Assembly Bill A932

2013-2014 Legislative Session

Provides that payment of interest payment and attorney fees to claimant when payment of a claim is overdue shall be exclusive remedy

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Sponsored By

Archive: Last Bill Status - In Assembly Committee

  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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2013-A932 (ACTIVE) - Details

See Senate Version of this Bill:
S2892
Current Committee:
Assembly Insurance
Law Section:
Insurance Law
Laws Affected:
Amd §5106, Ins L
Versions Introduced in Other Legislative Sessions:
2009-2010: A4348, S6448
2011-2012: A2363, S1686
2015-2016: S1056
2017-2018: S779
2019-2020: S3513
2021-2022: S4046
2023-2024: S2814

2013-A932 (ACTIVE) - Summary

Provides that payment of interest payment and attorney fees to claimant when payment of a claim is overdue shall be exclusive remedy when insurer fails to make timely payment; such failure of insurer to make timely payment or issue denial within 30 days after proof of claim has been submitted to insurer shall not preclude such insurer from issuing a denial or asserting a defense after the 30 day period has elapsed.

2013-A932 (ACTIVE) - Bill Text download pdf 

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   932

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  M. of A. HEASTIE, RAIA -- Multi-Sponsored by -- M. of A.
  HAWLEY -- read once and referred to the Committee on Insurance

AN ACT to amend the insurance law, in relation to  payment  of  interest
  penalty  and  attorney  fees to a claimant when a claim is overdue and
  the ability of an insurer to assert a defense or deny a claim if time-
  ly payment is not made within thirty days after  proof  of  claim  has
  been submitted

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subsection (a) of section 5106  of  the  insurance  law  is
amended to read as follows:
  (a)  Payments of first party benefits and additional first party bene-
fits shall be made as the loss is incurred. Such benefits are overdue if
not paid within thirty days after the claimant  supplies  proof  of  the
fact  and  amount  of loss sustained. If proof is not supplied as to the
entire claim, the amount which is supported by proof is overdue  if  not
paid  within  thirty  days  after  such  proof  is supplied. All overdue
payments shall bear interest at the rate of two percent per month. If  a
valid  claim or portion was overdue, the claimant shall also be entitled
to recover his  attorney's  reasonable  fee,  for  services  necessarily
performed  in  connection  with  securing  payment of the overdue claim,
subject to limitations promulgated by the superintendent in regulations.
PAYMENT OF THE INTEREST PENALTY AND REASONABLE ATTORNEY FEES TO A CLAIM-
ANT WHEN PAYMENT OF A CLAIM IS OVERDUE SHALL  BE  THE  EXCLUSIVE  REMEDY
WHEN  AN INSURER FAILS TO MAKE TIMELY PAYMENT. THE FAILURE OF AN INSURER
TO MAKE TIMELY PAYMENT OR ISSUE A DENIAL WITHIN THIRTY DAYS AFTER  PROOF
OF CLAIM HAS BEEN SUBMITTED TO AN INSURER SHALL NOT PRECLUDE SUCH INSUR-
ER  FROM  ISSUING  A  DENIAL OR ASSERTING A DEFENSE AFTER THE THIRTY DAY
PERIOD HAS ELAPSED.
  S 2. This act shall take effect on the sixtieth  day  after  it  shall
have become a law.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

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