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S08178 Summary:

Requires certain perils be covered under business interruption insurance during the coronavirus disease 2019 (COVID-19) pandemic.
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S08178 Text:

                STATE OF NEW YORK
                    IN SENATE
                                     April 13, 2020
        Introduced  by  Sen.  MAYER  -- read twice and ordered printed, and when
          printed to be committed to the Committee on Insurance
        AN ACT in relation to requiring certain perils be covered under business
          interruption insurance during the coronavirus disease 2019  (COVID-19)
          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 policies issued to insureds with less
    13  than 100 eligible employees in force on the effective date of this  act.
    14  "Eligible  employee"  means a full-time employee who works a normal work
    15  week of 25 or more hours.
    16    § 2. (a) An insurer which indemnifies an insured who has filed a claim
    17  pursuant to section one of this act may apply to the  superintendent  of
    18  financial  services  for relief and reimbursement by the department from
    19  funds collected and made available  for  this  purpose  as  provided  in
    20  section three of this act.
    21    (b)  The  superintendent  of financial services shall establish proce-
    22  dures for the submission and qualification of claims by  insurers  which
    23  are  eligible for reimbursement pursuant to this act. The superintendent
    24  of financial services shall incorporate in these procedures such  stand-
    25  ards  as  are  necessary to protect against the submission of fraudulent
    26  claims by insureds, and appropriate safeguards for insurers to employ in
    27  the review and payment of such claims.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        S. 8178                             2
     1    § 3. (a) The superintendent of financial  services  is  authorized  to
     2  impose upon, distribute among, and collect from the companies engaged in
     3  business  pursuant  to the insurance law, such additional amounts as may
     4  be necessary to recover the amounts paid to insurers pursuant to section
     5  two of this act.
     6    (b)  The  additional special purpose apportionment authorized pursuant
     7  to subdivision (a) of this section shall be distributed in  the  propor-
     8  tion  that  the net written premiums received by each company subject to
     9  the apportionment authorized by this section for  insurance  written  or
    10  renewed  on  risks  in  this  state during the calendar year immediately
    11  preceding, bears to the sum total  of  all  such  net  written  premiums
    12  received  by all companies writing that insurance or coverage within the
    13  state during that calendar year, as reported.
    14    (c) For the purposes of this section, "net written premiums  received"
    15  means  gross  direct  premiums written, less return premiums thereon and
    16  dividends credited or paid to policyholders, as reported on  the  compa-
    17  ny's annual financial statement.
    18    §  4.  This  act shall take effect immediately, and shall be deemed to
    19  have been in full force and effect on and after March 7, 2020 and  shall
    20  apply to insurance policies in force on that date.
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