A09346 Summary:

BILL NOA09346A
 
SAME ASSAME AS S04756-A
 
SPONSORMorelle (MS)
 
COSPNSRCook, Jacobs, Lifton, Abinanti, Crespo, Skartados, Stirpe, Otis, Mosley, Simotas, Cusick, Skoufis, Benedetto, Brindisi, Clark, Magnarelli, Brook-Krasny, McDonald, Weprin, Hooper
 
MLTSPNSRFahy, Hikind, Magee, Markey, Robinson, Thiele
 
Amd S3408, Ins L
 
Relates to court ordered appraisals under fire insurance policies.
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A09346 Actions:

BILL NOA09346A
 
04/16/2014referred to insurance
06/10/2014reported referred to codes
06/12/2014reported referred to rules
06/12/2014amend and recommit to rules 9346a
06/16/2014reported
06/16/2014rules report cal.300
06/16/2014ordered to third reading rules cal.300
06/17/2014passed assembly
06/17/2014delivered to senate
06/17/2014REFERRED TO RULES
06/17/2014SUBSTITUTED FOR S4756A
06/17/20143RD READING CAL.1465
06/17/2014PASSED SENATE
06/17/2014RETURNED TO ASSEMBLY
11/10/2014delivered to governor
11/21/2014signed chap.451
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A09346 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A9346A
 
SPONSOR: Morelle (MS)
  TITLE OF BILL: An act to amend the insurance law, in relation to court ordered appraisals under fire insurance policies   PURPOSE: This bill relates to court ordered appraisals under fire insurance policies   SUMMARY OF PROVISIONS: Section 1 - Amends subsection (c) of Section 3408 of the insurance law, as added by Chapter 25 of the Laws of 2010. Section 2 - Effective Date   JUSTIFICATION: One manner of resolving disputes under certain insur- ance policies is the appraisal process, which is similar to arbitration. When an insured requests an appraisal, and the insurer refuses, the insured can seek a Court Order requiring the insured to participate in the appraisal process. Unfortunately, the Courts have taken a limited view as to what issues are subject to appraisal. This bill would clarify that the amount of the loss is a proper subject of arbitration. This change will result in substantial savings in litigation costs to both sides of a dispute.   LEGISLATIVE HISTORY: New bill   FISCAL IMPLICATIONS: None   EFFECTIVE DATE: This act shall take effect immediately.
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A09346 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         9346--A
 
                   IN ASSEMBLY
 
                                     April 16, 2014
                                       ___________
 
        Introduced  by M. of A. MORELLE, COOK, JACOBS, LIFTON, ABINANTI, CRESPO,
          SKARTADOS, STIRPE, OTIS, MOSLEY, SIMOTAS, CUSICK, SKOUFIS,  BENEDETTO,
          BRINDISI,  CLARK, MAGNARELLI, BROOK-KRASNY, McDONALD, WEPRIN -- Multi-
          Sponsored by -- M. of A. FAHY, HIKIND, MAGEE, MARKEY, ROBINSON, THIELE
          -- read once and referred to the Committee on  Insurance  --  reported

          and referred to the Committee on Codes -- reported and referred to the
          Committee  on  Rules  --  Rules  Committee  discharged,  bill amended,
          ordered reprinted as amended and recommitted to the Committee on Rules
 
        AN ACT to  amend  the  insurance  law,  in  relation  to  court  ordered
          appraisals under fire insurance policies
 
          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 3408 of  the  insurance  law,  as
     2  added by chapter 25 of the laws of 2010, is amended to read as follows:
     3    (c)  In  the  event  of a covered loss, whenever an insured or insurer
     4  fails to proceed with an appraisal upon  demand  of  the  other,  either
     5  party may apply to the court in the manner provided in subsection (a) of

     6  this  section  for  an  order  directing  the  other to comply with such
     7  demand. [If an] An appraisal [is so ordered, it] shall [be limited to  a
     8  determination of] determine the actual cash value [and/or], the replace-
     9  ment  cost,  [or] the extent of the loss or damage and the amount of the
    10  loss or damage which shall be determined as specified in the policy  and
    11  shall  proceed  pursuant to the terms of the applicable appraisal clause
    12  of the insurance policy and not as an arbitration.  Notwithstanding  the
    13  provisions  of this subsection, an appraisal shall not determine whether
    14  the policy actually provides coverage for any  portion  of  the  claimed
    15  loss or damage.

    16    § 2. This act shall take effect immediately.
 
 
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10442-03-4
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