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S02808 Summary:

Amd 2601, Ins L
Establishes a private right of action for the insured for unfair insurance settlement practices when the claim relates to loss or injury in an area where the governor has declared a disaster emergency.
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S02808 Memo:

Memo not available
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S02808 Text:

                STATE OF NEW YORK
                               2017-2018 Regular Sessions
                    IN SENATE
                                    January 17, 2017
        Introduced  by  Sen.  SEWARD -- 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 establishing a private
          right of action for unfair claim settlement practices by an insurer
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  Subsection  (c)  of  section 2601 of the insurance law is
     2  amended and a new subsection (d) is added to read as follows:
     3    (c) If it is found, after notice and an opportunity to be heard,  that
     4  an  insurer  has  violated  this section, each instance of noncompliance
     5  with subsection (a) [hereof] of this section may be treated as  a  sepa-
     6  rate  violation  of  this  section  for  purposes of ordering a monetary
     7  penalty pursuant to subsection (b) of section one hundred nine  of  this
     8  chapter. A violation of this section shall not be a misdemeanor.
     9    (d)  Where  the governor has declared a disaster emergency pursuant to
    10  section twenty-eight of the executive law, in addition to the  right  of
    11  action  granted  to  the department pursuant to this section, any person
    12  who has suffered loss or injury by  reason  of  any  violation  of  this
    13  section  relating  to  an  insurance  claim  for  property  damage in an
    14  affected area encompassed by the executive order declaring the  disaster
    15  emergency  may  bring an action in his or her own name as a plaintiff to
    16  enjoin such unlawful act or practice and an action to recover his or her
    17  actual damages.  The  court  may,  in  its  discretion,  award  punitive
    18  damages,  if  the  court  finds  that the defendant insurer willfully or
    19  knowingly violated this section. The court may award  reasonable  attor-
    20  ney's fees to a prevailing plaintiff.
    21    § 2. This act shall take effect immediately.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
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