|Assembly Actions - Lowercase
Senate Actions - UPPERCASE
|Jan 05, 2022||referred to insurance|
|Jan 30, 2021||referred to insurance|
senate Bill S3551
Current Bill Status - In Senate Committee Insurance Committee
- In Committee
- On Floor Calendar
- Passed Senate
- Passed Assembly
- Delivered to Governor
- Signed/Vetoed by Governor
S3551 (ACTIVE) - Details
S3551 (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.
S3551 (ACTIVE) - Sponsor Memo
BILL NUMBER: S3551 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
S3551 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 3551 2021-2022 Regular Sessions I N S E N A T E January 30, 2021 ___________ Introduced by Sens. BRESLIN, FELDER, GAUGHRAN, SKOUFIS -- 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 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. LBD00029-01-1
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