senate Bill S6556

2017-2018 Legislative Session

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

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Senate Committee Insurance 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 (2)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 03, 2018 referred to insurance
Jun 02, 2017 referred to rules

Co-Sponsors

S6556 (ACTIVE) - Details

See Assembly Version of this Bill:
A8004
Current Committee:
Senate Insurance
Law Section:
Insurance Law
Laws Affected:
Amd §3420, Ins L
Versions Introduced in Other Legislative Sessions:
2019-2020: S3634
2021-2022: S3551

S6556 (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.

S6556 (ACTIVE) - Sponsor Memo

S6556 (ACTIVE) - Bill Text download pdf 


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

                                  6556

                       2017-2018 Regular Sessions

                            I N  S E N A T E

                              June 2, 2017
                               ___________

Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

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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