Senate Bill S2798B

2023-2024 Legislative Session

Relates to contractual liability insurance policies

download bill text pdf

Sponsored By

Current Bill Status Via A1231 - Passed Senate


  • 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

Do you support this bill?

Please enter your contact information

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.
Actions
Votes

Bill Amendments

2023-S2798 - Details

See Assembly Version of this Bill:
A1231
Law Section:
Insurance Law
Laws Affected:
Amd §§7903 & 7905, Ins L
Versions Introduced in 2021-2022 Legislative Session:
S9101, A10529

2023-S2798 - 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-S2798 - Sponsor Memo

2023-S2798 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2798
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 24, 2023
                                ___________
 
 Introduced  by  Sen. BRESLIN -- read twice and ordered printed, and when
   printed to be committed to the Committee 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
              

2023-S2798A - Details

See Assembly Version of this Bill:
A1231
Law Section:
Insurance Law
Laws Affected:
Amd §§7903 & 7905, Ins L
Versions Introduced in 2021-2022 Legislative Session:
S9101, A10529

2023-S2798A - 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-S2798A - Sponsor Memo

2023-S2798A - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2798--A
     Cal. No. 798
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 24, 2023
                                ___________
 
 Introduced  by  Sen. BRESLIN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Insurance  --  recommitted
   to the Committee on Insurance in accordance with Senate Rule 6, sec. 8
   -- reported favorably from said committee, ordered to first and second
   report,  ordered  to  a  third reading, amended and ordered reprinted,
   retaining its place in the order of third reading
 
 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'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.
              

2023-S2798B (ACTIVE) - Details

See Assembly Version of this Bill:
A1231
Law Section:
Insurance Law
Laws Affected:
Amd §§7903 & 7905, Ins L
Versions Introduced in 2021-2022 Legislative Session:
S9101, A10529

2023-S2798B (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-S2798B (ACTIVE) - Sponsor Memo

2023-S2798B (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2798--B
     Cal. No. 798
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 24, 2023
                                ___________
 
 Introduced  by  Sen. BRESLIN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Insurance  --  recommitted
   to the Committee on Insurance in accordance with Senate Rule 6, sec. 8
   -- reported favorably from said committee, ordered to first and second
   report,  ordered  to  a  third reading, amended and ordered reprinted,
   retaining its place in the order of third reading -- again amended and
   ordered reprinted, retaining its place in the order of third reading
 
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.