Assembly Bill A5336

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

                                  5336

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            February 13, 2009
                               ___________

Introduced  by M. of A. ENGLEBRIGHT, COLTON, SCHROEDER, GUNTHER, CAHILL,
  MAYERSOHN, FIELDS, ZEBROWSKI, ESPAILLAT -- Multi-Sponsored by -- M. of
  A. BOYLAND, GABRYSZAK, KOON, MAISEL, MARKEY, PHEFFER, J. RIVERA, SWEE-
  NEY, TITONE, WEISENBERG -- read once and referred to the Committee  on
  Insurance

AN  ACT to amend the insurance law, in relation to requiring insurers of
  property to eliminate from the claims record of an insured, any  claim
  of  loss  made and paid in good faith, which is discovered to be false
  and the proceeds of such claim are repaid to the insurer

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

  Section 1. The insurance law is amended by adding a new section 3407-b
to read as follows:
  S  3407-B.  PROPERTY INSURANCE; CLAIM OF LOSS. THE GOOD FAITH CLAIM OF
THE LOSS OF ANY PROPERTY WHICH A PERSON  HAS  INSURED  AGAINST  LOSS  OR
DAMAGE  UNDER  ANY  CONTRACT  OF  INSURANCE, ISSUED OR DELIVERED IN THIS
STATE OR COVERING PROPERTY LOCATED IN THIS STATE, SHALL BE REMOVED  FROM
THE  RECORD  OF  CLAIMS  MADE BY THE INSURED, FOR ALL PURPOSES, WHEN THE
INSURED SUBSEQUENTLY FINDS THAT SUCH PROPERTY WAS NOT LOST AND REPAYS TO
THE INSURER ALL MONEY, IF ANY, PAID PURSUANT TO SUCH CLAIM.
  S 2. This act shall take effect immediately and shall apply to  claims
made on, before or after such effective date.




 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09125-01-9