Bill > A07102

This bill establishes new legal standards for insurance claim practices in New York, creating specific guidelines for how insurance companies must handle policy claims and providing policy holders with clearer legal recourse when insurers act unfairly. The bill defines six specific scenarios where an insurer's refusal or delay in payment is considered "not substantially justified", including intentionally providing inaccurate policy information, failing to settle claims in good faith, not providing timely written claim denials, not making a final claim determination within six months, compelling policy holders to sue by offering inadequate settlements, and failing to promptly proceed with appraisal processes. If a policy holder can prove an insurer violated these standards, they can recover not just the original claim amount, but also interest, costs, compensatory and consequential damages, reasonable attorneys' fees, and punitive damages (capped at twice the covered loss). The bill requires policy holders to file a formal civil remedy notice with the insurer and state department at least 60 days before filing a lawsuit, giving the insurer an opportunity to cure the violation. Importantly, the bill does not limit other legal remedies a policy holder might have and applies to all insurance policies issued or renewed under article thirty-four of New York's insurance law, taking effect on the first day of January following its passage.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/A7102