Bill Text: NY A10337 | 2015-2016 | General Assembly | Amended
Bill Title: Requires the owners of passenger carrying public vessels intending to operate on the navigable waters of the state to obtain marine protection and indemnity insurance; requires proof of insurance to be produced and displayed by the owner or operator of such public vessel upon request of a person having authority to enforce the provisions of the navigation law; enhances regulation of marine protection and indemnity insurance by the department of financial services.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2016-05-31 - print number 10337a [A10337 Detail]
Download: New_York-2015-A10337-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 10337--A IN ASSEMBLY May 23, 2016 ___________ Introduced by M. of A. SCHIMMINGER -- read once and referred to the Committee on Insurance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the navigation law and the insurance law, in relation to requiring the owners of certain public vessels intending to operate on the navigable waters of the state to obtain marine protection and indemnity insurance The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The navigation law is amended by adding a new section 51 2 to read as follows: 3 § 51. Owners to obtain insurance. 1. For the purposes of this section, 4 "public vessel" shall mean and include every vessel which is propelled 5 in whole or in part by mechanical power and is used or operated for 6 commercial purposes on the navigable waters of this state; that is 7 primarily carrying passengers; for which compensation is received, 8 either directly or where provided as an accommodation, advantage, facil- 9 ity or privilege at any place of public accommodation, resort or amuse- 10 ment. 11 2. Prior to the operation of a public vessel, it shall be the duty of 12 the owner of a public vessel which he or she intends to operate on the 13 navigable waters of the state to obtain, from an insurance carrier 14 authorized to do business in this state or through an excess line 15 broker, pursuant to section two thousand one hundred eighteen of the 16 insurance law, marine protection and indemnity insurance, as defined in 17 paragraph twenty-one of subsection (a) of section one thousand one 18 hundred thirteen of the insurance law. No owner of a public vessel shall 19 operate or permit the same to be operated upon navigable waterways of 20 the state without having in full force and effect the liability insur- 21 ance coverage required by this section, and no person shall operate a 22 public vessel upon the navigable waterways of this state with knowledge 23 that such insurance is not in full force and effect. 24 3. The owner of such public vessel shall file with the commissioner, 25 for each public vessel intended to be so operated, evidence of insurance EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD15020-06-6A. 10337--A 2 1 as required pursuant to subdivision one of this section, as prescribed 2 by the commissioner. 3 4. The minimum coverage for such insurance as required pursuant to 4 subdivision one of this section shall be equal to one million dollars 5 per occurrence. Owners may voluntarily procure coverage in excess of 6 such amount. 7 5. A violation of this section is a misdemeanor punishable as set 8 forth in subdivision two of section seventy-three-b of this article. 9 § 2. Section 50 of the navigation law, as amended by chapter 672 of 10 the laws of 1962, is amended to read as follows: 11 § 50. Owners to notify inspector and apply for inspection. It shall be 12 the duty of the owner of a public vessel which he or she intends to 13 operate on the navigable waters of the state to notify the inspector of 14 such intention at least one month before it is desired to place the 15 vessel in operation and to request an inspection of such vessel. Proof 16 of insurance on a public vessel, as defined and required by section 17 fifty-one of this part, shall accompany such notification. Upon receipt 18 of such notification and, if required, proof of insurance, the inspector 19 shall enter the application on the records of his or her office. A 20 temporary permit to operate such vessel pending inspection may be issued 21 by the inspector, if he or she finds through documentary evidence that 22 such vessel is properly insured pursuant to this section, and equipped 23 and manned for the safety of life and property. No public vessel shall 24 be used or operated without a certificate of inspection or a temporary 25 permit as herein provided. 26 § 3. The navigation law is amended by adding a new section 63-a to 27 read as follows: 28 § 63-a. Proof of insurance. 1. Proof of insurance as required by this 29 part shall be produced and displayed by the owner or operator of a 30 public vessel, as defined in subdivision one of section fifty-one of 31 this article, upon the request of any person having authority to enforce 32 the provisions of this chapter. The failure to produce such proof upon 33 the request of any such person shall not be an offense but shall be 34 presumptive evidence that the public vessel is being operated without 35 having such insurance in force and effect. 36 2. Proof of insurance as required by this section shall be produced 37 and displayed by the owner or operator of such public vessel to any 38 person who has suffered or claims to have suffered either personal inju- 39 ry or property damage as a result of the operation of such public vessel 40 by the owner or operator. It shall be an affirmative defense to any 41 prosecution for a violation of this subdivision that such proof was so 42 produced or displayed within twenty-four hours of receiving notice of 43 such injury or damage, or the claim of such injury or damage. 44 § 4. Section 73-b of the navigation law, as amended by chapter 320 of 45 the laws of 2007, is amended to read as follows: 46 § 73-b. Misdemeanors. 1. Every person convicted of a misdemeanor 47 pursuant to any of the provisions of this chapter for which another 48 penalty is not provided shall for a first conviction thereof be punished 49 by a fine of not less than two hundred fifty nor more than five hundred 50 dollars or by a period of imprisonment of not more than thirty days or 51 by both such fine and imprisonment; for a conviction of a second 52 violation, both of which were committed within a period of twenty-four 53 months, such person shall be punished by a fine of not less than five 54 hundred nor more than one thousand five hundred dollars or by a period 55 of imprisonment of not more than sixty days or by both such fine and 56 imprisonment; upon a conviction of a third or subsequent violation, allA. 10337--A 3 1 of which were committed within a period of twenty-four months, such 2 person shall be punished by a fine of not less than one thousand five 3 hundred nor more than two thousand five hundred dollars or by a period 4 of imprisonment of not more than one hundred twenty days or by both such 5 fine and imprisonment. 6 2. Every person convicted of a misdemeanor for a violation of section 7 fifty-one of this article shall for a first conviction thereof be 8 punished by a fine of not less than five thousand nor more than ten 9 thousand dollars, or by a period of imprisonment of not more than ninety 10 days, or by both such fine and imprisonment. 11 § 5. The navigation law is amended by adding a new section 73-d to 12 read as follows: 13 § 73-d. Operating without insurance. In addition to the penalties set 14 forth in this part, any owner found to be operating a public vessel 15 without insurance as set forth in section fifty-one of this article, 16 shall have the certificate of inspection or temporary permit for such 17 vessel revoked for a period of no less than one year. 18 § 6. Section 13 of the navigation law, as amended by chapter 843 of 19 the laws of 1980, is amended to read as follows: 20 § 13. Inspector; duties. The inspector shall annually, and at such 21 other times as he shall deem it expedient, or as the commissioner may 22 direct, inspect every public vessel, except vessels which navigate on 23 waters over which the United States exercises active control. The 24 inspector shall carefully examine the hull, the propelling and auxiliary 25 machinery, the electrical apparatus and the vessel's equipment. He shall 26 require such changes, repairs and improvements to be made as he may deem 27 expedient for the contemplated route. No vessel, or propelling machinery 28 thereof shall be allowed to be used if constructed in whole, or in part, 29 of defective material, or which because of its form, design, workman- 30 ship, age, use or for any other reason is unsafe. He shall also fix the 31 number of passengers that may be transported. The inspector shall 32 require that the boilers, on all public vessels which are propelled by 33 steam engines, be inspected and approved for safety of operations by 34 inspectors of the New York State Department of Labor, Bureau of Boilers. 35 Every boiler and appurtenances thereof shall be constructed, maintained 36 and operated in accordance with the Department of Labor rules and regu- 37 lations pertaining to boilers. The inspector shall ascertain whether 38 the vessel has insurance coverage as required by this chapter. The 39 inspector shall also, whenever he deems it expedient, visit any vessel 40 licensed under this chapter and examine into her condition for the 41 purpose of ascertaining whether or not any party thereon, having a 42 certificate, or license, from the inspector, has conformed to and obeyed 43 the conditions of such certificate, and the provisions of this chapter. 44 The owner, master, pilot, engineer or joint pilot and engineer of such 45 vessel, shall answer all reasonable questions and give all the informa- 46 tion in his or their power in regard to said vessel, or its machinery or 47 equipment and the manner of managing the same. The inspector provided 48 for in this chapter is authorized to make further rules and regulations 49 applying generally to all vessels, or especially to one or more of them. 50 In framing rules for the government of managers and employees on 51 vessels, the inspector shall, as far as practicable, be governed by the 52 general rules and regulations prescribed by the United States coast 53 guard. The inspector shall have the power to issue a uniform navigation 54 summons and/or complaint for violations of the provisions of article 55 four of this chapter which are applicable to vessels.A. 10337--A 4 1 § 7. Section 63 of the navigation law, as amended by chapter 672 of 2 the laws of 1962, is amended to read as follows: 3 § 63. Certificate of inspection. The inspector, if satisfied that a 4 public vessel is in all respects safe and conforms to the requirement of 5 this chapter, shall make and subscribe duplicate certificates setting 6 forth the name and number of the vessel, its age, the date of 7 inspection, the name of the owner, the number of licensed officers and 8 crew necessary to manage the vessel with safety, equipment required, 9 number of insurance policy as required by section fifty-one of this 10 part, and name of such insurer, and any special restrictions or remarks 11 pertaining to the operation of the vessel and the number of passengers 12 she can safely carry, and, if a steam vessel, the age of the boiler and 13 the pressure of steam she is authorized to carry. One of said certif- 14 icates shall be kept posted in some conspicuous place on the vessel to 15 be designated by the inspector and the other copy shall be kept by the 16 inspector and by him recorded in a book to be kept for that purpose. If 17 the inspector refuses to grant a certificate of approval, he shall make 18 a statement in writing, giving his reasons for such refusal, and deliver 19 the same to the owner or master of the vessel. The posting of certif- 20 icates of inspection shall not be required on vessels of less than ten 21 tons burden. However said certificates must be aboard whenever the 22 vessel is in operation. 23 § 8. Subsection (b) of section 1115 of the insurance law, as amended 24 by chapter 727 of the laws of 2006, is amended to read as follows: 25 (b) This section shall not apply to the insurance of marine risks, 26 marine protection and indemnity risks associated with marine protection 27 and indemnity insurance which is not required under article four of the 28 navigation law, workers' compensation, employers' liability risks, mort- 29 gage guaranty risks, financial guaranty risks, risks insured for any 30 dollar level of first party benefits provided pursuant to article 31 fifty-one of this chapter, certificates of title, guaranties of title or 32 policies of title insurance, or those insurers subject to the provisions 33 of subsection (c) of section two thousand three hundred forty-three of 34 this chapter. 35 § 9. Paragraph 5 of subsection (a) of section 2302 of the insurance 36 law, as amended by chapter 614 of the laws of 1997, is amended to read 37 as follows: 38 (5) marine protection and indemnity insurance, which is not required 39 under the provisions of article four of the navigation law; 40 § 10. Subsection (b) of section 3103 of the insurance law is amended 41 to read as follows: 42 (b) No policy of insurance or contract of annuity delivered or issued 43 for delivery in this state shall provide that the rights or obligations 44 of the insured or of any person rightfully claiming thereunder, with 45 respect to: 46 (1) a policy of life, accident and health insurance or contract of 47 annuity upon a person resident in this state, 48 (2) a policy of insurance upon property then in this state, or 49 (3) the liabilities to be incurred by the insured as a result of 50 activity then carried on by the insured in this state, 51 shall be governed by the laws of any jurisdiction other than this state. 52 This subsection shall not apply to policies of marine and inland marine 53 insurance as defined in paragraph twenty of subsection (a) of section 54 one thousand one hundred thirteen of this chapter, but shall apply to 55 those policies of marine protection and indemnity insurance, as defined 56 in paragraph twenty-one of subsection (a) of section one thousand oneA. 10337--A 5 1 hundred thirteen of this chapter, that are required under article four 2 of the navigation law. 3 § 11. Section 4101 of the insurance law, subsection (b) as amended by 4 chapter 626 of the laws of 2006, is amended to read as follows: 5 § 4101. Definitions. In this article: (a) "Basic kinds of insurance" 6 means the kinds of insurance described in the following paragraphs of 7 subsection (a) of section one thousand one hundred thirteen of this 8 chapter numbered therein as set forth in parentheses below: 9 fire (4); 10 burglary and theft (7); 11 glass (8); 12 boiler and machinery (9); 13 elevator (10); 14 animal (11); 15 personal injury liability (13); 16 property damage liability (14) - basic as to stock companies only; 17 workers' compensation and employers' liability (15); 18 fidelity and surety (16); 19 credit (17); 20 marine and inland marine (20); 21 marine protection and indemnity (21) [- basic as to mutual companies22only]. 23 (b) "Non-basic kinds of insurance" means the kinds of insurance 24 described in the following paragraphs of subsection (a) of section one 25 thousand one hundred thirteen of this chapter numbered therein as set 26 forth in parentheses below: 27 accident and health (item (i) of (3)); 28 non-cancellable disability (item (ii) of (3)); 29 miscellaneous property (5); 30 water damage (6); 31 collision (12); 32 property damage liability (14) - non-basic as to mutual companies 33 only; 34 motor vehicle and aircraft physical damage (19); 35 inland marine as specified in marine and inland marine (20); 36 [marine protection and indemnity (21) - non-basic as to stock compa-37nies only;] 38 residual value (22); 39 credit unemployment (24); 40 gap (26); 41 prize indemnification (27); 42 service contract reimbursement (28); 43 legal services insurance (29); 44 involuntary unemployment insurance (30); 45 salary protection insurance (31). 46 § 12. Subsection (a) of section 2105 of the insurance law, as amended 47 by section 9 of part I of chapter 61 of the laws of 2011, is amended to 48 read as follows: 49 (a) The superintendent may issue an excess line broker's license to 50 any person, firm, association or corporation who or which is licensed as 51 an insurance broker under section two thousand one hundred four of this 52 article, or who or which is licensed as an excess line broker in the 53 licensee's home state, provided, however, that the applicant's home 54 state grants non-resident licenses to residents of this state on the 55 same basis, except that reciprocity is not required in regard to the 56 placement of liability insurance on behalf of a purchasing group or anyA. 10337--A 6 1 of its members; authorizing such person, firm, association or corpo- 2 ration to procure, subject to the restrictions herein provided, policies 3 of insurance from insurers which are not authorized to transact business 4 in this state of the kind or kinds of insurance specified in paragraphs 5 four through fourteen, sixteen, seventeen, nineteen, twenty, twenty-one, 6 twenty-two, twenty-seven, twenty-eight and thirty-one of subsection (a) 7 of section one thousand one hundred thirteen of this chapter and in 8 subsection (h) of this section, provided, however, that the provisions 9 of this section and section two thousand one hundred eighteen of this 10 article shall not apply to ocean marine insurance and other contracts of 11 insurance enumerated in subsections (b) and (c) of section two thousand 12 one hundred seventeen of this article. Such license may be suspended or 13 revoked by the superintendent whenever in his or her judgment such 14 suspension or revocation will best promote the interests of the people 15 of this state. 16 § 13. This act shall take effect on the sixtieth day after it shall 17 have become a law; provided, however, that effective immediately, the 18 addition, amendment and/or repeal of any rule or regulation necessary 19 for the implementation of this act on its effective date are authorized 20 and directed to be made and completed on or before such effective date.
