|Assembly Actions - Lowercase
Senate Actions - UPPERCASE
|May 18, 2021||referred to insurance|
senate Bill S6813
Current Bill Status - In Senate Committee Insurance Committee
- In Committee
- On Floor Calendar
- Passed Senate
- Passed Assembly
- Delivered to Governor
- Signed/Vetoed by Governor
S6813 (ACTIVE) - Details
S6813 (ACTIVE) - Sponsor Memo
BILL NUMBER: S6813 SPONSOR: RAMOS TITLE OF BILL: An act to amend the insurance law, in relation to unfair claim settle- ment practices PURPOSE OF BILL: To allow insurance policy holders and injured people to recover damages when an insurance company's refusal to pay or unreasonable delay in paying a claim was not substantially justified. SUMMARY OF PROVISIONS OF BILL: Section 1 creates a new Insurance Law section 2601-a which grants insur- ance policy claimants a private right of action to seek damages if the insurer unreasonably refuses to pay or unreasonably delays payment with- out substantial justification. An insurer would not be substantially justified in refusing to pay or in unreasonably delaying payment when
S6813 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 6813 2021-2022 Regular Sessions I N S E N A T E May 18, 2021 ___________ Introduced by Sen. RAMOS -- 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 OR INJURED PERSON SHALL HAVE A PRIVATE RIGHT OF ACTION AGAINST ANY INSURER DOING BUSINESS IN THIS STATE FOR DAMAGES AS PROVIDED IN THIS SECTION UPON PROOF BY A PREPONDERANCE OF THE EVIDENCE THAT SUCH INSURER'S REFUSAL TO PAY OR UNREASONABLY DELAY PAYMENT TO THE POLICY- HOLDER OR INJURED PERSON OF AMOUNTS CLAIMED TO BE DUE UNDER A POLICY WAS NOT REASONABLY JUSTIFIED. AN INSURER IS NOT REASONABLY JUSTIFIED IN REFUSING TO PAY OR IS 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, IN THAT 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; (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.
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