STATE OF NEW YORK
2021-2022 Regular Sessions
March 4, 2021
Introduced by M. of A. PICHARDO -- read once and referred to the Commit-
tee on Insurance
AN ACT to amend the insurance law, in relation to commercial crime
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 3458
2 to read as follows:
3 § 3458. Commercial crime coverage exclusions. (a) Definitions. As used
4 in this section:
5 (1) "commercial crime coverage" means coverage under a policy of
6 commercial risk insurance that provides burglary and theft insurance or
7 fidelity insurance; and
8 (2) "commercial risk insurance" shall have the same meaning as set
9 forth in paragraph forty-seven of subsection (a) of section one hundred
10 seven of this chapter.
11 (b) No policy issued, renewed or delivered in this state that provides
12 commercial crime coverage may exclude or limit coverage for loss or
13 damage caused by an employee if:
14 (1) the employee was convicted of one or more criminal offenses in
15 this state or any other jurisdiction prior to being employed by the
16 employer; and
17 (2) after learning about an employee's past criminal conviction or
18 convictions, the employer made a determination to hire or retain the
19 employee pursuant to article twenty-three-A of the correction law.
20 (c) A violation of this section shall be deemed to be an unfair method
21 of competition or an unfair or deceptive act and practice in the conduct
22 of the business of insurance in this state, and shall be deemed to be a
23 trade practice constituting a determined violation, as defined in
24 subsection (c) of section two thousand four hundred two of this chapter,
25 in violation of section two thousand four hundred three of this chapter.
26 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 is old law to be omitted.