senate Bill S6216A

2019-2020 Legislative Session

Relates to unfair claim settlement practices; provides civil remedies

download bill text pdf

Sponsored By

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 (4)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jul 10, 2020 print number 6216a
Jul 10, 2020 amend and recommit to insurance
Jan 08, 2020 referred to insurance
May 23, 2019 referred to insurance

Co-Sponsors

S6216 - Details

See Assembly Version of this Bill:
A5623
Current Committee:
Senate Insurance
Law Section:
Insurance Law
Laws Affected:
Add §2601-a, amd §§3425 & 2601, Ins L
Versions Introduced in Other Legislative Sessions:
2013-2014: A7809
2015-2016: A257
2017-2018: A2832

S6216 - Summary

Relates to unfair claim settlement practices; provides that plaintiff may recover interest, costs and disbursements; compensatory damages, consequential damages and reasonable attorneys' fees in addition to amounts due under the policy when the insurer refused to pay or unreasonable delay of payment was not reasonably justified.

S6216 - Sponsor Memo

S6216 - Bill Text download pdf


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

                                  6216

                       2019-2020 Regular Sessions

                            I N  S E N A T E

                              May 23, 2019
                               ___________

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

AN ACT to amend the insurance law, in relation to unfair  claim  settle-
  ment 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)  THE
HOLDER  OF A POLICY ISSUED OR RENEWED PURSUANT TO ARTICLE THIRTY-FOUR OF
THIS CHAPTER SHALL HAVE A PRIVATE RIGHT OF ACTION  AGAINST  ANY  INSURER
DOING  BUSINESS  IN  THIS  STATE FOR DAMAGES AS PROVIDED IN THIS SECTION
UPON SUCH POLICYHOLDER PROVING BY A PREPONDERANCE OF THE  EVIDENCE  THAT
SUCH  INSURER'S  REFUSAL  TO PAY OR UNREASONABLE DELAY IN PAYMENT TO THE
POLICYHOLDER OF AMOUNTS CLAIMED TO BE DUE UNDER A POLICY WAS NOT REASON-
ABLY JUSTIFIED. AN INSURER IS NOT REASONABLY JUSTIFIED  IN  REFUSING  TO
PAY OR IN UNREASONABLY DELAYING PAYMENT WHEN THE INSURER:
  (1)  FAILED  TO  PROVIDE  THE  POLICYHOLDER  WITH ACCURATE INFORMATION
CONCERNING POLICY PROVISIONS RELATING TO THE COVERAGE AT ISSUE;
  (2) FAILED TO EFFECTUATE A PROMPT AND FAIR SETTLEMENT OF  A  CLAIM  OR
ANY  PORTION  THEREOF,  AND  THE  INSURER FAILED TO REASONABLY ACCORD AT
LEAST EQUAL OR MORE FAVORABLE CONSIDERATION TO ITS INSURED  INTEREST  AS
IT  DID TO ITS OWN INTERESTS, AND THEREBY EXPOSED THE INSURED TO A JUDG-
MENT IN EXCESS OF THE POLICY LIMITS;
  (3) FAILED TO PROVIDE A TIMELY  WRITTEN  DENIAL  OF  A  POLICYHOLDER'S
CLAIM  WITH  A  FULL  AND COMPLETE EXPLANATION OF SUCH DENIAL, INCLUDING
REFERENCES TO SPECIFIC POLICY PROVISIONS WHEREVER POSSIBLE;
  (4) FAILED TO MAKE A FINAL DETERMINATION AND NOTIFY  THE  POLICYHOLDER
IN WRITING OF ITS POSITION ON BOTH LIABILITY FOR AND THE INSURER'S VALU-
ATION  OF  A  CLAIM  WITHIN  SIX MONTHS OF THE DATE ON WHICH IT RECEIVED
ACTUAL OR CONSTRUCTIVE NOTICE OF THE LOSS UPON WHICH THE CLAIM IS BASED;

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

Co-Sponsors

S6216A (ACTIVE) - Details

See Assembly Version of this Bill:
A5623
Current Committee:
Senate Insurance
Law Section:
Insurance Law
Laws Affected:
Add §2601-a, amd §§3425 & 2601, Ins L
Versions Introduced in Other Legislative Sessions:
2013-2014: A7809
2015-2016: A257
2017-2018: A2832

S6216A (ACTIVE) - Summary

Relates to unfair claim settlement practices; provides that plaintiff may recover interest, costs and disbursements; compensatory damages, consequential damages and reasonable attorneys' fees in addition to amounts due under the policy when the insurer refused to pay or unreasonable delay of payment was not reasonably justified.

S6216A (ACTIVE) - Sponsor Memo

S6216A (ACTIVE) - Bill Text download pdf


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

                                 6216--A

                       2019-2020 Regular Sessions

                            I N  S E N A T E

                              May 23, 2019
                               ___________

Introduced  by  Sens. BAILEY, SKOUFIS -- read twice and ordered printed,
  and when printed to be committed to  the  Committee  on  Insurance  --
  recommitted  to  the  Committee on Insurance in accordance with Senate
  Rule  6,  sec.  8  --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN  ACT  to amend the insurance law, in relation to unfair claim settle-
  ment 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) THE
HOLDER OF A POLICY ISSUED OR RENEWED PURSUANT TO ARTICLE THIRTY-FOUR  OF
THIS  CHAPTER  SHALL  HAVE A PRIVATE RIGHT OF ACTION AGAINST ANY INSURER
DOING BUSINESS IN THIS STATE FOR DAMAGES AS  PROVIDED  IN  THIS  SECTION
UPON  SUCH  POLICYHOLDER PROVING BY A PREPONDERANCE OF THE EVIDENCE THAT
SUCH INSURER'S REFUSAL TO PAY OR UNREASONABLE DELAY IN  PAYMENT  TO  THE
POLICYHOLDER OF AMOUNTS CLAIMED TO BE DUE UNDER A POLICY WAS NOT REASON-
ABLY  JUSTIFIED.  AN  INSURER IS NOT REASONABLY JUSTIFIED IN REFUSING TO
PAY OR IN UNREASONABLY DELAYING PAYMENT WHEN THE INSURER:
  (1) FAILED TO  PROVIDE  THE  POLICYHOLDER  WITH  ACCURATE  INFORMATION
CONCERNING POLICY PROVISIONS RELATING TO THE COVERAGE AT ISSUE;
  (2)  FAILED  TO  EFFECTUATE A PROMPT AND FAIR SETTLEMENT OF A CLAIM OR
ANY PORTION THEREOF, AND THE INSURER  FAILED  TO  REASONABLY  ACCORD  AT
LEAST  EQUAL  OR MORE FAVORABLE CONSIDERATION TO ITS INSURED INTEREST AS
IT DID TO ITS OWN INTERESTS, AND THEREBY EXPOSED THE INSURED TO A  JUDG-
MENT IN EXCESS OF THE POLICY LIMITS;
  (3)  FAILED  TO  PROVIDE  A  TIMELY WRITTEN DENIAL OF A POLICYHOLDER'S
CLAIM WITH A FULL AND COMPLETE EXPLANATION  OF  SUCH  DENIAL,  INCLUDING
REFERENCES TO SPECIFIC POLICY PROVISIONS WHEREVER POSSIBLE;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00885-05-0

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