Assembly Actions -
Senate Actions - UPPERCASE
|Jan 04, 2012||
referred to insurance
|Apr 15, 2011||
referred to insurance
Senate Bill S4714
2011-2012 Legislative Session
Archive: Last Bill Status - In Senate Committee Insurance Committee
- In Committee Assembly
- On Floor Calendar Assembly
- Passed Assembly
- Delivered to Governor
- Signed By Governor
2011-S4714 (ACTIVE) - Details
2011-S4714 (ACTIVE) - Sponsor Memo
BILL NUMBER:S4714 REVISED 01/04/12 TITLE OF BILL: An act to amend the insurance law, in relation to the timing for giving notice of a loss under insurance contracts PURPOSE: The purpose of this bill is to mitigate against the potential for procedural denial of insurance coverage resulting in unreasonable loss of insurance for insureds. SUMMARY OF PROVISIONS: Section 3407(c) of the insurance law is added as a new subsection which provides that an insurer shall not decline coverage for a claim based on the failure of an insured to give timely notice of claim unless the insurer can demonstrate that it has suffered substantial prejudice as a result of the delayed notice. JUSTIFICATION: Insurance companies registered to operate in New York State have taken advantage of contract provisions which provide that late notice of loss by an insured will result in the declination of coverage. This declination of coverage which results from the filing of an untimely notice of loss is a draconian measure which allows insurance carriers to avoid providing coverage for their insured's losses, even when
2011-S4714 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 4714 2011-2012 Regular Sessions I N S E N A T E April 15, 2011 ___________ Introduced by Sen. DeFRANCISCO -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance AN ACT to amend the insurance law, in relation to the timing for giving notice of a loss under insurance contracts THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 3407 of the insurance law is amended by adding a new subsection (c) to read as follows: (C) (1) ANY PROVISION CONTAINED IN AN INSURANCE CONTRACT ISSUED OR DELIVERED IN THIS STATE OR COVERING A PROPERTY IN THIS STATE THAT IS CONTRARY IN PURPOSE WITH, OR IN CONFLICT WITH THE PROVISIONS OF THIS SECTION SHALL BE NULL AND VOID IF THE EFFECTUATION OF SUCH PROVISION WOULD RESULT IN THE DEROGATION OF THE BENEFIT TO AN INSURED INTENDED BY THE ENACTMENT OF THIS SECTION. (2) AN INSURER SHALL NOT DENY COVERAGE FOR A CLAIM BASED ON THE FAIL- URE OF AN INSURED TO GIVE TIMELY NOTICE OF A CLAIM UNLESS THE AUTHORIZED INSURER OR OTHER INSURER CAN DEMONSTRATE THAT IT HAS SUFFERED SUBSTAN- TIAL PREJUDICE AS A RESULT OF THE DELAYED NOTICE. EVIDENCE THAT THE INSURER HAD KNOWLEDGE OF THE LOSS THAT IS THE SUBJECT OF THE CLAIM SHALL CREATE A REBUTTABLE PRESUMPTION THAT THE INSURER HAS NOT BEEN PREJUDICED BY DELAYED NOTICE. NOTICE GIVEN TO ANY LICENSED AGENT OF THE INSURER IN THIS STATE WITH PARTICULARS SUFFICIENT TO IDENTIFY THE INSURED SHALL BE DEEMED NOTICE TO THE INSURER. (3) THE PROVISIONS OF THIS SECTION SHALL BE LIBERALLY CONSTRUED IN ORDER TO EFFECTUATE THE PURPOSE HEREOF WHICH IS TO MITIGATE AGAINST THE POTENTIAL FOR PROCEDURAL DENIAL OF INSURANCE COVERAGE RESULTING IN UNREASONABLE LOSS OF INSURANCE PROTECTION FOR INSUREDS. S 2. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section or part of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair or invalidate the remainder thereof, but shall be confined in its EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD10913-01-1
Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.
Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.
Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.