senate Bill S6813A

2021-2022 Legislative Session

Relates to unfair claim settlement practices

download bill text pdf

Sponsored By

Archive: Last 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
Apr 27, 2022 print number 6813a
Apr 27, 2022 amend and recommit to insurance
Jan 05, 2022 referred to insurance
May 18, 2021 referred to insurance

Co-Sponsors

S6813 - Details

See Assembly Version of this Bill:
A7285
Current Committee:
Senate Insurance
Law Section:
Insurance Law
Laws Affected:
Add §2601-a, amd §§3425 & 2601, Ins L
Versions Introduced in 2023-2024 Legislative Session:
S1797

S6813 - 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.

S6813 - Sponsor Memo

S6813 - 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.

Co-Sponsors

S6813A (ACTIVE) - Details

See Assembly Version of this Bill:
A7285
Current Committee:
Senate Insurance
Law Section:
Insurance Law
Laws Affected:
Add §2601-a, amd §§3425 & 2601, Ins L
Versions Introduced in 2023-2024 Legislative Session:
S1797

S6813A (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.

S6813A (ACTIVE) - Sponsor Memo

S6813A (ACTIVE) - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6813--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               May 18, 2021
                                ___________
 
 Introduced  by Sens. RAMOS, GAUGHRAN, KRUEGER, RIVERA, SALAZAR, STAVISKY
   -- read twice and ordered printed, and when printed to be committed to
   the Committee on Insurance -- recommitted to the Committee  on  Insur-
   ance 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 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
 RESPONSE TO A FAIR AND REASONABLE SETTLEMENT  OFFER  WITHIN  THE  POLICY
 LIMITS FROM AN INJURED PARTY;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11091-05-2
 S. 6813--A                          2

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