Assembly Bill A11510

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

                                  11510

                          I N  A S S E M B L Y

                              June 18, 2010
                               ___________

Introduced  by  COMMITTEE ON RULES -- (at request of M. of A. Zebrowski)
  -- read once and referred to the Committee on Insurance

AN ACT to  amend  the  insurance  law,  in  relation  to  expanding  the
  description of unfair insurance claim settlement practices

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

  Section 1. Paragraphs 5 and 6 of subsection (a) of section 2601 of the
insurance law, paragraph 5 as amended by chapter 547 of the laws of 1997
and paragraph 6 as amended by chapter 388  of  the  laws  of  2008,  are
amended and two new paragraphs 7 and 8 are added to read as follows:
  (5) compelling policyholders to institute suits to recover amounts due
under its policies by offering substantially less than the amounts ulti-
mately recovered in suits brought by them; [or]
  (6)  failing  to promptly disclose coverage pursuant to subsection (d)
or subparagraph (A) of paragraph two of subsection (f) of section  three
thousand four hundred twenty of this chapter;
  (7)  PROVIDING  COMPENSATION OR INCENTIVES OF ANY KIND TO EMPLOYEES TO
PROMOTE THE DENIAL OF CLAIMS OR THE CANCELLATION OF AN INSURANCE POLICY;
OR
  (8) ESTABLISHING QUOTAS FOR EMPLOYEES FOR  THE  DENIAL  OF  CLAIMS  OR
CANCELLATION OF POLICIES.
  S 2. This act shall take effect immediately.





 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD17543-02-0