Defines "default insurance" means insurance providing first-party indemnity to a named insured for losses, costs, and expenses sustained by the named insured arising from a third party's material failure, as determined by the named insured, to perform a binding agreement executed by the named insured and such third party, where the third party is not an insured or beneficiary and has no rights under the policy.
STATE OF NEW YORK
________________________________________________________________________
9134
IN SENATE
February 5, 2026
___________
Introduced by Sen. COONEY -- 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 default insurance
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subsection (a) of section 1113 of the insurance law is
2 amended by adding a new paragraph 36 to read as follows:
3 (36) "Default insurance" means insurance providing first-party indem-
4 nity to a named insured for losses, costs, and expenses sustained by the
5 named insured arising from a third party's material failure, as deter-
6 mined by the named insured, to perform a binding agreement executed by
7 the named insured and such third party, where the third party is not an
8 insured or beneficiary and has no rights under the policy.
9 § 2. This act shall take effect on the first of January next succeed-
10 ing the date on which it shall have become a law and shall apply to all
11 policies and contracts issued, renewed, modified, altered, or amended on
12 or after such date. Effective immediately, the addition, amendment
13 and/or repeal of any rule or regulation necessary for the implementation
14 of this act on its effective date are authorized to be made and
15 completed on or before such date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14660-01-6
