S T A T E O F N E W Y O R K
________________________________________________________________________
9420
I N S E N A T E
May 15, 2024
___________
Introduced by Sen. SKOUFIS -- (at request of the Department of Financial
Services) -- read twice and ordered printed, and when printed to be
committed 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.
LBD14183-02-4
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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);
S. 9420 3
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.
