Establishes the construction insurance notification act (CINA) requiring notification of governmental agencies and departments when certain construction insurance policies have lapsed or been canceled.
Summary
Bill A03817, known as the Construction Insurance Notification Act (CINA), aims to amend the insurance law in New York by requiring insurers to notify governmental agencies when certain construction insurance policies have lapsed or been canceled. The bill mandates that insurers inquire whether the insurance is intended for obtaining a government permit for construction activities. If the applicant confirms this, they must provide the relevant governmental agency's details. Insurers are then obligated to notify the agency within ten days of any lapse or cancellation of the policy.
Impact
The implementation of this bill will affect the insurance industry and construction practices in New York by ensuring that governmental agencies are informed of any lapses in construction insurance. This requirement is intended to enhance accountability and safety in construction projects, as it ensures that permits are only issued when valid insurance is in place. Failure to notify will result in the policy remaining in effect, which could lead to complications in enforcement and compliance for both insurers and contractors.
Sentiment
The general sentiment around Bill A03817 appears to be supportive among proponents who emphasize the need for increased oversight in construction insurance to protect public safety. However, there may be concerns regarding the administrative burden this places on insurers and the potential for increased costs passed on to consumers.
Contention
Notable points of contention include the potential administrative challenges for insurers in complying with the notification requirements and concerns from some industry stakeholders about the implications of policies remaining in effect despite lapses. Insurers may argue that this could lead to unintended consequences, such as increased premiums or reduced availability of coverage for construction projects.
Same As
Establishes the construction insurance notification act (CINA) requiring notification of governmental agencies and departments when certain construction insurance policies have lapsed or been canceled.
Establishes the construction insurance notification act (CINA) requiring notification of governmental agencies and departments when certain construction insurance policies have lapsed or been canceled.
Insurance; motor vehicle total loss or damage claim; appraisal process; requiring policies to include certain provision; claim notification; effective date.