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NY A07523
Bill
Status
5/13/2021
Primary Sponsor
Demond Meeks
Click for details
AI Summary
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Amends Insurance Law Section 3420 to add a new provision requiring liability insurers to be liable for verdicts exceeding policy limits when the insurer refuses a settlement offer made at or within those limits.
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Insurers cannot limit this excess liability through other policy provisions or conditions, and the liability applies regardless of limitations in paragraph two of the statute.
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Prohibits insurers from seeking or recovering damages against the insured for any judgment rendered in excess of the policy limits.
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Takes effect immediately upon enactment.
Legislative Description
Requires a liability insurer that has an opportunity to settle a claim at or within the policy limits, and refuses to do so, to be liable for any verdict in excess of the insurance policy limits; prohibits the insurer from recovering such excess judgment from the insured.
Last Action
referred to insurance
1/5/2022