Add §§51, 63-a & 73-d, amd §§50, 73-b, 13 & 63, Nav L; amd §§1115, 2302, 3103, 4101 & 2105, Ins L
 
Requires the owners of passenger carrying public vessels intending to operate on the navigable waters of the state to obtain marine protection and indemnity insurance; requires proof of insurance to be produced and displayed by the owner or operator of such public vessel upon request of a person having authority to enforce the provisions of the navigation law; enhances regulation of marine protection and indemnity insurance by the department of financial services.
STATE OF NEW YORK
________________________________________________________________________
10337--A
IN ASSEMBLY
May 23, 2016
___________
Introduced by M. of A. SCHIMMINGER -- 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 navigation law and the insurance law, in relation to
requiring the owners of certain public vessels intending to operate on
the navigable waters of the state to obtain marine protection and
indemnity insurance
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The navigation law is amended by adding a new section 51
2 to read as follows:
3 § 51. Owners to obtain insurance. 1. For the purposes of this section,
4 "public vessel" shall mean and include every vessel which is propelled
5 in whole or in part by mechanical power and is used or operated for
6 commercial purposes on the navigable waters of this state; that is
7 primarily carrying passengers; for which compensation is received,
8 either directly or where provided as an accommodation, advantage, facil-
9 ity or privilege at any place of public accommodation, resort or amuse-
10 ment.
11 2. Prior to the operation of a public vessel, it shall be the duty of
12 the owner of a public vessel which he or she intends to operate on the
13 navigable waters of the state to obtain, from an insurance carrier
14 authorized to do business in this state or through an excess line
15 broker, pursuant to section two thousand one hundred eighteen of the
16 insurance law, marine protection and indemnity insurance, as defined in
17 paragraph twenty-one of subsection (a) of section one thousand one
18 hundred thirteen of the insurance law. No owner of a public vessel shall
19 operate or permit the same to be operated upon navigable waterways of
20 the state without having in full force and effect the liability insur-
21 ance coverage required by this section, and no person shall operate a
22 public vessel upon the navigable waterways of this state with knowledge
23 that such insurance is not in full force and effect.
24 3. The owner of such public vessel shall file with the commissioner,
25 for each public vessel intended to be so operated, evidence of insurance
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD15020-06-6
A. 10337--A 2
1 as required pursuant to subdivision one of this section, as prescribed
2 by the commissioner.
3 4. The minimum coverage for such insurance as required pursuant to
4 subdivision one of this section shall be equal to one million dollars
5 per occurrence. Owners may voluntarily procure coverage in excess of
6 such amount.
7 5. A violation of this section is a misdemeanor punishable as set
8 forth in subdivision two of section seventy-three-b of this article.
9 § 2. Section 50 of the navigation law, as amended by chapter 672 of
10 the laws of 1962, is amended to read as follows:
11 § 50. Owners to notify inspector and apply for inspection. It shall be
12 the duty of the owner of a public vessel which he or she intends to
13 operate on the navigable waters of the state to notify the inspector of
14 such intention at least one month before it is desired to place the
15 vessel in operation and to request an inspection of such vessel. Proof
16 of insurance on a public vessel, as defined and required by section
17 fifty-one of this part, shall accompany such notification. Upon receipt
18 of such notification and, if required, proof of insurance, the inspector
19 shall enter the application on the records of his or her office. A
20 temporary permit to operate such vessel pending inspection may be issued
21 by the inspector, if he or she finds through documentary evidence that
22 such vessel is properly insured pursuant to this section, and equipped
23 and manned for the safety of life and property. No public vessel shall
24 be used or operated without a certificate of inspection or a temporary
25 permit as herein provided.
26 § 3. The navigation law is amended by adding a new section 63-a to
27 read as follows:
28 § 63-a. Proof of insurance. 1. Proof of insurance as required by this
29 part shall be produced and displayed by the owner or operator of a
30 public vessel, as defined in subdivision one of section fifty-one of
31 this article, upon the request of any person having authority to enforce
32 the provisions of this chapter. The failure to produce such proof upon
33 the request of any such person shall not be an offense but shall be
34 presumptive evidence that the public vessel is being operated without
35 having such insurance in force and effect.
36 2. Proof of insurance as required by this section shall be produced
37 and displayed by the owner or operator of such public vessel to any
38 person who has suffered or claims to have suffered either personal inju-
39 ry or property damage as a result of the operation of such public vessel
40 by the owner or operator. It shall be an affirmative defense to any
41 prosecution for a violation of this subdivision that such proof was so
42 produced or displayed within twenty-four hours of receiving notice of
43 such injury or damage, or the claim of such injury or damage.
44 § 4. Section 73-b of the navigation law, as amended by chapter 320 of
45 the laws of 2007, is amended to read as follows:
46 § 73-b. Misdemeanors. 1. Every person convicted of a misdemeanor
47 pursuant to any of the provisions of this chapter for which another
48 penalty is not provided shall for a first conviction thereof be punished
49 by a fine of not less than two hundred fifty nor more than five hundred
50 dollars or by a period of imprisonment of not more than thirty days or
51 by both such fine and imprisonment; for a conviction of a second
52 violation, both of which were committed within a period of twenty-four
53 months, such person shall be punished by a fine of not less than five
54 hundred nor more than one thousand five hundred dollars or by a period
55 of imprisonment of not more than sixty days or by both such fine and
56 imprisonment; upon a conviction of a third or subsequent violation, all
A. 10337--A 3
1 of which were committed within a period of twenty-four months, such
2 person shall be punished by a fine of not less than one thousand five
3 hundred nor more than two thousand five hundred dollars or by a period
4 of imprisonment of not more than one hundred twenty days or by both such
5 fine and imprisonment.
6 2. Every person convicted of a misdemeanor for a violation of section
7 fifty-one of this article shall for a first conviction thereof be
8 punished by a fine of not less than five thousand nor more than ten
9 thousand dollars, or by a period of imprisonment of not more than ninety
10 days, or by both such fine and imprisonment.
11 § 5. The navigation law is amended by adding a new section 73-d to
12 read as follows:
13 § 73-d. Operating without insurance. In addition to the penalties set
14 forth in this part, any owner found to be operating a public vessel
15 without insurance as set forth in section fifty-one of this article,
16 shall have the certificate of inspection or temporary permit for such
17 vessel revoked for a period of no less than one year.
18 § 6. Section 13 of the navigation law, as amended by chapter 843 of
19 the laws of 1980, is amended to read as follows:
20 § 13. Inspector; duties. The inspector shall annually, and at such
21 other times as he shall deem it expedient, or as the commissioner may
22 direct, inspect every public vessel, except vessels which navigate on
23 waters over which the United States exercises active control. The
24 inspector shall carefully examine the hull, the propelling and auxiliary
25 machinery, the electrical apparatus and the vessel's equipment. He shall
26 require such changes, repairs and improvements to be made as he may deem
27 expedient for the contemplated route. No vessel, or propelling machinery
28 thereof shall be allowed to be used if constructed in whole, or in part,
29 of defective material, or which because of its form, design, workman-
30 ship, age, use or for any other reason is unsafe. He shall also fix the
31 number of passengers that may be transported. The inspector shall
32 require that the boilers, on all public vessels which are propelled by
33 steam engines, be inspected and approved for safety of operations by
34 inspectors of the New York State Department of Labor, Bureau of Boilers.
35 Every boiler and appurtenances thereof shall be constructed, maintained
36 and operated in accordance with the Department of Labor rules and regu-
37 lations pertaining to boilers. The inspector shall ascertain whether
38 the vessel has insurance coverage as required by this chapter. The
39 inspector shall also, whenever he deems it expedient, visit any vessel
40 licensed under this chapter and examine into her condition for the
41 purpose of ascertaining whether or not any party thereon, having a
42 certificate, or license, from the inspector, has conformed to and obeyed
43 the conditions of such certificate, and the provisions of this chapter.
44 The owner, master, pilot, engineer or joint pilot and engineer of such
45 vessel, shall answer all reasonable questions and give all the informa-
46 tion in his or their power in regard to said vessel, or its machinery or
47 equipment and the manner of managing the same. The inspector provided
48 for in this chapter is authorized to make further rules and regulations
49 applying generally to all vessels, or especially to one or more of them.
50 In framing rules for the government of managers and employees on
51 vessels, the inspector shall, as far as practicable, be governed by the
52 general rules and regulations prescribed by the United States coast
53 guard. The inspector shall have the power to issue a uniform navigation
54 summons and/or complaint for violations of the provisions of article
55 four of this chapter which are applicable to vessels.
A. 10337--A 4
1 § 7. Section 63 of the navigation law, as amended by chapter 672 of
2 the laws of 1962, is amended to read as follows:
3 § 63. Certificate of inspection. The inspector, if satisfied that a
4 public vessel is in all respects safe and conforms to the requirement of
5 this chapter, shall make and subscribe duplicate certificates setting
6 forth the name and number of the vessel, its age, the date of
7 inspection, the name of the owner, the number of licensed officers and
8 crew necessary to manage the vessel with safety, equipment required,
9 number of insurance policy as required by section fifty-one of this
10 part, and name of such insurer, and any special restrictions or remarks
11 pertaining to the operation of the vessel and the number of passengers
12 she can safely carry, and, if a steam vessel, the age of the boiler and
13 the pressure of steam she is authorized to carry. One of said certif-
14 icates shall be kept posted in some conspicuous place on the vessel to
15 be designated by the inspector and the other copy shall be kept by the
16 inspector and by him recorded in a book to be kept for that purpose. If
17 the inspector refuses to grant a certificate of approval, he shall make
18 a statement in writing, giving his reasons for such refusal, and deliver
19 the same to the owner or master of the vessel. The posting of certif-
20 icates of inspection shall not be required on vessels of less than ten
21 tons burden. However said certificates must be aboard whenever the
22 vessel is in operation.
23 § 8. Subsection (b) of section 1115 of the insurance law, as amended
24 by chapter 727 of the laws of 2006, is amended to read as follows:
25 (b) This section shall not apply to the insurance of marine risks,
26 marine protection and indemnity risks associated with marine protection
27 and indemnity insurance which is not required under article four of the
28 navigation law, workers' compensation, employers' liability risks, mort-
29 gage guaranty risks, financial guaranty risks, risks insured for any
30 dollar level of first party benefits provided pursuant to article
31 fifty-one of this chapter, certificates of title, guaranties of title or
32 policies of title insurance, or those insurers subject to the provisions
33 of subsection (c) of section two thousand three hundred forty-three of
34 this chapter.
35 § 9. Paragraph 5 of subsection (a) of section 2302 of the insurance
36 law, as amended by chapter 614 of the laws of 1997, is amended to read
37 as follows:
38 (5) marine protection and indemnity insurance, which is not required
39 under the provisions of article four of the navigation law;
40 § 10. Subsection (b) of section 3103 of the insurance law is amended
41 to read as follows:
42 (b) No policy of insurance or contract of annuity delivered or issued
43 for delivery in this state shall provide that the rights or obligations
44 of the insured or of any person rightfully claiming thereunder, with
45 respect to:
46 (1) a policy of life, accident and health insurance or contract of
47 annuity upon a person resident in this state,
48 (2) a policy of insurance upon property then in this state, or
49 (3) the liabilities to be incurred by the insured as a result of
50 activity then carried on by the insured in this state,
51 shall be governed by the laws of any jurisdiction other than this state.
52 This subsection shall not apply to policies of marine and inland marine
53 insurance as defined in paragraph twenty of subsection (a) of section
54 one thousand one hundred thirteen of this chapter, but shall apply to
55 those policies of marine protection and indemnity insurance, as defined
56 in paragraph twenty-one of subsection (a) of section one thousand one
A. 10337--A 5
1 hundred thirteen of this chapter, that are required under article four
2 of the navigation law.
3 § 11. Section 4101 of the insurance law, subsection (b) as amended by
4 chapter 626 of the laws of 2006, is amended to read as follows:
5 § 4101. Definitions. In this article: (a) "Basic kinds of insurance"
6 means the kinds of insurance described in the following paragraphs of
7 subsection (a) of section one thousand one hundred thirteen of this
8 chapter numbered therein as set forth in parentheses below:
9 fire (4);
10 burglary and theft (7);
11 glass (8);
12 boiler and machinery (9);
13 elevator (10);
14 animal (11);
15 personal injury liability (13);
16 property damage liability (14) - basic as to stock companies only;
17 workers' compensation and employers' liability (15);
18 fidelity and surety (16);
19 credit (17);
20 marine and inland marine (20);
21 marine protection and indemnity (21) [- basic as to mutual companies
22 only].
23 (b) "Non-basic kinds of insurance" means the kinds of insurance
24 described in the following paragraphs of subsection (a) of section one
25 thousand one hundred thirteen of this chapter numbered therein as set
26 forth in parentheses below:
27 accident and health (item (i) of (3));
28 non-cancellable disability (item (ii) of (3));
29 miscellaneous property (5);
30 water damage (6);
31 collision (12);
32 property damage liability (14) - non-basic as to mutual companies
33 only;
34 motor vehicle and aircraft physical damage (19);
35 inland marine as specified in marine and inland marine (20);
36 [marine protection and indemnity (21) - non-basic as to stock compa-
37 nies only;]
38 residual value (22);
39 credit unemployment (24);
40 gap (26);
41 prize indemnification (27);
42 service contract reimbursement (28);
43 legal services insurance (29);
44 involuntary unemployment insurance (30);
45 salary protection insurance (31).
46 § 12. Subsection (a) of section 2105 of the insurance law, as amended
47 by section 9 of part I of chapter 61 of the laws of 2011, is amended to
48 read as follows:
49 (a) The superintendent may issue an excess line broker's license to
50 any person, firm, association or corporation who or which is licensed as
51 an insurance broker under section two thousand one hundred four of this
52 article, or who or which is licensed as an excess line broker in the
53 licensee's home state, provided, however, that the applicant's home
54 state grants non-resident licenses to residents of this state on the
55 same basis, except that reciprocity is not required in regard to the
56 placement of liability insurance on behalf of a purchasing group or any
A. 10337--A 6
1 of its members; authorizing such person, firm, association or corpo-
2 ration to procure, subject to the restrictions herein provided, policies
3 of insurance from insurers which are not authorized to transact business
4 in this state of the kind or kinds of insurance specified in paragraphs
5 four through fourteen, sixteen, seventeen, nineteen, twenty, twenty-one,
6 twenty-two, twenty-seven, twenty-eight and thirty-one of subsection (a)
7 of section one thousand one hundred thirteen of this chapter and in
8 subsection (h) of this section, provided, however, that the provisions
9 of this section and section two thousand one hundred eighteen of this
10 article shall not apply to ocean marine insurance and other contracts of
11 insurance enumerated in subsections (b) and (c) of section two thousand
12 one hundred seventeen of this article. Such license may be suspended or
13 revoked by the superintendent whenever in his or her judgment such
14 suspension or revocation will best promote the interests of the people
15 of this state.
16 § 13. This act shall take effect on the sixtieth day after it shall
17 have become a law; provided, however, that effective immediately, the
18 addition, amendment and/or repeal of any rule or regulation necessary
19 for the implementation of this act on its effective date are authorized
20 and directed to be made and completed on or before such effective date.