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A10327 Summary:

BILL NOA10327
 
SAME ASNo Same As
 
SPONSORRosenthal L
 
COSPNSRGriffin, Galef, Jaffee, Simon, Davila, Mosley, Ortiz, Barron, Seawright, D'Urso, Gottfried, Otis
 
MLTSPNSR
 
 
Requires certain perils be covered under business interruption insurance policies issued to certain human services and community based health providers during the coronavirus disease 2019 (COVID-19) pandemic.
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A10327 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          10327
 
                   IN ASSEMBLY
 
                                     April 22, 2020
                                       ___________
 
        Introduced  by  M.  of  A. L. ROSENTHAL -- read once and referred to the
          Committee on Insurance
 
        AN ACT in relation to requiring certain perils be covered under business
          interruption insurance policies issued to certain human  services  and
          community-based  health  providers 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:
 
     1    Section  1.  (a)  Notwithstanding any provisions of law, rule or regu-
     2  lation to the contrary, every policy of insurance insuring against  loss
     3  or  damage to property, which includes the loss of use and occupancy and
     4  business interruption, shall be construed to include among  the  covered
     5  perils  under  that  policy, coverage for business interruption during a
     6  period of a declared state emergency due to the coronavirus disease 2019
     7  (COVID-19) pandemic.
     8    (b) The coverage required by this section shall indemnify the insured,
     9  subject to the limits under the policy, for  any  loss  of  business  or
    10  business  interruption  for the duration of a period of a declared state
    11  emergency due to the coronavirus disease 2019 (COVID-19) pandemic.
    12    (c) This section shall apply to insureds with such coverage who  oper-
    13  ate  programs and services including a mental health outpatient provider
    14  licensed or granted an operating certificate under  article  31  of  the
    15  mental hygiene law; a substance use disorder treatment provider licensed
    16  or  granted  an  operating  certificate  under  article 32 of the mental
    17  hygiene law; a provider dually licensed under article 28 of  the  public
    18  health  law  and  article  31 or article 32 of the mental hygiene law, a
    19  diagnostic and treatment center licensed or granted an operating certif-
    20  icate under article 28 of the public health law; a  clinic  licensed  or
    21  granted  an operating certificate under article 16 of the mental hygiene
    22  law; a community-based program funded under the office of mental health,
    23  the office for people with developmental  disabilities,  the  office  of
    24  addiction  services  and  supports or through a local government unit as
    25  defined under article 41 of the mental hygiene law; a home care provider
    26  certified or licensed pursuant to article 36 of the public health law; a
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD16118-01-0

        A. 10327                            2
 
     1  primary care physician or other provider including school  based  health
     2  centers;  a  provider  of  health home services authorized under section
     3  2703 of the federal  protection  and  affordable  care  act;  a  hospice
     4  provider  licensed  or granted an operating certificate under article 40
     5  of the public health law; a family and  child  service provider licensed
     6  under article 29-I of  the public health law, a provider licensed  under
     7  the office of children and family services; or a provider licensed under
     8  the office of temporary and disability assistance.
     9    § 2. (a) An insurer which indemnifies an insured who has filed a claim
    10  pursuant  to  section one of this act may apply to the superintendent of
    11  financial services for relief and reimbursement by the  department  from
    12  funds  collected  and  made  available  for  this purpose as provided in
    13  section three of this act.
    14    (b) The superintendent of financial services  shall  establish  proce-
    15  dures  for  the submission and qualification of claims by insurers which
    16  are eligible for reimbursement pursuant to this act. The  superintendent
    17  of  financial services shall incorporate in these procedures such stand-
    18  ards as are necessary to protect against the  submission  of  fraudulent
    19  claims by insureds, and appropriate safeguards for insurers to employ in
    20  the review and payment of such claims.
    21    §  3.  (a)  The  superintendent of financial services is authorized to
    22  impose upon, distribute among, and collect from the companies engaged in
    23  business pursuant to the insurance law, such additional amounts  as  may
    24  be necessary to recover the amounts paid to insurers pursuant to section
    25  two of this act.
    26    (b)  The  additional special purpose apportionment authorized pursuant
    27  to subdivision (a) of this section shall be distributed in  the  propor-
    28  tion  that  the net written premiums received by each company subject to
    29  the apportionment authorized by this section for  insurance  written  or
    30  renewed  on  risks  in  this  state during the calendar year immediately
    31  preceding, bears to the sum total  of  all  such  net  written  premiums
    32  received  by all companies writing that insurance or coverage within the
    33  state during that calendar year, as reported.
    34    (c) For the purposes of this section, "net written premiums  received"
    35  means  gross  direct  premiums written, less return premiums thereon and
    36  dividends credited or paid to policyholders, as reported on  the  compa-
    37  ny's annual financial statement.
    38    §  4.  This  act shall take effect immediately, and shall be deemed to
    39  have been in full force and effect on and after March 7, 2020 and  shall
    40  apply to insurance policies in force on that date.
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