NY State Senate Bill 2015-S29A

Archive: Last Bill Status - In Senate Committee Insurance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2016	referred to insurance
Jun 25, 2015	recommitted to rules ordered to third reading cal.1882 committee discharged and committed to rules
May 07, 2015	print number 29a
May 07, 2015	amend and recommit to insurance
Jan 07, 2015	referred to insurance

Votes

- Jun 25, 2015 - Rules Committee Vote
  S29A
  
  16
  
  Aye
  
  5
  
  Nay
  
  2
  
  Aye with Reservations
  
  1
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 25, 2015
      
      aye (16)
      
      Bonacic
      
      Carlucci
      
      DeFrancisco
      
      Dilan
      
      Espaillat
      
      Flanagan
      
      Gianaris
      
      Hassell-Thompson
      
      Krueger
      
      LaValle
      
      Larkin
      
      Marcellino
      
      Montgomery
      
      Skelos
      
      Stewart-Cousins
      
      Valesky
      
      nay (5)
      
      Breslin
      
      Farley
      
      Hannon
      
      Seward
      
      Young
      
      aye wr (2)
      
      Little
      
      Nozzolio
      
      absent (1)
      
      Parker
      
      excused (1)
      
      Perkins

Bill Amendments

Original

A (Active)

2015-S29 - Details

See Assembly Version of this Bill:: A8025
Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Add §2601-a, Ins L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S4735
2013-2014: S2544
2017-2018: S242, A921
2019-2020: S5336, A2822
2021-2022: S5585, A6811
2023-2024: S2487, A1119

2015-S29 - Summary

Provides that an insurer doing business in this state shall be liable to a policy holder for such insurer's refusal to pay or unreasonable delay of payment to the policy holder if such refusal or delay was not substantially justified; enumerates instances whereby an insurer's refusal or delay of payment is not substantially justified including intentional negligence, failure to act in good faith, failure to provide written denial of claim, failure to make final determination of claim within six months, and failure to promptly proceed with the appraisal process.

2015-S29 - Sponsor Memo

                                 BILL NUMBER:  S29

 TITLE OF BILL :  An act to amend the insurance law, in relation to
unfair claim settlement practices

 PURPOSE :  To allow holders of property and casualty insurance
policies to recover damages when an insurance company's refusal to pay
or unreasonable delay in paying a claim was not substantially
justified.

 SUMMARY OF PROVISIONS :  This bill provides that an insurer doing
business in this state shall be liable to a holder of property and
casualty insurance policy for damages upon such policy holder proving
that such insurer's refusal to pay or unreasonable delay in payment to
the policy holder of amounts claimed to be due there under was not
substantially justified.

An insurer would not be substantially justified in refusing to pay or
in unreasonably delaying payment when:

1. Intentionally, recklessly or by gross negligence failed to provide
the policy holder with accurate information concerning policy
provision relating to coverage at issue; or

2. Failed to effectuate, in good faith, a prompt, fair and equitable
settlement of a claim submitted by such policy holder in which

liability of such insurer to such policy holder was reasonably clear;
or

3. Failed to provide a written denial of a policy holder's claim with
a full and complete explanation of such denial, including references
to specific policy provisions wherever possible; or

4. Failed to make a final determination and notify the policy holder
in writing of its position on both the liability for, and the
insurer's valuation of, a claim within six months of the date on which
it received actual or constructive notice of the loss upon which the
claim is based; or

5. Failed to act in good faith by compelling the policy holder to
initiate a lawsuit to recover under the policy by offering
substantially less than the amounts ultimately recovered in the suit
by the policy holder.

Any policy holder who establishes liability shall be entitled to
recover, in addition to amounts due under the policy, interest, costs,
and disbursements, compensatory damages and reasonable attorneys fees.

Finally, there are procedural rules established to insure that the
insurer receives a fair trial on the issue of liability under the
terms of the policy before the issue of substantial justification is
considered.

 JUSTIFICATION :  Existing law provides a code of conduct for insurers
in this state.  Insurance Law Section 2601 now provides that no
insurer in this state shall engage in five enumerated unfair claims
settlement practices.  Yet, only the Superintendent of Insurance can
enforce these provisions against the company. The holders of property
and casualty insurance policies who have incurred substantial costs in
obtaining reimbursement under the policy terms have no remedy. Any
doubt about this unfortunate state of the law was removed by the Court
of Appeals in its 1994 decision in ROCANOVA V. EQUITABLE LIFE, 83
NY2nd 603 (1984). "The law of this State does not currently recognize
a private cause of action under Insurance Law § 2601 .. To the extent
that a variety of appellate division decisions hold otherwise, they
are not to be followed". ROCANOVA V. EQUITABLE LIFE, 83 NY2d at
614-515.  (emphasis added). Citizens of this state who pay insurance
premiums should expect insurers to live up to their policy
obligations.

Under existing statutes and case law, an insurer can simply refuse to
pay a claim or offer an amount well below the value of the loss with
impunity. SEE E.G. LTS CONTRACTORS V. HARTFORD INS., 99 AD2d 644 (4th
Dept. 1984) no remedy for unreasonable delay in payment; UNILAND DEV.
V. HOME INS., 97 AD2d 973 (4th Dept. 1983) no remedy for intentional
refusal to pay. Even if the policy holder sues and wins the full
amount of the claim, he or she loses because of the costs and counsel
fees associated with bringing the successful action. This fact gives
insurers a terribly unfair advantage in negotiating a settlement of
any claim because of the ability of the insurers to financially bear
the burden of litigation which the ordinary citizen cannot afford to
do.

The Superintendent of Insurance regulates the industry within the
constraints of available resources. Each citizen should be entitled to
prove his or her claim in court when an insurer takes a position in
settling a claim which is found not to have been substantially
justified.

 LEGISLATIVE HISTORY :  S.486-A of 1997-98; S.545 of 1999-00; S.577 of
2001-02; S.1486-A of 2003-04; S.51 of 2005-06; S.1269/A.10307 of
2007-08; S.4735/A.5589 of 2011-2012; 2013-2014 - S.2544/A.3305

 FISCAL IMPLICATIONS : None.

 EFFECTIVE DATE :  January 1st next succeeding the date on which it
shall have become a law.

2015-S29 - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   29

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 7, 2015
                               ___________

Introduced  by  Sen.  DeFRANCISCO -- read twice and ordered printed, and
  when printed to be committed to the Committee on Insurance

AN ACT to amend the insurance law, in relation to unfair  claim  settle-
  ment practices

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The insurance law is amended by adding a new section 2601-a
to read as follows:
  S 2601-A. UNFAIR CLAIM SETTLEMENT  PRACTICES;  CIVIL  REMEDY.  (A)  AN
INSURER  DOING BUSINESS IN THIS STATE SHALL BE LIABLE TO THE HOLDER OF A
POLICY ISSUED OR RENEWED PURSUANT TO ARTICLE THIRTY-FOUR OF THIS CHAPTER
FOR DAMAGES AS PROVIDED IN THIS SECTION UPON SUCH POLICY HOLDER  PROVING
BY A PREPONDERANCE OF THE EVIDENCE THAT SUCH INSURER'S REFUSAL TO PAY OR
UNREASONABLE DELAY IN PAYMENT TO THE POLICY HOLDER OF AMOUNTS CLAIMED TO
BE  DUE  UNDER  A POLICY WAS NOT SUBSTANTIALLY JUSTIFIED.  AN INSURER IS
NOT SUBSTANTIALLY JUSTIFIED IN REFUSING TO PAY OR IN UNREASONABLY DELAY-
ING PAYMENT WHEN THE INSURER:
  (1) INTENTIONALLY, RECKLESSLY OR BY GROSS NEGLIGENCE FAILED TO PROVIDE
THE POLICY HOLDER WITH ACCURATE INFORMATION CONCERNING POLICY PROVISIONS
RELATING TO THE COVERAGE AT ISSUE;
  (2) FAILED TO EFFECTUATE IN GOOD FAITH A PROMPT,  FAIR  AND  EQUITABLE
SETTLEMENT OF A CLAIM SUBMITTED BY SUCH POLICY HOLDER IN WHICH LIABILITY
OF SUCH INSURER TO SUCH POLICY HOLDER WAS REASONABLY CLEAR;
  (3) FAILED TO PROVIDE A WRITTEN DENIAL OF A POLICY HOLDER'S CLAIM WITH
A  FULL AND COMPLETE EXPLANATION OF SUCH DENIAL, INCLUDING REFERENCES TO
SPECIFIC POLICY PROVISIONS WHEREVER POSSIBLE;
  (4) FAILED TO MAKE A FINAL DETERMINATION AND NOTIFY THE POLICY  HOLDER
IN  WRITING  OF  ITS  POSITION  ON BOTH LIABILITY FOR, AND THE INSURER'S
VALUATION OF, A CLAIM WITHIN SIX MONTHS OF THE DATE ON WHICH IT RECEIVED

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01114-01-5

S. 29                               2

ACTUAL OR CONSTRUCTIVE NOTICE OF THE LOSS UPON WHICH THE CLAIM IS BASED;
OR
  (5)  FAILED TO ACT IN GOOD FAITH BY COMPELLING POLICY HOLDER TO INSTI-
TUTE SUIT TO RECOVER AMOUNTS DUE UNDER ITS POLICY BY  OFFERING  SUBSTAN-
TIALLY  LESS  THAN  THE  AMOUNTS ULTIMATELY RECOVERED IN SUIT BROUGHT BY
SUCH POLICY HOLDER.
  (B) ANY POLICY HOLDER WHO ESTABLISHES LIABILITY PURSUANT TO SUBSECTION
(A) OF THIS SECTION SHALL BE ENTITLED TO RECOVER, IN ADDITION TO AMOUNTS
DUE UNDER THE POLICY, INTEREST, COSTS, AND  DISBURSEMENTS,  COMPENSATORY
DAMAGES  AND  REASONABLE  ATTORNEYS'  FEES INCURRED BY THE POLICY HOLDER
FROM THE DATE OF THE LOSS, IN RECOVERING  MONIES  DUE  PURSUANT  TO  THE
TERMS OF THE POLICY.
  (C)  ANY POLICY HOLDER MAY RECOVER DAMAGES FROM AN INSURER DOING BUSI-
NESS IN THIS STATE PURSUANT TO THIS SECTION EITHER AS PART OF AN  ACTION
TO  RECOVER  UNDER  THE  TERMS  OF  AN INSURANCE POLICY OR IN A SEPARATE
ACTION.
  (D) IN ANY TRIAL OF A CAUSE OF  ACTION  ASSERTED  AGAINST  AN  INSURER
PURSUANT TO THIS SECTION, EVIDENCE OF SETTLEMENT DISCUSSIONS WRITTEN AND
VERBAL  OFFERS  TO  COMPROMISE AND OTHER EVIDENCE RELATING TO THE CLAIMS
PROCESS SHALL BE ADMISSIBLE. IF CAUSES OF ACTION RELATING  TO  LIABILITY
OF  THE  INSURER  UNDER THE POLICY AND UNDER THIS SECTION ARE ALLEGED IN
THE SAME ACTION, THE COURT MAY BIFURCATE THE TRIAL OF ISSUES  SO  AS  TO
AVOID PREJUDICE TO THE INSURER ON THE ISSUE OF LIABILITY UNDER THE POLI-
CY  AND  FACILITATE  ADMISSIBILITY  OF  EVIDENCE ON THE CAUSES OF ACTION
ASSERTED PURSUANT TO THIS SECTION.
  (E) ALL AMOUNTS RECOVERED  FROM  AN  INSURER  AS  ACTUAL  DAMAGES  AND
REASONABLE  ATTORNEYS'  FEES  IN  ANY  ACTION AUTHORIZED IN THIS SECTION
SHALL BE EXCLUDED BY THE INSURER IN ITS DETERMINATIONS OF  THE  PREMIUMS
IT WILL CHARGE ALL POLICY HOLDERS ON ALL POLICIES ISSUED BY IT.
  S  2. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law, and shall apply to all
acts and omissions by insurers occurring  on  or  after  such  effective
date.

co-Sponsors

2015-S29A (ACTIVE) - Details

See Assembly Version of this Bill:: A8025
Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Add §2601-a, Ins L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S4735
2013-2014: S2544
2017-2018: S242, A921
2019-2020: S5336, A2822
2021-2022: S5585, A6811
2023-2024: S2487, A1119

2015-S29A (ACTIVE) - Summary

2015-S29A (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S29A

TITLE OF BILL:  An act to amend the insurance law, in relation to
unfair claim settlement practices

PURPOSE:  To allow holders of property and casualty insurance policies
to recover damages when an insurance company's refusal to pay or
unreasonable delay in paying a claim was not substantially justified.

SUMMARY OF PROVISIONS:  This bill provides that an insurer doing
business in this state shall be liable to a holder of property and
casualty insurance policy for damages upon such policy holder proving
that such insurer's refusal to pay or unreasonable delay in payment to
the policy holder of amounts claimed to be due there under was not
substantially justified.

An insurer would not be substantially justified in refusing to pay or
in unreasonably delaying payment when:

1. Intentionally, recklessly or by gross negligence failed to provide
the policy holder with accurate information concerning policy
provision relating to coverage at issue; or

2. Failed to effectuate, in good faith, a prompt, fair and equitable
settlement of a claim submitted by such policy holder in which
liability of such insurer to such policy holder was reasonably clear;

or

3. Failed to provide a written denial of a policy holder's claim with
a full and complete explanation of such denial, including references
to specific policy provisions wherever possible; or

4. Failed to make a final determination and notify the policy holder
in writing of its position on both the liability for, and the
insurer's valuation of, a claim within six months of the date on which
it received actual or constructive notice of the loss upon which the
claim is based; or

5. Failed to act in good faith by compelling the policy holder to
initiate a lawsuit to recover under the policy by offering
substantially less than the amounts ultimately recovered in the suit
by the policy holder or

6. Failed to promptly proceed with the appraisal process once such has
been demanded in any claim where coverage for a portion of the claim
has been accepted by such insurer and a disagreement exists between
the insured and the insurer with respect to the value of covered
property or the amount, or extent of the covered loss.

Any policy holder who establishes liability shall be entitled to
recover, in addition to amounts due under the policy, interest, costs,
and disbursements, compensatory damages and reasonable attorneys fees.

Finally, there are procedural rules established to insure that the
insurer receives a fair trial on the issue of liability under the
terms of the policy before the issue of substantial justification is
considered.


JUSTIFICATION:  Existing law provides a code of conduct for insurers
in this state.  Insurance Law Section 2601 now provides that no
insurer in this state shall engage in five enumerated unfair claims
settlement practices.  Yet, only the Superintendent of Insurance can
enforce these provisions against the company. The holders of property
and casualty insurance policies who have incurred substantial costs in
obtaining reimbursement under the policy terms have no remedy. Any
doubt about this unfortunate state of the law was removed by the Court
of Appeals in its 1994 decision in ROCANOVA V. EQUITABLE LIFE, 83
NY2nd 603 (1984). "The law of this State does not currently recognize
a private cause of action under Insurance Law § 2601. To the extent
that a variety of appellate division decisions hold otherwise, they
are not to be followed". ROCANOVA V. EQUITABLE LIFE, 83 NY2d at
614-515.  (emphasis added). Citizens of this state who pay insurance
premiums should expect insurers to live up to their policy
obligations.

Under existing statutes and case law, an insurer can simply refuse to
pay a claim or offer an amount well below the value of the loss with
impunity. SEE E.G. LTS CONTRACTORS V. HARTFORD INS., 99 AD2d 644 (4th
Dept. 1984) no remedy for unreasonable delay in payment; UNILAND DEV.
V. HOME INS., 97 AD2d 973 (4th Dept. 1983) no remedy for intentional
refusal to pay Even if the policy holder sues and wins the full amount
of the claim, he or she loses because of the costs and counsel fees
associated with bringing the successful action. This fact gives
insurers a terribly unfair advantage in negotiating a settlement of
any claim because of the ability of the insurers to financially bear
the burden of litigation which the ordinary citizen cannot afford to
do.  top 1 The Superintendent of Insurance regulates the industry
within the constraints of available resources Each citizen should be
entitled to prove his or her claim in court when an insurer takes a
position in settling a claim which is found not to have been
substantially justified.

LEGISLATIVE HISTORY:  S.486-A of 1997-98; 5.545 of 1999-00; S.577 of
2001-02; S.1486-A of 2003-04; S.51 of 2005-06; S.1269/A.10307 of
2007-08; S.4735/A.5589 of 2011-2012; 2013-2014 - S.2544/A.3305

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE:  January 1st next succeeding the date on which it
shall have become a law.

2015-S29A (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  29--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 7, 2015
                               ___________

Introduced  by  Sen.  DeFRANCISCO -- read twice and ordered printed, and
  when printed to be committed to the Committee on Insurance --  commit-
  tee  discharged, bill amended, ordered reprinted as amended and recom-
  mitted to said committee

AN ACT to amend the insurance law, in relation to unfair  claim  settle-
  ment practices

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The insurance law is amended by adding a new section 2601-a
to read as follows:
  S 2601-A. UNFAIR CLAIM SETTLEMENT  PRACTICES;  CIVIL  REMEDY.  (A)  AN
INSURER  DOING BUSINESS IN THIS STATE SHALL BE LIABLE TO THE HOLDER OF A
POLICY ISSUED OR RENEWED PURSUANT TO ARTICLE THIRTY-FOUR OF THIS CHAPTER
FOR DAMAGES AS PROVIDED IN THIS SECTION UPON SUCH POLICY HOLDER  PROVING
BY A PREPONDERANCE OF THE EVIDENCE THAT SUCH INSURER'S REFUSAL TO PAY OR
UNREASONABLE DELAY IN PAYMENT TO THE POLICY HOLDER OF AMOUNTS CLAIMED TO
BE  DUE  UNDER  A POLICY WAS NOT SUBSTANTIALLY JUSTIFIED.  AN INSURER IS
NOT SUBSTANTIALLY JUSTIFIED IN REFUSING TO PAY OR IN UNREASONABLY DELAY-
ING PAYMENT WHEN THE INSURER:
  (1) INTENTIONALLY, RECKLESSLY OR BY GROSS NEGLIGENCE FAILED TO PROVIDE
THE POLICY HOLDER WITH ACCURATE INFORMATION CONCERNING POLICY PROVISIONS
RELATING TO THE COVERAGE AT ISSUE;
  (2) FAILED TO EFFECTUATE IN GOOD FAITH A PROMPT,  FAIR  AND  EQUITABLE
SETTLEMENT OF A CLAIM SUBMITTED BY SUCH POLICY HOLDER IN WHICH LIABILITY
OF SUCH INSURER TO SUCH POLICY HOLDER WAS REASONABLY CLEAR;
  (3)  FAILED  TO  PROVIDE  A TIMELY WRITTEN DENIAL OF A POLICY HOLDER'S
CLAIM WITH A FULL AND COMPLETE EXPLANATION  OF  SUCH  DENIAL,  INCLUDING
REFERENCES TO SPECIFIC POLICY PROVISIONS WHEREVER POSSIBLE;
  (4)  FAILED TO MAKE A FINAL DETERMINATION AND NOTIFY THE POLICY HOLDER
IN WRITING OF ITS POSITION ON BOTH  LIABILITY  FOR,  AND  THE  INSURER'S

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

                                                           LBD01114-02-5

S. 29--A                            2

VALUATION OF, A CLAIM WITHIN SIX MONTHS OF THE DATE ON WHICH IT RECEIVED
ACTUAL OR CONSTRUCTIVE NOTICE OF THE LOSS UPON WHICH THE CLAIM IS BASED;
  (5)  FAILED  TO  ACT  IN GOOD FAITH BY COMPELLING THE POLICY HOLDER TO
INSTITUTE SUIT TO RECOVER AMOUNTS  DUE  UNDER  ITS  POLICY  BY  OFFERING
SUBSTANTIALLY LESS THAN THE AMOUNTS ULTIMATELY RECOVERED IN SUIT BROUGHT
BY SUCH POLICY HOLDER; OR
  (6)  FAILED  TO  PROMPTLY PROCEED WITH THE APPRAISAL PROCESS ONCE SUCH
HAS BEEN DEMANDED IN ANY CLAIM WHERE COVERAGE FOR A PORTION OF THE CLAIM
HAS BEEN ACCEPTED BY SUCH INSURER AND A DISAGREEMENT EXISTS BETWEEN  THE
INSURED AND THE INSURER WITH RESPECT TO THE VALUE OF COVERED PROPERTY OR
THE AMOUNT, OR EXTENT OF THE COVERED LOSS.
  (B) ANY POLICY HOLDER WHO ESTABLISHES LIABILITY PURSUANT TO SUBSECTION
(A) OF THIS SECTION SHALL BE ENTITLED TO RECOVER, IN ADDITION TO AMOUNTS
DUE  UNDER  THE POLICY, INTEREST, COSTS, AND DISBURSEMENTS, COMPENSATORY
DAMAGES, CONSEQUENTIAL DAMAGES AND REASONABLE ATTORNEYS'  FEES  INCURRED
BY THE POLICY HOLDER FROM THE DATE OF THE LOSS, IN RECOVERING MONIES DUE
PURSUANT  TO  THE TERMS OF THE POLICY AS WELL AS PUNITIVE DAMAGES CAPPED
AT TWO TIMES THE VALUE OF THE COVERED LOSS ESTABLISHED AT TRIAL.
  (C) ANY POLICY HOLDER MAY RECOVER DAMAGES FROM AN INSURER DOING  BUSI-
NESS  IN THIS STATE PURSUANT TO THIS SECTION EITHER AS PART OF AN ACTION
TO RECOVER UNDER THE TERMS OF AN  INSURANCE  POLICY  OR  IN  A  SEPARATE
ACTION.
  (1)  AS A CONDITION TO ANY RECOVERY PURSUANT TO SUBSECTION (A) OF THIS
SECTION, A CIVIL REMEDY NOTICE OF THE ALLEGED VIOLATION  MUST  BE  FILED
WITH  BOTH  THE  INSURER AND THE DEPARTMENT AT LEAST SIXTY DAYS PRIOR TO
COMMENCEMENT OF AN ACTION SEEKING RELIEF PURSUANT TO SUBSECTION  (A)  OF
THIS SECTION.
  (2)  THE CIVIL REMEDY NOTICE MUST BE ON A FORM APPROVED BY THE DEPART-
MENT AND INCLUDE THE  FOLLOWING  INFORMATION,  IF  SUCH  INFORMATION  IS
REASONABLY KNOWN TO THE INSURED:
  (A)  THE  STATUTORY  PROVISION, INCLUDING THE SPECIFIC LANGUAGE OF THE
STATUTE WHICH THE INSURER IS ALLEGED TO HAVE VIOLATED.
  (B) THE FACTS AND CIRCUMSTANCES GIVING RISE TO THE VIOLATION.
  (C) THE NAME OF ANY INDIVIDUAL INVOLVED IN THE VIOLATION.
  (D) REFERENCE TO SPECIFIC POLICY LANGUAGE  THAT  IS  RELEVANT  TO  THE
VIOLATION, IF ANY.
  (E) A STATEMENT THAT THE NOTICE IS GIVEN IN ORDER TO PROTECT THE RIGHT
TO PURSUE THE CIVIL REMEDY.
  (3)  THE  INSURER  WHO IS THE SUBJECT OF THE CIVIL REMEDY NOTICE SHALL
HAVE SIXTY DAYS FROM THE FILING OF  THE  REQUIRED  NOTICE  TO  CURE  THE
VIOLATION.    NO CIVIL ACTION UNDER THIS SECTION WILL BE SUSTAINABLE IF,
WITHIN SIXTY DAYS AFTER THE REQUIRED NOTICE FILING, THE  DAMAGES  SOUGHT
ARE PAID.
  (4) THE RIGHTS ENUMERATED HEREIN ARE NOT THE EXCLUSIVE REMEDIES AVAIL-
ABLE  TO  THE INSURED AND DO NOT PRECLUDE ANY COMMON LAW CLAIMS OR OTHER
STATUTORY CLAIMS THAT MAY EXIST.
  (D) IN ANY TRIAL OF A CAUSE OF  ACTION  ASSERTED  AGAINST  AN  INSURER
PURSUANT TO THIS SECTION, EVIDENCE OF SETTLEMENT DISCUSSIONS WRITTEN AND
VERBAL  OFFERS  TO  COMPROMISE,  LOSS RESERVE AMOUNTS AND OTHER EVIDENCE
RELATING TO THE CLAIMS PROCESS SHALL BE ADMISSIBLE. IF CAUSES OF  ACTION
RELATING  TO  LIABILITY  OF  THE INSURER UNDER THE POLICY AND UNDER THIS
SECTION ARE ALLEGED IN THE SAME ACTION,  THE  COURT  MAY  BIFURCATE  THE
TRIAL  OF ISSUES SO AS TO AVOID PREJUDICE TO THE INSURER ON THE ISSUE OF
LIABILITY UNDER THE POLICY AND FACILITATE ADMISSIBILITY OF  EVIDENCE  ON
THE CAUSES OF ACTION ASSERTED PURSUANT TO THIS SECTION.

S. 29--A                            3

  (E)  ALL  AMOUNTS  RECOVERED FROM AN INSURER AS ACTUAL DAMAGES, CONSE-
QUENTIAL DAMAGES, REASONABLE ATTORNEYS' FEES AND PUNITIVE DAMAGES IN ANY
ACTION AUTHORIZED IN THIS SECTION SHALL BE EXCLUDED BY  THE  INSURER  IN
ITS  DETERMINATIONS OF THE PREMIUMS IT WILL CHARGE ALL POLICY HOLDERS ON
ALL POLICIES ISSUED BY IT.
  S  2. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law, and shall apply to all
acts and omissions by insurers occurring  on  or  after  such  effective
date.

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Senate Bill S29A

Sponsored By

Archive: Last Bill Status - In Senate Committee Insurance Committee

Jun 25, 2015 - Rules Committee Vote

Rules Committee Vote: Jun 25, 2015

Bill Amendments

2015-S29 - Details

2015-S29 - Summary

2015-S29 - Sponsor Memo

2015-S29 - Bill Text download pdf

co-Sponsors

2015-S29A (ACTIVE) - Details

2015-S29A (ACTIVE) - Summary

2015-S29A (ACTIVE) - Sponsor Memo

2015-S29A (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S29A

Share this bill

Sponsored By

John A. DeFrancisco

Archive: Last Bill Status - In Senate Committee Insurance Committee

Bill Amendments

2015-S29 - Details

2015-S29 - Summary

2015-S29 - Sponsor Memo

2015-S29 - Bill Text download pdf

co-Sponsors

John J. Bonacic

William Larkin

George Latimer

2015-S29A (ACTIVE) - Details

2015-S29A (ACTIVE) - Summary

2015-S29A (ACTIVE) - Sponsor Memo

2015-S29A (ACTIVE) - Bill Text download pdf

Comments