Requires insurers to record on the record of claims that the insured reimbursed the insurer for claims previously paid to the insured by the insurer in certain instances.
TITLE OF BILL: 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
PURPOSE: To require the removal from an insurer's record of claims any claim paid for lost property which was subsequently found to be not lost and the insured reimbursed the insurer for the claim.
SUMMARY OF PROVISIONS: This bill amends insurance law by adding a new section 3407-b.
JUSTIFICATION: There is no requirement in law that a claim be removed from an insured's record of claims should lost property be found and said claim be reimbursed by insured. Additionally, there have been instances in which an insured's reimbursement of a claim is missing from the record of claims. This creates an incomplete picture of an insured's claim history and disadvantages future ability to get insurance and/or distorts an insured's risk profile.
This bill would remedy this potential for misrepresentation of an insured's record of claim.
LEGISLATIVE HISTORY: 2009-10: S.2935 Insurance Cmte. A.5336 Third Reading 2007-08: A.10632 Third Reading
FISCAL IMPLICATIONS: No fiscal implications.
EFFECTIVE DATE: This act shall take effect immediately and shall apply to claims made on, before or after such effective date.
STATE OF NEW YORK ________________________________________________________________________ 4689 2011-2012 Regular Sessions IN SENATE April 14, 2011 ___________Introduced by Sen. FLANAGAN -- read twice and ordered printed, and when printed to be committed 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 ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The insurance law is amended by adding a new section 3407-b to read as follows: S 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. S 2. This act shall take effect immediately and shall apply to claims made on, before or after such effective date.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD08821-01-1