Bill Text: NY S02315 | 2013-2014 | General Assembly | Introduced

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Bill Title: Relates to the timing for giving notice of a loss under insurance contracts.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2014-01-08 - REFERRED TO INSURANCE [S02315 Detail]

Download: New_York-2013-S02315-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         2315
                              2013-2014 Regular Sessions
                                   I N  S E N A T E
                                   January 15, 2013
                                      ___________
       Introduced  by  Sen.  DeFRANCISCO -- 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 the timing for  giving
         notice of a loss under insurance contracts
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Section 3407 of the insurance law is amended  by  adding  a
    2  new subsection (c) to read as follows:
    3    (C)  (1)  ANY  PROVISION  CONTAINED IN AN INSURANCE CONTRACT ISSUED OR
    4  DELIVERED IN THIS STATE OR COVERING A PROPERTY IN  THIS  STATE  THAT  IS
    5  CONTRARY  IN  PURPOSE  WITH,  OR IN CONFLICT WITH THE PROVISIONS OF THIS
    6  SECTION SHALL BE NULL AND VOID IF THE  EFFECTUATION  OF  SUCH  PROVISION
    7  WOULD  RESULT IN THE DEROGATION OF THE BENEFIT TO AN INSURED INTENDED BY
    8  THE ENACTMENT OF THIS SECTION.
    9    (2) AN INSURER SHALL NOT DENY COVERAGE FOR A CLAIM BASED ON THE  FAIL-
   10  URE OF AN INSURED TO GIVE TIMELY NOTICE OF A CLAIM UNLESS THE AUTHORIZED
   11  INSURER  OR  OTHER INSURER CAN DEMONSTRATE THAT IT HAS SUFFERED SUBSTAN-
   12  TIAL PREJUDICE AS A RESULT OF THE  DELAYED  NOTICE.  EVIDENCE  THAT  THE
   13  INSURER HAD KNOWLEDGE OF THE LOSS THAT IS THE SUBJECT OF THE CLAIM SHALL
   14  CREATE A REBUTTABLE PRESUMPTION THAT THE INSURER HAS NOT BEEN PREJUDICED
   15  BY  DELAYED NOTICE. NOTICE GIVEN TO ANY LICENSED AGENT OF THE INSURER IN
   16  THIS STATE WITH PARTICULARS SUFFICIENT TO IDENTIFY THE INSURED SHALL  BE
   17  DEEMED NOTICE TO THE INSURER.
   18    (3)  THE  PROVISIONS  OF  THIS SECTION SHALL BE LIBERALLY CONSTRUED IN
   19  ORDER TO EFFECTUATE THE PURPOSE HEREOF WHICH IS TO MITIGATE AGAINST  THE
   20  POTENTIAL  FOR  PROCEDURAL  DENIAL  OF  INSURANCE  COVERAGE RESULTING IN
   21  UNREASONABLE LOSS OF INSURANCE PROTECTION FOR INSUREDS.
   22    S 2. Severability clause. If any clause, sentence, paragraph, subdivi-
   23  sion, section or part of this act shall be  adjudged  by  any  court  of
   24  competent  jurisdiction  to  be invalid, such judgment shall not affect,
   25  impair or invalidate the remainder thereof, but shall be confined in its
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD03104-01-3
       S. 2315                             2
    1  operation to the clause, sentence, paragraph,  subdivision,  section  or
    2  part thereof directly involved in the controversy in which such judgment
    3  shall  have been rendered. It is hereby declared to be the intent of the
    4  legislature  that  this act would have been enacted even if such invalid
    5  provisions had not been included herein.
    6    S 3. This act shall take effect immediately, and shall  apply  to  all
    7  insurance  contracts,  executed, issued, reissued or renewed on or after
    8  such date.