Bill > A00979

This bill amends the New York insurance law to modify regulations surrounding service contract reimbursement insurance policies. Specifically, the bill limits service contract providers to maintaining a maximum of five service contract reimbursement insurance policies that cover the service contracts they are actively offering. A service contract is typically a type of extended warranty or protection plan sold alongside a product, and a service contract reimbursement insurance policy helps ensure that the provider can fulfill its obligations to consumers if the company cannot pay claims. The current law previously allowed providers to insure "all" of their obligations, but this bill places a numerical cap of five insurance policies. If a provider fails to maintain appropriate insurance or if their insurance lapses, they will still be required to comply with alternative provisions within 45 days to protect consumers. The bill takes effect immediately upon passage.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/A979