Bill > S08174

This bill authorizes the New York Liquidation Bureau, which manages the estates of insolvent insurance companies, to create a program to help eligible local educational agencies (LEAs) – meaning public school districts and approved cooperative educational services boards, but not those in New York City – get reimbursed for financial liabilities they face from civil claims or settlements related to acts that occurred when they were insured by an insurer that has since become insolvent. This program is specifically designed to address claims brought under the Child Victims Act, which allows victims of child sexual abuse to file civil lawsuits, and acknowledges that LEAs are struggling to pay these settlements because their expected insurance coverage is unavailable due to insurer insolvency, especially given the extended timeframes for filing claims under the Child Victims Act. To be eligible for reimbursement, an LEA must prove their insurer is insolvent, that the incident happened while the policy was active, that they have incurred a financial liability, and that no other insurance or indemnification is available. Reimbursements will come from the insolvent insurer's estate, and if those assets are insufficient, the Bureau can pursue other recovery methods, prioritizing LEAs facing significant financial hardship.

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https://www.nysenate.gov/legislation/bills/2025/S8174