A01092 Summary:

BILL NO    A01092A

SAME AS    SAME AS S03413-A

SPONSOR    Skoufis

COSPNSR    Silver, Titone, Cusick, Weisenberg, Goldfeder, Weinstein, Morelle,
           Brook-Krasny, Cymbrowitz, Hennessey, Colton, Nolan, Solages,
           Santabarbara, Perry, Ramos, Lupardo, Weprin, Moya, Titus, Saladino

MLTSPNSR   Abinanti, Brennan, Buchwald, Englebright, Farrell, Galef, Glick,
           Gunther, Jacobs, Jaffee, Lavine, Markey, McDonough, Paulin, Sweeney,
           Thiele

Add S2616, Ins L

Establishes standards for the prompt investigation and settlement of claims
arising out of states of emergency and disasters.
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A01092 Actions:

BILL NO    A01092A

01/09/2013 referred to insurance
05/20/2013 amend and recommit to insurance
05/20/2013 print number 1092a
05/23/2013 reported 
05/23/2013 advanced to third reading cal.376
06/04/2013 passed assembly
06/04/2013 delivered to senate
06/04/2013 REFERRED TO INSURANCE
01/08/2014 DIED IN SENATE
01/08/2014 RETURNED TO ASSEMBLY
01/08/2014 ordered to third reading cal.65
01/22/2014 committed to insurance
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A01092 Votes:

A01092A06/04/2013 121/23
AbbateYColtonYGarbariYKearnsYMillmanYRiveraYStevensY
AbinantYCookYGibsonERKellnerYMontesaYRobertsYStirpeY
ArroyoYCorwinNOGiglioYKimYMorelleYRobinsoYSweeneyY
AubryYCrespoYGjonajYKolbNOMosleyYRodriguERTediscoNO
BarclayNOCrouchYGlickYLalorNOMoyaYRosaYTenneyNO
BarrettYCurranYGoldfedYLavineYNojayNORosenthYThieleY
BarronYCusickYGoodellNOLentolYNolanYRozicYTitoneY
BenedetYCymbrowYGottfriYLiftonYOaksNORussellYTitusY
BlankenNODenDekkYGrafYLopezYO'DonneYRyanYWalterNO
BorelliYDinowitYGuntherYLupardoYOrtizYSaladinYWeinsteY
BoylandYDiPietrNOHawleyNOLupinacYOtisYSantabaYWeisenbY
BraunstYDupreyNOHeastieYMageeYPalmesaNOScarborYWeprinY
BrennanYEnglebrYHennessYMagnareYPaulinYSchimelYWrightY
BrindisYEspinalYHevesiYMaiselYPeoplesYSchimmiYZebrowsY
BronsonYFahyYHikindYMalliotYPerryYSepulveYMr SpkrY
Brook-KERFarrellYHooperYMarkeyYPretlowYSimanowY
BuchwalYFinchNOJacobsYMayerYQuartYSimotasY
ButlerNOFitzpatNOJaffeeYMcDonalYRaYSkartadY
CahillYFriendNOJohnsYMcDonouYRabbittYSkoufisY
CamaraYGabryszYJordanNOMcKevitYRaiaYSolagesY
CerettoYGalefYKatzNOMcLaughYRamosYStecNO
ClarkYGanttYKavanagYMillerYReilichNOSteckY

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A01092 Memo:

BILL NUMBER:A1092A

TITLE OF BILL:  An act to amend the insurance law, in relation to
standards for prompt investigation and settlement of claims arising
from states of emergency

Purpose Or General Idea Of Bill:  The purpose of this bill is to
establish claim investigation and settlement standards for insurance
companies to follow in the event of a disaster.

Summary Of Specific Provisions:  This bill would require every insurer
authorized to writes policies in New York State that cover loss or
damage to real property, personal property, or other liabilities for
loss of, damage to, or injury to persons or property to begin
investigating a claim arising from a declared disaster or emergency
and inform the insured of all items, statements, and forms that the
insurer believed will be required of the claimant in accordance with
regulations promulgated by. the Superintendent of Financial Services.
If the insurer wishes the investigation to include an inspection of
damaged or destroyed property, such inspection would have to occur in
accordance with regulations promulgated by the Superintendent. In
addition, insurers would have to allow claimants to make certain
repairs necessary to protect health and safety and to accept an
alternative proof of loss from the claimant.

Within fifteen business days after receiving all the items,
statements, and forms that the insurer required from the claimant, the
insurer would be required to advise the claimant in writing whether
the insurer has accepted or rejected the claim. An insurer would be
allowed a one-time extension of fifteen additional business days to
continue its investigation, provided that the insurer notifies the
claimant of the reasons additional time is needed for the
investigation.

If the insurer has accepted the claim, the claimant would have to be
notified of the amount the insurer is offering to settle the claim and
of all applicable policy provisions regarding the claimant's right to
reject and appeal the insurer's offer. If the insurer rejects the
claim, the insurer would have to inform the claimant of all applicable
policy provisions regarding the claimant's right to appeal the
decision.

An insurer would be required to pay the claim not later than three
business days from the settlement of the claim.

Justification:  When a disaster or emergency strikes, policyholders
frequently rely on their insurance policies to be made whole again.
Insurance payouts are often necessary for homeowners and businesses to
make repairs or to replace damaged property. In addition, repairs
often need to be made quickly in order to ensure the health and safety
of the policyholders and the community. Moreover, a delay in insurance
payments can result in a delay in FEMA assistance, as FEMA will not
provide payment for damages until insurance claims are fully
processed.

Following Superstorm Sandy and Tropical Storms Irene and Lee, it was
found that there were often lengthy delays in the time it was taking


insurance companies to investigate and process claims and make
payments to policyholders. Following Sandy, the Department of
Financial Services found it necessary to issue an emergency regulation
that required insurers to begin an investigation within 6 business
days of receiving a Sandy-related claim; if the insurer sought an
inspection of the damaged property, the inspection would have to be
performed within those 6 business days.

This bill would address this issue by requiring insurers to respond to
a claim arising from a disaster or emergency in accordance with
regulations established by the Superintendent of Financial Services,
accept or reject a claim within fifteen business days of closing the
investigation, and pay a claim within three business days of the claim
being settled.

Prior Legislative History:  New bill.

Fiscal Implications For State And Local Governments:  None.

Effective Date:  Immediately.
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