Bill Text: NY A06251 | 2019-2020 | General Assembly | Introduced

---

Bill Title: Permits a liability policy to provide coverage for punitive damages, civil penalties and other non-compensatory damages.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-01-08 - referred to insurance [A06251 Detail]

Download: New_York-2019-A06251-Introduced.html

---

                STATE OF NEW YORK
        ________________________________________________________________________
                                          6251
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                      March 4, 2019
                                       ___________
        Introduced by M. of A. DINOWITZ -- read once and referred to the Commit-
          tee 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  3421
     2  to read as follows:
     3    §  3421.  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.
                                                                   LBD06423-01-9