New York S 5343: Provides that payment of interest payment and attorney fees to claimant when payment of a claim is overdue shall be exclusive remedy

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S05343 Summary:

BILL NOS05343 

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SAME ASNo Same As

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SPONSORCOMRIE

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COSPNSR

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MLTSPNSR

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Amd §5106, Ins L

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Provides that payment of interest penalty and attorney fees to claimant when payment of a claim is overdue shall be exclusive remedy when insurer fails to make timely payment; provides such failure of insurer to make timely payment or issue denial within 30 days after proof of claim has been submitted to insurer shall not preclude such insurer from issuing a denial or asserting a defense after the 30 day period has elapsed.

Go to top S05343 Actions:

BILL NOS05343 

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02/20/2025REFERRED TO INSURANCE

01/07/2026REFERRED TO INSURANCE

Go to topS05343 Committee&nbspVotes:

Go to topS05343 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS05343 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 5343

 2025-2026 Regular Sessions

 IN SENATE

 February 20, 2025
 ___________

 Introduced by Sen. COMRIE -- 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 payment of interest
 penalty and attorney fees to a claimant when a claim is overdue and
 the ability of an insurer to assert a defense or deny a claim if time-
 ly payment is not made within thirty days after proof of claim has
 been submitted

 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 5106 of the insurance law is
 2 amended to read as follows:
 3 (a) Payments of first party benefits and additional first party bene-
 4 fits shall be made as the loss is incurred. Such benefits are overdue if
 5 not paid within thirty days after the claimant supplies proof of the
 6 fact and amount of loss sustained. If proof is not supplied as to the
 7 entire claim, the amount which is supported by proof is overdue if not
 8 paid within thirty days after such proof is supplied. All overdue
 9 payments shall bear interest at the rate of two percent per month. If a
 10 valid claim or portion was overdue, the claimant shall also be entitled
 11 to recover his attorney's reasonable fee, for services necessarily
 12 performed in connection with securing payment of the overdue claim,
 13 subject to limitations promulgated by the superintendent in regulations.
 14 Payment of the interest penalty and reasonable attorney fees to a claim-
 15 ant when payment of a claim is overdue shall be the exclusive remedy
 16 when an insurer fails to make timely payment. The failure of an insurer
 17 to make timely payment or issue a denial within thirty days after proof
 18 of claim has been submitted to an insurer shall not preclude such insur-
 19 er from issuing a denial or asserting a defense after the thirty day
 20 period has elapsed.
 21 § 2. This act shall take effect on the sixtieth day after it shall
 22 have become a law.

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD09479-01-5

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