NY A07809

Creates a private right of action for policyholders against insurers for damages when refusal to pay or unreasonable delay in claim payment is not substantially justified.

Establishes 11 specific unfair claim settlement practices including failing to provide accurate policy information, failing to make final determination within 6 months of notice, negotiating with represented policyholders without attorney knowledge, and violating existing unfair claims practices regulations.

Entitles prevailing policyholders to recover three times actual damages as compensatory damages, additional punitive damages if practices occur with frequency indicating general business practice, and reasonable attorneys' fees from date of loss.

Requires insurers to exclude all damages and attorneys' fees recovered in such actions from premium calculations for all policyholders and all policies.

Takes effect January 1 following enactment and applies to all insurer acts and omissions occurring on or after the effective date.