senate Bill S3551

2021-2022 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 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 (2)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 05, 2022 referred to insurance
Jan 30, 2021 referred to insurance

Co-Sponsors

S3551 (ACTIVE) - Details

See Assembly Version of this Bill:
A2540
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
2019-2020: S3634, A917, A5629

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

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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