assembly Bill A2832A

2017-2018 Legislative Session

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

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Assembly Committee


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

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Actions

view actions (4)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 03, 2018 referred to insurance
Jun 20, 2017 print number 2832a
Jun 20, 2017 amend and recommit to insurance
Jan 23, 2017 referred to insurance

Co-Sponsors

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Multi-Sponsors

A2832 - Details

Current Committee:
Assembly Insurance
Law Section:
Insurance Law
Laws Affected:
Add §2601-a, Ins L
Versions Introduced in Other Legislative Sessions:
2013-2014: A7809
2015-2016: A257
2019-2020: A5623

A2832 - Summary

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

A2832 - Bill Text download pdf


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

                                  2832

                       2017-2018 Regular Sessions

                          I N  A S S E M B L Y

                            January 23, 2017
                               ___________

Introduced  by  M.  of  A. WEINSTEIN, CUSICK, TITUS, CYMBROWITZ, JAFFEE,
  HYNDMAN, JENNE, SKOUFIS, PAULIN, COLTON, ABINANTI, SEAWRIGHT, SEPULVE-
  DA, SANTABARBARA, ZEBROWSKI -- Multi-Sponsored by -- M. of A.  KEARNS,
  McDONOUGH,  RAIA  -- read once and referred to the Committee on Insur-
  ance

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:
  § 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-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02844-01-7

Co-Sponsors

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Multi-Sponsors

A2832A (ACTIVE) - Details

Current Committee:
Assembly Insurance
Law Section:
Insurance Law
Laws Affected:
Add §2601-a, Ins L
Versions Introduced in Other Legislative Sessions:
2013-2014: A7809
2015-2016: A257
2019-2020: A5623

A2832A (ACTIVE) - Summary

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

A2832A (ACTIVE) - Bill Text download pdf


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

                                 2832--A

                       2017-2018 Regular Sessions

                          I N  A S S E M B L Y

                            January 23, 2017
                               ___________

Introduced  by  M.  of  A. WEINSTEIN, CUSICK, TITUS, CYMBROWITZ, JAFFEE,
  HYNDMAN, JENNE, SKOUFIS, PAULIN, COLTON, ABINANTI, SEAWRIGHT, SEPULVE-
  DA, SANTABARBARA, ZEBROWSKI -- Multi-Sponsored by -- M. of A.  KEARNS,
  McDONOUGH,  RAIA  -- read once and referred to the Committee on Insur-
  ance -- committee  discharged,  bill  amended,  ordered  reprinted  as
  amended and recommitted to said committee

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:
  §  2601-A.  UNFAIR  CLAIM SETTLEMENT PRACTICES; CIVIL REMEDY.  (A) ANY
PERSON MAY BRING A CIVIL  ACTION  AGAINST  AN  INSURER  IF  SUCH  PERSON
SUFFERS  DAMAGES  AS  PROVIDED  IN  THIS SECTION WITH REGARD TO A POLICY
ISSUED OR RENEWED PURSUANT TO THIS CHAPTER  AGAINST  ANY  INSURER  DOING
BUSINESS  IN THIS STATE UPON SUCH CLAIMANT PROVING BY A PREPONDERANCE OF
THE EVIDENCE THAT SUCH INSURER'S REFUSAL TO PAY OR UNREASONABLE DELAY IN
PAYMENT OF AMOUNTS CLAIMED TO BE DUE UNDER A POLICY WAS NOT SUBSTANTIAL-
LY JUSTIFIED. AN INSURER IS NOT SUBSTANTIALLY JUSTIFIED IN  REFUSING  TO
PAY OR IN UNREASONABLY DELAYING PAYMENT WHEN THE INSURER:
  (1)  FAILED TO PROVIDE THE CLAIMANT WITH ACCURATE INFORMATION CONCERN-
ING POLICY PROVISIONS RELATING TO THE COVERAGE AT ISSUE;
  (2) FAILED TO EFFECTUATE IN GOOD FAITH A PROMPT,  FAIR  AND  EQUITABLE
SETTLEMENT OF A CLAIM OR PORTION OF A CLAIM AND WHERE THE INSURER FAILED
TO  REASONABLY  ACCORD AT LEAST EQUAL OR MORE FAVORABLE CONSIDERATION TO
ITS INSURED'S INTERESTS AS IT DID TO  ITS  OWN  INTERESTS,  AND  THEREBY
EXPOSED  THE  INSURED  TO  A  JUDGMENT IN EXCESS OF THE POLICY LIMITS OR
CAUSED OTHER DAMAGE TO A CLAIMANT;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02844-03-7