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NY A03889
Bill
Status
Introduced
1/30/2025
Primary Sponsor
Demond Meeks
Click for details
AI Summary
- Requires liability insurers that receive a settlement offer at or within policy limits and refuse to settle to be liable for any verdict exceeding policy limits
- Removes the insurer's ability to limit liability through other policy provisions when they reject a within-limits settlement offer
- Prohibits insurers from seeking or recovering damages from the insured for any judgment rendered against the insurer or insured resulting from their refusal to settle
- Amends Section 3420 of the insurance law to mandate these provisions be included in liability policies
- 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
1/7/2026
Committee Referrals
Insurance1/30/2025
Full Bill Text
No bill text available