Bill Text: NY A10327 | 2019-2020 | General Assembly | Introduced
Bill Title: Requires certain perils be covered under business interruption insurance policies issued to certain human services and community based health providers during the coronavirus disease 2019 (COVID-19) pandemic.
Spectrum: Partisan Bill (Democrat 13-0)
Status: (Introduced - Dead) 2020-04-22 - referred to insurance [A10327 Detail]
Download: New_York-2019-A10327-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 10327 IN ASSEMBLY April 22, 2020 ___________ Introduced by M. of A. L. ROSENTHAL -- read once and referred to the Committee on Insurance AN ACT in relation to requiring certain perils be covered under business interruption insurance policies issued to certain human services and community-based health providers during the coronavirus disease 2019 (COVID-19) pandemic 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 insureds with such coverage who oper- 13 ate programs and services including a mental health outpatient provider 14 licensed or granted an operating certificate under article 31 of the 15 mental hygiene law; a substance use disorder treatment provider licensed 16 or granted an operating certificate under article 32 of the mental 17 hygiene law; a provider dually licensed under article 28 of the public 18 health law and article 31 or article 32 of the mental hygiene law, a 19 diagnostic and treatment center licensed or granted an operating certif- 20 icate under article 28 of the public health law; a clinic licensed or 21 granted an operating certificate under article 16 of the mental hygiene 22 law; a community-based program funded under the office of mental health, 23 the office for people with developmental disabilities, the office of 24 addiction services and supports or through a local government unit as 25 defined under article 41 of the mental hygiene law; a home care provider 26 certified or licensed pursuant to article 36 of the public health law; a EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD16118-01-0A. 10327 2 1 primary care physician or other provider including school based health 2 centers; a provider of health home services authorized under section 3 2703 of the federal protection and affordable care act; a hospice 4 provider licensed or granted an operating certificate under article 40 5 of the public health law; a family and child service provider licensed 6 under article 29-I of the public health law, a provider licensed under 7 the office of children and family services; or a provider licensed under 8 the office of temporary and disability assistance. 9 § 2. (a) An insurer which indemnifies an insured who has filed a claim 10 pursuant to section one of this act may apply to the superintendent of 11 financial services for relief and reimbursement by the department from 12 funds collected and made available for this purpose as provided in 13 section three of this act. 14 (b) The superintendent of financial services shall establish proce- 15 dures for the submission and qualification of claims by insurers which 16 are eligible for reimbursement pursuant to this act. The superintendent 17 of financial services shall incorporate in these procedures such stand- 18 ards as are necessary to protect against the submission of fraudulent 19 claims by insureds, and appropriate safeguards for insurers to employ in 20 the review and payment of such claims. 21 § 3. (a) The superintendent of financial services is authorized to 22 impose upon, distribute among, and collect from the companies engaged in 23 business pursuant to the insurance law, such additional amounts as may 24 be necessary to recover the amounts paid to insurers pursuant to section 25 two of this act. 26 (b) The additional special purpose apportionment authorized pursuant 27 to subdivision (a) of this section shall be distributed in the propor- 28 tion that the net written premiums received by each company subject to 29 the apportionment authorized by this section for insurance written or 30 renewed on risks in this state during the calendar year immediately 31 preceding, bears to the sum total of all such net written premiums 32 received by all companies writing that insurance or coverage within the 33 state during that calendar year, as reported. 34 (c) For the purposes of this section, "net written premiums received" 35 means gross direct premiums written, less return premiums thereon and 36 dividends credited or paid to policyholders, as reported on the compa- 37 ny's annual financial statement. 38 § 4. This act shall take effect immediately, and shall be deemed to 39 have been in full force and effect on and after March 7, 2020 and shall 40 apply to insurance policies in force on that date.