Bill > A06010

This bill introduces the Fair Insurance Settlement Practice Act (FISPA), which establishes a comprehensive set of regulations preventing unfair claim settlement practices by insurers. The bill defines 14 specific unfair practices, including 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 to sue insurers who engage in these practices, with a requirement to provide a 30-day written demand for relief before filing a lawsuit. 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 ensures that policyholders cannot be forced to waive their right to a jury trial in disputes related to these practices. The law will take effect 90 days after becoming law and will apply to insurance-related acts and omissions from that point forward, with some specific provisions applying only to new insurance contracts.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/A6010