Assembly Bill A5166

2023-2024 Legislative Session

Relates to unfair claim settlements after a natural disaster

download bill text pdf

Sponsored By

Current Bill Status - In Assembly Committee


  • 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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2023-A5166 (ACTIVE) - Details

Current Committee:
Assembly Insurance
Law Section:
Insurance Law
Laws Affected:
Amd §2601, add §2601-a, Ins L
Versions Introduced in Other Legislative Sessions:
2013-2014: A4699
2015-2016: A4089
2017-2018: A4671
2019-2020: A5639
2021-2022: A6911

2023-A5166 (ACTIVE) - Summary

Relates to unfair claim settlements after a natural disaster.

2023-A5166 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5166
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               March 3, 2023
                                ___________
 
 Introduced  by  M.  of  A.  TANNOUSIS  --  read once and referred to the
   Committee on Insurance
 
 AN ACT to amend the insurance law, in relation to unfair  claim  settle-
   ments after a natural disaster
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  Section  2601  of  the  insurance  law,  paragraph  4  of
 subsection  (a) as amended by chapter 547 of the laws of 1997, paragraph
 5 of subsection (a) as amended by section 27 of part H of chapter 60  of
 the  laws  of  2014 and paragraphs 6 and 7 as amended and paragraph 8 of
 subsection (a) as added by chapter 458 of the laws of 2018,  is  amended
 to read as follows:
   §  2601.  Unfair claim settlement practices; penalties. (a) No insurer
 doing business in this state shall engage  in  unfair  claim  settlement
 practices. Any of the following acts by an insurer, if committed without
 just  cause  and  performed with such frequency as to indicate a general
 business practice, shall constitute unfair claim  settlement  practices,
 PROVIDED,  HOWEVER,  THAT  IN  THE  EVENT  THE  GOVERNOR HAS PURSUANT TO
 SECTION TWENTY-NINE-A OF THE EXECUTIVE LAW SUSPENDED ANY STATUTE IN THIS
 CHAPTER AS A RESULT OF  A  STATE  DISASTER  EMERGENCY,  SUCH  ACT  SHALL
 CONSTITUTE AN UNFAIR CLAIM SETTLEMENT PRACTICE WITHOUT RESPECT TO WHETH-
 ER SUCH ACT WAS INDICATIVE OF A GENERAL BUSINESS PRACTICE:
   (1)  knowingly  misrepresenting to claimants pertinent facts or policy
 provisions relating to coverages at issue;
   (2) failing to acknowledge with reasonable promptness pertinent commu-
 nications as to claims arising under its policies;
   (3) failing to adopt and implement reasonable standards for the prompt
 investigation of claims arising under its policies;
   (4) not attempting in good faith to effectuate prompt, fair and  equi-
 table  settlements  of  claims  submitted  in which liability has become
 reasonably clear, except where there is a reasonable basis supported  by
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05126-01-3
              

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