Senate Bill S9101

2021-2022 Legislative Session

Relates to contractual liability insurance policies

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Senate Committee Insurance Committee


  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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2021-S9101 (ACTIVE) - Details

See Assembly Version of this Bill:
A10529
Current Committee:
Senate Insurance
Law Section:
Insurance Law
Laws Affected:
Amd §§7903 & 7905, Ins L
Versions Introduced in 2023-2024 Legislative Session:
S2798, A1231

2021-S9101 (ACTIVE) - Summary

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.

2021-S9101 (ACTIVE) - Sponsor Memo

2021-S9101 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9101
 
                             I N  S E N A T E
 
                                May 9, 2022
                                ___________
 
 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:

   Section 1. Paragraph 1 of subsection (c) of section 7903 of the insur-
 ance law, as amended by chapter 578 of the laws of 2000, is  amended  to
 read as follows:
   (1)  [insure  the performance of all its obligations under all service
 contracts  pursuant  to  a]  PURCHASE  ONE  OR  MORE  service   contract
 reimbursement  insurance [policy] POLICIES issued by [an insurer] ONE OR
 MORE INSURERS authorized to issue service contract reimbursement  insur-
 ance  in  this  state or procured by an excess line licensee pursuant to
 section two thousand  one  hundred  eighteen  of  this  chapter.    EACH
 REIMBURSEMENT  INSURANCE  POLICY  SHALL OBLIGATE THE INSURER THAT ISSUED
 SUCH POLICY TO EITHER PROVIDE 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. In the event the provider fails to insure  its
 obligations  pursuant to this paragraph or in the event that such insur-
 ance shall lapse or be terminated, the provider shall comply with either
 paragraph two or three of this subsection within forty-five days of  the
 insurance lapse or termination;
   §  2. Subsection (b) of section 7905 of the insurance law, as added by
 chapter 614 of the laws of 1997, is amended to read as follows:
   (b) Service contracts insured under [a] ONE OR MORE  service  contract
 reimbursement  insurance [policy] POLICIES pursuant to [paragarph] PARA-
 GRAPH one of subsection (c) of section seven thousand nine hundred three
 of this article shall contain a statement in substantially the following
 form:   "Obligations of the provider under  this  service  contract  are
 insured  under a service contract reimbursement insurance policy. If the
 provider fails to pay or provide service on a claim  within  sixty  days
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

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