2023 New York Laws › ISC - Insurance › Article 11 - Licensing of Insurers › 1113 - Kinds of Insurance Authorized.

§  1113.  Kinds  of  insurance  authorized. (a) The kinds of insurance
which may be authorized in this state, subject to  other  provisions  of
this   chapter,  and  their  scope,  are  set  forth  in  the  following
paragraphs. The power to do any kind of insurance  against  loss  of  or
damage  to  property  shall  include  the  power  to  insure  all lawful
interests in such property  and  to  insure  against  loss  of  use  and
occupancy,  rents  and profits resulting therefrom. No kind of insurance
shall include life insurance, title insurance or insurance against legal
liability for personal injury or death unless specified in this section.
In addition to any power  specifically  conferred  by  this  chapter  to
engage  in  any  other  kind of business than an insurance business, any
insurer authorized to do business in this  state  may  engage  in  other
kinds  of  business  to the extent necessarily or properly incidental to
the kinds of insurance business it is authorized to do in this state.
(1) "Life Insurance," means every insurance upon the  lives  of  human
beings, and every insurance appertaining thereto, including the granting
of  endowment  benefits,  additional  benefits  in the event of death by
accident, additional benefits to  safeguard  the  contract  from  lapse,
accelerated  payments  of  part or all of the death benefit or a special
surrender value upon (A) diagnosis of terminal illness defined as a life
expectancy of  twelve  months  or  less,  (B)  diagnosis  of  a  medical
condition  requiring  extraordinary medical care or treatment regardless
of  life  expectancy,  (C)  certification  by  a  licensed  health  care
practitioner  of  any  condition  which requires continuous care for the
remainder of the insured's life in an eligible facility or at home  when
the  insured  is  chronically  ill  as defined by Section 7702(B) of the
Internal  Revenue  Code  and  regulations   thereunder,   provided   the
accelerated  payments  qualify  under  Section 101(g)(3) of the Internal
Revenue Code and all other applicable sections of federal law  in  order
to  maintain  favorable  tax  treatment, (D) certification by a licensed
health care practitioner that the insured is chronically ill as  defined
by  Section  7702  (B)  of  the  Internal  Revenue  Code and regulations
thereunder, provided the  accelerated  payments  qualify  under  Section
101(g)(3) of the Internal Revenue Code and all other applicable sections
of  federal  law  in  order to maintain favorable tax treatment, (E) the
insured's having been a resident  of  a  nursing  home,  as  defined  in
section  twenty-eight hundred one of the public health law, for a period
of three months or more, with an  expectation  that  such  insured  will
remain  a  resident  of a nursing home until death, or (F) the insured's
having been the recipient of end of  life  or  palliative  care,  for  a
period of three months or more, at a residential health care facility as
defined  in subdivision three of section twenty-eight hundred one of the
public health law, home care services as defined in subdivision  one  of
section  thirty-six  hundred  two of the public health law or hospice as
defined in subdivision one of section four thousand two  of  the  public
health  law,  with  the  expectation  that such insured will continue to
require such services until death.  "Life  insurance"  also  includes  a
special  surrender  value  upon  total  and  permanent disability of the
insured, optional  modes  of  settlement  of  proceeds,  and  additional
benefits  to  safeguard  the  contract  against  lapse  in  the event of
unemployment of the insured or in the event the insured is a resident of
a nursing home. Amounts paid the insurer for life insurance and proceeds
applied under optional modes of settlement or under dividend options may
be allocated by the insurer to one or more separate accounts pursuant to
section four thousand two hundred forty of this chapter.
(2) "Annuities," means all agreements to make periodical payments  for
a  period certain or where the making or continuance of all or some of a
series of such payments, or the amount of any such payment, depends upon

the continuance of human life, except payments made under the  authority
of  paragraph  one hereof. Amounts paid the insurer to provide annuities
and proceeds  applied  under  optional  modes  of  settlement  or  under
dividend options may be allocated by the insurer to one or more separate
accounts  pursuant  to  section  four thousand two hundred forty of this
chapter.
(3) "Accident and health insurance," means (i) insurance against death
or personal injury by accident or by any  specified  kind  or  kinds  of
accident  and  insurance  against  sickness,  ailment  or bodily injury,
including insurance  providing  disability  and  family  leave  benefits
pursuant  to  article  nine  of the workers' compensation law, except as
specified in item  (ii)  hereof;  and  (ii)  non-cancellable  disability
insurance, meaning insurance against disability resulting from sickness,
ailment  or  bodily  injury  (but  excluding  insurance  solely  against
accidental injury) under any contract which does not  give  the  insurer
the option to cancel or otherwise terminate the contract at or after one
year from its effective date or renewal date.
(4) "Fire insurance," means insurance against loss of or damage to any
property  resulting  from fire, including loss or damage incident to the
extinguishment of a fire or to the salvaging of property  in  connection
therewith.
(5)  "Miscellaneous  property  insurance,"  means loss of or damage to
property resulting from:
(A)  lightning,  smoke  or  smudge,   windstorm,   tornado,   cyclone,
earthquake,  volcanic eruption, rain, hail, frost and freeze, weather or
climatic conditions, excess or deficiency of moisture, flood, the rising
of the waters of the ocean or its tributaries;
(B) insects, or blights, or disease of such property except animals;
(C) electrical disturbance causing or concomitant with a  fire  or  an
explosion in public service or public utility property;
(D) bombardment, invasion, insurrection, riot, civil war or commotion,
military  or  usurped  power,  any  order  of  a civil authority made to
prevent  the  spread  of  a  conflagration,  epidemic  or   catastrophe,
vandalism  or  malicious  mischief, strike or lockout, collapse from any
cause, or explosion; but excluding any kind of  insurance  specified  in
paragraph  nine  hereof,  except  insurance against loss of or damage to
property resulting from:
(i) explosion of pressure vessels (except steam boilers of  more  than
fifteen  pounds  pressure)  in  buildings  designed  and used solely for
residential purposes by not more than four families,
(ii) explosion of any kind originating outside of the insured building
or outside of the building containing the property insured,
(iii) explosion of pressure vessels which  do  not  contain  steam  or
which are not operated with steam coils or steam jackets, or
(iv)  electrical  disturbance causing or concomitant with an explosion
in public service or public utility property; or
(E) lateral or vertical subsidence of the  earth  caused  by  past  or
present mining operations.
(6)  "Water  damage insurance," means insurance against loss or damage
by water or other fluid or substance to any property resulting from  the
breakage  or leakage of sprinklers, pumps or other apparatus erected for
extinguishing fires or of water pipes or other conduits  or  containers,
or  resulting  from  casual  water entering through leaks or openings in
buildings or by seepage through building walls, but  excluding  loss  or
damage  resulting from flood or the rising of the waters of the ocean or
its tributaries; and including insurance against  accidental  injury  of
such sprinklers, pumps, fire apparatus, conduits or containers.
(7) "Burglary and theft insurance," means:
(A)  Insurance  against  loss of, or damage to, any property resulting
from burglary,  theft,  larceny,  robbery,  forgery,  fraud,  vandalism,
malicious  mischief,  confiscation, or wrongful conversion, disposal, or
concealment by any person, or from any attempt thereof;
(B)  Insurance  against loss of, or damage to, moneys, coins, bullion,
securities, notes, drafts, acceptances, or any other valuable papers  or
documents,  resulting  from  any  cause,  except while in the custody or
possession of, and being transported by, any carrier for hire or in  the
mail;
(C)  Insurance  of  individuals by means of an all-risk type of policy
commonly known as the "Personal Property Floater" against any  kind  and
all  kinds  of  loss  of,  or damage to, or loss of use of, any personal
property other than merchandise;
(D) Insurance covering a ransom or  reward  payment  incurred  as  the
result  of  an  abduction  or  the theft of property; travel and lodging
expense and lost wages incurred as the result of an  act  or  threatened
act  of  violence;  expense  incurred to locate or identify a missing or
abducted person; or other expenses  to  respond  to  a  violent  act  or
threatened act, or to prevent a reoccurrence thereof; and
(E)  Insurance  against  losses  and expenses resulting from a "stolen
identity event," which shall include the theft, accidental  release,  or
publication  of,  or  misappropriation  of  information  related  to, an
individual's personal identification, social security number,  or  other
method  of  identifying  the  individual, that has resulted in, or could
reasonably result in, the wrongful use of the information.
(8) "Glass insurance," means insurance against loss of  or  damage  to
glass and its appurtenances resulting from any cause.
(9)  "Boiler and machinery insurance," means insurance against loss of
or damage to any property of the insured, resulting from explosion of or
injury to:
(A) any boiler, heater or other fired pressure vessel;
(B) any unfired pressure vessel;
(C) pipes or containers connected with any such boilers or vessels;
(D) any engine, turbine, compressor, pump or wheel;
(E) any apparatus generating, transmitting or using electricity; or
(F) any other machinery or apparatus connected with or operated by any
such boilers, vessels or machines; and including the incidental power to
make inspections of, and issue certificates of inspection upon, any such
boilers, apparatus, and machinery, whether insured or otherwise.
(10) "Elevator insurance," means insurance against loss of  or  damage
to any property of the insured, resulting from ownership, maintenance or
use of elevators, except loss or damage by fire.
(11)  "Animal insurance," means insurance against loss of or damage to
any domesticated or wild animal resulting from any cause.
(12) "Collision insurance," means insurance against loss of or  damage
to  any  property  of  the insured resulting from collision of any other
object with such property, but excluding collision to or  by  elevators,
or to or by vessels, craft, piers or other instrumentalities of ocean or
inland navigation.
(13)  "Personal  injury  liability insurance," means insurance against
legal liability of the insured, and  against  loss,  damage  or  expense
incident   to  a  claim  of  such  liability  (including  the  insurer's
obligation to pay medical, hospital, surgical and disability benefits to
injured  persons,  and  funeral  and  death  benefits   to   dependents,
beneficiaries  or  personal  representatives  of persons who are killed,
irrespective of legal liability of the insured), arising out of death or
injury of any person, or arising out of injury to the economic interests
of any  person,  as  the  result  of  negligence  in  rendering  expert,

fiduciary  or  professional service, but excluding any kind of insurance
specified in paragraph fifteen except insurance to  protect  an  insured
against  liability  for indemnification or contribution to a third party
held responsible for injury to the insured's employee arising out of and
in  the  course of employment when such insurance is written pursuant to
this paragraph and not written pursuant to  paragraph  fifteen  of  this
subsection.
(14)  "Property  damage  liability insurance," means insurance against
legal liability of the insured, and  against  loss,  damage  or  expense
incident  to  a  claim  of  such  liability,  arising out of the loss or
destruction of, or damage to, the property of any other person, but  not
including any kind of insurance specified in paragraph thirteen, fifteen
or twenty-eight of this subsection.
(15) "Workers' compensation and employers' liability insurance," means
insurance  against  the  legal liability, under common law or statute or
assumed by contract, of any employer for the death or disablement of, or
injury to,  his  employee,  including  volunteer  firefighters'  benefit
insurance  provided  pursuant to the volunteer firefighters' benefit law
including  volunteer  ambulance  workers'  benefit  insurance   provided
pursuant  to  the volunteer ambulance workers' benefit law and insurance
for workers' compensation benefits for death and injuries arising out of
crimes provided by the independent livery driver benefit  fund  pursuant
to article six-G of the executive law.
(16) "Fidelity and surety insurance," means:
(A)  Guaranteeing  the fidelity of persons holding positions of public
or private trust; and indemnifying banks,  thrifts,  brokers  and  other
financial  institutions  against  loss  of money, securities, negotiable
instruments, other specified  valuable  papers  and  tangible  items  of
personal  property caused by larceny, misplacement, destruction or other
stated perils including loss while being transported in an armored motor
vehicle or by messenger; and insurance for loss caused by the forgery of
signatures on,  or  alteration  of,  specified  documents  and  valuable
papers;
(B)  Insurance  against  losses  that  financial  institutions  become
legally obligated to pay by reason of loss of customers'  property  from
safe deposit boxes;
(C) Any contract bond; including a bid, payment or maintenance bond or
a  performance  bond where the bond is guaranteeing the execution of any
contract other  than  a  contract  of  indebtedness  or  other  monetary
obligation;
(D)  An  indemnity  bond for the benefit of a public body, railroad or
charitable organization; a lost security or utility payment bond;
(E) Becoming surety on, or guaranteeing the performance of, any lawful
contract, not specifically provided for in this paragraph, but does  not
include becoming surety on, or guaranteeing the performance of:
(i)  any  insurance  contract except as authorized pursuant to section
one thousand one hundred fourteen of this article; or
(ii)  any  contract,  if  becoming  surety  on,  or  guaranteeing  the
performance of that contract, would constitute:
a. mortgage guaranty insurance as defined in subsection (a) of section
six thousand five hundred one of this chapter;
b.  financial  guaranty  insurance  as  defined  in  subsection (a) of
section six thousand nine hundred one of this chapter; or
c. service contract reimbursement insurance as  defined  in  paragraph
twenty-eight of this subsection;
(F)  Becoming surety on, or guaranteeing the performance of, bonds and
undertakings required  or  permitted  in  all  judicial  proceedings  or
otherwise  by law allowed, including surety bonds accepted by states and

municipal  authorities  in  lieu  of  deposits  as  security   for   the
performance of insurance contracts;
(G)  Becoming  surety  on,  or  guaranteeing  the  performance of, any
agreement for the lease or rental of non-residential  real  property  or
tangible  personal property, provided that the obligation of the insurer
shall not exceed a period of five years, and  the  bond  is  not  issued
directly  or  indirectly  in  connection  with the sale of securities, a
pooling of financial assets or a  credit  default  swap  as  defined  by
article sixty-nine of this chapter;
(H) Becoming surety on, or guaranteeing the performance of, a contract
of  indebtedness  or  other monetary obligation where: (i) the aggregate
gross principal, interest, and other amounts of  indebtedness  or  other
monetary  obligations of any obligor whose obligations are guaranteed by
the insurer under all bonds issued to  that  obligor  pursuant  to  this
subparagraph  by  the  insurer  does not exceed ten million dollars; and
(ii) the bond is not issued directly or indirectly  in  connection  with
the  sale  of  securities,  a  pooling  of financial assets, or a credit
default swap as defined by article sixty-nine of this chapter; and (iii)
the bond by its terms terminates upon any sale or other transfer of  the
insured  obligation in connection with the sale of securities, a pooling
of financial assets, or a credit default  swap  as  defined  by  article
sixty-nine of this chapter;
(I)  A depository bond that insures deposits in financial institutions
to the extent of the excess over  the  amount  insured  by  the  Federal
Deposit Insurance Corporation; and
(J)  Becoming  surety  on, or guaranteeing the performance of, a bond,
which shall not exceed a period greater than five years, that guarantees
the payment of a premium, deductible, or self-insured  retention  to  an
insurer issuing a workers' compensation or liability policy.
In  this chapter "fidelity" insurance shall have the meaning set forth
in subparagraphs (A) and (B) of this paragraph.
(17) "Credit insurance," means:
(A) Indemnifying merchants or other persons extending  credit  against
loss  or  damage  resulting  from non-payment of debts owed to them, for
goods and services provided in the  normal  course  of  their  business,
including  the  incidental  power  to  acquire  and  dispose of debts so
insured, and to collect any  debts  owed  to  such  insurer  or  to  the
insured, but no insurance may be written as credit insurance if it falls
within  the  definition  of financial guaranty insurance as set forth in
paragraph one of subsection (a) of section six thousand nine hundred one
of this chapter;
(B) Indemnifying any person for expenses disbursed or to be  disbursed
under  a  contract  in  connection  with  the  cancellation of a catered
affair;
(C) Indemnifying any person for tuition and other educational expenses
disbursed or to be disbursed under a contract in connection with his  or
her   dismissal  or  withdrawal  from  an  educational  institution;  or
indemnifying elementary or secondary schools, whether  public,  private,
profit  or non-profit, providing education in consideration of a tuition
charge or fee against loss or damage in the event of non-payment of  the
tuition  charges  or  fees of a student or pupil dismissed, withdrawn or
leaving before the end of the school year for  which  the  insurance  is
written.   An   educational  institution  may  not  require  any  person
responsible for the payment of a student's or pupil's tuition charge  or
fee to pay for tuition refund insurance;
(D) (i)(I) Indemnifying an adoptive parent for verifiable expenses not
prohibited  under  the law paid to or on behalf of the birth mother when
either one or both of  the  birth  parents  of  the  child  withdraw  or

withhold   their   consent   to  adoption.  Such  expenses  may  include
maternity-connected medical or hospital expenses of  the  birth  mother,
necessary  living  expenses  of  the  birth  mother preceding and during
confinement,  travel  expenses  of  the  birth mother to arrange for the
adoption of the child, legal fees of the birth  mother,  and  any  other
expenses that an adoptive parent may lawfully pay to or on behalf of the
birth mother; or (II) Indemnifying an intended parent for financial loss
incurred as a result of the failure by the person acting as surrogate to
perform  under  the  surrogacy  contract  due  to  death, bodily injury,
sickness,  disappearance  of  the  person  acting  as  surrogate,   late
miscarriage,  or  stillbirth.  Such financial loss shall include medical
and  hospital  expenses,   insurance   co-payments,   deductibles,   and
coinsurance, necessary living expenses of the person acting as surrogate
during  the  term  of the surrogacy contract, travel expenses to arrange
for the surrogacy, legal fees of the person acting as surrogate, and any
other expenses that an intended parent may lawfully pay to or on  behalf
of  the  person  acting  as surrogate; and (ii) For the purposes of this
subparagraph "adoptive parent" means the parent or  his  or  her  spouse
seeking  to adopt a child, "birth mother" means the biological mother of
the child, "birth parent" means  the  biological  mother  or  biological
father  of  the  child, and the terms "donor", "intended parent", person
acting as surrogate", and "surrogacy agreement" shall have  the  meaning
set forth in section 581-102 of the family court act; or
(E)  Indemnifying  professional  sports  participants  (including  any
person who participates or expects to participate as  a  player,  coach,
manager,  trainer,  physician or other person directly associated with a
player or a team) under contract or the teams with which the contract is
made, entertainers under contract to perform or the entities with  which
the  contract  is  made,  or  business  executives  under  an employment
contract or  the  entities  with  which  the  contract  is  made,  where
contracts between such persons and teams or entities cannot be fulfilled
due  to  a  sports  participant's, entertainer's or business executive's
death, personal injury by accident, sickness, ailment or  bodily  injury
that  causes disability, where such indemnification is for the amount of
financial loss that is sustained by the insured party or parties due  to
the inability to fulfill the terms of the contract.
(F)  Indemnifying any person for expenses disbursed or to be disbursed
for a ticket to an event, including any fees, when the person cannot use
the ticket and the event does not fully reimburse  the  person  for  the
expenses or provide a ticket of equal value or a rain check.
(18)  "Title  insurance,"  means insuring owners of, and other persons
lawfully interested in, real property and chattels real against loss  by
reason of defective titles and encumbrances and insuring the correctness
of searches for all instruments, liens or charges affecting the title to
such  property,  including  power  to  procure  and  furnish information
relative thereto, and such other incidental powers as  are  specifically
granted in this chapter.
(19)  "Motor  vehicle  and  aircraft physical damage insurance," means
insurance against loss of or damage to motor vehicles  or  aircraft  and
their  equipment  resulting  from any cause; and insurance reimbursing a
driver  for  costs  including   replacement   car   rental,   commercial
transportation  and accommodations resulting from an automobile accident
or mechanical breakdown occurring fifty miles or more from the  driver's
principal place of residence or garaging.
(20) "Marine and inland marine insurance," means insurance against any
and all kinds of loss of or damage to:
(A)  Vessels,  hulls, craft, aircraft, cars, automobiles, trailers and
vehicles of every kind, and all goods, freights,  cargoes,  merchandise,

effects,  disbursements,  profits,  moneys,  bullion,  precious  stones,
securities, choses  in  action,  evidences  of  debt,  valuable  papers,
bottomry  and respondentia interests and all other kinds of property and
interests  therein, in respect to, appertaining to or in connection with
any and all risks or perils of navigation, transit,  or  transportation,
including war risks, on or under any seas or other waters, on land or in
the  air, or while being assembled, packed, crated, baled, compressed or
similarly prepared for shipment or while awaiting the same or during any
delays,  storage,  transshipment,  or   reshipment   incident   thereto,
including  marine  builder's  risks  and  all  personal property floater
risks;
(B) Person or property in connection with or appertaining  to  marine,
inland  marine, transit or transportation insurance, including liability
for loss of or damage to either, arising out of or  in  connection  with
the  construction,  repair, operation, maintenance or use of the subject
matter of such insurance (but not including  life  insurance  or  surety
bonds  nor  insurance  against  loss  by  reason of bodily injury to the
person arising out of ownership, maintenance or use of automobiles);
(C) Precious stones, jewels, jewelry, gold, silver and other  precious
metals,  whether  used in business or trade or otherwise and whether the
same be in course of transportation or otherwise; and
(D) Bridges, tunnels and other instrumentalities of transportation and
communication (excluding buildings, their improvements and  betterments,
furniture and furnishings, fixed contents and supplies held in storage),
including  auxiliary  facilities and equipment attendant thereto; piers,
wharves, docks and slips; other aids to navigation  and  transportation,
including dry docks and marine railways.
In  this chapter "inland marine" insurance shall not include insurance
of vessels, crafts, their cargoes,  marine  builders'  risks,  or  other
similar  risks,  commonly  insured  only  under  ocean  marine insurance
policies.
(21) "Marine protection  and  indemnity  insurance,"  means  insurance
against,  or against legal liability of the insured for, loss, damage or
expense arising out  of,  or  incident  to,  the  ownership,  operation,
chartering,  maintenance,  use,  repair  or  construction of any vessel,
craft or instrumentality in use in ocean or inland waterways,  including
liability  of  the  insured for personal injury, illness or death or for
loss of or damage to the property of another person.
(22) "Residual value insurance" means insurance issued  in  connection
with  a  lease or contract which sets forth a specific termination value
at the end of the term of the lease or contract for the property covered
by such lease or contract, and which insures against  loss  of  economic
value  of  tangible  personal  property or real property or improvements
thereto except loss due to physical damage to  property,  excluding  any
lease or contract that falls within the definition of financial guaranty
insurance as set forth in paragraph one of subsection (a) of section six
thousand nine hundred one of this chapter.
(23)  "Mortgage  guaranty  insurance,"  means  the  kind  of insurance
specified in section six thousand five hundred one of this chapter.
(24) "Credit unemployment insurance" means insurance on  a  debtor  in
connection  with a specified loan or other credit transaction within the
state to provide payments to a creditor in the event of unemployment  of
the  debtor for the installments or other periodic payments becoming due
while a debtor is unemployed.
(25) "Financial guaranty  insurance,"  means  the  kind  of  insurance
defined  in paragraph one of subsection (a) of section six thousand nine
hundred one of this chapter.
(26) "Gap insurance" means insurance covering the gap amount which  is
payable  upon  the total loss of personal property, which is the subject
of a lease or loan or other credit transaction occasioned by  its  theft
or physical damage. The kinds of gap insurance are:
(A)  "Motor  vehicle  lessor/creditor gap insurance" which insures the
lessor, creditor, or the lessor's or creditor's assignee, under a  motor
vehicle  lease or loan or other credit transaction pursuant to which the
lessor, creditor, or, in the absence  of  a  waiver  by  the  lessor  or
creditor, the assignee has waived the obligation of the lessee or debtor
for the gap amount;
(B)  "Motor  vehicle  lessee/debtor  gap  insurance" which insures the
lessee or debtor under a motor vehicle lease or  loan  or  other  credit
transaction  pursuant  to which the lessor, creditor, or the lessor's or
creditor's assignee has not waived  the  obligation  of  the  lessee  or
debtor for the gap amount;
(C)  "Non-motor  vehicle  lessor/creditor gap insurance" which insures
the lessor, creditor, or the lessor's or creditor's  assignee,  under  a
lease  or  loan  or  other credit transaction covering personal property
other than a motor vehicle pursuant to which the lessor,  creditor,  or,
in  the absence of a waiver by the lessor or creditor, the assignee, has
waived the obligation of the lessee or debtor for the gap amount; and
(D) "Non-motor vehicle lessee/debtor gap insurance" which insures  the
lessee  or  debtor  under  a  lease  or loan or other credit transaction
covering personal property other than a motor vehicle pursuant to  which
the  lessor,  creditor,  or  the lessor's or creditor's assignee has not
waived the obligation of the lessee or debtor for the gap amount.
(27)  "Prize  indemnification  insurance,"  means  insurance   against
financial  loss  by  reason  of  payment of any sum or item awarded to a
participant in any lawful contest or sports related event.
(28) "Service contract reimbursement insurance" means insurance issued
to a provider pursuant to article seventy-nine of this  chapter  whereby
the  insurer  agrees,  for  the  benefit of service contract holders, to
discharge the obligations and liabilities of  such  provider  under  the
terms  of  the  service contracts issued by such provider, including the
return of unearned provider fees upon any termination or cancellation of
service  contracts,  in  the  event  of  non-performance  of  any   such
obligations  or  liabilities  by  such provider. Such insurance may also
include insurance issued to a provider to  indemnify  the  provider  for
losses  sustained  by  reason  of  the  performance  of  such provider's
obligations  under  service  contracts  issued   pursuant   to   article
seventy-nine of this chapter.
(29)  "Legal  services  insurance"  means  insurance  providing  legal
services or reimbursement of the cost of legal services.
(30) "Involuntary unemployment insurance" means insurance against  the
loss of income due to the involuntary loss of full-time employment which
is the result of an individual or mass layoff or employer termination, a
temporary  suspension or permanent cessation of employment or a business
failure.
(31) "Salary protection insurance" means insurance  against  financial
loss  caused  by  the  cessation of earned income due to disability from
sickness, ailment or bodily injury, in an amount up to: (A) that portion
of an individual's annual earned income which is in excess of the amount
of in force disability insurance as defined in paragraph three  of  this
subsection  in  an  amount  not  to  exceed  seventy-five percent of the
individual's annual earned income in total based upon the sum of the  in
force  disability  insurance  and  salary  protection insurance when the
benefits are payable to the individual or the individual's  beneficiary;
or  (B) where such underlying disability insurance cannot be obtained by

an individual from an authorized insurer, in an  amount  not  to  exceed
seventy-five  percent  of the individual's annual earned income when the
benefits are payable to the individual or the individual's  beneficiary.
Any  insurer  licensed  to  write  disability  insurance  as  defined in
paragraph three of this subsection  may  also  write  salary  protection
insurance as defined in this paragraph.
(32) "Donor medical expense insurance" means insurance indemnifying an
intended  parent  for  medical  or  hospital  expenses that the intended
parent is contractually obligated to pay under a  donor  agreement  when
the expenses result from medical complications that occur as a result of
the  donation  of  gametes.  For the purpose of this paragraph, "donor",
"gametes" and "intended parent" shall have  the  meaning  set  forth  in
section 581-102 of the family court act.
(33)  "Excess  business disability insurance," means insurance against
financial loss experienced by a corporate entity or a partnership  where
an  individual  integral  to  the successful operation of such corporate
entity or partnership becomes  disabled  due  to  sickness,  ailment  or
bodily  injury.  Such  insurance  may be obtained in excess of a primary
business-related disability policy, or in the absence of such  a  policy
if  coverage  cannot  be  obtained  from  an  authorized insurer. Excess
business disability insurance coverage may include, but is  not  limited
to,  reimbursement  for  all overhead costs and expenses and all capital
outlays of a corporate entity or partnership which such corporate entity
or partnership incurs in the ordinary  course  of  business  during  the
period  of disability; and buy/sell arrangements in an amount sufficient
to purchase the disabled individual's interest share  in  the  corporate
entity or partnership.
(34)  "Substantially  similar kind of insurance," means such insurance
which  in  the  opinion  of  the  superintendent  is  determined  to  be
substantially  similar  to  one  of the foregoing kinds of insurance and
thereupon for the purposes  of  this  chapter  shall  be  deemed  to  be
included in that kind of insurance.
(b) Nothing herein contained shall require any insurer to insure every
kind of risk which it is authorized to insure.