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NY State Legislature· A979-2025Signed by Governor

Relates to contractual liability insurance policies, the official text

Shown verbatim: the complete text as captured from the official source posted by the New York State Senate, fetched 2026-08-11. Nothing is edited or removed. Where this bill amends existing law, language marked for deletion in the official source appears here in brackets. The official bill page.
S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  979--A
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 Introduced by M. of A. LUNSFORD, WEPRIN -- read once and referred to the
   Committee  on Insurance -- committee discharged, bill amended, ordered
   reprinted as amended and recommitted to said committee
 
 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 service contract reimbursement insurance  policy
 issued  by an insurer authorized to issue service contract reimbursement
 insurance in this state or procured by an excess line licensee  pursuant
 to  section  two  thousand  one  hundred eighteen of this chapter.  EACH
 PROVIDER MAY MAINTAIN A MAXIMUM OF FIVE SERVICE  CONTRACT  REIMBURSEMENT
 INSURANCE  POLICIES INSURING ITS SERVICE CONTRACTS ACTIVELY OFFERED.  In
 the event the provider fails to insure its obligations pursuant to  this
 paragraph  or  in the event that such insurance shall lapse or be termi-
 nated, the provider shall comply with either paragraph two or  three  of
 this  subsection within forty-five days of the insurance lapse or termi-
 nation;
   § 2.  This act shall take effect immediately.
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01514-02-5
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