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NY A02245
Bill
Status
1/15/2025
Primary Sponsor
Edward Braunstein
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AI Summary
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Creates the "New York Small Contractor Relief Act" establishing a captive insurance company to provide liability insurance for small construction contractors with less than $5 million in annual gross revenues and certified minority and women-owned construction contractors
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Requires the New York State Insurance Fund to provide reinsurance and retrocession reinsurance to the captive insurance company at rates determined by the fund's board, unless coverage would imperil the fund's financial soundness
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Prohibits the captive insurance company from refusing to issue, renew, or cancel policies based on geographic location or line of business of qualified small contractors
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Mandates that all small construction contractors obtaining coverage must pay prevailing wages to their entire workforce or be subject to a collective bargaining or project labor agreement, with policy revocation and penalty for violations
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Appropriates $50 million to support up to two captive insurers, with a maximum of $25 million per captive for paid-in capital and initial surplus contributions, and sets a 5-year expiration date for the program
Legislative Description
Enacts the "New York small contractor relief act"; defines terms; authorizes a small contractor captive insurance company to purchase, and the New York state insurance fund shall be authorized and directed to provide, reinsurance and retrocession reinsurance for such captive insurance company, on either a quota share arrangement or facultative arrangement at a rate to be determined by the board of the fund; provides that a small contractor captive insurance company organized pursuant to this article shall not refuse to issue, renew or cancel a policy of any qualified small construction contractor based upon geographic location or line of business engaged in by such contractor; makes related provisions.
Last Action
referred to insurance
1/7/2026