assembly Bill A7809

2013-2014 Legislative Session

Establishes a civil private cause of action by a policyholder who has suffered unfair claim settlement practices by an insurer

download bill text pdf

Sponsored By

Archive: Last Bill Status - On Floor Calendar


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

view actions (7)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 19, 2014 ordered to third reading rules cal.447
rules report cal.447
Jun 18, 2014 reported
reported referred to rules
reported referred to codes
Jan 08, 2014 referred to insurance
Jun 05, 2013 referred to insurance

Co-Sponsors

A7809 (ACTIVE) - Details

See Senate Version of this Bill:
S5664
Law Section:
Insurance Law
Laws Affected:
Add ยง2601-a, Ins L
Versions Introduced in Other Legislative Sessions:
2015-2016: A257, S4049
2017-2018: A2832
2019-2020: A5623

A7809 (ACTIVE) - Summary

Establishes a civil private cause of action by a policyholder who has suffered unfair claim settlement practices by an insurer.

A7809 (ACTIVE) - Bill Text download pdf

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

                                  7809

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                              June 5, 2013
                               ___________

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

AN ACT to amend the insurance law, in relation to unfair  claim  settle-
  ment practices

  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 2601-a
to read as follows:
  S 2601-A. UNFAIR CLAIM SETTLEMENT PRACTICES; CIVIL REMEDY.    (A)  THE
HOLDER OF A POLICY ISSUED OR RENEWED PURSUANT TO THIS CHAPTER SHALL HAVE
A  PRIVATE  RIGHT  OF  ACTION AGAINST ANY INSURER DOING BUSINESS IN THIS
STATE FOR DAMAGES AS PROVIDED IN THIS  SECTION  UPON  SUCH  POLICYHOLDER
PROVING  BY  A PREPONDERANCE OF THE EVIDENCE THAT SUCH INSURER'S REFUSAL
TO PAY OR UNREASONABLE DELAY IN PAYMENT TO THE POLICYHOLDER  OF  AMOUNTS
CLAIMED  TO  BE  DUE  UNDER A POLICY WAS NOT SUBSTANTIALLY JUSTIFIED. AN
INSURER IS NOT SUBSTANTIALLY JUSTIFIED IN REFUSING TO PAY OR  IN  UNREA-
SONABLY DELAYING PAYMENT WHEN THE INSURER:
  (1)  FAILED  TO  PROVIDE  THE  POLICYHOLDER  WITH ACCURATE INFORMATION
CONCERNING POLICY PROVISIONS RELATING TO THE COVERAGE AT ISSUE;
  (2) FAILED TO EFFECTUATE IN GOOD FAITH A PROMPT,  FAIR  AND  EQUITABLE
SETTLEMENT  OF A CLAIM SUBMITTED BY SUCH POLICYHOLDER IN WHICH LIABILITY
OF SUCH INSURER TO SUCH POLICYHOLDER WAS REASONABLY CLEAR;
  (3) FAILED TO PROVIDE A WRITTEN DENIAL OF A POLICYHOLDER'S CLAIM  WITH
A  FULL AND COMPLETE EXPLANATION OF SUCH DENIAL, INCLUDING REFERENCES TO
SPECIFIC POLICY PROVISIONS WHEREVER POSSIBLE;
  (4) FAILED TO MAKE A FINAL DETERMINATION AND NOTIFY  THE  POLICYHOLDER
IN WRITING OF ITS POSITION ON BOTH LIABILITY FOR AND THE INSURER'S VALU-
ATION  OF  A  CLAIM  WITHIN  SIX MONTHS OF THE DATE ON WHICH IT RECEIVED
ACTUAL OR CONSTRUCTIVE NOTICE OF THE LOSS UPON WHICH THE CLAIM IS BASED;
  (5) FAILED TO ACT IN GOOD FAITH BY COMPELLING A POLICYHOLDER TO INSTI-
TUTE SUIT TO RECOVER AMOUNTS DUE UNDER ITS POLICY BY  OFFERING  SUBSTAN-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11339-01-3