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

download bill text pdf

Sponsored By

Current Bill Status - In Assembly Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

Your Voice

do you support this bill?

Please enter your contact information

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

view actions (7)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2020 referred to codes
Jun 13, 2019 amend and recommit to rules 5629b
Jun 11, 2019 reported referred to rules
Jun 05, 2019 reported referred to codes
May 17, 2019 print number 5629a
May 17, 2019 amend and recommit to insurance
Feb 14, 2019 referred to insurance

Co-Sponsors

view additional co-sponsors

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

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.

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

view additional co-sponsors

Multi-Sponsors

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

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.

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

view additional co-sponsors

Multi-Sponsors

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

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.

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.