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Assembly Bill A8004

2017-2018 Legislative Session

Provides for liability insurer payment of judgment in excess of policy limits when it fails to fairly settle the claim

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Archive: Last Bill Status - On Floor Calendar

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2017-A8004 (ACTIVE) - Details

See Senate Version of this Bill:
S6556
Law Section:
Insurance Law
Laws Affected:
Amd §3420, Ins L
Versions Introduced in Other Legislative Sessions:
2019-2020: S3634
2021-2022: S3551

2017-A8004 (ACTIVE) - Summary

Provides that a liability insurer may be sued for and the plaintiff may recover compensatory damages in excess of the limits of the policy when the insurer failed to effectuate prompt and fair settlement of the claim and considered its interests to the detriment of the insured so as to cause the rendering of a judgment in excess of the policy limits.

2017-A8004 (ACTIVE) - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8004
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 25, 2017
                                ___________
 
 Introduced  by  M. of A. WEINSTEIN, TITUS, SEAWRIGHT, ZEBROWSKI, COLTON,
   CYMBROWITZ, JAFFEE -- read once  and  referred  to  the  Committee  on
   Insurance
 
 AN  ACT to amend the insurance law, in relation to maintaining an action
   against a liability insurer seeking compensatory damages in excess  of
   the  policy  limits  where such insurer failed to engage in prompt and
   fair settlement of the claim
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  3420 of the insurance law is amended by adding a
 new subsection (b-1) to read as follows:
   (B-1) AN ACTION MAY ALSO BE MAINTAINED BY THE  PERSONS  IDENTIFIED  IN
 PARAGRAPHS  ONE, TWO AND THREE OF SUBSECTION (B) OF THIS SECTION AGAINST
 THE INSURER TO RECOVER COMPENSATORY DAMAGES FROM  SUCH  INSURER  TO  THE
 FULL  EXTENT  OF  THE  JUDGEMENT AGAINST THE INSURED, NOT LIMITED TO THE
 POLICY LIMITS AND NOT SUBJECT TO THE LIMITATIONS AND CONDITIONS OF PARA-
 GRAPH TWO OF SUBSECTION (A) OF THIS SECTION, WHERE THE INSURER FAILED TO
 EFFECTUATE A PROMPT AND FAIR SETTLEMENT OF A CLAIM OR ANY PORTION THERE-
 OF, AND 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 JUDGEMENT IN  EXCESS  OF
 THE POLICY LIMITS.
   § 2. This act shall take effect immediately.
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11796-01-7

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