What's happening
This bill requires business interruption insurance for certain health and human services providers to cover losses during the COVID-19 state emergency.
Why it matters
Ensures financial stability for critical health and human service providers. by requiring insurers to cover COVID-19-related business interruptions, helping maintain essential services during emergencies.
Mandates retroactive coverage back to March 7, 2020. , potentially resulting in significant payouts to providers who suffered losses earlier in the pandemic, which could provide relief for those hit hardest financially.
Creates a reimbursement mechanism for insurers. , allowing them to seek compensation from the state, which is funded by assessments on all insurance companies—spreading the cost across the industry rather than placing it solely on insurers who issued these policies.
Targets a broad range of providers. , including mental health clinics, substance use disorder treatment centers, home care agencies, primary care offices, hospices, and child/family service organizations, recognizing their essential role and vulnerability during public health crises.
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Who cares
Headline styles
Cover COVID Business Losses
Plain English, a few words. Used as the page title.
Sponsors
History
- Referred to insurance
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
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 Assembly, do enact as follows:
Section 1. (a) Notwithstanding any provisions of law, rule or regulation to the contrary, every policy of insurance insuring against loss or damage to property, which includes the loss of use and occupancy and business interruption, shall be construed to include among the covered perils under that policy, coverage for business interruption during a period of a declared state emergency due to the coronavirus disease 2019 (COVID-19) pandemic.
(b) The coverage required by this section shall indemnify the insured, subject to the limits under the policy, for any loss of business or business interruption for the duration of a period of a declared state emergency due to the coronavirus disease 2019 (COVID-19) pandemic.
(c) This section shall apply to insureds with such coverage who operate programs and services including a mental health outpatient provider licensed or granted an operating certificate under article 31 of the mental hygiene law; a substance use disorder treatment provider licensed or granted an operating certificate under article 32 of the mental hygiene law; a provider dually licensed under article 28 of the public health law and article 31 or article 32 of the mental hygiene law, a diagnostic and treatment center licensed or granted an operating certificate under article 28 of the public health law; a clinic licensed or granted an operating certificate under article 16 of the mental hygiene law; a community-based program funded under the office of mental health, the office for people with developmental disabilities, the office of addiction services and supports or through a local government unit as defined under article 41 of the mental hygiene law; a home care provider 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.
LBD16118-01-0
A. 10327 2
primary care physician or other provider including school based health centers; a provider of health home services authorized under section 2703 of the federal protection and affordable care act; a hospice provider licensed or granted an operating certificate under article 40 of the public health law; a family and child service provider licensed under article 29-I of the public health law, a provider licensed under the office of children and family services; or a provider licensed under the office of temporary and disability assistance.
§ 2. (a) An insurer which indemnifies an insured who has filed a claim pursuant to section one of this act may apply to the superintendent of financial services for relief and reimbursement by the department from funds collected and made available for this purpose as provided in section three of this act.
(b) The superintendent of financial services shall establish procedures for the submission and qualification of claims by insurers which are eligible for reimbursement pursuant to this act. The superintendent of financial services shall incorporate in these procedures such standards as are necessary to protect against the submission of fraudulent claims by insureds, and appropriate safeguards for insurers to employ in the review and payment of such claims.
§ 3. (a) The superintendent of financial services is authorized to impose upon, distribute among, and collect from the companies engaged in business pursuant to the insurance law, such additional amounts as may be necessary to recover the amounts paid to insurers pursuant to section two of this act.
(b) The additional special purpose apportionment authorized pursuant to subdivision (a) of this section shall be distributed in the proportion that the net written premiums received by each company subject to the apportionment authorized by this section for insurance written or renewed on risks in this state during the calendar year immediately preceding, bears to the sum total of all such net written premiums received by all companies writing that insurance or coverage within the state during that calendar year, as reported.
(c) For the purposes of this section, "net written premiums received" means gross direct premiums written, less return premiums thereon and dividends credited or paid to policyholders, as reported on the company's annual financial statement.
§ 4. This act shall take effect immediately, and shall be deemed to have been in full force and effect on and after March 7, 2020 and shall apply to insurance policies in force on that date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
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