Bill Text: NY A07110 | 2019-2020 | General Assembly | Introduced

New York Assembly Bill 7110 (Prior Session Legislation)

Introduced

Bill Title: Grants authority to assessment corporations to write specified kinds of standalone liability insurance.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2020-12-23 - APPROVAL MEMO.63 [A07110 Detail]

Download: New_York-2019-A07110-Introduced.html

                STATE OF NEW YORK
        ________________________________________________________________________
                                          7110
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                      April 8, 2019
                                       ___________
        Introduced  by M. of A. GUNTHER -- read once and referred to the Commit-
          tee on Insurance
        AN ACT to amend the insurance law, in relation to  the  organization  of
          assessment corporations
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. The opening paragraph of subsection (a) of section 6605  of
     2  the  insurance  law,  as  added  by  chapter 137 of the laws of 1986, is
     3  amended to read as follows:
     4    An assessment corporation may be organized and licensed in the  manner
     5  prescribed in section six thousand six hundred three of this article and
     6  may do, in addition to the kind of insurance specified in paragraph four
     7  of  subsection  (a) of section one thousand one hundred thirteen of this
     8  chapter, any one or more of the kinds of insurance  specified  in  para-
     9  graphs five, six, seven and eight of such subsection [solely in conjunc-
    10  tion  with fire insurance written under the same policy and covering the
    11  same premises] and insurance against loss or damage to  property  caused
    12  by aircraft or vehicles in compliance with the following prerequisites:
    13    §  2.  Subsection (b) of section 6605 of the insurance law, as amended
    14  by chapter 379 of the laws of 2001, is amended to read as follows:
    15    (b) Any licensed assessment corporation may amend its charter  and  be
    16  licensed  to  do  the  kinds  of insurance specified in paragraphs nine,
    17  thirteen, fourteen and fifteen (except workers' compensation  insurance)
    18  of  subsection  (a) of section one thousand one hundred thirteen of this
    19  chapter [solely in conjunction with fire  insurance  written  under  the
    20  same  policy  and  covering the same premises] and may be licensed to do
    21  the kinds of insurance specified in paragraphs twelve, nineteen (exclud-
    22  ing aircraft physical damage insurance) and twenty (inland marine  only)
    23  of  such  subsection.  An  assessment  corporation licensed to write the
    24  kinds of insurance specified in  paragraphs  thirteen  and  fourteen  of
    25  subsection  (a)  of  section  one  thousand one hundred thirteen of this
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06612-01-9

        A. 7110                             2
     1  chapter is authorized to write personal or commercial umbrella liability
     2  insurance or any other type of standalone liability insurance, excluding
     3  automobile insurance.
     4    §  3.  Section  6605  of  the insurance law is amended by adding a new
     5  subsection (d) to read as follows:
     6    (d) An assessment corporation licensed to write the kinds of insurance
     7  specified in paragraphs thirteen  and  fourteen  of  subsection  (a)  of
     8  section  one thousand one hundred thirteen of this chapter is authorized
     9  to write personal or commercial  umbrella  liability  insurance  or  any
    10  other  type  of  standalone  liability  insurance,  excluding automobile
    11  insurance. Except as herein provided, the corporation must  maintain  an
    12  additional  surplus  or fifty thousand dollars if the corporation writes
    13  umbrella liability insurance. The additional surplus is not necessary if
    14  the whole risk for this peril  is  reinsured  in  an  insurance  company
    15  authorized  to do business in this state, or in an accredited reinsurer,
    16  as defined in subsection (a) of section one hundred seven of this  chap-
    17  ter.
    18    § 4. This act shall take effect immediately.