On Jun. 4, NY LEG passed bill re business interruption insurance.
NY LEG passed AB 10342 (SB 9481) re stand-alone business interruption insurance.
Allows insurers to sell business interruption insurance that is not tied to physical damage to property, which businesses could purchase in event of future pandemics.
Or other event where there may not be physical damage, e.g. active shooter threat.
Amended Provisions
Revised NY Insurance Law NY INS 11-1113(a)(34), kinds of insurance authorized.
As well as NY INS 41-4103(a)(1), stock companies, financial requirements; and NY INS 41-4107(a)(1), domestic mutual companies, financial requirements.
Bill Provisions
Legislation amends NY Insurance Law to authorize stand-alone business interruption insurance; makes business interruption insurance a basic kind of insurance.
Permits an excess line broker to procure business interruption insurance.
Establishes minimum paid-in capital, paid-in surplus requirements for stock insurers that write business interruption insurance; minimum initial surplus for mutual insurers.
Legislative History
On May 17, 2024, bill introduced in Assembly; on Jun. 4, 2024, bill passed Assembly.
On Jun. 4, 2024, bill introduced in Senate; on Jun. 4, 2024, bill passed Senate.
Effectiveness
Bill takes effect 30 days after it is signed into law.
Sep. 2024 NY LEG Governor Approval
On Sep. 27, 2024, NY LEG governor approved bill AB 10342, enacted as Chapter 369.
