N.Y. Insurance Law § 2504: Designation of particular insurer, agent or broker for insurance in certain public construction contracts

§ 2504. Designation of particular insurer, agent or broker for

insurance in certain public construction contracts. (a) (1) No officer

or employee of this state, or of any public corporation as defined in

section sixty-six of the general construction law, or of any public

authority, and no person acting or purporting to act on behalf of such

officer, employee, public corporation or public authority, shall, with

respect to any public building or construction contract which is about

to be, or which has been, competitively bid, require the bidder to make

application to any particular insurance company, agent or broker for or

to obtain or procure therefrom, any surety bond or contract of insurance

specified in connection with such contract, or specified by any law,

general, special or local.

(2) In paragraph one hereof, "public corporation" and "public

authority" shall not include:

(A) a public corporation or public authority created pursuant to

agreement or compact with another state,

(B) the city of New York, a public corporation or public authority, in

connection with the construction of electrical generating and

transmission facilities or construction, extensions and additions of

light rail or heavy rail rapid transit and commuter railroads,

(C) the city of New York, the city school district of the city of New

York, the New York city industrial development agency, the New York city

health and hospitals corporation, or the New York city housing

authority, in connection with a contract the principal purpose of which

is construction that (i) has an estimated cost of no less than five

million dollars or (ii) is subject to an owner-controlled insurance

program for projects, provided that any contract undertaken pursuant to

this subparagraph that has an estimated cost of five million dollars or

more may only be undertaken pursuant to a project labor agreement as

such term is defined in section two hundred twenty-two of the labor law,

(D) the state department of transportation in connection with a

contract or contracts, the principal purpose of which is construction or

reconstruction of state route 33, also known as the Kensington

Expressway, and the Humboldt Parkway, in the city of Buffalo, that (i)

has an estimated cost of no less than five million dollars, or (ii) that

is subject to an owner-controlled insurance program for projects,

provided that any contract undertaken pursuant to this subparagraph may

only be undertaken pursuant to a project labor agreement as such term is

defined in section two hundred twenty-two of the labor law,

(E) the state university of New York at Buffalo, in coordination with

the state university construction fund as created pursuant to article

eight-A of the education law, the principal purpose of which is

construction at the state university of New York at Buffalo and shall

include without limitation the empire AI research institute authorized

pursuant to section three hundred sixty-one of the economic development

law, in connection with a contract or contracts that (i) has an

estimated cost of no less than five million dollars, or (ii) that is

subject to an owner-controlled insurance program for projects, provided

that any contract undertaken pursuant to this subparagraph may only be

undertaken pursuant to a project labor agreement as such term is defined

in section two hundred twenty-two of the labor law, or

(F) the Niagara Frontier transportation authority as established

pursuant to article five of the public authorities law in connection

with a contract or contracts, the principal purpose of which is

construction to extend or expand the railroad in the Niagara Frontier

transportation district, that (i) has an estimated cost of no less than

five million dollars, or (ii) that is subject to an owner-controlled

insurance program for projects, provided that any contract undertaken

pursuant to this subparagraph may only be undertaken pursuant to a

project labor agreement as such term is defined in section two hundred

twenty-two of the labor law.

(b) No such officer or employee, and no person, firm or corporation

acting or purporting to act on behalf of such officer or employee, shall

negotiate, make application for, obtain or procure any of such surety

bonds or contracts of insurance (except contracts of insurance for

builders risk or owners protective liability) which can be obtained or

procured by the bidder, contractor or subcontractor.

(c) This section shall not, however, prevent the exercise by such

officer or employee on behalf of the state or such public corporation or

public authority of its right to approve the form, sufficiency, or

manner of execution, of surety bonds or contracts of insurance furnished

by the insurance company selected by the bidder to underwrite such bonds

or contracts. Any provisions in any invitation for bids, or in any of

the contract documents, in conflict herewith are contrary to the public

policy of this state.