Title: Business Interruption Insurance Coverage Act of 2020
Policy area: Finance and Financial Sector

Summary:
Business Interruption Insurance Coverage Act of 2020
This bill requires insurers that provide business interruption coverage to insure as part of this coverage losses from a viral pandemic, a government-ordered business closure or evacuation, or a power disruption conducted for public safety purposes.
The bill also nullifies provisions in a business interruption insurance contract in force on the date of enactment that exclude such an event from coverage. An insurer may reinstate such an exclusion if (1) the insured authorizes the reinstatement in writing, or (2) the insured fails to pay the corresponding premium increase after adequate notice by the insurer of such an increase.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6494 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 6494

 To make available insurance coverage for business interruption losses 
   due to viral pandemics, forced closures of businesses, mandatory 
evacuations, and public safety power shut-offs, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 14, 2020

Mr. Thompson of California (for himself, Mr. Larson of Connecticut, Mr. 
  Hastings, Mrs. Napolitano, Mr. Rogers of Alabama, Mr. McNerney, Mr. 
     Cisneros, Mr. Cox of California, Mr. Garamendi, and Mr. Soto) 
 introduced the following bill; which was referred to the Committee on 
                           Financial Services

_______________________________________________________________________

                                 A BILL


 
 To make available insurance coverage for business interruption losses 
   due to viral pandemics, forced closures of businesses, mandatory 
evacuations, and public safety power shut-offs, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Business Interruption Insurance 
Coverage Act of 2020''.

SEC. 2. BUSINESS INTERRUPTION COVERAGE REQUIREMENTS.

    Effective upon the date of the enactment of this Act, each insurer 
that offers or makes available business interruption insurance 
coverage--
            (1) shall make available, in all of its policies providing 
        business interruption insurance, coverage for losses resulting 
        from--
                    (A) any viral pandemic;
                    (B) any forced closure of businesses, or mandatory 
                evacuation, by law or order of any government or 
                governmental officer or agency, including the Federal 
                Government and State and local governments; or
                    (C) any power shut-off conducted for public safety 
                purposes; and
            (2) shall make available business interruption insurance 
        coverage for losses specified in paragraph (1) that does not 
        differ materially from the terms, amounts, and other coverage 
        limitations applicable to losses arising from events other than 
        those specified in paragraph (1).

SEC. 3. PREEMPTION AND NULLIFICATION OF PRE-EXISTING EXCLUSIONS.

    (a) General Nullification.--Any exclusion in a contract for 
business interruption insurance that is in force on the date of the 
enactment of this Act shall be void to the extent that it excludes 
losses specified in section 2(1).
    (b) General Preemption.--Any State approval of any exclusion of 
losses from a contract for business interruption insurance that is in 
force on the date of the enactment of this Act shall be void to the 
extent that it excludes losses specified in section 2(1).
    (c) Reinstatement of Exclusions.--Notwithstanding subsections (a) 
and (b) or any provision of State law, an insurer may reinstate a 
preexisting provision in a contract for business interruption insurance 
that is in force on the date of the enactment of this Act and that 
excludes coverage for losses specified in section 2(1) only--
            (1) if the insurer has received a written statement from 
        the insured that affirmatively authorizes such reinstatement; 
        or
            (2) if--
                    (A) the insured fails to pay any increased premium 
                charged by the insurer for providing such business 
                interruption coverage; and
                    (B) the insurer provided notice, at least 30 days 
                before any such reinstatement, of--
                            (i) the increased premium for such business 
                        interruption coverage; and
                            (ii) the rights of the insured with respect 
                        to such coverage, including any date upon which 
                        the exclusion would be reinstated if no payment 
                        is received.

SEC. 4. DEFINITIONS.

    For purposes of this Act, the following definitions shall apply:
            (1) Business interruption insurance coverage.--The term 
        ``business interruption insurance coverage'' means property and 
        casualty insurance coverage provided or made available for 
        losses resulting from periods of suspended business operations, 
        whether provided under broader coverage or separately.
            (2) Insurer.--The term ``insurer'' has the meaning given 
        such term in section 102 of the Terrorism Risk Insurance Act of 
        2002 (15 U.S.C. 6701 note).
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