Bill Text: NY S07882 | 2021-2022 | General Assembly | Introduced

New York Senate Bill 7882 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Relates to amending the comprehensive insurance disclosure act to require that all parties provide notice and proof of the existence and contents of any insurance agreement, including coverage amounts, under which any person or entity may be liable to satisfy part or all of a judgment within ninety days of serving an answer in an action; makes provisions applicable to actions commenced on or after the effective date.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2022-02-24 - SIGNED CHAP.136 [S07882 Detail]

Download: New_York-2021-S07882-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________

                                          7882

                    IN SENATE

                                    January 18, 2022
                                       ___________

        Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
          printed to be committed to the Committee on Rules

        AN  ACT to amend the civil practice law and rules, in relation to insur-
          ance disclosures; and to amend a chapter of the laws of 2021  amending
          the civil practice law and rules relating to insurance disclosures, as
          proposed in legislative bills numbers S. 7052 and A. 8041, in relation
          to the effectiveness thereof

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

     1    Section 1. Subdivision (f) of section 3101 of the civil  practice  law
     2  and  rules,  as  amended  by  a chapter of the laws of 2021 amending the
     3  civil practice law and  rules  relating  to  insurance  disclosures,  as
     4  proposed in legislative bills numbers S. 7052 and A. 8041, is amended to
     5  read as follows:
     6    (f)  Contents  of insurance agreement.  (1) [Any] No later than ninety
     7  days after service of an answer pursuant to rule three hundred twenty or
     8  section three thousand eleven or three thousand nineteen of  this  chap-
     9  ter, any defendant, third-party defendant, or defendant on a cross-claim
    10  or  counter-claim shall provide to the plaintiff, third-party plaintiff,
    11  plaintiff on counter-claim, and any other party in  the  action  [within
    12  sixty days after serving an answer pursuant to rule three hundred twenty
    13  or  section  three  thousand  eleven  or three thousand nineteen of this
    14  chapter notice and] proof of the existence and contents of any insurance
    15  agreement in the form of a copy of the insurance policy in place at  the
    16  time of the loss or, if agreed to by such plaintiff or party in writing,
    17  in  the form of a declaration page, under which any person or entity may
    18  be liable to satisfy part or all of a judgment that may  be  entered  in
    19  the action or to indemnify or reimburse for payments made to satisfy the
    20  entry  of  final  judgment.  A plaintiff or party who agrees to accept a
    21  declaration page in lieu of a copy of  any  insurance  policy  does  not
    22  waive the right to receive any other information required to be provided
    23  under  this  subdivision, and may revoke such agreement at any time, and
    24  upon notice to an applicable defendant  of  such  revocation,  shall  be
    25  provided with the full copy of the insurance policy in place at the time

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11693-02-2

        S. 7882                             2

     1  of  the loss. Information and documentation, as evidenced in the form of
     2  a copy of the insurance policy in place at the time of the loss  or  the
     3  declaration page, pursuant to this subdivision shall include:
     4    (i) all primary, excess and umbrella policies, contracts or agreements
     5  issued  by  private or publicly traded stock companies, mutual insurance
     6  companies, captive insurance entities, risk retention groups, reciprocal
     7  insurance exchanges, syndicates, including, but not limited to,  Lloyd's
     8  Underwriters  as  defined in section six thousand one hundred sixteen of
     9  the insurance law, surplus line  insurers  and  self-insurance  programs
    10  sold or delivered within the state of New York insofar as such documents
    11  relate to the claim being litigated;
    12    (ii)  if the insurance policy in place is provided, a complete copy of
    13  any policy, contract or agreement under which any person or  entity  may
    14  be  liable  to  satisfy part or all of a judgment that may be entered in
    15  the action or to indemnify or reimburse for payments made to satisfy the
    16  entry of final judgment as referred to in  [subparagraph  (i)  of]  this
    17  paragraph,  including, but not limited to, declarations, insuring agree-
    18  ments, conditions, exclusions, endorsements, and similar provisions;
    19    (iii) the contact information, including [telephone number]  the  name
    20  and  e-mail address, of [any person or persons responsible for adjusting
    21  the claim made to or against the person or entity described in  subpara-
    22  graph  (i)  of  this paragraph, including third-party administrators and
    23  persons within the insuring entity to whom the third-party administrator
    24  is required to report] an assigned individual responsible for  adjusting
    25  the claim at issue; and
    26    (iv)  the  [amounts] total limits available under any policy, contract
    27  or agreement, which shall mean  the  actual  funds,  after  taking  into
    28  account  erosion  and  any  other offsets, that can be used to satisfy a
    29  judgment described in this subdivision or to reimburse for payments made
    30  to satisfy the judgment[;
    31    (v) any lawsuits that have reduced or eroded or may  reduce  or  erode
    32  such amounts referred to in subparagraph (iv) of this paragraph, includ-
    33  ing the caption of any such lawsuit, the date the lawsuit was filed, and
    34  the  identity  and  contact information of the attorneys for all repres-
    35  ented parties therein; and
    36    (vi) the amount, if any, of any payment of attorney's fees  that  have
    37  eroded  or reduced the face value of the policy, along with the name and
    38  address of any attorney who received such payments].
    39    (2) A defendant, third-party defendant, or defendant on a  cross-claim
    40  or  counter-claim  required  to  produce  to  a plaintiff or third-party
    41  plaintiff or plaintiff on a counter-claim all information set  forth  in
    42  paragraph  one  of  this subdivision [has an ongoing obligation to] must
    43  make reasonable efforts to ensure that the information remains  accurate
    44  and  complete, and provide updated information to any party to whom this
    45  information has been provided [within thirty days of receiving  informa-
    46  tion rendering the prior disclosure inaccurate or incomplete in whole or
    47  in  part.  This obligation shall exist during the entire pendency of the
    48  litigation] at the filing of the note of issue, when entering  into  any
    49  formal  settlement negotiations conducted or supervised by the court, at
    50  a voluntary mediation, and when the case is called for  trial,  and  for
    51  sixty  days  after any settlement or entry of final judgment in the case
    52  inclusive of all appeals.
    53    (3) For purposes of this subdivision,  an  application  for  insurance
    54  shall  not  be  treated  as part of an insurance agreement [and shall be
    55  disclosed]. Disclosure of policy limits under  this  section  shall  not

        S. 7882                             3

     1  constitute  an  admission that an alleged injury or damage is covered by
     2  the policy.
     3    (4) Information concerning the insurance agreement is not by reason of
     4  disclosure admissible in evidence at trial.
     5    (5)  The  requirements  of this subdivision shall not apply to actions
     6  brought to recover motor vehicle insurance  personal  injury  protection
     7  benefits  under  article  fifty-one  of  the insurance law or regulation
     8  sixty-eight of title eleven of the  New  York  codes,  rules  and  regu-
     9  lations.
    10    §  2.  Section  4  of a chapter of the laws of 2021 amending the civil
    11  practice law and rules relating to insurance disclosures, as proposed in
    12  legislative bills numbers S. 7052 and A. 8041, is  amended  to  read  as
    13  follows:
    14    § 4. This act shall take effect immediately and apply to all [pending]
    15  actions commenced on or[.  Any information required by this act that has
    16  not  previously  been provided in pending cases shall be provided within
    17  sixty days] after such effective date.
    18    § 3. This act shall take effect  immediately  provided,  however  that
    19  section  one  of  this act shall take effect on the same date and in the
    20  same manner as a chapter of the laws of 2021 amending the civil practice
    21  law and rules relating to insurance disclosures, as proposed in legisla-
    22  tive bills numbers S. 7052 and A. 8041, takes effect.