§ 1113 — Kinds of insurance authorized

New York § 1113

• Jurisdiction: New York
• Law ISC: Insurance
• Art. 11: Licensing of Insurers

Text

§ 1113. Kinds of insurance authorized. (a) The kinds of insurance\nwhich may be authorized in this state, subject to other provisions of\nthis chapter, and their scope, are set forth in the following\nparagraphs. The power to do any kind of insurance against loss of or\ndamage to property shall include the power to insure all lawful\ninterests in such property and to insure against loss of use and\noccupancy, rents and profits resulting therefrom. No kind of insurance\nshall include life insurance, title insurance or insurance against legal\nliability for personal injury or death unless specified in this section.\nIn addition to any power specifically conferred by this chapter to\nengage in any other kind of business than an insurance business, any\ninsurer authorized to do business in this state may engage in other\nkinds of business to the extent necessarily or properly incidental to\nthe kinds of insurance business it is authorized to do in this state.\n (1) "Life Insurance," means every insurance upon the lives of human\nbeings, and every insurance appertaining thereto, including the granting\nof endowment benefits, additional benefits in the event of death by\naccident, additional benefits to safeguard the contract from lapse,\naccelerated payments of part or all of the death benefit or a special\nsurrender value upon (A) diagnosis of terminal illness defined as a life\nexpectancy of twelve months or less, (B) diagnosis of a medical\ncondition requiring extraordinary medical care or treatment regardless\nof life expectancy, (C) certification by a licensed health care\npractitioner of any condition which requires continuous care for the\nremainder of the insured's life in an eligible facility or at home when\nthe insured is chronically ill as defined by Section 7702(B) of the\nInternal Revenue Code and regulations thereunder, provided the\naccelerated payments qualify under Section 101(g)(3) of the Internal\nRevenue Code and all other applicable sections of federal law in order\nto maintain favorable tax treatment, (D) certification by a licensed\nhealth care practitioner that the insured is chronically ill as defined\nby Section 7702 (B) of the Internal Revenue Code and regulations\nthereunder, provided the accelerated payments qualify under Section\n101(g)(3) of the Internal Revenue Code and all other applicable sections\nof federal law in order to maintain favorable tax treatment, (E) the\ninsured's having been a resident of a nursing home, as defined in\nsection twenty-eight hundred one of the public health law, for a period\nof three months or more, with an expectation that such insured will\nremain a resident of a nursing home until death, or (F) the insured's\nhaving been the recipient of end of life or palliative care, for a\nperiod of three months or more, at a residential health care facility as\ndefined in subdivision three of section twenty-eight hundred one of the\npublic health law, home care services as defined in subdivision one of\nsection thirty-six hundred two of the public health law or hospice as\ndefined in subdivision one of section four thousand two of the public\nhealth law, with the expectation that such insured will continue to\nrequire such services until death. "Life insurance" also includes a\nspecial surrender value upon total and permanent disability of the\ninsured, optional modes of settlement of proceeds, and additional\nbenefits to safeguard the contract against lapse in the event of\nunemployment of the insured or in the event the insured is a resident of\na nursing home. Amounts paid the insurer for life insurance and proceeds\napplied under optional modes of settlement or under dividend options may\nbe allocated by the insurer to one or more separate accounts pursuant to\nsection four thousand two hundred forty of this chapter.\n (2) "Annuities," means all agreements to make periodical payments for\na period certain or where the making or continuance of all or some of a\nseries of such payments, or the amount of any such payment, depends upon\nthe continuance of human life, except payments made under the authority\nof paragraph one hereof. Amounts paid the insurer to provide annuities\nand proceeds applied under optional modes of settlement or under\ndividend options may be allocated by the insurer to one or more separate\naccounts pursuant to section four thousand two hundred forty of this\nchapter.\n (3) "Accident and health insurance," means (i) insurance against death\nor personal injury by accident or by any specified kind or kinds of\naccident and insurance against sickness, ailment or bodily injury,\nincluding insurance providing disability and family leave benefits\npursuant to article nine of the workers' compensation law, except as\nspecified in item (ii) hereof; and (ii) non-cancellable disability\ninsurance, meaning insurance against disability resulting from sickness,\nailment or bodily injury (but excluding insurance solely against\naccidental injury) under any contract which does not give the insurer\nthe option to cancel or otherwise terminate the contract at or after one\nyear from its effective date or renewal date.\n (4) "Fire insurance," means insurance against loss of or damage to any\nproperty resulting from fire, including loss or damage incident to the\nextinguishment of a fire or to the salvaging of property in connection\ntherewith.\n (5) "Miscellaneous property insurance," means loss of or damage to\nproperty resulting from:\n (A) lightning, smoke or smudge, windstorm, tornado, cyclone,\nearthquake, volcanic eruption, rain, hail, frost and freeze, weather or\nclimatic conditions, excess or deficiency of moisture, flood, the rising\nof the waters of the ocean or its tributaries;\n (B) insects, or blights, or disease of such property except animals;\n (C) electrical disturbance causing or concomitant with a fire or an\nexplosion in public service or public utility property;\n (D) bombardment, invasion, insurrection, riot, civil war or commotion,\nmilitary or usurped power, any order of a civil authority made to\nprevent the spread of a conflagration, epidemic or catastrophe,\nvandalism or malicious mischief, strike or lockout, collapse from any\ncause, or explosion; but excluding any kind of insurance specified in\nparagraph nine hereof, except insurance against loss of or damage to\nproperty resulting from:\n (i) explosion of pressure vessels (except steam boilers of more than\nfifteen pounds pressure) in buildings designed and used solely for\nresidential purposes by not more than four families,\n (ii) explosion of any kind originating outside of the insured building\nor outside of the building containing the property insured,\n (iii) explosion of pressure vessels which do not contain steam or\nwhich are not operated with steam coils or steam jackets, or\n (iv) electrical disturbance causing or concomitant with an explosion\nin public service or public utility property; or\n (E) lateral or vertical subsidence of the earth caused by past or\npresent mining operations.\n (6) "Water damage insurance," means insurance against loss or damage\nby water or other fluid or substance to any property resulting from the\nbreakage or leakage of sprinklers, pumps or other apparatus erected for\nextinguishing fires or of water pipes or other conduits or containers,\nor resulting from casual water entering through leaks or openings in\nbuildings or by seepage through building walls, but excluding loss or\ndamage resulting from flood or the rising of the waters of the ocean or\nits tributaries; and including insurance against accidental injury of\nsuch sprinklers, pumps, fire apparatus, conduits or containers.\n (7) "Burglary and theft insurance," means:\n (A) Insurance against loss of, or damage to, any property resulting\nfrom burglary, theft, larceny, robbery, forgery, fraud, vandalism,\nmalicious mischief, confiscation, or wrongful conversion, disposal, or\nconcealment by any person, or from any attempt thereof;\n (B) Insurance against loss of, or damage to, moneys, coins, bullion,\nsecurities, notes, drafts, acceptances, or any other valuable papers or\ndocuments, resulting from any cause, except while in the custody or\npossession of, and being transported by, any carrier for hire or in the\nmail;\n (C) Insurance of individuals by means of an all-risk type of policy\ncommonly known as the "Personal Property Floater" against any kind and\nall kinds of loss of, or damage to, or loss of use of, any personal\nproperty other than merchandise;\n (D) Insurance covering a ransom or reward payment incurred as the\nresult of an abduction or the theft of property; travel and lodging\nexpense and lost wages incurred as the result of an act or threatened\nact of violence; expense incurred to locate or identify a missing or\nabducted person; or other expenses to respond to a violent act or\nthreatened act, or to prevent a reoccurrence thereof; and\n (E) Insurance against losses and expenses resulting from a "stolen\nidentity event," which shall include the theft, accidental release, or\npublication of, or misappropriation of information related to, an\nindividual's personal identification, social security number, or other\nmethod of identifying the individual, that has resulted in, or could\nreasonably result in, the wrongful use of the information.\n (8) "Glass insurance," means insurance against loss of or damage to\nglass and its appurtenances resulting from any cause.\n (9) "Boiler and machinery insurance," means insurance against loss of\nor damage to any property of the insured, resulting from explosion of or\ninjury to:\n (A) any boiler, heater or other fired pressure vessel;\n (B) any unfired pressure vessel;\n (C) pipes or containers connected with any such boilers or vessels;\n (D) any engine, turbine, compressor, pump or wheel;\n (E) any apparatus generating, transmitting or using electricity; or\n (F) any other machinery or apparatus connected with or operated by any\nsuch boilers, vessels or machines; and including the incidental power to\nmake inspections of, and issue certificates of inspection upon, any such\nboilers, apparatus, and machinery, whether insured or otherwise.\n (10) "Elevator insurance," means insurance against loss of or damage\nto any property of the insured, resulting from ownership, maintenance or\nuse of elevators, except loss or damage by fire.\n (11) "Animal insurance," means insurance against loss of or damage to\nany domesticated or wild animal resulting from any cause.\n (12) "Collision insurance," means insurance against loss of or damage\nto any property of the insured resulting from collision of any other\nobject with such property, but excluding collision to or by elevators,\nor to or by vessels, craft, piers or other instrumentalities of ocean or\ninland navigation.\n (13) "Personal injury liability insurance," means insurance against\nlegal liability of the insured, and against loss, damage or expense\nincident to a claim of such liability (including the insurer's\nobligation to pay medical, hospital, surgical and disability benefits to\ninjured persons, and funeral and death benefits to dependents,\nbeneficiaries or personal representatives of persons who are killed,\nirrespective of legal liability of the insured), arising out of death or\ninjury of any person, or arising out of injury to the economic interests\nof any person, as the result of negligence in rendering expert,\nfiduciary or professional service, but excluding any kind of insurance\nspecified in paragraph fifteen except insurance to protect an insured\nagainst liability for indemnification or contribution to a third party\nheld responsible for injury to the insured's employee arising out of and\nin the course of employment when such insurance is written pursuant to\nthis paragraph and not written pursuant to paragraph fifteen of this\nsubsection.\n (14) "Property damage liability insurance," means insurance against\nlegal liability of the insured, and against loss, damage or expense\nincident to a claim of such liability, arising out of the loss or\ndestruction of, or damage to, the property of any other person, but not\nincluding any kind of insurance specified in paragraph thirteen, fifteen\nor twenty-eight of this subsection.\n (15) "Workers' compensation and employers' liability insurance," means\ninsurance against the legal liability, under common law or statute or\nassumed by contract, of any employer for the death or disablement of, or\ninjury to, his employee, including volunteer firefighters' benefit\ninsurance provided pursuant to the volunteer firefighters' benefit law\nincluding volunteer ambulance workers' benefit insurance provided\npursuant to the volunteer ambulance workers' benefit law and insurance\nfor workers' compensation benefits for death and injuries arising out of\ncrimes provided by the independent livery driver benefit fund pursuant\nto article six-G of the executive law.\n (16) "Fidelity and surety insurance," means:\n (A) Guaranteeing the fidelity of persons holding positions of public\nor private trust; and indemnifying banks, thrifts, brokers and other\nfinancial institutions against loss of money, securities, negotiable\ninstruments, other specified valuable papers and tangible items of\npersonal property caused by larceny, misplacement, destruction or other\nstated perils including loss while being transported in an armored motor\nvehicle or by messenger; and insurance for loss caused by the forgery of\nsignatures on, or alteration of, specified documents and valuable\npapers;\n (B) Insurance against losses that financial institutions become\nlegally obligated to pay by reason of loss of customers' property from\nsafe deposit boxes;\n (C) Any contract bond; including a bid, payment or maintenance bond or\na performance bond where the bond is guaranteeing the execution of any\ncontract other than a contract of indebtedness or other monetary\nobligation;\n (D) An indemnity bond for the benefit of a public body, railroad or\ncharitable organization; a lost security or utility payment bond;\n (E) Becoming surety on, or guaranteeing the performance of, any lawful\ncontract, not specifically provided for in this paragraph, but does not\ninclude becoming surety on, or guaranteeing the performance of:\n (i) any insurance contract except as authorized pursuant to section\none thousand one hundred fourteen of this article; or\n (ii) any contract, if becoming surety on, or guaranteeing the\nperformance of that contract, would constitute:\n a. mortgage guaranty insurance as defined in subsection (a) of section\nsix thousand five hundred one of this chapter;\n b. financial guaranty insurance as defined in subsection (a) of\nsection six thousand nine hundred one of this chapter; or\n c. service contract reimbursement insurance as defined in paragraph\ntwenty-eight of this subsection;\n (F) Becoming surety on, or guaranteeing the performance of, bonds and\nundertakings required or permitted in all judicial proceedings or\notherwise by law allowed, including surety bonds accepted by states and\nmunicipal authorities in lieu of deposits as security for the\nperformance of insurance contracts;\n (G) Becoming surety on, or guaranteeing the performance of, any\nagreement for the lease or rental of non-residential real property or\ntangible personal property, provided that the obligation of the insurer\nshall not exceed a period of five years, and the bond is not issued\ndirectly or indirectly in connection with the sale of securities, a\npooling of financial assets or a credit default swap as defined by\narticle sixty-nine of this chapter;\n (H) Becoming surety on, or guaranteeing the performance of, a contract\nof indebtedness or other monetary obligation where: (i) the aggregate\ngross principal, interest, and other amounts of indebtedness or other\nmonetary obligations of any obligor whose obligations are guaranteed by\nthe insurer under all bonds issued to that obligor pursuant to this\nsubparagraph by the insurer does not exceed ten million dollars; and\n(ii) the bond is not issued directly or indirectly in connection with\nthe sale of securities, a pooling of financial assets, or a credit\ndefault swap as defined by article sixty-nine of this chapter; and (iii)\nthe bond by its terms terminates upon any sale or other transfer of the\ninsured obligation in connection with the sale of securities, a pooling\nof financial assets, or a credit default swap as defined by article\nsixty-nine of this chapter;\n (I) A depository bond that insures deposits in financial institutions\nto the extent of the excess over the amount insured by the Federal\nDeposit Insurance Corporation; and\n (J) Becoming surety on, or guaranteeing the performance of, a bond,\nwhich shall not exceed a period greater than five years, that guarantees\nthe payment of a premium, deductible, or self-insured retention to an\ninsurer issuing a workers' compensation or liability policy.\n In this chapter "fidelity" insurance shall have the meaning set forth\nin subparagraphs (A) and (B) of this paragraph.\n (17) "Credit insurance," means:\n (A) Indemnifying merchants or other persons extending credit against\nloss or damage resulting from non-payment of debts owed to them, for\ngoods and services provided in the normal course of their business,\nincluding the incidental power to acquire and dispose of debts so\ninsured, and to collect any debts owed to such insurer or to the\ninsured, but no insurance may be written as credit insurance if it falls\nwithin the definition of financial guaranty insurance as set forth in\nparagraph one of subsection (a) of section six thousand nine hundred one\nof this chapter;\n (B) Indemnifying any person for expenses disbursed or to be disbursed\nunder a contract in connection with the cancellation of a catered\naffair;\n (C) Indemnifying any person for tuition and other educational expenses\ndisbursed or to be disbursed under a contract in connection with his or\nher dismissal or withdrawal from an educational institution; or\nindemnifying elementary or secondary schools, whether public, private,\nprofit or non-profit, providing education in consideration of a tuition\ncharge or fee against loss or damage in the event of non-payment of the\ntuition charges or fees of a student or pupil dismissed, withdrawn or\nleaving before the end of the school year for which the insurance is\nwritten. An educational institution may not require any person\nresponsible for the payment of a student's or pupil's tuition charge or\nfee to pay for tuition refund insurance;\n (D) (i) (I) Indemnifying an adoptive parent for verifiable expenses\nnot prohibited under the law paid to or on behalf of the gestational\nparent when either one or both of the birth parents of the child\nwithdraw or withhold their consent to adoption. Such expenses may\ninclude maternity-connected medical or hospital expenses of the\ngestational parent, necessary living expenses of the gestational parent\npreceding and during confinement, travel expenses of the gestational\nparent to arrange for the adoption of the child, legal fees of the\ngestational parent, and any other expenses that an adoptive parent may\nlawfully pay to or on behalf of the gestational parent;\n (II) Indemnifying an intended parent for financial loss incurred as a\nresult of the failure by the person acting as surrogate to perform under\nthe surrogacy contract due to death, bodily injury, sickness,\ndisappearance of the person acting as surrogate, late miscarriage, or\nstillbirth. Such financial loss shall include medical and hospital\nexpenses, insurance co-payments, deductibles, and coinsurance, necessary\nliving expenses of the person acting as surrogate during the term of the\nsurrogacy contract, travel expenses to arrange for the surrogacy, legal\nfees of the person acting as surrogate, and any other expenses that an\nintended parent may lawfully pay to or on behalf of the person acting as\nsurrogate; or\n (III) Indemnifying an intended parent for expenses disbursed when\neither the intended parent or a person acting as surrogate receives\nin-vitro fertilization or intrauterine insemination treatment that fails\nand does not result in the birth of a child. Expenses may include living\nexpenses of the person acting as surrogate during the in-vitro\nfertilization or intrauterine insemination treatment and expenses\nincurred by the intended parent or person acting as surrogate to travel\nfor the in-vitro fertilization or intrauterine insemination treatment.\nExpenses also may include medical and hospital expenses not covered\nunder the intended parent's or person acting as surrogate's\ncomprehensive health insurance and insurance co-payments, deductibles,\nand coinsurance, but credit insurance as defined in this clause shall\nnot solely cover such medical and hospital expenses, co-payments,\ndeductibles, or coinsurance; and\n (ii) For the purposes of this subparagraph "adoptive parent" means the\nparent or the parent's spouse seeking to adopt a child, "gestational\nparent" means the person giving birth to the child, "birth parent" means\nthe biological parents of the child, and the terms "donor", "intended\nparent", "person acting as surrogate", and "surrogacy agreement" shall\nhave the meaning set forth in section 581-102 of the family court act;\nor\n (E) Indemnifying professional sports participants (including any\nperson who participates or expects to participate as a player, coach,\nmanager, trainer, physician or other person directly associated with a\nplayer or a team) under contract or the teams with which the contract is\nmade, entertainers under contract to perform or the entities with which\nthe contract is made, or business executives under an employment\ncontract or the entities with which the contract is made, where\ncontracts between such persons and teams or entities cannot be fulfilled\ndue to a sports participant's, entertainer's or business executive's\ndeath, personal injury by accident, sickness, ailment or bodily injury\nthat causes disability, where such indemnification is for the amount of\nfinancial loss that is sustained by the insured party or parties due to\nthe inability to fulfill the terms of the contract.\n (F) Indemnifying any person for expenses disbursed or to be disbursed\nfor a ticket to an event, including any fees, when the person cannot use\nthe ticket and the event does not fully reimburse the person for the\nexpenses or provide a ticket of equal value or a rain check.\n (18) "Title insurance," means insuring owners of, and other persons\nlawfully interested in, real property and chattels real against loss by\nreason of defective titles and encumbrances and insuring the correctness\nof searches for all instruments, liens or charges affecting the title to\nsuch property, including power to procure and furnish information\nrelative thereto, and such other incidental powers as are specifically\ngranted in this chapter.\n (19) "Motor vehicle and aircraft physical damage insurance," means\ninsurance against loss of or damage to motor vehicles or aircraft and\ntheir equipment resulting from any cause; and insurance reimbursing a\ndriver for costs including replacement car rental, commercial\ntransportation and accommodations resulting from an automobile accident\nor mechanical breakdown occurring fifty miles or more from the driver's\nprincipal place of residence or garaging.\n (20) "Marine and inland marine insurance," means insurance against any\nand all kinds of loss of or damage to:\n (A) Vessels, hulls, craft, aircraft, cars, automobiles, trailers and\nvehicles of every kind, and all goods, freights, cargoes, merchandise,\neffects, disbursements, profits, moneys, bullion, precious stones,\nsecurities, choses in action, evidences of debt, valuable papers,\nbottomry and respondentia interests and all other kinds of property and\ninterests therein, in respect to, appertaining to or in connection with\nany and all risks or perils of navigation, transit, or transportation,\nincluding war risks, on or under any seas or other waters, on land or in\nthe air, or while being assembled, packed, crated, baled, compressed or\nsimilarly prepared for shipment or while awaiting the same or during any\ndelays, storage, transshipment, or reshipment incident thereto,\nincluding marine builder's risks and all personal property floater\nrisks;\n (B) Person or property in connection with or appertaining to marine,\ninland marine, transit or transportation insurance, including liability\nfor loss of or damage to either, arising out of or in connection with\nthe construction, repair, operation, maintenance or use of the subject\nmatter of such insurance (but not including life insurance or surety\nbonds nor insurance against loss by reason of bodily injury to the\nperson arising out of ownership, maintenance or use of automobiles);\n (C) Precious stones, jewels, jewelry, gold, silver and other precious\nmetals, whether used in business or trade or otherwise and whether the\nsame be in course of transportation or otherwise; and\n (D) Bridges, tunnels and other instrumentalities of transportation and\ncommunication (excluding buildings, their improvements and betterments,\nfurniture and furnishings, fixed contents and supplies held in storage),\nincluding auxiliary facilities and equipment attendant thereto; piers,\nwharves, docks and slips; other aids to navigation and transportation,\nincluding dry docks and marine railways.\n In this chapter "inland marine" insurance shall not include insurance\nof vessels, crafts, their cargoes, marine builders' risks, or other\nsimilar risks, commonly insured only under ocean marine insurance\npolicies.\n (21) "Marine protection and indemnity insurance," means insurance\nagainst, or against legal liability of the insured for, loss, damage or\nexpense arising out of, or incident to, the ownership, operation,\nchartering, maintenance, use, repair or construction of any vessel,\ncraft or instrumentality in use in ocean or inland waterways, including\nliability of the insured for personal injury, illness or death or for\nloss of or damage to the property of another person.\n (22) "Residual value insurance" means insurance issued in connection\nwith a lease or contract which sets forth a specific termination value\nat the end of the term of the lease or contract for the property covered\nby such lease or contract, and which insures against loss of economic\nvalue of tangible personal property or real property or improvements\nthereto except loss due to physical damage to property, excluding any\nlease or contract that falls within the definition of financial guaranty\ninsurance as set forth in paragraph one of subsection (a) of section six\nthousand nine hundred one of this chapter.\n (23) "Mortgage guaranty insurance," means the kind of insurance\nspecified in section six thousand five hundred one of this chapter.\n (24) "Credit unemployment insurance" means insurance on a debtor in\nconnection with a specified loan or other credit transaction within the\nstate to provide payments to a creditor in the event of unemployment of\nthe debtor for the installments or other periodic payments becoming due\nwhile a debtor is unemployed.\n (25) "Financial guaranty insurance," means the kind of insurance\ndefined in paragraph one of subsection (a) of section six thousand nine\nhundred one of this chapter.\n (26) "Gap insurance" means insurance covering the gap amount which is\npayable upon the total loss of personal property, which is the subject\nof a lease or loan or other credit transaction occasioned by its theft\nor physical damage. The kinds of gap insurance are:\n (A) "Motor vehicle lessor/creditor gap insurance" which insures the\nlessor, creditor, or the lessor's or creditor's assignee, under a motor\nvehicle lease or loan or other credit transaction pursuant to which the\nlessor, creditor, or, in the absence of a waiver by the lessor or\ncreditor, the assignee has waived the obligation of the lessee or debtor\nfor the gap amount;\n (B) "Motor vehicle lessee/debtor gap insurance" which insures the\nlessee or debtor under a motor vehicle lease or loan or other credit\ntransaction pursuant to which the lessor, creditor, or the lessor's or\ncreditor's assignee has not waived the obligation of the lessee or\ndebtor for the gap amount;\n (C) "Non-motor vehicle lessor/creditor gap insurance" which insures\nthe lessor, creditor, or the lessor's or creditor's assignee, under a\nlease or loan or other credit transaction covering personal property\nother than a motor vehicle pursuant to which the lessor, creditor, or,\nin the absence of a waiver by the lessor or creditor, the assignee, has\nwaived the obligation of the lessee or debtor for the gap amount; and\n (D) "Non-motor vehicle lessee/debtor gap insurance" which insures the\nlessee or debtor under a lease or loan or other credit transaction\ncovering personal property other than a motor vehicle pursuant to which\nthe lessor, creditor, or the lessor's or creditor's assignee has not\nwaived the obligation of the lessee or debtor for the gap amount.\n (27) "Prize indemnification insurance," means insurance against\nfinancial loss by reason of payment of any sum or item awarded to a\nparticipant in any lawful contest or sports related event.\n (28) "Service contract reimbursement insurance" means insurance issued\nto a provider pursuant to article seventy-nine of this chapter whereby\nthe insurer agrees, for the benefit of service contract holders, to\ndischarge the obligations and liabilities of such provider under the\nterms of the service contracts issued by such provider, including the\nreturn of unearned provider fees upon any termination or cancellation of\nservice contracts, in the event of non-performance of any such\nobligations or liabilities by such provider. Such insurance may also\ninclude insurance issued to a provider to indemnify the provider for\nlosses sustained by reason of the performance of such provider's\nobligations under service contracts issued pursuant to article\nseventy-nine of this chapter.\n (29) "Legal services insurance" means insurance providing legal\nservices or reimbursement of the cost of legal services.\n (30) "Involuntary unemployment insurance" means insurance against the\nloss of income due to the involuntary loss of full-time employment which\nis the result of an individual or mass layoff or employer termination, a\ntemporary suspension or permanent cessation of employment or a business\nfailure.\n (31) "Salary protection insurance" means insurance against financial\nloss caused by the cessation of earned income due to disability from\nsickness, ailment or bodily injury, in an amount up to: (A) that portion\nof an individual's annual earned income which is in excess of the amount\nof in force disability insurance as defined in paragraph three of this\nsubsection in an amount not to exceed seventy-five percent of the\nindividual's annual earned income in total based upon the sum of the in\nforce disability insurance and salary protection insurance when the\nbenefits are payable to the individual or the individual's beneficiary;\nor (B) where such underlying disability insurance cannot be obtained by\nan individual from an authorized insurer, in an amount not to exceed\nseventy-five percent of the individual's annual earned income when the\nbenefits are payable to the individual or the individual's beneficiary.\nAny insurer licensed to write disability insurance as defined in\nparagraph three of this subsection may also write salary protection\ninsurance as defined in this paragraph.\n (32) "Donor medical expense insurance" means insurance indemnifying an\nintended parent for medical or hospital expenses that the intended\nparent is contractually obligated to pay under a donor agreement when\nthe expenses result from medical complications that occur as a result of\nthe donation of gametes. For the purpose of this paragraph, "donor",\n"gametes" and "intended parent" shall have the meaning set forth in\nsection 581-102 of the family court act.\n (33) "Excess business disability insurance," means insurance against\nfinancial loss experienced by a corporate entity or a partnership where\nan individual integral to the successful operation of such corporate\nentity or partnership becomes disabled due to sickness, ailment or\nbodily injury. Such insurance may be obtained in excess of a primary\nbusiness-related disability policy, or in the absence of such a policy\nif coverage cannot be obtained from an authorized insurer. Excess\nbusiness disability insurance coverage may include, but is not limited\nto, reimbursement for all overhead costs and expenses and all capital\noutlays of a corporate entity or partnership which such corporate entity\nor partnership incurs in the ordinary course of business during the\nperiod of disability; and buy/sell arrangements in an amount sufficient\nto purchase the disabled individual's interest share in the corporate\nentity or partnership.\n * (34) "Business interruption insurance" means insurance against loss\nof use and occupancy, rents, and profits resulting from a business\nclosure due to: (A) loss of or damage to insured or neighboring\nproperty; (B) an act or threatened act of violence while the perpetrator\nis on the business premises; or (C) a government order.\n * NB There are 2 (34)'s\n * (34) "Parametric insurance" means insurance against the occurrence\nof a weather-related event, such as windstorm, flood, snow, wildfire,\ntornado, cyclone, or earthquake, where the indemnification is based on\nthe proximity and magnitude of the event as measured and reported by a\nstate or federal government agency.\n * NB There are 2 (34)'s\n (35) "Substantially similar kind of insurance," means such insurance\nwhich in the opinion of the superintendent is determined to be\nsubstantially similar to one of the foregoing kinds of insurance and\nthereupon for the purposes of this chapter shall be deemed to be\nincluded in that kind of insurance.\n (b) Nothing herein contained shall require any insurer to insure every\nkind of risk which it is authorized to insure.\n