Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|
---|---|
May 15, 2025 |
print number 6010a |
May 15, 2025 |
amend and recommit to insurance |
Feb 25, 2025 |
referred to insurance |
Assembly Bill A6010A
2025-2026 Legislative Session
Sponsored By
HOOKS
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
Actions
Bill Amendments
co-Sponsors
Jessica Gonzalez-Rojas
Yudelka Tapia
Al Taylor
Charles Fall
2025-A6010 - Details
2025-A6010 - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 6010 2025-2026 Regular Sessions I N A S S E M B L Y February 25, 2025 ___________ Introduced by M. of A. HOOKS -- 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 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; (3) FAILS TO PROVIDE A TIMELY WRITTEN DENIAL OF A POLICYHOLDER'S CLAIM WITH A FULL AND COMPLETE EXPLANATION OF SUCH DENIAL, INCLUDING REFER- ENCES TO SPECIFIC POLICY PROVISIONS WHEREVER POSSIBLE; (4) FAILS 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. LBD00680-01-5
co-Sponsors
Jessica Gonzalez-Rojas
Yudelka Tapia
Al Taylor
Charles Fall
2025-A6010A (ACTIVE) - Details
2025-A6010A (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 6010--A 2025-2026 Regular Sessions I N A S S E M B L Y February 25, 2025 ___________ Introduced by M. of A. HOOKS, GONZALEZ-ROJAS, TAPIA, TAYLOR, FALL, KASSAY -- read once and referred to the Committee on Insurance -- 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. This act shall be known and may be cited as the "fair insurance settlement practice act (FISPA)". § 2. The insurance law is amended by adding a new section 2601-a to read as follows: § 2601-A. UNFAIR CLAIM SETTLEMENT PRACTICES. (A) UNFAIR CLAIM SETTLE- MENT PRACTICES. FOR THE PURPOSES OF THIS SECTION, AN UNFAIR CLAIMS SETTLEMENT PRACTICE SHALL CONSIST OF ANY OF THE FOLLOWING ACTS OR OMIS- SIONS: (1) MISREPRESENTING OR OMITTING PERTINENT FACTS OR INSURANCE POLICY PROVISIONS RELATING TO THE COVERAGE AT ISSUE, INCLUDING BUT NOT LIMITED TO, IN CONNECTION WITH LITIGATION, FAILING TO DISCLOSE ALL AVAILABLE COVERAGE AMOUNTS IN COMPLIANCE WITH SUBDIVISION (F) OF SECTION THIRTY ONE HUNDRED ONE OF THE CIVIL PRACTICE LAW AND RULES; (2) FAILING TO ACKNOWLEDGE AND ACT REASONABLY PROMPTLY UPON COMMUNI- CATIONS WITH RESPECT TO CLAIMS ARISING UNDER INSURANCE POLICIES; (3) FAILING TO ADOPT AND IMPLEMENT REASONABLE STANDARDS FOR THE PROMPT INVESTIGATION OF CLAIMS ARISING UNDER INSURANCE POLICIES; (4) REFUSING TO PAY CLAIMS WITHOUT CONDUCTING A REASONABLE INVESTI- GATION BASED UPON ALL AVAILABLE INFORMATION; (5) FAILING TO AFFIRM OR DENY COVERAGE OF CLAIMS WITHIN A REASONABLE TIME AFTER PROOF OF LOSS STATEMENTS HAVE BEEN COMPLETED; (6) FAILING TO EFFECTUATE PROMPT, FAIR AND EQUITABLE SETTLEMENTS OF CLAIMS IN WHICH LIABILITY HAS BECOME REASONABLY CLEAR; EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD00680-03-5
Comments
Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.
Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.
Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.