NY A07317

Creates Article 70-A of the Insurance Law establishing the "New York Small Contractor Relief Act" to provide liability insurance solutions for small construction contractors and certified minority and women-owned construction contractors through captive insurance companies.

Defines "small construction contractor" as a state resident, independently owned business with less than $3 million in gross annual revenues (or certified minority/women-owned business) that is exclusively engaged in construction contracting and pays prevailing wage.

Authorizes the New York State Insurance Fund to provide reinsurance and retrocession reinsurance to captive insurance companies formed under this article at rates determined by the fund's board, except when coverage would imperil the fund's financial safety and soundness.

Prohibits captive insurance companies from refusing to issue, renew, or cancel policies for qualified small construction contractors based on geographic location or line of business.

Requires contractors to certify prevailing wage payment, notify the captive insurer of work locations at least 10 days before commencement, and subjects all work to prevailing wage requirements; violations result in policy revocation and assessment of penalties equal to insurance coverage costs.

Appropriates $50 million for paid-in capital and surplus contributions for up to two captive insurers (not exceeding $25 million per captive), and sets the act to expire five years after the effective date, which is 180 days after enactment.