NY State Senate Bill S3634B

Current 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 (6)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to insurance
Jun 14, 2019	print number 3634b
Jun 14, 2019	amend and recommit to insurance
May 30, 2019	print number 3634a
May 30, 2019	amend and recommit to insurance
Feb 11, 2019	referred to insurance

Bill Amendments

Original

B (Active)

Original

B (Active)

Co-Sponsors

S3634 - Details

See Assembly Version of this Bill:: A5629
Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Amd §3420, Ins L
Versions Introduced in Other Legislative Sessions:: 2015-2016: A9814
2017-2018: S6556, A1937

S3634 - Summary

Provides that a liability insurer may be sued for and the plaintiff may recover compensatory damages where 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.

S3634 - Sponsor Memo

S3634 - Bill Text download pdf


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

                                  3634

                       2019-2020 Regular Sessions

                            I N  S E N A T E

                            February 11, 2019
                               ___________

Introduced  by  Sens.  BRESLIN, SEWARD, FELDER -- read twice and ordered
  printed, and when printed to be committed to the Committee  on  Insur-
  ance

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.
                                                           LBD00917-01-9

Co-Sponsors

S3634A - Details

See Assembly Version of this Bill:: A5629
Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Amd §3420, Ins L
Versions Introduced in Other Legislative Sessions:: 2015-2016: A9814
2017-2018: S6556, A1937

S3634A - Summary

S3634A - Sponsor Memo

 
BILL NUMBER: S3634A

SPONSOR: BRESLIN
 
TITLE OF BILL:  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

 
PURPOSE OR GENERAL IDEA OF BILL:

To clarify the duties of liability and casualty insurers to their
insureds.

 
SUMMARY OF SPECIFIC PROVISIONS:

This bill amends Insurance Law section 3420(b) regarding standard
provisions for liability insurance and the rights of the injured person,
to add that such person may also recover compensatory damages (or in an
appropriate case per existing law, punitive damages) from the insurer
where the insurer failed to effectuate a prompt and fair 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 above the policy limits.

 
JUSTIFICATION:

Under current New York law, insurers have a financial incentive to deny
or delay fair payment of legitimate claims, and may offer an unreason-
ably low settlement that exposes the insured to a judgment in excess of
the policy. New Yorkers who pay insurance premiums should be able to
expect insurers to live up to their duty to act in good faith, according
at least equal or more favorable consideration to the policyholder's
interests as to its own business interests.  When insurers do not meet
this obligation it is important that the person who has been harmed by
such conduct has a viable, effective remedy. This bill provides this
remedy.

 
PRIOR LEGISLATIVE HISTORY:

2018: A.8004/S.6556 - A. Cal/S.Ins.
2017: A.8004/S.6556 - A. RR Cal/S.Rules

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

 
EFFECTIVE DATE:
Immediately.

S3634A - Bill Text download pdf


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

                                 3634--A

                       2019-2020 Regular Sessions

                            I N  S E N A T E

                            February 11, 2019
                               ___________

Introduced  by  Sens.  BRESLIN, SEWARD, FELDER -- read twice and ordered
  printed, and when printed to be committed 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 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 DAMAGES INCLUDING PUNITIVE DAMAGES AS THE COURT
MAY ALLOW, AND INTEREST MEASURED FROM THE TIME OF  FAILURE  TO  OFFER  A
FAIR  AND  REASONABLE  SETTLEMENT  IN ACCORDANCE WITH THIS SECTION, FROM
SUCH INSURER TO THE FULL EXTENT OF THE JUDGMENT AGAINST THE INSURED, NOT
LIMITED TO THE POLICY LIMITS AND NOT  SUBJECT  TO  THE  LIMITATIONS  AND
CONDITIONS  OF  PARAGRAPH TWO OF SUBSECTION (A) OF THIS SECTION, WHERE A
PREPONDERANCE OF THE EVIDENCE ESTABLISHES THAT  THE  INSURER  FAILED  TO
EFFECTUATE A PROMPT AND FAIR SETTLEMENT OF A CLAIM OR ANY PORTION THERE-
OF,  AND WHERE UNDER THE TOTALITY OF THE FACTS AND CIRCUMSTANCES RELATED
TO THE CLAIM, 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.
  § 2. This act shall take effect immediately.


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00917-03-9

Co-Sponsors

S3634B (ACTIVE) - Details

See Assembly Version of this Bill:: A5629
Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Amd §3420, Ins L
Versions Introduced in Other Legislative Sessions:: 2015-2016: A9814
2017-2018: S6556, A1937

S3634B (ACTIVE) - Summary

S3634B (ACTIVE) - Sponsor Memo

 
BILL NUMBER: S3634B

SPONSOR: BRESLIN
 
TITLE OF BILL:  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

 
PURPOSE OR GENERAL IDEA OF BILL:

To clarify the duties of liability and casualty insurers to their
insureds.

 
SUMMARY OF SPECIFIC PROVISIONS:

This bill amends Insurance Law section 3420(b) regarding standard
provisions for liability insurance and the rights of the injured person,
to add that such person may also recover compensatory damages from the
insurer where the insurer failed to effectuate a prompt and fair settle-
ment 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 above the policy limits.

 
JUSTIFICATION:

Under current New York law, insurers have a financial incentive to deny
or delay fair payment of legitimate claims, and may offer an unreason-
ably low settlement that exposes the insured to a judgment in excess of
the policy. New Yorkers who pay insurance premiums should be able to
expect insurers to live up to their duty to act in good faith, according
at least equal or more favorable consideration to the policyholder's
interests as to its own business interests. When insurers do not meet
this obligation it is important that the person who has been harmed by
such conduct has a viable, effective remedy. This bill provides this
remedy.

 
PRIOR LEGISLATIVE HISTORY:

2018: A.8004/8.6556 - A. Cal/S.Ins.
2017: A.8004/S.6556 - A. RR Cal/S.Rules

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

S3634B (ACTIVE) - Bill Text download pdf


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

                                 3634--B

                       2019-2020 Regular Sessions

                            I N  S E N A T E

                            February 11, 2019
                               ___________

Introduced  by Sens. BRESLIN, SEWARD, FELDER, GAUGHRAN -- read twice and
  ordered printed, and when printed to be committed to the Committee  on
  Insurance  -- committee discharged, bill amended, ordered reprinted as
  amended and recommitted to said  committee  --  committee  discharged,
  bill  amended,  ordered  reprinted  as amended and recommitted to said
  committee

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 DAMAGES INCLUDING COMPENSATORY DAMAGES AND INTER-
EST  MEASURED  FROM  THE  TIME OF FAILURE TO OFFER A FAIR AND REASONABLE
SETTLEMENT IN ACCORDANCE WITH THIS SECTION, FROM  SUCH  INSURER  TO  THE
FULL  EXTENT  OF  THE  JUDGMENT  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  A  PREPONDERANCE  OF
THE  EVIDENCE ESTABLISHES THAT THE INSURER FAILED TO EFFECTUATE A PROMPT
AND FAIR SETTLEMENT OF A CLAIM OR ANY PORTION THEREOF, AND  WHERE  UNDER
THE  TOTALITY  OF  THE FACTS AND CIRCUMSTANCES RELATED TO THE CLAIM, 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.
  § 2. This act shall take effect immediately.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00917-05-9

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The New York State Senate

senate Bill S3634B

Sponsored By

Current Bill Status - In Senate Committee Insurance Committee

Your Voice

Actions

Bill Amendments

Co-Sponsors

S3634 - Details

S3634 - Summary

S3634 - Sponsor Memo

S3634 - Bill Text download pdf

Co-Sponsors

S3634A - Details

S3634A - Summary

S3634A - Sponsor Memo

S3634A - Bill Text download pdf

Co-Sponsors

S3634B (ACTIVE) - Details

S3634B (ACTIVE) - Summary

S3634B (ACTIVE) - Sponsor Memo

S3634B (ACTIVE) - Bill Text download pdf

Comments

senate Bill S3634B

Share this bill

Sponsored By

Current Bill Status - In Senate Committee Insurance Committee

Your Voice

Actions

Bill Amendments

Co-Sponsors

S3634 - Details

S3634 - Summary

S3634 - Sponsor Memo

S3634 - Bill Text download pdf

Co-Sponsors

S3634A - Details

S3634A - Summary

S3634A - Sponsor Memo

S3634A - Bill Text download pdf

Co-Sponsors

S3634B (ACTIVE) - Details

S3634B (ACTIVE) - Summary

S3634B (ACTIVE) - Sponsor Memo

S3634B (ACTIVE) - Bill Text download pdf

Comments