Allow Catastrophic Business Insurance

Section 1. Paragraph 32 of subsection (a) of section 1113 of the insurance law, as renumbered by chapter 626 of the laws of 2006, is renumbered paragraph 33 and a new paragraph 32 is added to read as follows:

(32) "Catastrophic business disruption insurance," means insurance against financial loss experienced by a corporate entity or a partnership where an individual integral to the successful operation of such corporate entity or partnership becomes disabled due to sickness, ailment or bodily injury. Such insurance may be obtained in excess of a primary business-related disability policy, or in the absence of such a policy if coverage cannot be obtained from an authorized insurer. Catastrophic business disruption insurance coverage may include, but is not limited to, reimbursement for all overhead costs and expenses and all capital outlays of a corporate entity or partnership which such corporate entity or partnership incurs in the ordinary course of business during the period of disability; and buy/sell arrangements in an amount sufficient to purchase the disabled individual's interest share in the corporate entity or partnership.

§ 2. Subsection (a) of section 2105 of the insurance law, as amended by section 9 of part I of chapter 61 of the laws of 2011, is amended to read as follows:

(a) The superintendent may issue an excess line broker's license to any person, firm, association or corporation who or which is licensed as an insurance broker under section two thousand one hundred four of this article, or who or which is licensed as an excess line broker in the

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

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licensee's home state, provided, however, that the applicant's home state grants non-resident licenses to residents of this state on the same basis, except that reciprocity is not required in regard to the placement of liability insurance on behalf of a purchasing group or any of its members; authorizing such person, firm, association or corporation to procure, subject to the restrictions herein provided, policies of insurance from insurers which are not authorized to transact business in this state of the kind or kinds of insurance specified in paragraphs four through fourteen, sixteen, seventeen, nineteen, twenty, twenty-two, twenty-seven, twenty-eight [and], thirty-one and thirty-two of subsection (a) of section one thousand one hundred thirteen of this chapter and in subsection (h) of this section, provided, however, that the provisions of this section and section two thousand one hundred eighteen of this article shall not apply to ocean marine insurance and other contracts of insurance enumerated in subsections (b) and (c) of section two thousand one hundred seventeen of this article. Such license may be suspended or revoked by the superintendent whenever in his or her judgment such suspension or revocation will best promote the interests of the people of this state.

§ 3. Subsection (b) of section 4101 of the insurance law, as amended by chapter 626 of the laws of 2006, is amended to read as follows:

(b) "Non-basic kinds of insurance" means the kinds of insurance described in the following paragraphs of subsection (a) of section one thousand one hundred thirteen of this chapter numbered therein as set forth in parentheses below:

accident and health (item (i) of (3));

non-cancellable disability (item (ii) of (3));

miscellaneous property (5);

water damage (6);

collision (12);

property damage liability (14) - non-basic as to mutual companies only;

motor vehicle and aircraft physical damage (19);

inland marine as specified in marine and inland marine (20);

marine protection and indemnity (21) - non-basic as to stock companies only;

residual value (22);

credit unemployment (24);

gap (26);

prize indemnification (27);

service contract reimbursement (28);

legal services insurance (29);

involuntary unemployment insurance (30);

salary protection insurance (31)[.];

catastrophic business disruption insurance (32).

§ 4. Group A of table one as contained in paragraph 1 of subsection (a) of section 4103 of the insurance law, as amended by chapter 626 of the laws of 2006, is amended to read as follows:

Group A:

7 $300,000 $150,000 8, 9, 10, 11, or 14 - for each such kind $100,000 $ 50,000 13 or 15 - for each such kind $500,000 $250,000 16 $900,000 $450,000 17 $400,000 $200,000

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Basic additional amount required for any one or more of the above kinds of insurance $100,000 $ 50,000 3(i), 3(ii), 6{1} or 12{2} - for each such kind $100,000 $ 50,000 22 $2,000,000 $1,000,000 24 $400,000 $200,000 26(B) $200,000 $100,000 26(A), 26 (C) or 26(D) - for each such kind $600,000 $300,000 27 $300,000 $150,000 28 $2,000,000 $1,000,000 30 $400,000 $200,000 31 $100,000 $ 50,000 32 $100,000 $50,000

§ 5. Group C of table three as contained in subsection (b) of section 4107 of the insurance law, as amended by chapter 626 of the laws of 2006, is amended to read as follows:

Group C:

3(i) or 3(ii) - for each such kind $ 100,000 $ 100,000 22 $3,000,000 $2,000,000 24 $ 300,000 $ 300,000 26 (B) $ 300,000 $ 200,000 26(A), 26 (C) or 26(D) - for each such kind $ 900,000 $ 600,000 28 $3,000,000 $2,000,000 6{5}, 12{6} or 14{2} - for each such kind $ 50,000 $ 50,000 27 $ 300,000 $ 150,000 30 $ 300,000 $ 300,000 31 $ 100,000 $ 100,000 32 $100,000 $100,000

§ 6. This act shall take effect immediately.