Bill > A09265

This bill amends the New York insurance law to expand the superintendent's authority to impose penalties on insurance companies and their subcontractors for failing to promptly and fairly settle health care claims. Specifically, the bill allows the superintendent to impose penalties directly on subcontractors if they can be reasonably demonstrated to be responsible for a failure to adhere to claim settlement standards. Additionally, the bill permits the superintendent to double the penalties if an insurer, organization, or corporation is found to have a pattern of not meeting these standards. The existing law already required insurers to pay the full claim amount plus interest (at either the corporate tax rate or 12% annually) when claims are processed incorrectly, but this amendment introduces more stringent enforcement mechanisms targeting both primary insurers and their subcontractors. The bill will take effect 90 days after becoming law and will apply to all health care claims submitted after that date, giving regulators and insurance companies time to adjust to the new requirements.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/A9265