Bill Text: NY A02095 | 2023-2024 | General Assembly | Introduced

New York Assembly Bill 2095

NY State Legislature page for A02095

Introduced

Bill Title: 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.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced) 2024-01-03 - referred to insurance [A02095 Detail]

Download: New_York-2023-A02095-Introduced.html




                STATE OF NEW YORK
        ________________________________________________________________________

                                          2095

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    January 23, 2023
                                       ___________

        Introduced  by  M. of A. MEEKS, BRONSON, GONZALEZ-ROJAS -- read once and
          referred to the Committee on Insurance

        AN ACT to amend the insurance law, in relation to requiring a  liability
          insurer  that has received an offer to settle a claim at or within the
          policy limits, and refuses to do so, to be liable for any  verdict  in
          excess of such policy limits

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Subsection (a) of section 3420  of  the  insurance  law  is
     2  amended by adding a new paragraph 7 to read as follows:
     3    (7) A provision that, if the insurer has received an offer to settle a
     4  claim  at or within the insurer's policy limits, and the insurer refuses
     5  to do so, thereby exposing the insured to a verdict  in  excess  of  the
     6  policy  limits, the insurer shall be liable for any verdict in excess of
     7  the policy limits, not limited to any other policy  provisions  and  not
     8  subject  to  the  limitations  and  conditions  of paragraph two of this
     9  subsection. Such provision shall clearly state that  the  insurer  shall
    10  have  no right to seek or recover damages against the insured for such a
    11  judgment rendered against the insurer or the insured.
    12    § 2. This act shall take effect immediately.




         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04529-01-3