Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
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---|---|
Jan 08, 2014 |
referred to insurance |
May 22, 2013 |
referred to insurance |
Senate Bill S5580
2013-2014 Legislative Session
Sponsored By
(R, C, IP, RFM) Senate District
Archive: Last Bill Status - In Senate Committee Insurance Committee
- Introduced
-
- In Committee Assembly
- In Committee Senate
-
- On Floor Calendar Assembly
- On Floor Calendar Senate
-
- Passed Assembly
- Passed Senate
- Delivered to Governor
- Signed By Governor
Actions
2013-S5580 (ACTIVE) - Details
- Current Committee:
- Senate Insurance
- Law Section:
- Insurance Law
- Laws Affected:
- Amd §3426, Ins L
- Versions Introduced in Other Legislative Sessions:
-
2015-2016:
S2350
2017-2018: S2811
2019-2020: S3499
2013-S5580 (ACTIVE) - Sponsor Memo
BILL NUMBER:S5580 TITLE OF BILL: An act to amend the insurance law, in relation to business interruption insurance SUMMARY OF PROVISIONS: This bill would prohibit an insurance company that provides business interruption insurance from denying or excluding coverage for a claim for loss or damage that is caused by a peril insured against solely because the insured peril resulted from a peril that is not insured against or is excluded under the policy, resulted from an action that was intended to mitigate loss from a peril that is not insured against or is excluded under the policy, or occurred within a reasonable amount of time either before or after a peril that is not insured against or is excluded under the policy. JUSTIFICATION: When Superstorm Sandy struck, one of the effects was a massive power outage in New York City. In the aftermath of Sandy, many business owners submitted claims under their business interruption insurance for losses caused by the outage and were surprised when the insurance company denied the claims on the grounds that their policies excluded coverage for loss or damage caused by a flood. When many of these business owners pointed out that their premises were not actually flooded and that their policies include coverage for losses caused by a power outage, the insurance companies argued that they could deny coverage because the power outage was caused by a flood. This bill would rectify this inequity by prohibiting insurers from
2013-S5580 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 5580 2013-2014 Regular Sessions I N S E N A T E May 22, 2013 ___________ Introduced by Sen. SEWARD -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance AN ACT to amend the insurance law, in relation to business interruption insurance THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The section heading of section 3426 of the insurance law, as amended by chapter 235 of the laws of 1989, is amended to read as follows: Commercial lines insurance; cancellation and renewal provisions; BUSI- NESS INTERRUPTION INSURANCE. S 2. Subsection (a) of section 3426 of the insurance law is amended by adding a new paragraph 12 to read as follows: (12) "BUSINESS INTERRUPTION INSURANCE" SHALL HAVE THE SAME MEANING AS PARAGRAPH (4) OF SUBSECTION (D) OF SECTION 5401 OF THIS CHAPTER. S 3. Section 3426 of the insurance law is amended by adding a new subsection (p) to read as follows: (P) NO INSURER WRITING A POLICY ISSUED OR DELIVERED IN THIS STATE THAT PROVIDES FOR BUSINESS INTERRUPTION INSURANCE SHALL DENY OR EXCLUDE COVERAGE FOR A CLAIM FOR LOSS OR DAMAGE THAT IS CAUSED BY A PERIL INSURED AGAINST BY THE POLICY SOLELY BECAUSE THE INSURED PERIL: (1) RESULTED FROM A PERIL NOT INSURED AGAINST OR EXPRESSLY EXCLUDED UNDER THE POLICY; OR (2) RESULTED FROM AN ACTION INTENDED TO MITIGATE LOSS FROM A PERIL NOT INSURED AGAINST OR EXPRESSLY EXCLUDED UNDER THE POLICY; OR (3) OCCURRED WITHIN A REASONABLE AMOUNT OF TIME EITHER BEFORE OR AFTER A PERIL NOT INSURED AGAINST OR EXPRESSLY EXCLUDED UNDER THE POLICY. S 4. This act shall take effect immediately and shall apply to claims made on or after such effective date. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD11123-01-3
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