S T A T E O F N E W Y O R K
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10563
I N A S S E M B L Y
June 4, 2024
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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:
Section 1. This act shall be known and may be cited as the
"construction insurance notification act (CINA)".
§ 2. The insurance law is amended by adding a new section 3428-a to
read as follows:
§ 3428-A. CANCELLATION OF CONSTRUCTION CONTRACTS; NOTIFICATION TO
GOVERNMENTS THAT ISSUE BUILDING PERMITS. (A) EVERY INSURER ISSUING
CONTRACTS OF INSURANCE OR POLICIES COVERING ACTIVITIES WITHIN THIS STATE
SHALL MAKE AN INQUIRY OF ALL APPLICANTS FOR INSURANCE CONTRACTS OR POLI-
CIES TO DETERMINE WHETHER THE PURCHASE OF THE CONTRACT OF INSURANCE OR
POLICY IS INTENDED TO BE SUBMITTED TO ANY GOVERNMENTAL AGENCY OR DEPART-
MENT IN ORDER TO OBTAIN A NEW YORK STATE OR LOCAL GOVERNMENT PERMIT FOR
THE ERECTION, DEMOLITION, REPAIRING, ALTERING, PAINTING, CLEANING OR
POINTING OF A BUILDING, STRUCTURE OR EDIFICE. IF THE INQUIRY IS ANSWERED
IN THE AFFIRMATIVE, THE APPLICANT SHALL PROVIDE THE NAME, ADDRESS, AND
WEBSITE OF SUCH GOVERNMENTAL DEPARTMENT OR AGENCY. THE TRUTH AND ACCURA-
CY OF INFORMATION PROVIDED IN EVERY APPLICATION FOR SUCH INSURANCE SHALL
BE SWORN TO OR AFFIRMED BY THE APPLICANT.
(B) EVERY INSURER THAT HAS ISSUED A CONTRACT OF INSURANCE OR POLICY TO
AN INSURED WHO IN ACCORDANCE WITH SUBSECTION (A) OF THIS SECTION ANSWERS
IN THE AFFIRMATIVE SHALL NOTIFY THE GOVERNMENTAL AGENCY OR DEPARTMENT IF
THE POLICY OR CONTRACT OF INSURANCE HAS LAPSED OR HAS BEEN CANCELED
WITHIN THE POLICY PERIOD. SUCH NOTICE SHALL BE GIVEN WITHIN TEN DAYS OF
THE LAPSE OR CANCELLATION. COMPLIANCE IS SATISFIED WHERE TIMELY NOTICE
IS GIVEN IN WRITING OR ELECTRONICALLY TO THE GOVERNMENTAL DEPARTMENT OR
AGENCY IDENTIFIED IN THE INSURED'S APPLICATION FOR INSURANCE.
(C) THE FAILURE TO TIMELY PROVIDE NOTICE REQUIRED BY THIS SECTION TO
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.
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