Bill > A02543

This bill amends the New York General Obligations Law by adding a new section that protects individuals with disabilities from unreasonable conditions when receiving contractual benefits. The law applies to written contracts providing disability benefits from any entity except workers' compensation and New York state disability insurance. Specifically, the bill prohibits entities from imposing "onerous or unreasonable conditions" for paying or continuing disability benefits, which are defined as conditions that require disabled individuals to perform unnecessary or repetitive actions to receive their entitled benefits. Examples of such unreasonable conditions include requiring excessively frequent medical examinations, demanding overly detailed or repetitive medical documentation, or engaging in bad faith claim settlement practices. If a person or entity violates these provisions, the disabled individual or contract beneficiary can sue to recover actual damages, interest, penalties, reasonable costs, and attorney's fees. Additionally, the court may choose to award exemplary damages at its discretion. The law is designed to prevent disability benefit providers from creating bureaucratic obstacles that make it difficult for disabled individuals to access their contractual benefits.

Justice

https://www.nysenate.gov/legislation/bills/2025/A2543