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