S 6568: Establishes the construction insurance notification act (CINA) requiring notification of governmental agencies and departments when certain construction insurance policies have lapsed or been canceled.

  
  STATE OF NEW YORK ________________________________________________________________________ 6568 2025-2026 Regular Sessions  IN SENATE March 17, 2025 ___________ Introduced by Sen. BAILEY -- 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 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: 1 Section 1. This act shall be known and may be cited as the 2 "construction insurance notification act (CINA)". 3 § 2. The insurance law is amended by adding a new section 3428-a to 4 read as follows: 5 § 3428-a. Cancellation of construction contracts; notification to 6 governments that issue building permits. (a) Every insurer issuing 7 contracts of insurance or policies covering activities within this state 8 shall make an inquiry of all applicants for insurance contracts or poli- 9 cies to determine whether the purchase of the contract of insurance or 10 policy is intended to be submitted to any governmental agency or depart- 11 ment in order to obtain a New York state or local government permit for 12 the erection, demolition, repairing, altering, painting, cleaning or 13 pointing of a building, structure or edifice. If the inquiry is answered 14 in the affirmative, the applicant shall provide the name, address, and 15 website of such governmental department or agency. The truth and accura- 16 cy of information provided in every application for such insurance shall 17 be sworn to or affirmed by the applicant. 18 (b) Every insurer that has issued a contract of insurance or policy to 19 an insured who in accordance with subsection (a) of this section answers 20 in the affirmative shall notify the governmental agency or department if 21 the policy or contract of insurance has lapsed or has been canceled 22 within the policy period. Such notice shall be given within ten days of 23 the lapse or cancellation. Compliance is satisfied where timely notice EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD07824-01-5 
 S. 6568 2 1 is given in writing or electronically to the governmental department or 2 agency identified in the insured's application for insurance. 3 (c) The failure to timely provide notice required by this section to 4 the governmental department or agency shall result in the lapsed or 5 canceled policy remaining in full force and effect for the term of the 6 contract of insurance or policy. 7 § 3. This act shall take effect on the ninetieth day after it shall 8 have become a law.