The following bill related to free trade zone modernization, a NYIA priority initiative, and a bill related to bonding for child victims act claims have been enacted into law after being signed by Governor Hochul. Should you have any questions regarding these bills, please contact NYIA's general counsel, Bob Farley at (518) 432-4227 or bfarley@nyia.org. A3888 (Weprin)/S4960 (Bailey) 

AN ACT to amend the insurance law, in relation to exemption from filing requirements only with respect to rates and policy forms

The bill would amend section 6303 of the insurance law to authorize insurers to use the Free Trade Zone (FTZ) regardless of whether the policy is underwritten and transacted from within the state’s physical boundaries.

New York's Free Trade Zone, established by the legislature in 1978, allows qualified insurers to write large or unique commercial risks without rate and form filings. This enables more customized and affordable insurance products for sophisticated commercial risks and encourages more business to be written in the admitted market.

However, the current law requires that policies are underwritten and transacted physically from within the state’s boundaries to access FTZ benefits. For example, an employee who is located in New York must approve an application. However, a remote employee located in New Jersey would not be able to do so. This provision is not only outdated but counterproductive in the modern digital economy. Since files are no longer kept as paper copies, but rather digital files, an underwriter, regardless of where they are located, can access the information.

Eliminating this location requirement, as proposed by this bill, would improve speed to market and give carriers who write large or unique commercial risks more flexibility to write policies and conduct business in New York.

Action: Chapter 550 of the laws of 2025; signed by the Governor on November 21, 2025. Effective Date: This act shall take effect immediately (November 21, 2025).

 

A7631 (Lunsford)/S6372 (Mayer)  

AN ACT to amend the local finance law, in relation to the probable usefulness of judgments, compromised claims or settled claims resulting from certain child sexual abuse cases

The bill would amend section 11.00 of the local finance law to allow school districts, board of cooperative educational services, and Special Act school districts to bond for up to 30 years on judgements, compromised claims, or settled claims resulting from Child Victims Act (CVA) cases.

The CVA, passed in 2019, expanded the statute of limitation for civil and criminal cases involving child sexual abuse. As a result, thousands of adults have brought lawsuits alleging claims of abuse, which placed a heavy financial burden on many institutions, particularly public schools, who are named defendants in these cases. The legislation would allow school districts and other education entities to bond for up to 30 years to pay CVA judgements and settlements.

Action: Chapter 553 of the laws of 2025; signed by the Governor on November 21, 2025. Effective Date: This act shall take effect immediately (November 21, 2025).