S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5760--A
     Cal. No. 743
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              March 18, 2021
                                ___________
 
 Introduced by Sens. BRESLIN, GAUGHRAN, HELMING, JORDAN -- read twice and
   ordered  printed, and when printed to be committed to the Committee on
   Insurance -- reported favorably from said committee, ordered to  first
   and  second  report,  ordered to a third reading, passed by Senate and
   delivered to the Assembly, recalled, vote  reconsidered,  restored  to
   third  reading,  amended and ordered reprinted, retaining its place in
   the order of third reading
 
 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)  "EXCESS  BUSINESS DISABILITY INSURANCE," MEANS INSURANCE AGAINST
 FINANCIAL LOSS EXPERIENCED BY A CORPORATE ENTITY OR A PARTNERSHIP  WHERE
 AN  INDIVIDUAL  INTEGRAL  TO  THE SUCCESSFUL OPERATION OF SUCH CORPORATE
 ENTITY OR PARTNERSHIP BECOMES DISABLED DUE TO SICKNESS, AILMENT OR BODI-
 LY INJURY. SUCH INSURANCE MAY BE OBTAINED IN EXCESS OF A  PRIMARY  BUSI-
 NESS-RELATED  DISABILITY  POLICY,  OR IN THE ABSENCE OF SUCH A POLICY IF
 COVERAGE CANNOT BE OBTAINED FROM AN AUTHORIZED INSURER.  EXCESS BUSINESS
 DISABILITY 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  BUSINESS  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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06807-03-1
              

 S. 5760--A                          2
 
   §  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
 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);
   EXCESS BUSINESS DISABILITY INSURANCE (33).

 S. 5760--A                          3
 
   §  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
 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.