New York, N.Y. (February 25, 2022) - On February 24, 2022, Senate Bill 7882A, which encompasses the revision and the chapter amendment to the Comprehensive Insurance Disclosure Act (CIDA), was sent to New York Governor Kathy Hochul to be signed into law, ahead of the March 1, 2022 deadline.

Crucially, the original retroactive application to "all pending cases" was removed, and the requirements only apply to lawsuits filed on, or after, December 31, 2021.

The CIDA requires the following information within 90 days after serving an answer:

  • Complete information for any insurance agreement through which a judgment could be satisfied.
    - This includes all primary, excess, and umbrella policies, and a complete copy of those policies, including declarations, insuring agreements, conditions, exclusions, endorsements, and similar provisions.
    - The policies that must be disclosed only relate to the claim being litigated.
    - Policy applications do not have to be disclosed.
    - The clause "sold or delivered within the state of New York" was removed from the prior version of the legislation.
    - 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 CPLR § 3101(f) and can revoke that agreement at any time and demand a copy of the policy.
  • The name and e-mail address of the "assigned individual responsible for adjusting the claim at issue."
  • The total limits available under the policy, which means the actual funds, after taking into account erosion and any other offsets.
    - The requirement to disclose lawsuits and attorneys' fees that eroded the policy was removed from prior legislation.
  • Two certifications, one from defense counsel and one from the insured, certifying that the information provided is accurate and complete.

These new disclosure requirements do not apply to no-fault actions, which is a provision that was added after the original bill was signed in December 2021.

Additionally, defendants must make reasonable efforts to provide accurate information initially and at the note of issue filing, when engaging in court-conducted or supervised settlement negotiations, at mediation, and when the case is called for trial, and for 60 days after settlement or entry of final judgment in the case, inclusive of all appeals.

The disclosure of policy limits shall not constitute an admission that the alleged injury or damage is covered by the policy, and information concerning the insurance agreement is not by reason of disclosure admissible in evidence at trial.

We expect SB 7882A to be signed into law shortly and will be hosting a webinar on Tuesday, March 1 at 3:00 p.m. ET to review these changes. Lewis Brisbois' New York attorneys are also available to provide copies of the certifications, protocols, and bespoke training seminars for your claims department.

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.