STATE OF NEW YORK
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7110
2019-2020 Regular Sessions
IN ASSEMBLY
April 8, 2019
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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.