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Who cares
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Sponsors
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History
- Referred to insurance
- Referred to insurance
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the insurance law, in relation to the timing for giving notice of a loss under insurance contracts
Purpose
The purpose of this bill is to mitigate against the potential for procedural of insurance coverage resulting in unreasonable loss of insurance coverage for insured's
Summary of provisions
Section 3407(c) of the insurance law is added as a new subdivision which provides that an insurer shall not decline coverage for a claim based on the failure of an insured to give timely notice of claim unless the insurer can demonstrate that it has suffered substantial prejudice as a result of the delayed notice.
Justification
Insurance companies registered to operate in New York State have taken advantage of contract provisions which provide that late notice of loss by an insured will result in the declination of coverage. This declination of coverage which results from the filing of an untimely notice of loss is a draconian measure which allows insurance carriers to avoid providing coverage for their insured's losses, even when such untimely notice of loss has failed to cause any prejudice to the insurance carrier.
Fiscal implications
None.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.