Assembly Bill A1231

2023-2024 Legislative Session

Relates to contractual liability insurance policies

download bill text pdf

Sponsored By

Current Bill Status - Passed Senate & Assembly


  • 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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Bill Amendments

2023-A1231 - Details

Law Section:
Insurance Law
Laws Affected:
Amd §§7903 & 7905, Ins L
Versions Introduced in 2021-2022 Legislative Session:
A10529

2023-A1231 - Summary

Relates to contractual liability insurance policies; requires the insurer to either discharge the obligations of the provider under the terms of the service contract, or in the event of the provider's nonperformance, cancellation of the service contract.

2023-A1231 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1231
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 13, 2023
                                ___________
 
 Introduced by M. of A. LUNSFORD -- read once and referred to the Commit-
   tee on Insurance
 
 AN  ACT to amend the insurance law, in relation to contractual liability
   insurance policies
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Paragraph 1 of subsection (c) of section 7903 of the insur-
 ance  law,  as amended by chapter 578 of the laws of 2000, is amended to
 read as follows:
   (1) [insure the performance of all its obligations under  all  service
 contracts   pursuant  to  a]  PURCHASE  ONE  OR  MORE  service  contract
 reimbursement insurance [policy] POLICIES issued by [an insurer] ONE  OR
 MORE  INSURERS authorized to issue service contract reimbursement insur-
 ance in this state or procured by an excess line  licensee  pursuant  to
 section  two  thousand  one  hundred  eighteen  of  this chapter.   EACH
 REIMBURSEMENT INSURANCE POLICY SHALL OBLIGATE THE  INSURER  THAT  ISSUED
 SUCH  POLICY  TO  EITHER  PROVIDE  REIMBURSEMENT TO THE PROVIDER FOR ALL
 OBLIGATIONS INCURRED  BY  A  PROVIDER  UNDER  THE  TERMS  OF  A  SERVICE
 CONTRACT,  OR  IN THE EVENT OF THE PROVIDER'S NONPERFORMANCE, PROVIDE OR
 PAY ON BEHALF  OF  THE  PROVIDER  ALL  COVERED  CONTRACTUAL  OBLIGATIONS
 INCURRED  BY THE PROVIDER. In the event the provider fails to insure its
 obligations pursuant to this paragraph or in the event that such  insur-
 ance shall lapse or be terminated, the provider shall comply with either
 paragraph  two or three of this subsection within forty-five days of the
 insurance lapse or termination;
   § 2. Subsection (b) of section 7905 of the insurance law, as added  by
 chapter 614 of the laws of 1997, is amended to read as follows:
   (b)  Service  contracts insured under [a] ONE OR MORE service contract
 reimbursement insurance [policy] POLICIES pursuant to [paragarph]  PARA-
 GRAPH one of subsection (c) of section seven thousand nine hundred three
 of this article shall contain a statement in substantially the following
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01943-01-3
              

co-Sponsors

2023-A1231A (ACTIVE) - Details

Law Section:
Insurance Law
Laws Affected:
Amd §§7903 & 7905, Ins L
Versions Introduced in 2021-2022 Legislative Session:
A10529

2023-A1231A (ACTIVE) - Summary

Relates to contractual liability insurance policies; requires the insurer to either discharge the obligations of the provider under the terms of the service contract, or in the event of the provider's nonperformance, cancellation of the service contract.

2023-A1231A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  1231--A
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 13, 2023
                                ___________
 
 Introduced by M. of A. LUNSFORD -- read once and referred to the Commit-
   tee  on  Insurance  --  recommitted  to  the Committee on Insurance in
   accordance with Assembly Rule 3, sec. 2 -- committee discharged,  bill
   amended,  ordered reprinted as amended and recommitted to said commit-
   tee

 AN ACT to amend the insurance law, in relation to contractual  liability
   insurance policies
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph 1 of subsection (c) of section 7903 of the insur-
 ance law, as amended by chapter 578 of the laws of 2000, is  amended  to
 read as follows:
   (1)  insure  the  performance of all its obligations under all service
 contracts pursuant to [a] ONE OR  MORE  service  contract  reimbursement
 insurance  [policy] POLICIES issued by [an insurer] ONE OR MORE INSURERS
 authorized to issue service contract  reimbursement  insurance  in  this
 state  or  procured  by  an excess line licensee pursuant to section two
 thousand one hundred eighteen of this chapter.   EACH  SERVICE  CONTRACT
 REIMBURSEMENT  INSURANCE  POLICY  SHALL OBLIGATE THE INSURER THAT ISSUED
 SUCH POLICY TO EITHER DISCHARGE THE OBLIGATIONS AND LIABILITIES OF  SUCH
 PROVIDER UNDER THE TERMS OF THE SERVICE CONTRACTS ISSUED BY SUCH PROVID-
 ER,  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  OR  INDEMNIFY  THE
 PROVIDER  FOR  LOSSES  SUSTAINED  BY  REASON  OF THE PERFORMANCE OF SUCH
 PROVIDER'S OBLIGATIONS UNDER SERVICE CONTRACTS ISSUED PURSUANT  TO  THIS
 ARTICLE.  In  the  event  the  provider  fails to insure its obligations
 pursuant to this paragraph or in the event  that  such  insurance  shall
 lapse  or be terminated, the provider shall comply with either paragraph
 two or three of this subsection within forty-five days of the  insurance
 lapse or termination;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01943-04-4
              

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