Bill Text: NY S04081 | 2019-2020 | General Assembly | Introduced

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

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Passed) 2020-12-23 - APPROVAL MEMO.63 [S04081 Detail]

Download: New_York-2019-S04081-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          4081
                               2019-2020 Regular Sessions
                    IN SENATE
                                    February 27, 2019
                                       ___________
        Introduced  by  Sens. SKOUFIS, BRESLIN, SEWARD -- read twice and ordered
          printed, and when printed to be committed to the Committee  on  Insur-
          ance
        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
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06612-01-9
        S. 4081                             2
     1  subsection (a) of section one thousand  one  hundred  thirteen  of  this
     2  chapter is authorized to write personal or commercial umbrella liability
     3  insurance or any other type of standalone liability insurance, excluding
     4  automobile insurance.
     5    §  3.  Section  6605  of  the insurance law is amended by adding a new
     6  subsection (d) to read as follows:
     7    (d) An assessment corporation licensed to write the kinds of insurance
     8  specified in paragraphs thirteen  and  fourteen  of  subsection  (a)  of
     9  section  one thousand one hundred thirteen of this chapter is authorized
    10  to write personal or commercial  umbrella  liability  insurance  or  any
    11  other  type  of  standalone  liability  insurance,  excluding automobile
    12  insurance. Except as herein provided, the corporation must  maintain  an
    13  additional  surplus  or fifty thousand dollars if the corporation writes
    14  umbrella liability insurance. The additional surplus is not necessary if
    15  the whole risk for this peril  is  reinsured  in  an  insurance  company
    16  authorized  to do business in this state, or in an accredited reinsurer,
    17  as defined in subsection (a) of section one hundred seven of this  chap-
    18  ter.
    19    § 4. This act shall take effect immediately.