Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
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---|---|
Jan 03, 2018 |
referred to judiciary |
Mar 16, 2017 |
referred to judiciary |
Senate Bill S5239
2017-2018 Legislative Session
Sponsored By
(R, C, IP) Senate District
Archive: Last Bill Status - In Senate Committee Judiciary Committee
- Introduced
-
- In Committee Assembly
- In Committee Senate
-
- On Floor Calendar Assembly
- On Floor Calendar Senate
-
- Passed Assembly
- Passed Senate
- Delivered to Governor
- Signed By Governor
Actions
co-Sponsors
(D) 32nd Senate District
2017-S5239 (ACTIVE) - Details
2017-S5239 (ACTIVE) - Sponsor Memo
BILL NUMBER: S5239 TITLE OF BILL : An act to amend the general obligations law, in relation to the invalidity of additional insurance provisions PURPOSE OR GENERAL IDEA OF BILL : This bill would hold invalid any provision in a construction contract that requires the purchase of additional insured coverage the scope of which is prohibited under general obligations law section 5-322.1. SUMMARY OF PROVISIONS : Section 1 - Section 5-322.1 of the general obligations law declares void and unenforceable indemnification clauses in construction contracts where the indemnitee required the indemnitor to indemnify him for damages due in whole or in part to the indemnitee's negligence. Indemnitees have circumvented this prohibition by requiring the indemnitee to provide the indemnitor with additional insured coverage. This bill would correct this unfair practice. Section 2: Establishes the effective date. JUSTIFICATION : The New York State Legislature enacted 5-322.1 of the general
2017-S5239 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 5239 2017-2018 Regular Sessions I N S E N A T E March 16, 2017 ___________ Introduced by Sen. DeFRANCISCO -- read twice and ordered printed, and when printed to be committed to the Committee on Judiciary AN ACT to amend the general obligations law, in relation to the invalid- ity of additional insurance provisions THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 1 of section 5-322.1 of the general obligations law, as amended by chapter 67 of the laws of 1993, is amended to read as follows: 1. A covenant, promise, agreement or understanding in, or in connection with or collateral to a contract or agreement relative to the construction, alteration, repair or maintenance of a building, struc- ture, appurtenances and appliances including moving, demolition and excavating connected therewith, purporting to indemnify or hold harmless the promisee against liability for damage arising out of bodily injury to persons or damage to property contributed to, caused by or resulting from the negligence of the promisee, his agents or employees, or indem- nitee, whether such negligence be in whole or in part, is against public policy and is void and unenforceable; provided that this section shall not affect the validity of any insurance contract, workers' compensation agreement or other agreement issued by an admitted insurer; PROVIDED FURTHER, THAT A PROVISION IN A CONSTRUCTION CONTRACT THAT REQUIRES THE PURCHASE OF ADDITIONAL INSURED COVERAGE, OR ANY COVERAGE ENDORSEMENT, OR PROVISION WITHIN AN INSURANCE POLICY PROVIDING ADDITIONAL INSURED COVER- AGE, IS VOID AND UNENFORCEABLE TO THE EXTENT THAT IT REQUIRES COVERAGE, THE SCOPE OF WHICH IS PROHIBITED UNDER THIS SUBDIVISION. This subdivi- sion shall not preclude a promisee requiring indemnification for damages arising out of bodily injury to persons or damage to property caused by or resulting from the negligence of a party other than the promisee, whether or not the promisor is partially negligent. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD00258-01-7
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