Bill Text: NY A10563 | 2023-2024 | General Assembly | Introduced

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

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-06-04 - referred to insurance [A10563 Detail]

Download: New_York-2023-A10563-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          10563

                   IN ASSEMBLY

                                      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:

     1    Section  1.  This  act  shall  be  known  and  may  be  cited  as  the
     2  "construction insurance notification act (CINA)".
     3    §  2.  The  insurance law is amended by adding a new section 3428-a to
     4  read as follows:
     5    § 3428-a. Cancellation  of  construction  contracts;  notification  to
     6  governments  that  issue  building  permits.  (a)  Every insurer issuing
     7  contracts of insurance or policies covering activities within this state
     8  shall make an inquiry of all applicants for insurance contracts or poli-
     9  cies to determine whether the purchase of the contract of  insurance  or
    10  policy is intended to be submitted to any governmental agency or depart-
    11  ment  in order to obtain a New York state or local government permit for
    12  the erection, demolition, repairing,  altering,  painting,  cleaning  or
    13  pointing of a building, structure or edifice. If the inquiry is answered
    14  in  the  affirmative, the applicant shall provide the name, address, and
    15  website of such governmental department or agency. The truth and accura-
    16  cy of information provided in every application for such insurance shall
    17  be sworn to or affirmed by the applicant.
    18    (b) Every insurer that has issued a contract of insurance or policy to
    19  an insured who in accordance with subsection (a) of this section answers
    20  in the affirmative shall notify the governmental agency or department if
    21  the policy or contract of insurance has  lapsed  or  has  been  canceled
    22  within  the policy period. Such notice shall be given within ten days of
    23  the lapse or cancellation. Compliance is satisfied where  timely  notice
    24  is  given in writing or electronically to the governmental department or
    25  agency identified in the insured's application for insurance.
    26    (c) The failure to timely provide notice required by this  section  to
    27  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.
                                                                   LBD15845-01-4
        A. 10563                            2

     1  canceled policy remaining in full force and effect for the term  of  the
     2  contract of insurance or policy.
     3    §  3.  This  act shall take effect on the ninetieth day after it shall
     4  have become a law.