N.Y. Ins. Law § 7904

§ 7904. Required disclosures; service contract reimbursement insurance\npolicy. Service contract reimbursement insurance policies insuring\nservice contracts issued, sold or offered for sale in this state shall\nstate that, upon failure of the provider to perform under the service\ncontract, including failure to return the unearned provider fee\nthereunder, the insurer that issued the service contract reimbursement\ninsurance policy shall pay on behalf of the provider any sums the\nprovider is legally obligated to pay under the service contract or shall\nperform the service which the provider is legally obligated to perform\naccording to the provider's contractual obligations under the service\ncontracts issued or sold by the provider.\n