NY A05166

Amends Insurance Law § 2601 to deem certain unfair claim settlement practices automatically violations during a declared state disaster emergency, without requiring proof of frequency as a general business practice.

Adds seven specific unfair practices during state disasters: settling claims with altered documents, material misrepresentation, failing to notify of needed information, failing to inspect within seven business days, failing to provide adjuster's report within three business days, failing to determine claims within thirty calendar days, and failing to pay at least 20 percent upon determination with full payment within thirty days.

Creates new Insurance Law § 2601-a establishing a civil remedy allowing policyholders to recover damages, interest, costs, compensatory damages, and reasonable attorneys' fees from insurers during state disaster emergencies for unjustified refusal or unreasonable delay in claim payment.

Makes settlement discussions and settlement offers admissible as evidence in lawsuits and permits bifurcated trials to prevent prejudice when both policy liability and bad faith claims are alleged.

Requires insurers to exclude any amounts recovered from bad faith judgments from premium calculations for all policyholders.