NY State Senate Bill 2023-S2798

Current Bill Status Via A1231 - Delivered to Governor

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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Nov 15, 2024	delivered to governor
Jun 03, 2024	returned to assembly passed senate 3rd reading cal.798 substituted for s2798b
Jun 03, 2024	substituted by a1231a
May 28, 2024	amended on third reading 2798b
May 14, 2024	amended on third reading 2798a
Apr 17, 2024	advanced to third reading
Apr 16, 2024	2nd report cal.
Apr 15, 2024	1st report cal.798
Jan 03, 2024	referred to insurance returned to senate died in assembly
Jun 07, 2023	referred to insurance delivered to assembly passed senate
May 24, 2023	advanced to third reading
May 23, 2023	2nd report cal.
May 22, 2023	1st report cal.1183
Jan 24, 2023	referred to insurance

Votes

- Jun 3, 2024 - Floor Vote
  A1231
  
  60
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  2
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 3, 2024
      
      aye (60)
      
      Addabbo Jr.
      
      Ashby
      
      Bailey
      
      Borrello
      
      Breslin
      
      Brisport
      
      Canzoneri-Fitzpatrick
      
      Chu
      
      Cleare
      
      Comrie
      
      Cooney
      
      Felder
      
      Fernandez
      
      Gallivan
      
      Gianaris
      
      Gonzalez
      
      Gounardes
      
      Griffo
      
      Harckham
      
      Helming
      
      Hinchey
      
      Hoylman-Sigal
      
      Jackson
      
      Kavanagh
      
      Krueger
      
      Lanza
      
      Liu
      
      Mannion
      
      Martinez
      
      Martins
      
      Mattera
      
      May
      
      Mayer
      
      Murray
      
      Myrie
      
      O'Mara
      
      Oberacker
      
      Ortt
      
      Palumbo
      
      Parker
      
      Persaud
      
      Ramos
      
      Rhoads
      
      Rivera
      
      Rolison
      
      Ryan
      
      Salazar
      
      Sanders Jr.
      
      Scarcella-Spanton
      
      Sepúlveda
      
      Serrano
      
      Skoufis
      
      Stavisky
      
      Stec
      
      Stewart-Cousins
      
      Tedisco
      
      Thomas
      
      Webb
      
      Weber
      
      Weik
      
      excused (2)
      
      Brouk
      
      Walczyk
  Jun 7, 2023 - Floor Vote
  S2798
  
  61
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  2
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 7, 2023
      
      aye (61)
      
      Addabbo Jr.
      
      Ashby
      
      Bailey
      
      Borrello
      
      Breslin
      
      Brisport
      
      Brouk
      
      Canzoneri-Fitzpatrick
      
      Chu
      
      Cleare
      
      Comrie
      
      Fernandez
      
      Gallivan
      
      Gianaris
      
      Gonzalez
      
      Gounardes
      
      Griffo
      
      Harckham
      
      Helming
      
      Hinchey
      
      Hoylman-Sigal
      
      Jackson
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Liu
      
      Mannion
      
      Martinez
      
      Martins
      
      Mattera
      
      May
      
      Mayer
      
      Murray
      
      Myrie
      
      O'Mara
      
      Oberacker
      
      Ortt
      
      Palumbo
      
      Parker
      
      Persaud
      
      Ramos
      
      Rhoads
      
      Rivera
      
      Rolison
      
      Ryan
      
      Salazar
      
      Sanders Jr.
      
      Scarcella-Spanton
      
      Sepúlveda
      
      Serrano
      
      Skoufis
      
      Stavisky
      
      Stec
      
      Stewart-Cousins
      
      Tedisco
      
      Thomas
      
      Walczyk
      
      Webb
      
      Weber
      
      Weik
      
      excused (2)
      
      Cooney
      
      Felder
  Apr 15, 2024 - Insurance Committee Vote
  S2798
  
  11
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Insurance Committee Vote: Apr 15, 2024
      
      aye (11)
      
      Addabbo Jr.
      
      Ashby
      
      Breslin
      
      Cooney
      
      Harckham
      
      Helming
      
      Kennedy
      
      Martinez
      
      O'Mara
      
      Sanders Jr.
      
      Scarcella-Spanton
  May 22, 2023 - Insurance Committee Vote
  S2798
  
  11
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Insurance Committee Vote: May 22, 2023
      
      aye (11)
      
      Addabbo Jr.
      
      Borrello
      
      Breslin
      
      Cooney
      
      Harckham
      
      Helming
      
      Kennedy
      
      Martinez
      
      O'Mara
      
      Sanders Jr.
      
      Scarcella-Spanton

Bill Amendments

Original

B (Active)

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

                                 
BILL NUMBER: S2798

SPONSOR: BRESLIN
 
TITLE OF BILL:

An act to amend the insurance law, in relation to contractual liability
insurance policies

 
PURPOSE:

This bill amends the Insurance Law to allow service contract providers
to demonstrate financial responsibility pursuant to NY Insurance Law
7903(c)(1) by using "default" service contract reimbursement insurance
policies and by procuring multiple policies of service contract
reimbursement insurance.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill amends paragraph (1) of subsection (c) of Insur-
ance Law 7903 to allow service contract providers to utilize "default"
service contract reimbursement insurance. The bill further confirms that
service contract providers may satisfy this paragraph's requirements by

purchasing multiple policies of service contract reimbursement insurance
from multiple insurers.

Section 2 provides that this bill is effective immediately.

 
EXISTING LAW:

Insurance Law § 7903 requires service contract providers to demonstrate
financial responsibility, which is an important consumer protection.
Providers may demonstrate financial responsibility by purchasing a poli-
cy of service contract reimbursement insurance ("SCRI"). The law
currently allows only "first dollar" SCRI and does not allow for
"default" SCRI.

 
LEGISLATIVE HISTORY:

S9101 - 2021/22

 
STATEMENT IN SUPPORT:

Service contract reimbursement insurance ("SCRI") is available in two
forms: "first dollar" SCRI and "default" SCRI. Both types fully protect
consumers' rights and both types fully cover all of service contract
providers' financial obligations. However, the Insurance Law does not
currently allow providers to utilize "default" SCRI.

"First dollar" SCRI obligates an insurer to reimburse a service contract
provider for all obligations incurred, meaning every dollar paid.
"Default" SCRI obligates an insurer to pay or provide services on behalf
of a provider only if the provider fails to perform its obligations. In
other words, under default SCRI, the service contract provider is the
first line of defense and the SCRI policy is the second line of defense:
it is only activated if the provider fails to perform.

Service contract providers generally pay for covered services with the
fees consumers pay for service contracts, so a default SCRI policy is
only triggered in the rare event that a provider becomes insolvent.
Reliance on default SCRI is rare, making the cost of this coverage more
economical.

Restricting SCRI to first dollar policies increases costs to all stake-
holders, including consumers. This bill would alleviate those costs by
authorizing the use of default SCRI. Providers could pass these cost
savings on to consumers while maintaining all of the important
protections SCRI provides.

Finally, there are a variety of administrative and operational reasons
why providers may wish to utilize more than one SCRI policy. One scenar-
io occurs when certain benefits, such as motor club benefits, are
conferred or when a consumer adds additional categories of services,
such as windshield or paintless dent repair to his or her contract. It
can also benefit providers to use different SCRI policies in different
geographical locations where certain insurers may be more prominent.
This bill's amendment to allow multiple SCRI policies in satisfaction of
the requirements in Insurance Law § 7903(c)(1) will ease both adminis-
trative and operational burdens for providers, while still maintaining
the requirement for coverage over all obligations, thus preserving all
consumer protections.

 
BUDGET IMPLICATIONS:

This bill will not have an impact on State finances.

 
EFFECTIVE DATE:
This bill would take effect immediately.

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

 S. 2798                             2
 
 form:   "Obligations of the provider under  this  service  contract  are
 insured  under a service contract reimbursement insurance policy. If the
 provider fails to pay or provide service on a claim  within  sixty  days
 after  proof  of loss has been filed, the contract holder is entitled to
 make a claim directly against the insurer  under  the  service  contract
 reimbursement  insurance  policy." The service contract shall also state
 the name and address and a toll-free telephone  number  of  the  insurer
 under  [the] EACH related service contract reimbursement insurance poli-
 cy.
   § 3. This act shall take effect immediately.

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

2023-S2798A - Sponsor Memo

                                 
BILL NUMBER: S2798A

SPONSOR: BRESLIN
 
TITLE OF BILL:

An act to amend the insurance law, in relation to contractual liability
insurance policies

 
PURPOSE:

This bill amends the Insurance Law to allow service contract providers
to demonstrate financial responsibility pursuant to NY Insurance Law
7903(c)(1) by using "default" service contract reimbursement insurance
policies and by procuring multiple policies of service contract
reimbursement insurance.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill amends paragraph (1) of subsection (c) of Insur-
ance Law 7903 to allow service contract providers to utilize "default"
service contract reimbursement insurance. The bill further confirms that
service contract providers may satisfy this paragraph's requirements by

purchasing multiple policies of service contract reimbursement insurance
from multiple insurers.

Section 2 provides that this bill is effective immediately.

 
EXISTING LAW:

Insurance Law § 7903 requires service contract providers to demonstrate
financial responsibility, which is an important consumer protection.
Providers may demonstrate financial responsibility by purchasing a poli-
cy of service contract reimbursement insurance ("SCRI"). The law
currently allows only "first dollar" SCRI and does not allow for
"default" SCRI.

 
LEGISLATIVE HISTORY:

S9101 - 2021/22

 
STATEMENT IN SUPPORT:

Service contract reimbursement insurance ("SCRI") is available in two
forms: "first dollar" SCRI and "default" SCRI. Both types fully protect
consumers' rights and both types fully cover all of service contract
providers' financial obliaations. However, the Insurance Law does not
currently allow providers to utilize "default" SCRI.

"First dollar" SCRI obligates an insurer to reimburse a service contract
provider for all obligations incurred, meaning every dollar paid.
"Default" SCRI obligates an insurer to pay or provide services on behalf
of a provider only if the provider fails to perform its obligations. In
other words, under default SCRI, the service, contract provider is the
first line of defense and the SORT policy is the second line of defense:
it is only activated if the provider fails to perform.

Service contract providers generally pay for covered services with the
fees consumers pay for service contracts, so a default SCRI policy is
only triggered in the rare event that a provider becomes insolvent.
Reliance on default SCRI is rare, making the cost of this coverage more
economical.

Restricting SCRI to first dollar policies increases costs to all stake-
holders, including consumers. This bill would alleviate those costs by
authorizing the use of default SCRI. Providers could pass these cost
savings on to consumers while maintaining all of the important
protections SCRI provides.

Finally, there are a variety of administrative and operational reasons
why providers may wish to utilize more than one SCRI policy. One scenar-
io occurs when certain benefits, such as motor club benefits, are
conferred or when a consumer adds additional categories of services,
such as windshield or paintless dent repair to his or her contract. It
can also benefit providers to use different SCRI policies in different
geographical locations where certain insurers may be more prominent.
This bill's amendment to allow multiple SCRI policies in satisfaction of
the requirements in Insurance Law § 7903(c) (1) will ease both adminis-
trative and operational burdens for providers, while still maintaining
the requirement for coverage over all obligations, thus preserving all
consumer protections.

 
BUDGET IMPLICATIONS:

This bill will not have an impact on State finances.

 
EFFECTIVE DATE:
This bill would take effect immediately.

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.

                                                            LBD01943-02-4
 S. 2798--A                          2
 
   § 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
 form:    "Obligations  of  the  provider under this service contract are
 insured under a service contract reimbursement insurance policy. If  the
 provider  fails  to  pay or provide service on a claim within sixty days
 after proof of loss has been filed, the contract holder is  entitled  to
 make  a  claim  directly  against the insurer under the service contract
 reimbursement insurance policy." The service contract shall  also  state
 the  name  and  address  and a toll-free telephone number of the insurer
 under [the] EACH related service contract reimbursement insurance  poli-
 cy.
   § 3. This act shall take effect immediately.

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

2023-S2798B (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S2798B

SPONSOR: BRESLIN
 
TITLE OF BILL:

An act to amend the insurance law, in relation to contractual liability
insurance policies

 
PURPOSE:

This bill amends the Insurance Law to allow service contract providers
to demonstrate financial responsibility pursuant to NY Insurance Law
7903(c) (1) by using "default" service contract reimbursement insurance
policies and by procuring multiple policies of service contract
reimbursement insurance.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill amends paragraph (1) of subsection (c) of Insur-
ance Law 7903 to allow service contract providers to utilize "default"
service contract reimbursement insurance. The bill further confirms that
service contract providers may satisfy this paragraph's requirements by

purchasing multiple policies of service contract reimbursement insurance
from multiple insurers.

Section 2 provides that this bill is effective immediately.

 
EXISTING LAW:

Insurance Law § 7903 requires service contract providers to demonstrate
financial responsibility, which is an important consumer protection.
Providers may demonstrate financial responsibility by purchasing a poli-
cy of service contract reimbursement insurance ("SCRI"). The law
currently allows only "first dollar" SCRI and does not allow for
"default" SCRI.

 
LEGISLATIVE HISTORY:

S9101 - 2021/22

 
STATEMENT IN SUPPORT:

Service contract reimbursement insurance ("SCRI") is available in two
forms: "first dollar" SCRI and "default" SCRI. Both types fully protect
consumers' rights and both types fully cover all of service contract
providers' financial obliaations. However, the Insurance Law does not
currently allow providers to utilize "default" SCRI.

"First dollar" SCRI obligates an insurer to reimburse a service contract
provider for all obligations incurred, meaning every dollar paid.
"Default" SCRI obligates an insurer to pay or provide services on behalf
of a provider only if the provider fails to perform its obligations.  In
other words, under default SCRI, the service, contract provider is the
first line of defense and the SORT policy is the second line of defense:
it is only activated if the provider fails to perform.  Service contract
providers generally pay for covered services with the fees consumers pay
for service contracts, so a default SCRI policy is only triggered in the
rare event that a provider becomes insolvent.  Reliance on default SCRI
is rare, making the cost of this coverage more economical.
Restricting SCRI to first dollar policies increases costs to all stake-
holders, including consumers. This bill would alleviate those costs by
authorizing the use of default SCRI. Providers could pass these cost
savings on to consumers while maintaining all of the important
protections SCRI provides.

Finally, there are a variety of administrative and operational reasons
why providers may wish to utilize more than one SCRI policy. One scenar-
io occurs when certain benefits, such as motor club benefits, are
conferred or when a consumer adds additional categories of services,
such as windshield or paintless dent repair to his or her contract. It
can also benefit providers to use different SCRI-policies in different
geographical locations where certain insurers may be more prominent.
This bill's amendment to allow multiple SCRI policies in satisfaction of
the requirements in Insurance Law § 7903(c) (1) will ease both adminis-
trative and operational burdens for providers, while still maintaining
the requirement for coverage over all obligations, thus preserving all
consumer protections.

 
BUDGET IMPLICATIONS:

This bill will not have an impact on State finances.

 
EFFECTIVE DATE:
This bill would take effect immediately.

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.

                                                            LBD01943-05-4
 S. 2798--B                          2
 
 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
 form:   "Obligations of the provider under  this  service  contract  are
 insured  under a service contract reimbursement insurance policy. If the
 provider fails to pay or provide service on a claim  within  sixty  days
 after  proof  of loss has been filed, the contract holder is entitled to
 make a claim directly against the insurer  under  the  service  contract
 reimbursement  insurance  policy." The service contract shall also state
 the name and address and a toll-free telephone  number  of  the  insurer
 under  [the] EACH related service contract reimbursement insurance poli-
 cy.
   § 3. This act shall take effect immediately.

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Senate Bill S2798

Sponsored By

Current Bill Status Via A1231 - Delivered to Governor

Jun 3, 2024 - Floor Vote

Floor Vote: Jun 3, 2024

Jun 7, 2023 - Floor Vote

Floor Vote: Jun 7, 2023

Apr 15, 2024 - Insurance Committee Vote

Insurance Committee Vote: Apr 15, 2024

May 22, 2023 - Insurance Committee Vote

Insurance Committee Vote: May 22, 2023

Bill Amendments

2023-S2798 - Details

2023-S2798 - Summary

2023-S2798 - Sponsor Memo

2023-S2798 - Bill Text download pdf

2023-S2798A - Details

2023-S2798A - Summary

2023-S2798A - Sponsor Memo

2023-S2798A - Bill Text download pdf

2023-S2798B (ACTIVE) - Details

2023-S2798B (ACTIVE) - Summary

2023-S2798B (ACTIVE) - Sponsor Memo

2023-S2798B (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S2798

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Sponsored By

Neil D. Breslin

Current Bill Status Via A1231 - Delivered to Governor

Bill Amendments

2023-S2798 - Details

2023-S2798 - Summary

2023-S2798 - Sponsor Memo

2023-S2798 - Bill Text download pdf

2023-S2798A - Details

2023-S2798A - Summary

2023-S2798A - Sponsor Memo

2023-S2798A - Bill Text download pdf

2023-S2798B (ACTIVE) - Details

2023-S2798B (ACTIVE) - Summary

2023-S2798B (ACTIVE) - Sponsor Memo

2023-S2798B (ACTIVE) - Bill Text download pdf

Comments