§ 2618. Standards for prompt investigation and settlement of claims.
(a) (1) For the purpose of this section, "natural disaster" means the
occurrence of widespread catastrophic or severe damage, injury, or loss
of life or property resulting from any natural cause, including fire,
flood, earthquake, hurricane, tornado, high water, landslide, mudslide,
wind, storm, wave action, and ice storm.

(2) 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) a local state of emergency is declared pursuant to section
twenty-four of the executive law, when the governor declares a disaster
emergency 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);

(B) the disaster is a natural disaster or a disaster caused by an act
of terrorism; and

(C) the claims are a result of such disaster.

(3) An insurer shall acknowledge the receipt of all claims in writing
to the claimant or the claimant's authorized representative in
accordance with regulations promulgated by the superintendent;

(4) 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 health and
safety, 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, video recordings,
inventories and all receipts for repairs or replacement property shall
satisfy policy requirements;

(5) 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
authorized to receive notices of claim; and

(6) An insurer shall furnish to such claimant, or the claimant's
authorized 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
regulations promulgated by the superintendent.

(b)(1) An insurer shall, within fifteen business days of receipt of a
properly executed proof of loss and receipt of all items, statements and
forms requested under this section from the claimant, or the claimant's
authorized representative, advise the claimant in writing whether the
insurer has accepted or rejected the non-commercial claim. When the
insurer suspects that the non-commercial claim involves arson, the
foregoing fifteen business days shall be read as thirty business days.

(2) An insurer shall be granted a one-time extension of fifteen
business days to determine whether a non-commercial 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) (i) If the insurer needs more time to determine whether the
non-commercial claim should be accepted or rejected because the insurer
is prohibited from accessing the property to investigate the claim, the
insurer shall be granted one additional extension of fifteen business
days. If the insurer elects to utilize this extension, it shall so
notify the claimant, or the claimant's authorized representative, in
writing, setting forth the reasons additional time is needed for the
investigation.

(ii) If the insurer needs more time to be able to physically access
the property because the insurer is prohibited from accessing it, the
insurer shall so notify the claimant, or the claimant's authorized
representative, every fifteen business days, in writing, setting forth
the reasons additional time is needed for the investigation. When the
insurer is no longer prohibited from accessing the property, and the
property can be accessed, the insurer shall have no more than fifteen
days to adjudicate the claim.

(c) (1) An insurer shall, within fifteen business days of receipt of a
properly executed proof of loss and receipt of all items, statements and
forms requested under this section from the claimant, or the claimant's
authorized representative, advise the claimant in writing whether the
insurer has accepted or rejected the commercial claim.

(2) An insurer shall be granted a one-time extension of thirty
business days to determine whether a commercial 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, setting forth the reasons additional time is needed for the
investigation.

(3) If succeeding the one-time extension of thirty business days the
insurer needs more time to determine whether the commercial claim should
be accepted or rejected, the insurer shall so notify the claimant, or
the claimant's authorized representative, every thirty business days, in
writing, setting forth the reasons additional time is needed for the
investigation.

(4) 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
regarding the claimant's right to reject the offer and request an
appraisal.

(5) In any case where the claim is rejected by the insurer, the
insurer shall notify the claimant, or the claimant's authorized
representative, in writing, of all applicable policy provisions and
deadlines by which a claimant may sue the insurer. Any notice rejecting
any element of a claim involving personal property insurance shall
contain the identity and the claims processing address of the insurer,
the insured's policy number, the claim number, and information regarding
how to file a complaint with the department in accordance with
regulations promulgated by the superintendent.

(d) Every insurer shall pay any amount finally agreed upon in
settlement of all or part of any claim not later than four business days
from the receipt of such agreement by the insurer, or from the date of
the performance by the claimant of any condition set by such agreement,
whichever is later, except as provided in section three hundred
thirty-one of this chapter with respect to liens by tax districts on
fire insurance proceeds.

(e) The superintendent may promulgate any rules or regulations
necessary to implement the provisions of this section.