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Assembly Bill A5629B

2019-2020 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 - In Assembly Committee

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Bill Amendments

co-Sponsors

2019-A5629 - Details

See Senate Version of this Bill:
S3634
Current Committee:
Assembly Codes
Law Section:
Insurance Law
Laws Affected:
Amd §3420, Ins L
Versions Introduced in Other Legislative Sessions:
2015-2016: A9814
2017-2018: A1937, S6556
2021-2022: A2540, A5882, S3551
2023-2024: A464, A8920
2025-2026: A6261

2019-A5629 - 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.

2019-A5629 - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5629
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 14, 2019
                                ___________
 
 Introduced  by  M. of A. WEINSTEIN, TITUS, SEAWRIGHT, ZEBROWSKI, COLTON,
   CYMBROWITZ,  JAFFEE,  HEVESI,  HUNTER,  D'URSO,  ABINANTI,  GOTTFRIED,
   TAYLOR -- 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.
                                                            LBD00917-01-9

co-Sponsors

multi-Sponsors

2019-A5629A - Details

See Senate Version of this Bill:
S3634
Current Committee:
Assembly Codes
Law Section:
Insurance Law
Laws Affected:
Amd §3420, Ins L
Versions Introduced in Other Legislative Sessions:
2015-2016: A9814
2017-2018: A1937, S6556
2021-2022: A2540, A5882, S3551
2023-2024: A464, A8920
2025-2026: A6261

2019-A5629A - 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.

2019-A5629A - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5629--A
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 14, 2019
                                ___________
 
 Introduced  by  M. of A. WEINSTEIN, TITUS, SEAWRIGHT, ZEBROWSKI, COLTON,
   CYMBROWITZ,  JAFFEE,  HEVESI,  HUNTER,  D'URSO,  ABINANTI,  GOTTFRIED,
   TAYLOR,  MOSLEY, DE LA ROSA -- read once and referred to the Committee
   on Insurance -- 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.
                                                            LBD00917-02-9

co-Sponsors

multi-Sponsors

2019-A5629B (ACTIVE) - Details

See Senate Version of this Bill:
S3634
Current Committee:
Assembly Codes
Law Section:
Insurance Law
Laws Affected:
Amd §3420, Ins L
Versions Introduced in Other Legislative Sessions:
2015-2016: A9814
2017-2018: A1937, S6556
2021-2022: A2540, A5882, S3551
2023-2024: A464, A8920
2025-2026: A6261

2019-A5629B (ACTIVE) - 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.

2019-A5629B (ACTIVE) - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5629--B
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 14, 2019
                                ___________
 
 Introduced  by  M. of A. WEINSTEIN, TITUS, SEAWRIGHT, ZEBROWSKI, COLTON,
   CYMBROWITZ,  JAFFEE,  HEVESI,  HUNTER,  D'URSO,  ABINANTI,  GOTTFRIED,
   TAYLOR, MOSLEY, DE LA ROSA -- Multi-Sponsored by -- M. of A. MORINELLO
   --  read  once and referred to the Committee on Insurance -- committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee -- reported and referred to the Committee  on  Codes
   --  reported and referred to the Committee on Rules -- Rules Committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   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 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.

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