S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    498
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by M. of A. CARROLL, DINOWITZ, GOTTFRIED, SEAWRIGHT, THIELE,
   ANDERSON, PHEFFER AMATO, SIMON  --  read  once  and  referred  to  the
   Committee on Insurance
 
 AN  ACT  to  amend  the insurance law, in relation to requiring business
   interruption insurance to cover disease outbreaks

   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 346
 to read as follows:
   § 346. BUSINESS INTERRUPTION INSURANCE; DISEASE OUTBREAK. (A) FOR  THE
 PURPOSES OF THIS SECTION:
   (1) "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.
   (2)  "ELIGIBLE  EMPLOYEE"  SHALL MEAN A FULL-TIME EMPLOYEE WHO WORKS A
 NORMAL WORK WEEK OF TWENTY-FIVE OR MORE HOURS.
   (3) "INCOME" SHALL MEAN TRADITIONAL BUSINESS INCOME AS  WELL  AS  NOT-
 FOR-PROFIT REVENUE FROM DONATIONS, SPONSORSHIPS, AND GRANTS.
   (4)  "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.
   (5)  "PREMIUM TAXES" SHALL MEAN PAYMENTS REQUIRED UNDER SUBSECTION (D)
 OF SECTION TWO THOUSAND ONE HUNDRED EIGHTEEN OF THIS CHAPTER.
   (B) (1) NOTWITHSTANDING ANY PROVISIONS OF LAW, RULE OR  REGULATION  TO
 THE  CONTRARY, EVERY CLAUSE OR PROVISION OF A POLICY OF INSURANCE INSUR-
 ING AGAINST LOSS OR DAMAGE TO  PROPERTY,  WHICH  INCLUDES,  BUT  IS  NOT
 LIMITED  TO, THE LOSS OF USE AND OCCUPANCY AND BUSINESS INTERRUPTION AND
 CONTINGENT BUSINESS 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD03461-01-1

 A. 498                              2
 
 DISEASE, ILLNESS, OR PHYSICAL DISTRESS SHALL BE NULL AND VOID AS AGAINST
 PUBLIC POLICY; PROVIDED, HOWEVER, THE REMAINING CLAUSES  AND  PROVISIONS
 OF  THE CONTRACT SHALL REMAIN IN EFFECT FOR THE DURATION OF THE CONTRACT
 TERM.
   (2)  THE  COVERAGE  REQUIRED  BY  THIS  SUBSECTION SHALL INDEMNIFY THE
 INSURED, SUBJECT TO THE LIMITS UNDER THE POLICY, FOR ANY LOSS  OF  BUSI-
 NESS OR BUSINESS INTERRUPTION AND CONTINGENT BUSINESS INTERRUPTION.
   (3)  THIS  SUBSECTION  SHALL APPLY TO POLICIES ISSUED TO INSUREDS WITH
 LESS THAN TWO HUNDRED FIFTY ELIGIBLE EMPLOYEES.
   (C)(1) AN INSURER, INCLUDING EXCESS LINES INSURERS, WHICH  INDEMNIFIES
 AN  INSURED  WHO  HAS  FILED  A CLAIM PURSUANT TO SUBSECTION (B) OF THIS
 SECTION MAY APPLY TO THE SUPERINTENDENT FOR RELIEF AND REIMBURSEMENT  BY
 THE  DEPARTMENT FROM FUNDS COLLECTED AND MADE AVAILABLE FOR THIS PURPOSE
 AS PROVIDED IN SUBSECTION (D) OF THIS SECTION.
   (2) THE SUPERINTENDENT SHALL ESTABLISH PROCEDURES FOR  THE  SUBMISSION
 AND   QUALIFICATION  OF  CLAIMS  BY  INSURERS  WHICH  ARE  ELIGIBLE  FOR
 REIMBURSEMENT PURSUANT TO THIS SECTION. THE SUPERINTENDENT SHALL  INCOR-
 PORATE  IN  THESE  PROCEDURES SUCH STANDARDS 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.
   (D)(1)  THE  SUPERINTENDENT  IS  AUTHORIZED TO IMPOSE UPON, DISTRIBUTE
 AMONG, AND COLLECT FROM THE COMPANIES, INCLUDING EXCESS LINES  INSURERS,
 ENGAGED IN BUSINESS PURSUANT TO THIS CHAPTER, SUCH ADDITIONAL AMOUNTS AS
 MAY  BE  NECESSARY  TO  RECOVER THE AMOUNTS PAID TO INSURERS PURSUANT TO
 SUBSECTION (C) OF THIS SECTION.
   (2) THE ADDITIONAL SPECIAL PURPOSE APPORTIONMENT  AUTHORIZED  PURSUANT
 TO  PARAGRAPH ONE OF THIS SUBSECTION 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.
   § 2. This act shall take effect immediately and  shall  apply  to  all
 business interruption insurance claims filed by an insured and all poli-
 cies  or  contracts issued, renewed, modified, altered or amended on and
 after such effective date.