What's happening
This bill expands the definition of unfair insurance claim settlement practices to prohibit quotas for denying claims or canceling policies.
Why it matters
Prevents insurance companies from setting internal quotas. for how many claims must be denied or how many policies must be canceled, which directly targets “profit-first” tactics that could harm legitimate policyholders.
Protects consumers and claimants. by making it illegal for insurers to pressure employees or contractors to deny claims or cancel policies just to meet arbitrary targets, reducing the risk of unfair treatment.
May change how insurance companies evaluate and incentivize employee performance. , shifting focus away from denial/cancellation numbers and possibly leading to more transparent, fair claim handling practices throughout the industry.
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Who cares
Headline styles
Ban Unfair Insurance Tactics
Plain English, a few words. Used as the page title.
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
2813
2019-2020 Regular Sessions
IN ASSEMBLY
January 25, 2019
Introduced by M. of A. ZEBROWSKI, ABINANTI -- Multi-Sponsored by -- M. of A. 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 7 and 8 of subsection (a) of section 2601 of the insurance law, paragraph 7 as amended and paragraph 8 as added by chapter 458 of the laws of 2018, are amended and two new paragraphs 9 and 10 are added to read as follows:
(7) submitting reasonably rendered claims to the independent dispute resolution process established under article six of the financial services law; [or]
(8) artificially deflating or otherwise lowering cost data used for adjusted claims, or using cost data that is not appropriate for the region of the state where the loss occurred; this shall include but is not limited to claims adjusted by a person issued a temporary permit pursuant to subsection (n) of section two thousand one hundred eight of this chapter[.];
(9) 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
(10) 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 immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02137-02-9
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.