Assembly Bill A10563

2023-2024 Legislative Session

Establishes the construction insurance notification act (CINA)

download bill text pdf

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Current Bill Status - In Assembly 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

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2023-A10563 (ACTIVE) - Details

Current Committee:
Assembly Insurance
Law Section:
Insurance Law
Laws Affected:
Add §3428-a, Ins L

2023-A10563 (ACTIVE) - Summary

Establishes the construction insurance notification act (CINA) requiring notification of governmental agencies and departments when certain construction insurance policies have lapsed or been canceled.

2023-A10563 (ACTIVE) - Bill Text download pdf 

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10563
 
                           I N  A S S E M B L Y
 
                               June 4, 2024
                                ___________
 
 Introduced  by  COMMITTEE ON RULES -- (at request of M. of A. Weprin) --
   read once and referred to the Committee on Insurance
 
 AN ACT to amend the insurance law, in relation to requiring notification
   of governmental agencies and  departments  when  certain  construction
   insurance policies have lapsed or been canceled
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  This  act  shall  be  known  and  may  be  cited  as  the
 "construction insurance notification act (CINA)".
   §  2.  The  insurance law is amended by adding a new section 3428-a to
 read as follows:
   § 3428-A. CANCELLATION  OF  CONSTRUCTION  CONTRACTS;  NOTIFICATION  TO
 GOVERNMENTS  THAT  ISSUE  BUILDING  PERMITS.  (A)  EVERY INSURER ISSUING
 CONTRACTS OF INSURANCE OR POLICIES COVERING ACTIVITIES WITHIN THIS STATE
 SHALL MAKE AN INQUIRY OF ALL APPLICANTS FOR INSURANCE CONTRACTS OR POLI-
 CIES TO DETERMINE WHETHER THE PURCHASE OF THE CONTRACT OF  INSURANCE  OR
 POLICY IS INTENDED TO BE SUBMITTED TO ANY GOVERNMENTAL AGENCY OR DEPART-
 MENT  IN ORDER TO OBTAIN A NEW YORK STATE OR LOCAL GOVERNMENT PERMIT FOR
 THE ERECTION, DEMOLITION, REPAIRING,  ALTERING,  PAINTING,  CLEANING  OR
 POINTING OF A BUILDING, STRUCTURE OR EDIFICE. IF THE INQUIRY IS ANSWERED
 IN  THE  AFFIRMATIVE, THE APPLICANT SHALL PROVIDE THE NAME, ADDRESS, AND
 WEBSITE OF SUCH GOVERNMENTAL DEPARTMENT OR AGENCY. THE TRUTH AND ACCURA-
 CY OF INFORMATION PROVIDED IN EVERY APPLICATION FOR SUCH INSURANCE SHALL
 BE SWORN TO OR AFFIRMED BY THE APPLICANT.
   (B) EVERY INSURER THAT HAS ISSUED A CONTRACT OF INSURANCE OR POLICY TO
 AN INSURED WHO IN ACCORDANCE WITH SUBSECTION (A) OF THIS SECTION ANSWERS
 IN THE AFFIRMATIVE SHALL NOTIFY THE GOVERNMENTAL AGENCY OR DEPARTMENT IF
 THE POLICY OR CONTRACT OF INSURANCE HAS  LAPSED  OR  HAS  BEEN  CANCELED
 WITHIN  THE POLICY PERIOD. SUCH NOTICE SHALL BE GIVEN WITHIN TEN DAYS OF
 THE LAPSE OR CANCELLATION. COMPLIANCE IS SATISFIED WHERE  TIMELY  NOTICE
 IS  GIVEN IN WRITING OR ELECTRONICALLY TO THE GOVERNMENTAL DEPARTMENT OR
 AGENCY IDENTIFIED IN THE INSURED'S APPLICATION FOR INSURANCE.
   (C) THE FAILURE TO TIMELY PROVIDE NOTICE REQUIRED BY THIS  SECTION  TO
 THE  GOVERNMENTAL  DEPARTMENT  OR  AGENCY  SHALL RESULT IN THE LAPSED OR
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

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