Assembly Bill A7285A

2021-2022 Legislative Session

Relates to unfair claim settlement practices

download bill text pdf

Sponsored By

Archive: Last Bill Status - On Floor Calendar


  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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Actions

Bill Amendments

co-Sponsors

multi-Sponsors

2021-A7285 - Details

See Senate Version of this Bill:
S6813
Law Section:
Insurance Law
Laws Affected:
Add §2601-a, amd §§3425 & 2601, Ins L
Versions Introduced in 2023-2024 Legislative Session:
A7139, S1797

2021-A7285 - Summary

Relates to claim settlement practices when an insurer refuses to pay or is delaying payment of a settlement; provides a policyholder a private right of action against such insurer doing business in the state who has refused or delayed payment of an insurance claim.

2021-A7285 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7285
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                May 3, 2021
                                ___________
 
 Introduced  by  M. of A. WEINSTEIN, CUSICK, CYMBROWITZ, HYNDMAN, PAULIN,
   COLTON, ABINANTI, SEAWRIGHT, SANTABARBARA, ZEBROWSKI, TAYLOR, CARROLL,
   DINOWITZ, WEPRIN, JACOBSON, GOTTFRIED, SIMON, GRIFFIN -- read once and
   referred 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-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

co-Sponsors

multi-Sponsors

2021-A7285A (ACTIVE) - Details

See Senate Version of this Bill:
S6813
Law Section:
Insurance Law
Laws Affected:
Add §2601-a, amd §§3425 & 2601, Ins L
Versions Introduced in 2023-2024 Legislative Session:
A7139, S1797

2021-A7285A (ACTIVE) - Summary

Relates to claim settlement practices when an insurer refuses to pay or is delaying payment of a settlement; provides a policyholder a private right of action against such insurer doing business in the state who has refused or delayed payment of an insurance claim.

2021-A7285A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7285--A
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                May 3, 2021
                                ___________
 
 Introduced  by  M. of A. WEINSTEIN, CUSICK, CYMBROWITZ, HYNDMAN, PAULIN,
   COLTON, ABINANTI, SEAWRIGHT, SANTABARBARA, ZEBROWSKI, TAYLOR, CARROLL,
   DINOWITZ, WEPRIN, JACOBSON, GOTTFRIED, SIMON, GRIFFIN, SOLAGES, ZINER-
   MAN, GONZALEZ-ROJAS, DICKENS, ANDERSON, LUNSFORD, GLICK -- Multi-Spon-
   sored by -- M. of A. WILLIAMS -- read once and referred to the Commit-
   tee on Insurance -- reported and referred to the Committee on Codes --
   recommitted to the Committee on Codes in accordance with Assembly Rule
   3, sec. 2 -- 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  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  IS
 NOT  REASONABLY  JUSTIFIED.  AN  INSURER  IS NOT REASONABLY JUSTIFIED IN
 REFUSING TO PAY OR IS UNREASONABLY DELAYING PAYMENT WHEN THE INSURER:
   (1) FAILS  TO  PROVIDE  THE  POLICYHOLDER  WITH  ACCURATE  INFORMATION
 CONCERNING POLICY PROVISIONS RELATING TO THE COVERAGE AT ISSUE;
   (2) FAILS TO EFFECTUATE A PROMPT AND FAIR SETTLEMENT OF A CLAIM OR ANY
 PORTION  THEREOF,  IN THAT THE INSURER (I) FAILS TO REASONABLY ACCORD AT
 LEAST EQUAL OR MORE FAVORABLE CONSIDERATION TO ITS  INSURED'S  INTERESTS
 AS  IT  DID  TO  ITS OWN INTERESTS, AND THEREBY EXPOSES THE INSURED TO A
 JUDGMENT IN EXCESS OF THE POLICY LIMITS, OR (II) REFUSES  TO  SETTLE  IN
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11091-04-2
              

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