediate  and long-term costs to both insurers and
 insureds regarding business interruption insurance coverage for  pandem-
 ic-related  events,  including  the potential need for any public subsi-
 dies;
   (h) the financial impacts and other concerns associated with  removing
 the  typical physical damage requirement traditionally found in business
 interruption insurance policies;
   (i) an examination as to the financial impacts  to  the  property  and
 casualty  insurance  marketplace related to business interruption insur-
 ance coverage for pandemic-related events;
   (j) the extent to which exclusions and uninsurable events  are  appro-
 priately and unambiguously disclosed to policyholders; and
   (k) recommendations to promote reasonable, adequate and cost-effective
 coverage  for  businesses to secure and for the insurance marketplace to
 offer business interruption insurance policies that  cover  pandemic-re-
 lated events.
   § 3. Within one hundred eighty days of the effective date of this act,
 the superintendent of financial services shall submit such report to the
 governor,  temporary  president of the senate, and speaker of the assem-
 bly.
   § 4. This act shall take effect immediately and shall be  repealed  60
 days  after  the  submission  of the report pursuant to section three of
 this act.