Bill > S05343

This bill modifies existing insurance law regarding claim payments by establishing that when an insurance company fails to make a timely payment, the payment of interest penalties and attorney fees will be the claimant's exclusive remedy. Specifically, the bill clarifies that if an insurer does not pay a claim within 30 days after receiving proof of loss, they must pay interest at a rate of 2% per month and the claimant's reasonable attorney fees. Importantly, the bill also provides that an insurer's failure to pay or deny a claim within 30 days does not prevent the insurer from later issuing a denial or asserting a defense after that initial 30-day period has elapsed. This means that while the insurer will be required to pay interest and attorney fees for late payment, they are not permanently barred from challenging the claim's validity. The changes are intended to provide clarity around insurance claim processing timelines and compensate claimants for delays while maintaining the insurer's right to ultimately dispute a claim.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/S5343