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NY A01119
Bill
Status
1/13/2023
Primary Sponsor
Rodneyse Bichotte Hermelyn
Click for details
AI Summary
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Establishes civil liability for insurers who refuse payment or unreasonably delay payment on insurance claims without substantial justification.
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Creates six specific instances of unjustified refusal or delay, including: providing inaccurate policy information, failing to settle claims in good faith when liability is clear, failing to timely deny claims with full explanation, failing to determine claim status within six months, offering substantially less than amounts ultimately awarded in court, and failing to promptly proceed with appraisal processes.
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Entitles policyholders to recover policy amounts due plus interest, costs, compensatory damages, consequential damages, reasonable attorney fees, and punitive damages capped at two times the covered loss value.
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Requires policyholders to file a notice of alleged violation with the insurer and Department of Financial Services at least 60 days before filing a civil action, and gives insurers 60 days to cure the violation and avoid suit.
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Makes settlement discussions, verbal offers, and loss reserve information admissible as evidence in trials and allows courts to bifurcate trials to prevent prejudice; prohibits insurers from using damages recovered in such actions to determine premiums for any policyholders.
Legislative Description
Provides that an insurer doing business in this state shall be liable to a policy holder for such insurer's refusal to pay or unreasonable delay of payment to the policy holder if such refusal or delay was not substantially justified; enumerates instances whereby an insurer's refusal or delay of payment is not substantially justified including intentional negligence, failure to act in good faith, failure to provide written denial of claim, failure to make final determination of claim within six months, and failure to promptly proceed with the appraisal process.
Last Action
referred to insurance
1/3/2024