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.
STATE OF NEW YORK
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
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.
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.