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Bill > S09134
NY S09134
NY S09134Defines "default insurance" means insurance providing first-party indemnity to a named insured for losses, costs, and expenses sustained by the named insured arising from a third party's material failure, as determined by the named insured, to perform a binding agreement executed by the named insured and such third party, where the third party is not an insured or beneficiary and has no rights under the policy.
summary
Introduced
02/05/2026
02/05/2026
In Committee
02/05/2026
02/05/2026
Crossed Over
Passed
Dead
Introduced Session
2025-2026 General Assembly
Bill Summary
AN ACT to amend the insurance law, in relation to default insurance
AI Summary
This bill defines "default insurance" as a type of coverage that reimburses a policyholder (the "named insured") for financial losses, costs, and expenses they incur because another party (a "third party") fails to fulfill a significant obligation under a contract they both signed. This coverage applies when the third party is not covered by the policy and has no rights under it, and the decision about whether the third party's failure is "material" rests with the policyholder. The bill also specifies that this new definition will apply to insurance policies issued or changed on or after January 1st of the year following its enactment, and allows for necessary regulatory changes to be made before that date.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
REFERRED TO INSURANCE (on 02/05/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.nysenate.gov/legislation/bills/2025/S9134 |
| BillText | https://assembly.state.ny.us/leg/?default_fld=&bn=S09134&term=2025&Summary=Y&Actions=Y&Text=Y&Committee%26nbspVotes=Y&Floor%26nbspVotes=Y#S09134 |
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