S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3817
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 30, 2025
                                ___________
 
 Introduced by 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07824-01-5
 A. 3817                             2
              

 
 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
 CANCELED  POLICY  REMAINING IN FULL FORCE AND EFFECT FOR THE TERM OF THE
 CONTRACT OF INSURANCE OR POLICY.
   § 3. This act shall take effect on the ninetieth day  after  it  shall
 have become a law.