NY A10563

Requires all insurers issuing construction-related policies in New York to ask applicants whether the insurance will be submitted to a governmental agency or department to obtain a building permit for erection, demolition, repair, alteration, painting, cleaning, or pointing of buildings or structures.

Mandates applicants provide the name, address, and website of the relevant governmental agency or department if the answer is affirmative, with all application information sworn to or affirmed as truthful and accurate.

Obligates insurers to notify the identified governmental agency or department within ten days if a construction insurance policy lapses or is canceled during the policy period, with notice satisfied by written or electronic communication.

Provides that failure to timely notify the governmental agency or department results in the lapsed or canceled policy remaining in full force and effect for the entire contract term as a penalty for non-compliance.

Takes effect ninety days after becoming law.