S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5201
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 27, 2023
                                ___________
 
 Introduced  by  Sen. SKOUFIS -- 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 standards  for  prompt
   investigation and settlement of claims arising from states of emergen-
   cy

   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  2618
 to read as follows:
   §  2618.  STANDARDS FOR PROMPT INVESTIGATION AND SETTLEMENT OF CLAIMS.
 (A) THIS SECTION SHALL APPLY TO EVERY INSURER WHO WRITES  POLICIES  THAT
 COVER  LOSS  OF  OR  DAMAGE TO REAL PROPERTY, PERSONAL PROPERTY OR OTHER
 LIABILITIES FOR LOSS OF, DAMAGE TO, OR INJURY  TO  PERSONS  OR  PROPERTY
 WHEN  A LOCAL STATE OF EMERGENCY IS DECLARED PURSUANT TO SECTION TWENTY-
 FOUR OF THE EXECUTIVE LAW, WHEN THE GOVERNOR DECLARES A  DISASTER  EMER-
 GENCY PURSUANT TO SECTION TWENTY-EIGHT OF THE EXECUTIVE LAW, OR WHEN THE
 PRESIDENT  ISSUES  A MAJOR DISASTER OR EMERGENCY DECLARATION PURSUANT TO
 THE ROBERT T. STAFFORD DISASTER  RELIEF  AND  EMERGENCY  ASSISTANCE  ACT
 (P.L. 93-288), FOR CLAIMS ARISING FROM SUCH EMERGENCY.
   (1)  AN INSURER SHALL ACKNOWLEDGE THE RECEIPT OF ALL CLAIMS IN WRITING
 TO THE CLAIMANT OR THE CLAIMANT'S AUTHORIZED REPRESENTATIVE  IN  ACCORD-
 ANCE WITH REGULATIONS PROMULGATED BY THE SUPERINTENDENT;
   (2)  IF  THE INSURER WISHES ITS INVESTIGATION TO INCLUDE AN INSPECTION
 OF DAMAGED OR DESTROYED PROPERTY, THE INSPECTION, WHETHER  PERFORMED  BY
 THE  INSURER,  AN  INDEPENDENT  ADJUSTER, OR OTHER REPRESENTATIVE OF THE
 INSURER, SHALL OCCUR IN ACCORDANCE WITH REGULATIONS PROMULGATED  BY  THE
 SUPERINTENDENT.   FURTHERMORE, WHERE NECESSARY TO PROTECT THE HEALTH AND
 SAFETY OF THE CLAIMANT, IMMEDIATE REPAIRS TO  WINDOWS,  EXTERIOR  WALLS,
 EXTERIOR  DOORS,  ROOFS,  HEATING  SYSTEMS, WATER SYSTEMS AND ELECTRICAL
 SYSTEMS MAY BE MADE AND ALTERNATIVE PROOF OF LOSS SUCH  AS  PHOTOGRAPHS,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02303-01-3
 S. 5201                             2
              

 
 VIDEO  RECORDINGS,  INVENTORIES AND ALL RECEIPTS FOR REPAIRS OR REPLACE-
 MENT PROPERTY SHALL SATISFY POLICY REQUIREMENTS;
   (3)  A CLAIM FILED WITH AN AGENT OF AN INSURER SHALL BE DEEMED TO HAVE
 BEEN FILED WITH THE INSURER UNLESS, CONSISTENT WITH LAW OR CONTRACT, THE
 AGENT NOTIFIES THE PERSON FILING THE CLAIM THAT THE AGENT IS NOT AUTHOR-
 IZED TO RECEIVE NOTICES OF CLAIM; AND
   (4) AN INSURER SHALL FURNISH TO SUCH CLAIMANT, OR  CLAIMANT'S  AUTHOR-
 IZED  REPRESENTATIVE, A NOTIFICATION OF ALL ITEMS, STATEMENTS AND FORMS,
 IF ANY, WHICH THE INSURER REASONABLY BELIEVES WILL BE  REQUIRED  OF  THE
 CLAIMANT  IN  ORDER  TO  INVESTIGATE SUCH CLAIM IN ACCORDANCE WITH REGU-
 LATIONS PROMULGATED BY THE SUPERINTENDENT.
   (B)(1) AN INSURER SHALL, WITHIN FIFTEEN BUSINESS DAYS  OF  RECEIPT  OF
 ALL  ITEMS,  STATEMENTS  AND FORMS REQUESTED UNDER THIS SECTION FROM THE
 CLAIMANT, OR THE CLAIMANT'S AUTHORIZED REPRESENTATIVE, ADVISE THE CLAIM-
 ANT IN WRITING WHETHER THE INSURER HAS ACCEPTED OR REJECTED THE CLAIM.
   (2) AN INSURER SHALL BE GRANTED A ONE-TIME EXTENSION OF FIFTEEN  BUSI-
 NESS  DAYS  TO DETERMINE WHETHER A CLAIM SHOULD BE ACCEPTED OR REJECTED.
 IF THE INSURER ELECTS TO UTILIZE THIS EXTENSION, IT SHALL SO NOTIFY  THE
 CLAIMANT, OR THE CLAIMANT'S AUTHORIZED REPRESENTATIVE, IN WRITING.  SUCH
 NOTIFICATION SHALL INCLUDE THE REASONS ADDITIONAL TIME IS NEEDED FOR THE
 INVESTIGATION.
   (3)  ONCE  THE  CLAIM  IS  ACCEPTED  BY THE INSURER, THE INSURER SHALL
 ADVISE THE CLAIMANT, OR THE  CLAIMANT'S  AUTHORIZED  REPRESENTATIVE,  IN
 WRITING  OF  THE AMOUNT THE INSURER IS OFFERING TO SETTLE THE CLAIM. THE
 INSURER SHALL ALSO PROVIDE TO THE CLAIMANT, OR THE CLAIMANT'S AUTHORIZED
 REPRESENTATIVE, IN WRITING, OF ALL APPLICABLE POLICY PROVISIONS  REGARD-
 ING THE CLAIMANT'S RIGHT TO REJECT AND APPEAL THE OFFER.
   (4) IN ANY CASE WHERE THE CLAIM IS REJECTED BY THE INSURER, THE INSUR-
 ER  SHALL  NOTIFY  THE  CLAIMANT, OR THE CLAIMANT'S AUTHORIZED REPRESEN-
 TATIVE, IN WRITING, OF ALL APPLICABLE POLICY  PROVISIONS  REGARDING  THE
 CLAIMANT'S RIGHT TO APPEAL THE DECISION.
   (C)  AN INSURER SHALL PAY THE CLAIM NOT LATER THAN THREE BUSINESS DAYS
 FROM THE SETTLEMENT OF THE CLAIM.
   (D) THE SUPERINTENDENT MAY PROMULGATE ANY RULES OR REGULATIONS  NECES-
 SARY TO IMPLEMENT THE PROVISIONS OF THIS SECTION.
   § 2. This act shall take effect immediately.