S T A T E   O F   N E W   Y O R K
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                                   10344
 
                           I N  A S S E M B L Y
 
                               May 17, 2024
                                ___________
 
 Introduced by COMMITTEE ON RULES -- (at request of M. of A. Sillitti) --
   (at  request of the Department of Financial Services) -- read once and
   referred to the Committee on Insurance
 
 AN ACT to amend the insurance law, in relation to parametric insurance
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  Paragraph  34  of  subsection  (a) of section 1113 of the
 insurance law is renumbered paragraph 35 and a new paragraph 34 is added
 to read as follows:
   (34) "PARAMETRIC INSURANCE" MEANS INSURANCE AGAINST THE OCCURRENCE  OF
 A  WEATHER-RELATED  EVENT,  SUCH  AS  WINDSTORM,  FLOOD, SNOW, WILDFIRE,
 TORNADO, CYCLONE, OR EARTHQUAKE, WHERE THE INDEMNIFICATION IS  BASED  ON
 THE  PROXIMITY  AND MAGNITUDE OF THE EVENT AS MEASURED AND REPORTED BY A
 STATE OR FEDERAL GOVERNMENT AGENCY.
   § 2. Subsection (a) of section 2105 of the insurance law,  as  amended
 by chapter 359 of the laws of 2021, 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] THAT 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,  thirty-two  [and],
 thirty-three,  AND THIRTY-FOUR 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

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 apply to ocean marine insurance and other contracts of insurance enumer-
 ated  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] THE SUPERINTENDENT'S judg-
 ment such suspension or revocation will best promote  the  interests  of
 the people of this state.
   § 3. The insurance law is amended by adding a new section 3416 to read
 as follows:
   § 3416. PARAMETRIC INSURANCE. (A) EXCEPT AS PROVIDED IN SUBSECTION (B)
 OF  THIS  SECTION,  AN INSURER THAT ISSUES A PARAMETRIC INSURANCE POLICY
 SHALL DISCLOSE THE FOLLOWING INFORMATION  IN  THE  APPLICATION  FOR  THE
 INSURANCE  POLICY  AND  IN  A PROMINENT WRITING UPON POLICY ISSUANCE AND
 RENEWAL:
   (1) THE POLICY IS NOT A SUBSTITUTE FOR  PROPERTY  INSURANCE  OR  FLOOD
 INSURANCE,  AS  RELEVANT,  WHICH  GENERALLY  PROVIDE  MORE COMPREHENSIVE
 COVERAGE IN THE EVENT OF A LOSS; AND
   (2) A MORTGAGEE OR LOSS PAYEE MAY NOT ACCEPT  A  PARAMETRIC  INSURANCE
 POLICY.
   (B)  AN  EXCESS LINE BROKER WHO PROCURES A PARAMETRIC INSURANCE POLICY
 PURSUANT TO SECTION TWO THOUSAND ONE HUNDRED FIVE OF THIS CHAPTER  SHALL
 PROVIDE  THE  DISCLOSURES  REQUIRED BY SUBSECTION (A) OF THIS SECTION ON
 BEHALF OF THE INSURER.
   § 4. Paragraph 2 of subsection (a) of section 3425  of  the  insurance
 law,  as  amended by chapter 235 of the laws of 1989, is amended to read
 as follows:
   (2) "Covered policy" also means a contract of insurance,  referred  to
 in  this section as "personal lines insurance", other than a contract of
 insurance defined in paragraph one hereof, issued or issued for delivery
 in this state, on a risk located or resident in this state, insuring any
 of the following contingencies:
   (A) loss of or damage to real property used predominantly for residen-
 tial purposes and [which] THAT consists of not more than  four  dwelling
 units, other than hotels and motels;
   (B)  loss  of  or damage to personal property in which natural persons
 have an insurable interest, except personal property used in the conduct
 of a business; [and]
   (C) other liabilities for loss of, damage to, or injury to persons  or
 property,  not  arising  from  the conduct of a business, when a natural
 person is the named insured under the policy; AND
   (D) PARAMETRIC INSURANCE,  AS  DEFINED  IN  PARAGRAPH  THIRTY-FOUR  OF
 SUBSECTION  (A)  OF  SECTION  ONE  THOUSAND ONE HUNDRED THIRTEEN OF THIS
 CHAPTER.
   § 5. Subsection (b) of section 4101 of the insurance law,  as  amended
 by chapter 359 of the laws of 2021, 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);
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   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);
   PARAMETRIC INSURANCE (34).
   §  6.  Paragraph  2 of subsection (b) of section 4102 of the insurance
 law is amended to read as follows:
   (2) If licensed to write fire (4), it may be licensed to write miscel-
 laneous property (5), water damage (6), collision  (12),  motor  vehicle
 and  aircraft  physical damage (19) [and], inland marine as specified in
 marine and inland marine (20) AND PARAMETRIC (34);
   § 7. Note 3 of table one of paragraph 1 of subsection (a)  of  section
 4103  of  the  insurance  law,  as amended by chapter 293 of the laws of
 1986, is amended to read as follows:
   {3}  If licensed to write paragraph 4, no additional  paid-in  capital
 and  surplus  is required for a license to write paragraphs 5, 6, 12, 19
 [and], 20, (inland marine only) AND 34.
   § 8. Note 1 of table two of paragraph 1 of subsection (a)  of  section
 4107  of  the  insurance  law,  as amended by chapter 805 of the laws of
 1984, is amended to read as follows:
   {1} If licensed  to  write  paragraph  4,  no  additional  surplus  is
 required  for  a  license  to  write [pargraphs] PARAGRAPHS 5, 6, 12, 19
 [and], 20, (inland marine only) AND 34.
   § 9. Note 3 of table three of subsection (b) of section  4107  of  the
 insurance law, as amended by chapter 293 of the laws of 1986, is amended
 to read as follows:
   {3}  If  licensed  to  write  paragraph  4,  no  additional surplus is
 required for a license to write paragraphs  5,  6,  12,  19  [and],  20,
 (inland marine only) AND 34.
   §  10.  This act shall take effect on the thirtieth day after it shall
 have become a law.