Bill Text: NY A05623 | 2019-2020 | General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relates to unfair claim settlement practices; provides that plaintiff may recover interest, costs and disbursements; compensatory damages, consequential damages and reasonable attorneys' fees in addition to amounts due under the policy when the insurer refused to pay or unreasonable delay of payment was not reasonably justified.
Spectrum: Partisan Bill (Democrat 20-0)
Status: (Introduced - Dead) 2020-07-22 - ordered to third reading rules cal.301 [A05623 Detail]
Download: New_York-2019-A05623-Introduced.html
Bill Title: Relates to unfair claim settlement practices; provides that plaintiff may recover interest, costs and disbursements; compensatory damages, consequential damages and reasonable attorneys' fees in addition to amounts due under the policy when the insurer refused to pay or unreasonable delay of payment was not reasonably justified.
Spectrum: Partisan Bill (Democrat 20-0)
Status: (Introduced - Dead) 2020-07-22 - ordered to third reading rules cal.301 [A05623 Detail]
Download: New_York-2019-A05623-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 5623 2019-2020 Regular Sessions IN ASSEMBLY February 14, 2019 ___________ Introduced by M. of A. WEINSTEIN, CUSICK, TITUS, CYMBROWITZ, JAFFEE, HYNDMAN, PAULIN, COLTON, ABINANTI, SEAWRIGHT, SANTABARBARA, ZEBROWSKI, TAYLOR -- read once and referred to the Committee on Insurance AN ACT to amend the insurance law, in relation to unfair claim settle- ment practices The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The insurance law is amended by adding a new section 2601-a 2 to read as follows: 3 § 2601-a. Unfair claim settlement practices; civil remedy. (a) Any 4 person may bring a civil action against an insurer if such person 5 suffers damages as provided in this section with regard to a policy 6 issued or renewed pursuant to this chapter against any insurer doing 7 business in this state upon such claimant proving by a preponderance of 8 the evidence that such insurer's refusal to pay or unreasonable delay in 9 payment of amounts claimed to be due under a policy was not substantial- 10 ly justified. An insurer is not substantially justified in refusing to 11 pay or in unreasonably delaying payment when the insurer: 12 (1) failed to provide the claimant with accurate information concern- 13 ing policy provisions relating to the coverage at issue; 14 (2) failed to effectuate in good faith a prompt, fair and equitable 15 settlement of a claim or portion of a claim and where the insurer failed 16 to reasonably accord at least equal or more favorable consideration to 17 its insured's interests as it did to its own interests, and thereby 18 exposed the insured to a judgment in excess of the policy limits or 19 caused other damage to a claimant; 20 (3) failed to provide a timely written denial of a claimant's claim, 21 or portion thereof, with a full and complete explanation of such denial, 22 including references to specific policy provisions wherever possible; EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD00885-01-9A. 5623 2 1 (4) failed to act in good faith by compelling such claimant to insti- 2 tute suit to recover amounts due under its policy by offering substan- 3 tially less than the amounts ultimately recovered in such suit; 4 (5) failed to timely provide, on request of the policyholder or the 5 policyholder's representative, all reports, letters or other documenta- 6 tion arising from the investigation of a claim and evaluating liability 7 for or valuation of such claim; or 8 (6) refused to pay a claim without conducting a reasonable investi- 9 gation prior to such refusal. 10 (b) Any claimant who establishes liability pursuant to subsection (a) 11 of this section shall be entitled to recover, in addition to amounts due 12 under the policy, interest, costs and disbursements, compensatory 13 damages, and reasonable attorneys' fees incurred by the claimant from 14 the date of the loss, in recovering monies due pursuant to the terms of 15 the policy, as well as such additional punitive damages as the court may 16 allow. 17 (c) Any claimant may recover damages from an insurer doing business in 18 this state pursuant to this section either as part of an action to 19 recover under the terms of an insurance policy or in a separate action. 20 (d) In any trial of a cause of action asserted against an insurer 21 pursuant to this section, evidence of settlement discussions written and 22 verbal offers to compromise and other evidence relating to the claims 23 process shall be admissible. If causes of action relating to liability 24 of the insurer under the policy and under this section are alleged in 25 the same action, the court may bifurcate the trial of issues so as to 26 avoid prejudice to the insurer on the issue of liability under the poli- 27 cy and facilitate admissibility of evidence on the causes of action 28 asserted pursuant to this section. 29 (e) All amounts recovered from an insurer as compensatory damages, 30 interest, costs and disbursements, and reasonable attorneys' fees in any 31 action authorized in this section shall be excluded by the insurer in 32 its determinations of the premiums it will charge all policyholders on 33 all policies issued by it. 34 (f) Nothing in this section shall be construed to limit a claimant's 35 right to a trial by jury for any claims arising under this section and 36 the rights enumerated in this section do not preclude any common law 37 claims or other statutory claims that may exist. 38 (g) Notwithstanding any provision of any other law, regulation or rule 39 to the contrary, the cause of action established in this section shall 40 be heard in a court of competent jurisdiction, and no contract for an 41 insurance policy shall contain a clause requiring arbitration or forbid- 42 ding the bringing of a joint action or class action. 43 § 2. This act shall take effect on the first of January next succeed- 44 ing the date on which it shall have become a law, and shall apply to all 45 acts and omissions by insurers occurring on or after such effective 46 date.
