Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|
---|---|
Jan 05, 2022 |
referred to insurance |
Jan 19, 2021 |
referred to insurance |
Assembly Bill A2540
2021-2022 Legislative Session
Sponsored By
WEINSTEIN
Archive: Last Bill Status - In Assembly 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
Actions
co-Sponsors
Rebecca Seawright
Kenneth Zebrowski
Steven Cymbrowitz
Andrew Hevesi
2021-A2540 (ACTIVE) - Details
2021-A2540 (ACTIVE) - Summary
Provides that a liability insurer may be sued for and the plaintiff may recover compensatory damages where the insurer failed to effectuate prompt and fair settlement of the claim and considered its interests to the detriment of the insured so as to cause the rendering of a judgment in excess of the policy limits.
2021-A2540 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 2540 2021-2022 Regular Sessions I N A S S E M B L Y January 19, 2021 ___________ Introduced by M. of A. WEINSTEIN, SEAWRIGHT, ZEBROWSKI, CYMBROWITZ, HEVESI, HUNTER, GOTTFRIED, TAYLOR -- read once and referred to the Committee on Insurance AN ACT to amend the insurance law, in relation to maintaining an action against a liability insurer seeking compensatory damages in excess of the policy limits where such insurer failed to engage in prompt and fair settlement of the claim THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 3420 of the insurance law is amended by adding a new subsection (b-1) to read as follows: (B-1) AN ACTION MAY ALSO BE MAINTAINED BY THE PERSONS IDENTIFIED IN PARAGRAPHS ONE, TWO AND THREE OF SUBSECTION (B) OF THIS SECTION AGAINST THE INSURER TO RECOVER DAMAGES INCLUDING COMPENSATORY DAMAGES AND INTER- EST MEASURED FROM THE TIME OF FAILURE TO OFFER A FAIR AND REASONABLE SETTLEMENT IN ACCORDANCE WITH THIS SECTION, FROM SUCH INSURER TO THE FULL EXTENT OF THE JUDGMENT AGAINST THE INSURED, NOT LIMITED TO THE POLICY LIMITS AND NOT SUBJECT TO THE LIMITATIONS AND CONDITIONS OF PARA- GRAPH TWO OF SUBSECTION (A) OF THIS SECTION, WHERE A PREPONDERANCE OF THE EVIDENCE ESTABLISHES THAT THE INSURER FAILED TO EFFECTUATE A PROMPT AND FAIR SETTLEMENT OF A CLAIM OR ANY PORTION THEREOF, AND WHERE UNDER THE TOTALITY OF THE FACTS AND CIRCUMSTANCES RELATED TO THE CLAIM, THE INSURER FAILED TO REASONABLY ACCORD AT LEAST EQUAL OR MORE FAVORABLE CONSIDERATION TO ITS INSURED'S INTERESTS AS IT DID TO ITS OWN INTERESTS, AND THEREBY EXPOSED THE INSURED TO A JUDGMENT IN EXCESS OF THE POLICY LIMITS. § 2. This act shall take effect immediately. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD00029-01-1
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