What's happening
This bill expands unfair insurance claim settlement practices to prohibit insurers from imposing quotas on claim denials or policy cancellations.
Why it matters
Addresses insurer incentives. By barring insurers from setting quotas for denied claims or canceled policies, this bill targets internal practices that may pressure employees to act against the best interests of policyholders.
Promotes fairer treatment for consumers. The measure seeks to ensure that claims and policy cancellations are judged on their actual merits, not influenced by company-imposed targets unrelated to individual circumstances.
Aims to deter systemic abuse. Prohibiting these quotas could help prevent widespread patterns of unfair denials or cancellations, leading to a more trustworthy insurance market for consumers.
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Who cares
Headline styles
Sponsors
1 Co-sponsor
1 Multi-sponsor
History
- Referred to insurance
- Referred to insurance
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1245
2017-2018 Regular Sessions
IN ASSEMBLY
January 11, 2017
Introduced by M. of A. ZEBROWSKI, ABINANTI -- Multi-Sponsored by -- M. of A. MOYA, PERRY -- read once and referred to the Committee on Insurance
AN ACT to amend the insurance law, in relation to expanding the description of unfair insurance claim settlement practices
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraphs 6 and 7 of subsection (a) of section 2601 of the insurance law, paragraph 6 as amended and paragraph 7 as added by section 27 of part H of chapter 60 of the laws of 2014, are amended and two new paragraphs 8 and 9 are added to read as follows:
(6) failing to promptly disclose coverage pursuant to subsection (d) or subparagraph (A) of paragraph two of subsection (f) of section three thousand four hundred twenty of this chapter; [or]
(7) submitting reasonably rendered claims to the independent dispute resolution process established under article six of the financial services law[.]; or
(8) requiring or requesting that any individual or entity deny or promote the denial of a certain number or percentage of claims during any given period of time; or
(9) requiring or requesting that any individual or entity cancel or promote the cancellation of a certain number or percentage of policies during any given period of time.
§ 2. This act shall take effect on the same date and in the same manner as section 27 of part H of chapter 60 of the laws of 2014 takes effect.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04392-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.