Requires a liability insurer that has an opportunity to settle a claim at or within the policy limits, and refuses to do so, to be liable for any verdict in excess of the insurance policy limits; prohibits the insurer from recovering such excess judgment from the insured.
STATE OF NEW YORK
________________________________________________________________________
2095
2023-2024 Regular Sessions
IN ASSEMBLY
January 23, 2023
___________
Introduced by M. of A. MEEKS, BRONSON, GONZALEZ-ROJAS -- read once and
referred to the Committee on Insurance
AN ACT to amend the insurance law, in relation to requiring a liability
insurer that has received an offer to settle a claim at or within the
policy limits, and refuses to do so, to be liable for any verdict in
excess of such policy limits
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subsection (a) of section 3420 of the insurance law is
2 amended by adding a new paragraph 7 to read as follows:
3 (7) A provision that, if the insurer has received an offer to settle a
4 claim at or within the insurer's policy limits, and the insurer refuses
5 to do so, thereby exposing the insured to a verdict in excess of the
6 policy limits, the insurer shall be liable for any verdict in excess of
7 the policy limits, not limited to any other policy provisions and not
8 subject to the limitations and conditions of paragraph two of this
9 subsection. Such provision shall clearly state that the insurer shall
10 have no right to seek or recover damages against the insured for such a
11 judgment rendered against the insurer or the insured.
12 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04529-01-3
