| Date of Action |
Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|---|---|
| Jun 13, 2016 |
print number 26a |
| Jun 13, 2016 |
amend and recommit to insurance |
| Jan 06, 2016 |
referred to insurance |
| Jan 07, 2015 |
referred to insurance |
Senate Bill S26A
2015-2016 Legislative Session
Sponsored By
(R, C, IP) Senate District
Archive: Last Bill Status - In Senate Committee Insurance Committee
Actions
Bill Amendments
2015-S26 - Details
- Current Committee:
- Senate Insurance
- Law Section:
- Insurance Law
- Laws Affected:
- Amd §3407, Ins L
- Versions Introduced in Other Legislative Sessions:
-
2009-2010:
S4669
2011-2012: S4714
2013-2014: S2315
2015-S26 - Sponsor Memo
BILL NUMBER: S26
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 of insurance coverage resulting in
unreasonable loss of insurance coverage for insured's
SUMMARY OF PROVISIONS :
Section 3407(c) of the insurance law is added as a new subdivision
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 such untimely notice of loss has failed to cause any
prejudice to the insurance carrier.
2015-S26 - Bill Text download pdf
S T A T E O F N E W Y O R K
________________________________________________________________________
26
2015-2016 Regular Sessions
I N S E N A T E
(PREFILED)
January 7, 2015
___________
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,
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
2015-S26A (ACTIVE) - Details
- Current Committee:
- Senate Insurance
- Law Section:
- Insurance Law
- Laws Affected:
- Amd §3407, Ins L
- Versions Introduced in Other Legislative Sessions:
-
2009-2010:
S4669
2011-2012: S4714
2013-2014: S2315
2015-S26A (ACTIVE) - Sponsor Memo
BILL NUMBER: S26A
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 of insurance coverage resulting in unreasonable loss of
insurance coverage for insured's
SUMMARY OF PROVISIONS :
Section 3407(c) of the insurance law is added as a new subdivision
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
2015-S26A (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K
________________________________________________________________________
26--A
2015-2016 Regular Sessions
I N S E N A T E
(PREFILED)
January 7, 2015
___________
Introduced by Sen. DeFRANCISCO -- read twice and ordered printed, and
when printed to be committed to the Committee on Insurance -- recom-
mitted to the Committee on Insurance in accordance with Senate Rule 6,
sec. 8 -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee
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. Subsection (a) of section 3407 of the insurance law, is
amended to read as follows:
(a) The failure of any person insured against loss or damage to prop-
erty under any contract of insurance, issued or delivered in this state
or covering property located in this state, to furnish proofs of loss to
the insurer or insurers as specified in such contract shall not invali-
date or diminish any claim of such person insured under such contract,
unless such insurer or insurers shall, after such loss or damage, give
to such insured a written notice that it or they desire proofs of loss
to be furnished by such insured to such insurer or insurers on a suit-
able blank form or forms. If the insured shall furnish proofs of loss
within [sixty] NINETY days after the receipt of such notice and such
form or forms, or within any longer period of time specified in such
notice, such insured shall be deemed to have complied with the
provisions of such contract of insurance relating to the time within
which proofs of loss are required. Neither the giving of such notice nor
the furnishing of such blank form or forms by the insurer shall consti-
tute a waiver of any stipulation or condition of such contract, or an
admission of liability thereunder.
S 2. This act shall take effect immediately, and shall apply to all
insurance contracts, executed, issued, reissued or renewed on or after
such date.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
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