STATE OF NEW YORK
________________________________________________________________________
71
2025-2026 Regular Sessions
IN ASSEMBLY(Prefiled)
January 8, 2025
___________
Introduced by M. of A. DINOWITZ, HUNTER -- read once and referred to the
Committee on Insurance
AN ACT to amend the insurance law, in relation to permitting certain
liability policies to provide coverage for punitive damages and civil
penalties
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The insurance law is amended by adding a new section 3423
2 to read as follows:
3 § 3423. Punitive damages and civil penalties coverage. 1. An insurer
4 may provide and an insured may purchase insurance against an award of
5 punitive damages, or civil penalties, or other non-compensatory damages
6 in any liability insurance policy except in a policy of personal lines
7 insurance issued to a natural person for non-business purposes, or a
8 commercial automobile liability insurance policy.
9 2. Coverage may provide protection for vicarious liability resulting
10 from the conduct of another, or when assessed against a party directly
11 for gross negligence or reckless conduct. Coverage shall not apply where
12 liability results from action that was intended to cause the resulting
13 harm, damage or injury. Coverage shall apply only when expressly
14 provided for by the insurance policy.
15 3. This section shall apply prospectively to insurance policies with
16 effective dates on or after the effective date of this section.
17 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00799-01-5
