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S02798 Summary:

BILL NOS02798
 
SAME ASSAME AS A01231
 
SPONSORBRESLIN
 
COSPNSR
 
MLTSPNSR
 
Amd §§7903 & 7905, Ins L
 
Relates to contractual liability insurance policies; requires 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.
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S02798 Actions:

BILL NOS02798
 
01/24/2023REFERRED TO INSURANCE
05/22/20231ST REPORT CAL.1183
05/23/20232ND REPORT CAL.
05/24/2023ADVANCED TO THIRD READING
06/07/2023PASSED SENATE
06/07/2023DELIVERED TO ASSEMBLY
06/07/2023referred to insurance
01/03/2024died in assembly
01/03/2024returned to senate
01/03/2024REFERRED TO INSURANCE
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S02798 Memo:

Memo not available
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S02798 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          2798
 
                               2023-2024 Regular Sessions
 
                    IN SENATE
 
                                    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:

     1    Section 1. Paragraph 1 of subsection (c) of section 7903 of the insur-
     2  ance law, as amended by chapter 578 of the laws of 2000, is  amended  to
     3  read as follows:
     4    (1)  [insure  the performance of all its obligations under all service
     5  contracts  pursuant  to  a]  purchase  one  or  more  service   contract
     6  reimbursement  insurance [policy] policies issued by [an insurer] one or
     7  more insurers authorized to issue service contract reimbursement  insur-
     8  ance  in  this  state or procured by an excess line licensee pursuant to
     9  section two thousand  one  hundred  eighteen  of  this  chapter.    Each
    10  reimbursement  insurance  policy  shall obligate the insurer that issued
    11  such policy to either provide reimbursement  to  the  provider  for  all
    12  obligations  incurred  by  a  provider  under  the  terms  of  a service
    13  contract, or in the event of the provider's nonperformance,  provide  or
    14  pay  on  behalf  of  the  provider  all  covered contractual obligations
    15  incurred by the provider. In the event the provider fails to insure  its
    16  obligations  pursuant to this paragraph or in the event that such insur-
    17  ance shall lapse or be terminated, the provider shall comply with either
    18  paragraph two or three of this subsection within forty-five days of  the
    19  insurance lapse or termination;
    20    §  2. Subsection (b) of section 7905 of the insurance law, as added by
    21  chapter 614 of the laws of 1997, is amended to read as follows:
    22    (b) Service contracts insured under [a] one or more  service  contract
    23  reimbursement  insurance [policy] policies pursuant to [paragarph] para-
    24  graph one of subsection (c) of section seven thousand nine hundred three
    25  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
 
     1  form:   "Obligations of the provider under  this  service  contract  are
     2  insured  under a service contract reimbursement insurance policy. If the
     3  provider fails to pay or provide service on a claim  within  sixty  days
     4  after  proof  of loss has been filed, the contract holder is entitled to
     5  make a claim directly against the insurer  under  the  service  contract
     6  reimbursement  insurance  policy." The service contract shall also state
     7  the name and address and a toll-free telephone  number  of  the  insurer
     8  under  [the] each related service contract reimbursement insurance poli-
     9  cy.
    10    § 3. This act shall take effect immediately.
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