Requires the owners of public vessels intending to operate on the navigable waters of the state to obtain marine protection and indemnity insurance

1 Co-sponsor

• Betty Little

BILL NUMBER:S5203B

Title of bill

An act to amend the insurance law and the navigation law, in relation to requiring certain policies of insurance for public vessels which carry passengers

Purpose

Requires public vessels operating in New York State to carry marine protection and indemnity insurance.

Summary of provisions

Section one of the bill clarifies subsection (a) of section 2105 of the insurance law regarding the authority of excess line brokers to provide marine liability insurance.

Section two of the bill amends section 50 of the navigation law to state no certificate of inspection or temporary permit shall be issued unless the owner of a public vessel produces proof of insurance to the inspector.

Section three of the bill adds two new sections 51 and 52 of the navigation law.

Section 51 of the bill requires owners of public vessels certified to carry passengers which operate on the navigable waters of the state, except vessels which navigate on waters over which the united States exercises active control, to obtain marine protection and indemnity insurance as defined in Insurance Law Section 1113(a)(21). This coverage may take the form of a surety bond or may be purchased from an authorized (licensed) insurer or through an excess line broker pursuant to Insurance Law Section 2105.

An owner or operator of a public vessel seeking a certificate of inspection under the Navigation Law must submit proof of this liability insurance, with a minimum coverage of one million dollars per occurrence, upon the request of any person possessing the authority to enforce the provisions of the Navigation Law. This section also makes the failure to do so a misdemeanor.

Section 52 of the bill allows for owners of public vessels to be self-insured upon the approval of the commissioner.

Section four of the bill contains the effective date.

Existing law

While the Navigation Law regulates the operation of public vessels in the state and the Insurance Law regulates the manner in which marine protection and indemnity insurance is offered, there is no statutory requirement that public vessels carry such insurance.

Justification

On October 2, 2005, the ship, the Ethan Allen, capsized on Lake George resulting in the deaths of twenty individuals. This tragedy brought to light the fact that there is no requirement that public vessels carry liability insurance. This bill will enhance the safety and security of

the public who utilize commercial watercraft for recreational and business purposes.

Legislative history

New bill.

Fiscal implications

None.

Effective date

This act shall take effect on the one hundred and eightieth day after it shall have become a law.