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NY A07102
Bill
Status
Introduced
3/20/2025
Primary Sponsor
Rodneyse Bichotte Hermelyn
Click for details
AI Summary
- Creates a civil remedy allowing homeowners insurance policyholders to sue insurers for unjustified refusal to pay or unreasonable delay in payment of claims
- Defines unjustified insurer conduct as: providing inaccurate coverage information, failing to settle clear liability claims in good faith, failing to provide written denial with explanation, failing to make final determination within six months, offering substantially less than amounts ultimately recovered in court, or failing to proceed promptly with appraisal process
- Allows policyholders who prove violations to recover interest, costs, compensatory damages, consequential damages, reasonable attorneys' fees, and punitive damages capped at two times the covered loss value
- Requires policyholders to file a civil remedy notice with the insurer and Department of Insurance at least 60 days before filing suit, giving the insurer an opportunity to cure the violation
- Makes settlement discussions, verbal offers, and loss reserve amounts admissible as evidence in trials, and prohibits insurers from factoring damages paid under this section into premium calculations
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
1/7/2026
Committee Referrals
Insurance3/20/2025
Full Bill Text
No bill text available