What's happening
This bill requires property insurers to remove claims from records if the insured repays claims found to be false.
Why it matters
Protects consumers from long-term negative impacts. By requiring insurers to remove repaid, false claims from records, the bill helps prevent policyholders from facing higher premiums or denial of coverage based on an honest mistake that’s been fully remedied.
Encourages honesty and self-reporting. Policyholders who discover they've made a mistaken or false claim (e.g., property thought lost but later found) are given a clear incentive to promptly repay insurers, knowing their claims history won’t be permanently affected.
Improves fairness in insurance underwriting. Insurers often use claims history to assess risk. This bill ensures that only legitimate claims impact an insured’s record, making risk assessment more accurate and equitable for all customers.
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Who cares
Property insurance policyholders
Insureds who make a good-faith loss claim and later find the property was not lost would have the claim removed from their claims record for all purposes after repaying any insurance payout.
Property insurers
Insurers would have to remove qualifying claims from insureds’ records for policies issued or delivered in New York or covering property located in the state.
Insurance claims administrators
Administrators would need to apply the removal requirement to qualifying claims made on or after the bill’s immediate effective date.
Headline styles
Erase Repaid False Insurance Claims
Plain English, a few words. Used as the page title.
Sponsors
3 Multi-sponsors
History
- Referred to insurance
- Referred to insurance
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6864
2017-2018 Regular Sessions
IN ASSEMBLY
March 22, 2017
Introduced by M. of A. ENGLEBRIGHT, COLTON, GUNTHER, CAHILL, ZEBROWSKI, WEPRIN -- Multi-Sponsored by -- M. of A. ABINANTI, RIVERA, TITONE -read once and referred to the Committee on Insurance
AN ACT to amend the insurance law, in relation to requiring insurers of property to eliminate from the claims record of an insured, any claim of loss made and paid in good faith, which is discovered to be false and the proceeds of such claim are repaid to the insurer
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 3407-b to read as follows:
§ 3407-b. Property insurance; claim of loss. The good faith claim of the loss of any property which a person has insured against loss or damage under any contract of insurance, issued or delivered in this state or covering property located in this state, shall be removed from the record of claims made by the insured, for all purposes, when the insured subsequently finds that such property was not lost and repays to the insurer all money, if any, paid pursuant to such claim.
§ 2. This act shall take effect immediately and shall apply to claims made on or after such effective date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03705-01-7
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.