New York Assembly Bill A00071 Latest Draft

   
  STATE OF NEW YORK ________________________________________________________________________ 71 2025-2026 Regular Sessions  IN ASSEMBLY (Prefiled) January 8, 2025 ___________ Introduced by M. of A. DINOWITZ, HUNTER -- read once and referred to the Committee on Insurance AN ACT to amend the insurance law, in relation to permitting certain liability policies to provide coverage for punitive damages and civil penalties The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The insurance law is amended by adding a new section 3423 2 to read as follows: 3 § 3423. Punitive damages and civil penalties coverage. 1. An insurer 4 may provide and an insured may purchase insurance against an award of 5 punitive damages, or civil penalties, or other non-compensatory damages 6 in any liability insurance policy except in a policy of personal lines 7 insurance issued to a natural person for non-business purposes, or a 8 commercial automobile liability insurance policy. 9 2. Coverage may provide protection for vicarious liability resulting 10 from the conduct of another, or when assessed against a party directly 11 for gross negligence or reckless conduct. Coverage shall not apply where 12 liability results from action that was intended to cause the resulting 13 harm, damage or injury. Coverage shall apply only when expressly 14 provided for by the insurance policy. 15 3. This section shall apply prospectively to insurance policies with 16 effective dates on or after the effective date of this section. 17 § 2. This act shall take effect immediately. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD00799-01-5