S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4711
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 9, 2021
                                ___________
 
 Introduced  by  Sens.  GOUNARDES,  ADDABBO,  BIAGGI, GAUGHRAN, GIANARIS,
   HARCKHAM, HOYLMAN, JACKSON, KAPLAN, KENNEDY, MAY, MAYER, MYRIE,  PARK-
   ER,  PERSAUD,  RAMOS,  RIVERA,  SALAZAR, SEPULVEDA, SKOUFIS, STAVISKY,
   THOMAS -- read twice and ordered  printed,  and  when  printed  to  be
   committed to the Committee on Insurance

 AN ACT in relation to requiring certain perils be covered under business
   interruption  insurance during the coronavirus disease 2019 (COVID-19)
   pandemic
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1.  For the purposes of this act:
   (a) "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.
   (b)  "income"  shall  mean traditional business income as well as not-
 for-profit revenue from donations, sponsorships, and grants.
   (c) "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.
   (d) "premium taxes" shall mean payments required under subsection  (d)
 of section 2118 of the insurance law.
   §  2. (a) Notwithstanding any provisions of law, rule or regulation to
 the contrary, every policy of insurance insuring against loss or  damage
 to  property, which includes, but is not limited to, the loss of use and
 occupancy and business interruption, shall be construed to include among
 the covered perils under that policy, coverage for business interruption
 during a period of a declared state emergency  due  to  the  coronavirus
 disease 2019 (COVID-19) pandemic.
   (b) Every policy of insurance insuring against loss or damage to prop-
 erty,  which  includes, but is not limited to, the loss of use and occu-
 pancy and business interruption, whose policy expires during a period of
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD05440-01-1

 S. 4711                             2
 
 a declared state emergency due to the coronavirus disease  2019  (COVID-
 19)  pandemic, shall be subject to an automatic renewal of the policy at
 the current rate of charge.
   (c)  Every policy of insurance or endorsement thereto insuring against
 an insured's business  income  loss  resulting  from  loss,  damage,  or
 destruction  of  property owned by others, including direct suppliers of
 goods or services to the insured and/or direct  receivers  of  goods  or
 services  manufactured or provided by the insured, shall be construed to
 include among the covered perils under that policy, coverage for contin-
 gent business interruption during a period of a declared state emergency
 due the coronavirus disease 2019 (COVID-19) pandemic.
   (d) Every policy of insurance or endorsement thereto insuring  against
 an  insured's  business  income  loss  resulting  from  loss, damage, or
 destruction of property owned by others, including direct  suppliers  of
 goods  or  services  to  the insured and/or direct receivers of goods or
 services manufactured or provided by the insured, whose  policy  expires
 during  a  period  of  a declared state emergency due to the coronavirus
 disease 2019 (COVID-19) pandemic,  shall  be  subject  to  an  automatic
 renewal of the policy at the current rate of charge.
   (e)  Any clause or provision of a policy of insurance insuring against
 loss or damage to property, which includes, but is not limited  to,  the
 loss of use and occupancy and business interruption and contingent busi-
 ness  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 disease, illness, or
 physical distress shall be null and void; provided, however, the remain-
 ing clauses and provisions of the contract shall remain  in  effect  for
 the duration of the contract term.
   (f) The coverage required by this section shall indemnify the insured,
 subject  to  the  limits  under  the policy, for any loss of business or
 business interruption and contingent business interruption for the dura-
 tion of a period of a declared state emergency due  to  the  coronavirus
 disease 2019 (COVID-19) pandemic.
   (g)  This section shall apply to policies issued to insureds with less
 than 250 eligible employees in force on the effective date of this  act.
 "Eligible  employee"  means a full-time employee who works a normal work
 week of 25 or more hours.
   § 3. (a) An insurer, including excess  lines  insurers,  which  indem-
 nifies  an insured who has filed a claim pursuant to section two of this
 act may apply to the superintendent of financial services for relief and
 reimbursement by the department from funds collected and made  available
 for this purpose as provided in section four of this act.
   (b)  The  superintendent  of financial services shall establish proce-
 dures for the submission and qualification of claims by  insurers  which
 are  eligible for reimbursement pursuant to this act. The superintendent
 of financial services shall incorporate in these procedures such  stand-
 ards  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.
   § 4. (a) The superintendent of financial  services  is  authorized  to
 impose upon, distribute among, and collect from the companies, including
 excess  lines  insurers,  engaged  in business pursuant to the insurance
 law, such additional amounts as may be necessary to recover the  amounts
 paid to insurers pursuant to section three of this act.
   (b)  The  additional special purpose apportionment authorized pursuant
 to subdivision (a) of this section shall be distributed in  the  propor-

 S. 4711                             3
 
 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.
   § 5. This act shall take effect immediately, and shall  be  deemed  to
 have  been in full force and effect on and after March 7, 2020 and shall
 apply to insurance policies in force on that date.