Bill Text: NY A11510 | 2009-2010 | General Assembly | Introduced

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Bill Title: Expands the description of unfair insurance claim settlement practices.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2010-06-18 - referred to insurance [A11510 Detail]

Download: New_York-2009-A11510-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         11510
                                 I N  A S S E M B L Y
                                     June 18, 2010
                                      ___________
       Introduced  by  COMMITTEE ON RULES -- (at request of M. of A. Zebrowski)
         -- read once and referred to the Committee on Insurance
       AN ACT to  amend  the  insurance  law,  in  relation  to  expanding  the
         description of unfair insurance claim settlement practices
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Paragraphs 5 and 6 of subsection (a) of section 2601 of the
    2  insurance law, paragraph 5 as amended by chapter 547 of the laws of 1997
    3  and paragraph 6 as amended by chapter 388  of  the  laws  of  2008,  are
    4  amended and two new paragraphs 7 and 8 are added to read as follows:
    5    (5) compelling policyholders to institute suits to recover amounts due
    6  under its policies by offering substantially less than the amounts ulti-
    7  mately recovered in suits brought by them; [or]
    8    (6)  failing  to promptly disclose coverage pursuant to subsection (d)
    9  or subparagraph (A) of paragraph two of subsection (f) of section  three
   10  thousand four hundred twenty of this chapter;
   11    (7)  PROVIDING  COMPENSATION OR INCENTIVES OF ANY KIND TO EMPLOYEES TO
   12  PROMOTE THE DENIAL OF CLAIMS OR THE CANCELLATION OF AN INSURANCE POLICY;
   13  OR
   14    (8) ESTABLISHING QUOTAS FOR EMPLOYEES FOR  THE  DENIAL  OF  CLAIMS  OR
   15  CANCELLATION OF POLICIES.
   16    S 2. This act shall take effect immediately.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD17543-02-0