Bill > S05349

This bill amends the New York insurance law to restrict insurers from demanding intrusive personal, financial, and tax information when processing standard theft claims. Specifically, the bill defines an "unfair claim settlement act" as an insurer demanding sensitive personal information (such as tax returns, bank statements, business licenses, loan applications, voting records, and business incorporation documents) unless there are special, articulable circumstances directly related to the specific theft claim that suggest potential fraud. The bill requires insurers to have a legitimate, case-specific reason for requesting such detailed personal information, rather than making such requests as a standard practice during routine theft claim investigations. The new law aims to protect insureds' privacy by preventing insurance companies from conducting overly broad or invasive investigations into personal matters when processing theft claims. The bill will take effect on the first day of January following its passage, with provisions allowing for necessary regulatory preparations to be made in advance of the effective date.

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https://www.nysenate.gov/legislation/bills/2025/S5349