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Senate Bill S5343

2025-2026 Legislative Session

Provides that payment of interest payment and attorney fees to claimant when payment of a claim is overdue shall be exclusive remedy

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Current Bill Status - In Senate Committee Insurance Committee

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2025-S5343 (ACTIVE) - Details

Current Committee:
Senate Insurance
Law Section:
Insurance Law
Laws Affected:
Amd §5106, Ins L
Versions Introduced in Other Legislative Sessions:
2009-2010: S6448
2011-2012: S1686
2013-2014: S2892
2015-2016: S1056
2017-2018: S779
2019-2020: S3513
2021-2022: S4046
2023-2024: S2814

2025-S5343 (ACTIVE) - Summary

Provides that payment of interest penalty and attorney fees to claimant when payment of a claim is overdue shall be exclusive remedy when insurer fails to make timely payment; provides such failure of insurer to make timely payment or issue denial within 30 days after proof of claim has been submitted to insurer shall not preclude such insurer from issuing a denial or asserting a defense after the 30 day period has elapsed.

2025-S5343 (ACTIVE) - Sponsor Memo

2025-S5343 (ACTIVE) - Bill Text download pdf 

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5343
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 20, 2025
                                ___________
 
 Introduced  by  Sen.  COMRIE -- 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  payment  of  interest
   penalty  and  attorney  fees to a claimant when a claim is overdue and
   the ability of an insurer to assert a defense or deny a claim if time-
   ly payment is not made within thirty days after  proof  of  claim  has
   been submitted
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subsection (a) of section 5106  of  the  insurance  law  is
 amended to read as follows:
   (a)  Payments of first party benefits and additional first party bene-
 fits shall be made as the loss is incurred. Such benefits are overdue if
 not paid within thirty days after the claimant  supplies  proof  of  the
 fact  and  amount  of loss sustained. If proof is not supplied as to the
 entire claim, the amount which is supported by proof is overdue  if  not
 paid  within  thirty  days  after  such  proof  is supplied. All overdue
 payments shall bear interest at the rate of two percent per month. If  a
 valid  claim or portion was overdue, the claimant shall also be entitled
 to recover his  attorney's  reasonable  fee,  for  services  necessarily
 performed  in  connection  with  securing  payment of the overdue claim,
 subject to limitations promulgated by the superintendent in regulations.
 PAYMENT OF THE INTEREST PENALTY AND REASONABLE ATTORNEY FEES TO A CLAIM-
 ANT WHEN PAYMENT OF A CLAIM IS OVERDUE SHALL  BE  THE  EXCLUSIVE  REMEDY
 WHEN  AN INSURER FAILS TO MAKE TIMELY PAYMENT. THE FAILURE OF AN INSURER
 TO MAKE TIMELY PAYMENT OR ISSUE A DENIAL WITHIN THIRTY DAYS AFTER  PROOF
 OF CLAIM HAS BEEN SUBMITTED TO AN INSURER SHALL NOT PRECLUDE SUCH INSUR-
 ER  FROM  ISSUING  A  DENIAL OR ASSERTING A DEFENSE AFTER THE THIRTY DAY
 PERIOD HAS ELAPSED.
   § 2. This act shall take effect on the sixtieth  day  after  it  shall
 have become a law.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09479-01-5

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