Senate Bill S6643A

2017-2018 Legislative Session

Relates to establishing a civil cause of action for unfair claim settlement practices

download bill text pdf

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Archive: Last Bill Status - In Senate Committee Insurance Committee


  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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Bill Amendments

2017-S6643 - Details

Current Committee:
Senate Insurance
Law Section:
Insurance Law
Laws Affected:
Add §2601-a, Ins L
Versions Introduced in 2017-2018 Legislative Session:
S6643

2017-S6643 - Summary

Provides that an insurer doing business in this state shall be liable to a policy holder for such insurer's refusal to pay or unreasonable delay of payment to the policy holder if such refusal or delay was not substantially justified; enumerates instances whereby an insurer's refusal or delay of payment is not substantially justified including intentional negligence, failure to act in good faith, failure to provide written denial of claim, failure to make final determination of claim within six months, and failure to promptly proceed with the appraisal process.

2017-S6643 - Sponsor Memo

2017-S6643 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6643
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               June 9, 2017
                                ___________
 
 Introduced  by  Sen.  DeFRANCISCO -- 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 establishing  a  civil
   remedy for unfair claim settlement 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)  AN
 INSURER  DOING BUSINESS IN THIS STATE SHALL BE LIABLE TO THE HOLDER OF A
 POLICY ISSUED, ISSUED FOR DELIVERY IN THIS STATE, OR RENEWED PURSUANT TO
 ARTICLE THIRTY-FOUR OF THIS CHAPTER FOR  DAMAGES  AS  PROVIDED  IN  THIS
 SECTION  UPON  SUCH  POLICY  HOLDER  PROVING  BY  A PREPONDERANCE OF THE
 EVIDENCE THAT SUCH INSURER'S REFUSAL TO PAY OR AN UNREASONABLE DELAY  BY
 THE INSURER IN PAYMENT TO THE POLICY HOLDER 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  UNREASONABLY  DELAYING
 PAYMENT WHEN THE INSURER:
   (1)  INTENTIONALLY, RECKLESSLY OR BY GROSS NEGLIGENCE FAILS TO PROVIDE
 THE POLICY HOLDER WITH ACCURATE INFORMATION CONCERNING POLICY PROVISIONS
 RELATING THE COVERAGE AT ISSUE AT ANY  TIME  DURING  THE  INSURER-POLICY
 HOLDER RELATIONSHIP, INCLUDING BUT NOT LIMITED TO THE PERIOD AFTER WHICH
 A CLAIM HAS BEEN MADE BY THE POLICY HOLDER;
   (2)  FAILED  TO  EFFECTUATE IN GOOD FAITH A PROMPT, FAIR AND EQUITABLE
 SETTLEMENT OF A CLAIM SUBMITTED BY SUCH POLICY HOLDER IN WHICH LIABILITY
 OF SUCH INSURER TO SUCH POLICY HOLDER WAS REASONABLY CLEAR;
   (3) FAILED TO PROVIDE A TIMELY WRITTEN DENIAL  OF  A  POLICY  HOLDER'S
 CLAIM,  IN WHOLE OR IN PART, UPON A THOROUGH INVESTIGATION OF SUCH CLAIM
 WITH A FULL AND COMPLETE EXPLANATION OF SUCH DENIAL OR  PARTIAL  DENIAL,
 INCLUDING  REFERENCES  TO SPECIFIC POLICY PROVISIONS OR FINDINGS OF FACT
 AS A RESULT OF SUCH INVESTIGATION WHEREVER POSSIBLE;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

2017-S6643A (ACTIVE) - Details

Current Committee:
Senate Insurance
Law Section:
Insurance Law
Laws Affected:
Add §2601-a, Ins L
Versions Introduced in 2017-2018 Legislative Session:
S6643

2017-S6643A (ACTIVE) - Summary

Provides that an insurer doing business in this state shall be liable to a policy holder for such insurer's refusal to pay or unreasonable delay of payment to the policy holder if such refusal or delay was not substantially justified; enumerates instances whereby an insurer's refusal or delay of payment is not substantially justified including intentional negligence, failure to act in good faith, failure to provide written denial of claim, failure to make final determination of claim within six months, and failure to promptly proceed with the appraisal process.

2017-S6643A (ACTIVE) - Sponsor Memo

2017-S6643A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6643--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               June 9, 2017
                                ___________
 
 Introduced  by  Sen.  DeFRANCISCO -- read twice and ordered printed, and
   when printed to be committed to the Committee on  Rules  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN  ACT  to amend the insurance law, in relation to establishing a civil
   remedy for unfair claim settlement 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) AN
 INSURER DOING BUSINESS IN THIS STATE SHALL BE LIABLE TO THE HOLDER OF  A
 POLICY ISSUED, ISSUED FOR DELIVERY IN THIS STATE, OR RENEWED PURSUANT TO
 ARTICLE  THIRTY-FOUR  OF  THIS  CHAPTER  FOR DAMAGES AS PROVIDED IN THIS
 SECTION UPON SUCH POLICY  HOLDER  PROVING  BY  A  PREPONDERANCE  OF  THE
 EVIDENCE  THAT SUCH INSURER'S REFUSAL TO PAY OR AN UNREASONABLE DELAY BY
 THE INSURER IN PAYMENT TO THE POLICY HOLDER OF AMOUNTS CLAIMED TO BE DUE
 UNDER A PROVISION OF SUCH POLICY PROVIDING FIRST PARTY  PROPERTY  INSUR-
 ANCE  WAS  NOT  SUBSTANTIALLY JUSTIFIED. AN INSURER IS NOT SUBSTANTIALLY
 JUSTIFIED IN REFUSING TO PAY OR IN UNREASONABLY  DELAYING  PAYMENT  WHEN
 THE INSURER:
   (1)  INTENTIONALLY, RECKLESSLY OR BY GROSS NEGLIGENCE FAILS TO PROVIDE
 THE POLICY HOLDER WITH ACCURATE INFORMATION CONCERNING POLICY PROVISIONS
 RELATING THE COVERAGE AT ISSUE AT ANY  TIME  DURING  THE  INSURER-POLICY
 HOLDER RELATIONSHIP, INCLUDING BUT NOT LIMITED TO THE PERIOD AFTER WHICH
 A CLAIM HAS BEEN MADE BY THE POLICY HOLDER;
   (2)  FAILED  TO  EFFECTUATE IN GOOD FAITH A PROMPT, FAIR AND EQUITABLE
 SETTLEMENT OF A CLAIM SUBMITTED BY SUCH POLICY HOLDER IN WHICH LIABILITY
 OF SUCH INSURER TO SUCH POLICY HOLDER WAS REASONABLY CLEAR;
   (3) FAILED TO PROVIDE A TIMELY WRITTEN DENIAL  OF  A  POLICY  HOLDER'S
 CLAIM,  IN WHOLE OR IN PART, UPON A THOROUGH INVESTIGATION OF SUCH CLAIM
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

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