STATE OF NEW YORK
________________________________________________________________________
3222--A
2021-2022 Regular Sessions
IN ASSEMBLY
January 22, 2021
___________
Introduced by M. of A. HUNTER -- read once and referred to the Committee
on Insurance -- committee discharged, bill amended, ordered reprinted
as amended and recommitted to said committee
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:
1 Section 1. Paragraph 33 of subsection (a) of section 1113 of the
2 insurance law, as renumbered by section 23 of part L of chapter 56 of
3 the laws of 2020, is renumbered paragraph 34 and a new paragraph 33 is
4 added to read as follows:
5 (33) "Excess business disability insurance," means insurance against
6 financial loss experienced by a corporate entity or a partnership where
7 an individual integral to the successful operation of such corporate
8 entity or partnership becomes disabled due to sickness, ailment or bodi-
9 ly injury. Such insurance may be obtained in excess of a primary busi-
10 ness-related disability policy, or in the absence of such a policy if
11 coverage cannot be obtained from an authorized insurer. Excess business
12 disability insurance coverage may include, but is not limited to,
13 reimbursement for all overhead costs and expenses and all capital
14 outlays of a corporate entity or partnership which such corporate entity
15 or partnership incurs in the ordinary course of business during the
16 period of disability; and buy/sell arrangements in an amount sufficient
17 to purchase the disabled individual's interest share in the corporate
18 entity or partnership.
19 § 2. Subsection (a) of section 2105 of the insurance law, as amended
20 by section 24 of part L of chapter 56 of the laws of 2020, is amended to
21 read as follows:
22 (a) The superintendent may issue an excess line broker's license to
23 any person, firm, association or corporation who or which is licensed as
24 an insurance broker under section two thousand one hundred four of this
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06807-02-1
A. 3222--A 2
1 article, or who or which is licensed as an excess line broker in the
2 licensee's home state, provided, however, that the applicant's home
3 state grants non-resident licenses to residents of this state on the
4 same basis, except that reciprocity is not required in regard to the
5 placement of liability insurance on behalf of a purchasing group or any
6 of its members; authorizing such person, firm, association or corpo-
7 ration to procure, subject to the restrictions herein provided, policies
8 of insurance from insurers which are not authorized to transact business
9 in this state of the kind or kinds of insurance specified in paragraphs
10 four through fourteen, sixteen, seventeen, nineteen, twenty, twenty-two,
11 twenty-seven, twenty-eight, thirty-one, [and] thirty-two and thirty-
12 three of subsection (a) of section one thousand one hundred thirteen of
13 this chapter and in subsection (h) of this section, provided, however,
14 that the provisions of this section and section two thousand one hundred
15 eighteen of this article shall not apply to ocean marine insurance and
16 other contracts of insurance enumerated in subsections (b) and (c) of
17 section two thousand one hundred seventeen of this article. Such license
18 may be suspended or revoked by the superintendent whenever in his or her
19 judgment such suspension or revocation will best promote the interests
20 of the people of this state.
21 § 3. Subsection (b) of section 4101 of the insurance law, as amended
22 by section 25 of part L of chapter 56 of the laws of 2020, is amended to
23 read as follows:
24 (b) "Non-basic kinds of insurance" means the kinds of insurance
25 described in the following paragraphs of subsection (a) of section one
26 thousand one hundred thirteen of this chapter numbered therein as set
27 forth in parentheses below:
28 accident and health (item (i) of (3));
29 non-cancellable disability (item (ii) of (3));
30 miscellaneous property (5);
31 water damage (6);
32 collision (12);
33 property damage liability (14) - non-basic as to mutual companies
34 only;
35 motor vehicle and aircraft physical damage (19);
36 inland marine as specified in marine and inland marine (20);
37 marine protection and indemnity (21) - non-basic as to stock companies
38 only;
39 residual value (22);
40 credit unemployment (24);
41 gap (26);
42 prize indemnification (27);
43 service contract reimbursement (28);
44 legal services insurance (29);
45 involuntary unemployment insurance (30);
46 salary protection insurance (31);
47 donor medical expense insurance (32);
48 excess business disability insurance (33).
49 § 4. Group A of table one as contained in paragraph 1 of subsection
50 (a) of section 4103 of the insurance law, as amended by section 26 of
51 part L of chapter 56 of the laws of 2020, is amended to read as follows:
52 Group A:
53 7 $300,000 $150,000
54 8, 9, 10, 11, or 14 - for each such kind $100,000 $ 50,000
A. 3222--A 3
1 13 or 15 - for each such kind $500,000 $250,000
2 16 $900,000 $450,000
3 17 $400,000 $200,000
4 Basic additional amount
5 required for any one
6 or more of the above
7 kinds of insurance $100,000 $ 50,000
8 3(i), 3(ii), 6{1} or 12{2} - for each
9 such kind $100,000 $ 50,000
10 22 $2,000,000 $1,000,000
11 24 $400,000 $200,000
12 26(B) $200,000 $100,000
13 26(A), 26(C) or 26(D) -
14 for each such kind $600,000 $300,000
15 27 $300,000 $150,000
16 28 $2,000,000 $1,000,000
17 30 $400,000 $200,000
18 31 $100,000 $ 50,000
19 32 $100,000 $ 50,000
20 33$100,000$ 50,000
21 § 5. Group C of table three as contained in subsection (b) of section
22 4107 of the insurance law, as amended by section 27 of part L of chapter
23 56 of the laws of 2020, is amended to read as follows:
24 Group C:
25 3(i) or 3(ii) - for each such kind $ 100,000 $ 100,000
26 22 $3,000,000 $2,000,000
27 24 $ 300,000 $ 300,000
28 26 (B) $ 300,000 $ 200,000
29 26(A), 26(C) or 26(D) -
30 for each such kind $ 900,000 $ 600,000
31 28 $3,000,000 $2,000,000
32 6{5}, 12{6} or 14{2} - for
33 each such kind $ 50,000 $ 50,000
34 27 $ 300,000 $ 150,000
35 30 $ 300,000 $ 300,000
36 31 $ 100,000 $ 100,000
37 32 $ 100,000 $ 100,000
38 33$ 100,000$ 100,000
39 § 6. This act shall take effect immediately.
