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S02798 Summary:

BILL NOS02798B
 
SAME ASSAME AS A01231-A
 
SPONSORBRESLIN
 
COSPNSR
 
MLTSPNSR
 
Amd §§7903 & 7905, Ins L
 
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.
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S02798 Actions:

BILL NOS02798B
 
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
04/15/20241ST REPORT CAL.798
04/16/20242ND REPORT CAL.
04/17/2024ADVANCED TO THIRD READING
05/14/2024AMENDED ON THIRD READING 2798A
05/28/2024AMENDED ON THIRD READING 2798B
06/03/2024SUBSTITUTED BY A1231A
 A01231 AMEND=A Lunsford
 01/13/2023referred to insurance
 01/03/2024referred to insurance
 05/15/2024amend and recommit to insurance
 05/15/2024print number 1231a
 05/22/2024reported referred to rules
 05/30/2024reported
 05/30/2024rules report cal.228
 05/30/2024ordered to third reading rules cal.228
 05/30/2024passed assembly
 05/30/2024delivered to senate
 05/30/2024REFERRED TO INSURANCE
 06/03/2024SUBSTITUTED FOR S2798B
 06/03/20243RD READING CAL.798
 06/03/2024PASSED SENATE
 06/03/2024RETURNED TO ASSEMBLY
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S02798 Memo:

Memo not available
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S02798 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         2798--B
            Cal. No. 798
 
                               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  --  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:
 
     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] one or  more  service  contract  reimbursement
     6  insurance  [policy] policies issued by [an insurer] one or more insurers
     7  authorized to issue service contract  reimbursement  insurance  in  this
     8  state  or  procured  by  an excess line licensee pursuant to section two
     9  thousand one hundred eighteen of this chapter.   Each  service  contract
    10  reimbursement  insurance  policy  shall obligate the insurer that issued
    11  such policy to either discharge the obligations and liabilities of  such
    12  provider under the terms of the service contracts issued by such provid-
    13  er,  including the return of unearned provider fees upon any termination
    14  or cancellation of service contracts, in the event of non-performance of
    15  any such obligations or liabilities by such provider  or  indemnify  the
    16  provider  for  losses  sustained  by  reason  of the performance of such
    17  provider's obligations under service contracts issued pursuant  to  this
    18  article.  In  the  event  the  provider  fails to insure its obligations
    19  pursuant to this paragraph or in the event  that  such  insurance  shall
    20  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
 
     1  two or three of this subsection within forty-five days of the  insurance
     2  lapse or termination;
     3    §  2. Subsection (b) of section 7905 of the insurance law, as added by
     4  chapter 614 of the laws of 1997, is amended to read as follows:
     5    (b) Service contracts insured under [a] one or more  service  contract
     6  reimbursement  insurance [policy] policies pursuant to [paragarph] para-
     7  graph one of subsection (c) of section seven thousand nine hundred three
     8  of this article shall contain a statement in substantially the following
     9  form:   "Obligations of the provider under  this  service  contract  are
    10  insured  under a service contract reimbursement insurance policy. If the
    11  provider fails to pay or provide service on a claim  within  sixty  days
    12  after  proof  of loss has been filed, the contract holder is entitled to
    13  make a claim directly against the insurer  under  the  service  contract
    14  reimbursement  insurance  policy." The service contract shall also state
    15  the name and address and a toll-free telephone  number  of  the  insurer
    16  under  [the] each related service contract reimbursement insurance poli-
    17  cy.
    18    § 3. This act shall take effect immediately.
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