Assembly Bill A4348

2009-2010 Legislative Session

Provides that payment of interest payment and attorney fees to claimant when payment of a claim is overdue shall be exclusive remedy

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Archive: Last Bill Status - In Assembly Committee

  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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2009-A4348 (ACTIVE) - Details

See Senate Version of this Bill:
S6448
Current Committee:
Assembly Insurance
Law Section:
Insurance Law
Laws Affected:
Amd §5106, Ins L
Versions Introduced in Other Legislative Sessions:
2011-2012: A2363, S1686
2013-2014: A932, S2892
2015-2016: S1056
2017-2018: S779
2019-2020: S3513
2021-2022: S4046
2023-2024: S2814

2009-A4348 (ACTIVE) - Summary

Provides that payment of interest payment and attorney fees to claimant when payment of a claim is overdue shall be exclusive remedy when insurer fails to make timely payment; such failure of insurer to make timely payment or issue denial within 30 days after proof of claim has been submitted to insurer shall not preclude such insurer from issuing a denial or asserting a defense after the 30 day period has elapsed.

2009-A4348 (ACTIVE) - Bill Text download pdf 

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4348

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            February 3, 2009
                               ___________

Introduced by M. of A. HEASTIE, PERALTA -- read once and referred to the
  Committee on Insurance

AN  ACT  to  amend the insurance law, in relation to payment of interest
  penalty and attorney fees to a claimant when a claim  is  overdue  and
  the ability of an insurer to assert a defense or deny a claim if time-
  ly  payment  is  not  made within thirty days after proof of claim has
  been submitted

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Subsection  (a)  of  section 5106 of the insurance law is
amended to read as follows:
  (a) Payments of first party benefits and additional first party  bene-
fits shall be made as the loss is incurred. Such benefits are overdue if
not  paid  within  thirty  days after the claimant supplies proof of the
fact and amount of loss sustained. If proof is not supplied  as  to  the
entire  claim,  the amount which is supported by proof is overdue if not
paid within thirty days  after  such  proof  is  supplied.  All  overdue
payments  shall bear interest at the rate of two percent per month. If a
valid claim or portion was overdue, the claimant shall also be  entitled
to  recover  his  attorney's  reasonable  fee,  for services necessarily
performed in connection with securing  payment  of  the  overdue  claim,
subject to limitations promulgated by the superintendent in regulations.
PAYMENT OF THE INTEREST PENALTY AND REASONABLE ATTORNEY FEES TO A CLAIM-
ANT  WHEN  PAYMENT  OF  A CLAIM IS OVERDUE SHALL BE THE EXCLUSIVE REMEDY
WHEN AN INSURER FAILS TO MAKE TIMELY PAYMENT. THE FAILURE OF AN  INSURER
TO  MAKE TIMELY PAYMENT OR ISSUE A DENIAL WITHIN THIRTY DAYS AFTER PROOF
OF CLAIM HAS BEEN SUBMITTED TO AN INSURER SHALL NOT PRECLUDE SUCH INSUR-
ER FROM ISSUING A DENIAL OR ASSERTING A DEFENSE  AFTER  THE  THIRTY  DAY
PERIOD HAS ELAPSED.
  S  2.  This  act  shall take effect on the sixtieth day after it shall
have become a law.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06706-01-9

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