What's happening
This bill allows certain liability insurance policies in New York to cover punitive damages and civil penalties, with specified exceptions.
Why it matters
Expands insurance options for businesses and organizations. by allowing them to purchase policies that cover punitive damages and civil penalties—types of costs previously excluded—potentially reducing the financial impact of lawsuits involving gross negligence or reckless conduct.
Excludes personal and commercial auto insurance for individuals,. meaning that regular consumers cannot use this coverage to shield themselves from punitive damages or penalties arising from personal or car-related incidents.
Limits coverage for intentional misconduct,. ensuring that insurance cannot be used to protect those who deliberately cause harm, which maintains a deterrent against intentional wrongdoing while still offering protection for vicarious or reckless conduct.
Changes how risk and liability are managed,. possibly affecting the behavior of insured parties, legal strategies in litigation, and the pricing or availability of certain insurance products in New York.
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Who cares
Headline styles
Allow Punitive Damages Insurance
Plain English, a few words. Used as the page title.
Sponsors
7 Co-sponsors
2 Multi-sponsors
History
- Print number 4734a
- Amend (t) and recommit to insurance
- Referred to insurance
- Referred to insurance
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Insure Punitive Damages Coverage
In Senate Committee · Insurance · Sponsor James L. Seward
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4734--A
2017-2018 Regular Sessions
IN ASSEMBLY
February 3, 2017
Introduced by M. of A. BRINDISI, SIMOTAS, ZEBROWSKI, D'URSO, BLAKE, GARBARINO -- Multi-Sponsored by -- M. of A. HAWLEY, ORTIZ -- read once and referred to the Committee on Insurance -- recommitted to the Committee on Insurance in accordance with Assembly Rule 3, sec. 2 -committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the insurance law, in relation to permitting certain liability policies to provide coverage for punitive damages and civil penalties
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The insurance law is amended by adding a new section 3421 to read as follows:
§ 3421. Punitive damages and civil penalties coverage. 1. An insurer may provide and an insured may purchase insurance against an award of punitive damages, or civil penalties, or other non-compensatory damages in any liability insurance policy except in a policy of personal lines insurance issued to a natural person for non-business purposes, or a commercial automobile liability insurance policy.
2. Coverage may provide protection for vicarious liability resulting from the conduct of another, or when assessed against a party directly for gross negligence or reckless conduct. Coverage shall not apply where liability results from action that was intended to cause the resulting harm, damage or injury. Coverage shall apply only when expressly provided for by the insurance policy.
3. This section shall apply prospectively to insurance policies with effective dates on or after the effective date of this section.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01964-06-8
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.