The New York State Senate

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

                                  4288

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 30, 2015
                               ___________

Introduced  by  M.  of  A. DINOWITZ, BRENNAN, GOLDFEDER -- read once and
  referred 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.
                                                           LBD01102-01-5

A. 4288                             2

operation to the clause, sentence, paragraph,  subdivision,  section  or
part thereof directly involved in the controversy in which such judgment
shall  have been rendered. It is hereby declared to be the intent of the
legislature  that  this act would have been enacted even if such invalid
provisions had not been included herein.
  S 3. This act shall take effect immediately, and shall  apply  to  all
insurance  contracts,  executed, issued, reissued or renewed on or after
such date.