On February 14, 2022, the chapter amendment (S7882) to New York's Comprehensive Insurance Disclosure Act was recalled from the assembly and amended (S7882A). This revision or “amendment” of the chapter amendment removes the language “sold or delivered within the state of New York” from the statute. This means that the statute will be applicable to all policies insuring risks in the State of New York.

The revised chapter amendment is once again on the floor calendar, and needs to proceed through the Senate and Assembly before it is delivered to Governor Hochul for signature. We are hopeful that the latest version will be signed by the Governor before the end of the month.

The chapter amendment will require the following:

Time to Disclose

  • Mandated disclosure within 90 days of serving the answer (instead of 60 days).

Content of Disclosure

  • The proof of insurance agreement can be a copy of the policy, or if a party agrees in writing, in the form of a declaration page.
    - A party who agrees to accept a declaration page instead of a complete copy of the policy is still entitled to other information required by C.P.L.R. § 3101(f) and can revoke that agreement at any time and demand a copy of the policy.
  • The policies that must be disclosed only relate to the claim being litigated.
  • Only the name and e-mail address of the claims adjuster must be disclosed (not telephone number).
  • Subparagraphs (v) and (vi) would be deleted and subparagraph (iv) would be amended to require disclosure only of “the total limits available” under the policy, meaning the funds, after accounting for erosion and any other offsets available to satisfy a judgment.
  • Policy applications would NOT be required to be disclosed.

Obligation to Disclose

  • "Ongoing obligation" would be deleted and replaced by “must” — i.e. carriers must make reasonable efforts to provide accurate information initially and at note of issue filing, when engaging in court-conducted or supervised settlement negotiations, at mediation, and when the case is called for trial.
  • Disclosure of policy limits shall not constitute an admission that the alleged injury or damage is covered by the policy.
  • The new disclosure requirements would not apply to actions brought to recover motor vehicle insurance personal injury protection benefits under Insurance Law Article 51 or Insurance Regulation 68.
  • The original retroactive application to “all pending cases” would be deleted.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.