Bill > S00166

This bill, known as the Fair Insurance Settlement Practice Act (FISPA), aims to establish clear guidelines for insurance companies' claim settlement practices and provide policyholders with legal recourse when insurers engage in unfair practices. The bill defines 14 specific unfair claim settlement practices, such as misrepresenting policy details, failing to promptly investigate claims, refusing to pay claims without reasonable investigation, and attempting to settle claims for less than a reasonable amount. Policyholders are granted a private right of action, meaning they can sue insurers in Supreme Court for damages and equitable relief if they experience these practices. Before filing a lawsuit, claimants must first send a written demand for relief to the insurer at least 30 days in advance. If an insurer is found to have committed these practices willfully and with intent to defraud, the court can award double damages, plus costs and attorneys' fees. The bill also prohibits insurers from refusing to issue or renew a policy solely because a policyholder has brought an action under this law, and it includes a provision preventing insurers from requiring policyholders to waive their right to a jury trial in disputes arising from these practices. The law will take effect 90 days after becoming law and will apply to insurance company actions from that point forward.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/S166