Enacts the comprehensive insurance disclosure act to require that all parties provide notice and proof of the existence and contents of any insurance agreement, including coverage amounts, under which any person or entity may be liable to satisfy part or all of a judgment within sixty days of serving an answer in an action.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8041
SPONSOR: Lunsford TITLE OF BILL:
An act to amend the civil practice law and rules, in relation to insur-
ance disclosures
PURPOSE OF BILL:
This bill would require defendants to provide plaintiffs with complete
information for any insurance agreement through which a judgment could
be satisfied within sixty days after serving an answer.
SUMMARY OF PROVISIONS OF BILL:
Section one of this bill provides that this act shall be known and cited
as the "Comprehensive Insurance Disclosure Act."
Section two of this bill amends the Civil Practice Law and Rules (CPLR)
section 3101(f) to require any defendant to provide to the plaintiff
within sixty days after serving an answer pursuant to sections 320, 3011
or 3019 of this chapter proof of existence and the contents of any
insurance agreement under which any person or entity may be liable to
satisfy part or all of a judgment and details what the information and
documentation includes.
Section 3 amends CPLR to add a new section 3122-b that requires informa-
tion provided pursuant to subdivision (f) of section 3101 of this chap-
ter be certified by the defendant that the information is accurate and
complete.
Section 4 states that the act shall take effect immediately and shall
apply to all pending actions. Any information required by this act that
has not previously been provided in pending cases shall be provided
within sixty days after the date that this act shall become effective.
JUSTIFICATION:
In personal injury cases, disclosure of complete and accurate informa-
tion about the nature and extent of insurance coverage is often delayed.
There is a confusing and often conflicting array of case law regarding
what must be disclosed and when. Not only do these delays clog our over-
burdened courts, they force injured New Yorkers to wait for the justice
they deserve. This can be solved by simply clarifying the nature,
extent, and timeliness of mandated disclosure of insurance policies in
statute.
This amendment will reduce the use of delaying tactics by explicitly
compelling disclosure of the complete primary, excess, and umbrella
policies implicated by the claim, as well as directing disclosure of
other claims, contracts, or agreements that may deplete the available
coverage, along with current residual limits of policies that have been
eroded by other payments. The information is required to be provided
within sixty days after a defendant files his or her answer.
LEGISLATIVE HISTORY:
None.
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to all pending
actions. Any information required by this act that has not previously
been provided in pending cases shall be provided within sixty days after
the date that this act shall become effective.
STATE OF NEW YORK
________________________________________________________________________
8041
2021-2022 Regular Sessions
IN ASSEMBLY
June 9, 2021
___________
Introduced by M. of A. LUNSFORD -- read once and referred to the Commit-
tee on Judiciary
AN ACT to amend the civil practice law and rules, in relation to insur-
ance disclosures
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Short title. This act shall be known and may be cited as
2 the "comprehensive insurance disclosure act."
3 § 2. Subdivision (f) of section 3101 of the civil practice law and
4 rules, as added by chapter 668 of the laws of 1975, is amended to read
5 as follows:
6 (f) Contents of insurance agreement. [A party may obtain discovery of
7 the existence and contents of any insurance agreement under which any
8 person carrying on an insurance business may be liable to satisfy part
9 or all of a judgment which may be entered in the action or to indemnify
10 or reimburse for payments made to satisfy the judgment. Information
11 concerning the insurance agreement is not by reason of disclosure admis-
12 sible in evidence at trial. For purpose of this subdivision, an applica-
13 tion for insurance shall not be treated as part of an insurance agree-
14 ment] (1) Any defendant, third-party defendant, or defendant on a
15 cross-claim or counter-claim shall provide to the plaintiff, third-party
16 plaintiff, plaintiff on counter-claim, and any other party in the action
17 within sixty days after serving an answer pursuant to rule three hundred
18 twenty or section three thousand eleven or three thousand nineteen of
19 this chapter notice and proof of the existence and contents of any
20 insurance agreement under which any person or entity may be liable to
21 satisfy part or all of a judgment that may be entered in the action or
22 to indemnify or reimburse for payments made to satisfy the entry of
23 final judgment. Information and documentation pursuant to this subdivi-
24 sion shall include:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11693-01-1
A. 8041 2
1 (i) all primary, excess and umbrella policies, contracts or agreements
2 issued by private or publicly traded stock companies, mutual insurance
3 companies, captive insurance entities, risk retention groups, reciprocal
4 insurance exchanges, syndicates, including, but not limited to, Lloyd's
5 Underwriters as defined in section six thousand one hundred sixteen of
6 the insurance law, surplus line insurers and self-insurance programs
7 sold or delivered within the state of New York;
8 (ii) a complete copy of any policy, contract or agreement referred to
9 in subparagraph (i) of this paragraph, including, but not limited to,
10 declarations, insuring agreements, conditions, exclusions, endorsements,
11 and similar provisions;
12 (iii) the contact information, including telephone number and e-mail
13 address, of any person or persons responsible for adjusting the claim
14 made to or against the person or entity described in subparagraph (i) of
15 this paragraph, including third-party administrators and persons within
16 the insuring entity to whom the third-party administrator is required to
17 report;
18 (iv) the amounts available under any policy, contract or agreement to
19 satisfy a judgment described in this subdivision or to reimburse for
20 payments made to satisfy the judgment;
21 (v) any lawsuits that have reduced or eroded or may reduce or erode
22 such amounts referred to in subparagraph (iv) of this paragraph, includ-
23 ing the caption of any such lawsuit, the date the lawsuit was filed, and
24 the identity and contact information of the attorneys for all repres-
25 ented parties therein; and
26 (vi) the amount, if any, of any payment of attorney's fees that have
27 eroded or reduced the face value of the policy, along with the name and
28 address of any attorney who received such payments.
29 (2) A defendant, third-party defendant, or defendant on a cross-claim
30 or counter-claim required to produce to a plaintiff or third-party
31 plaintiff or plaintiff on a counter-claim all information set forth in
32 paragraph one of this subdivision has an ongoing obligation to make
33 reasonable efforts to ensure that the information remains accurate and
34 complete, and provide updated information to any party to whom this
35 information has been provided within thirty days of receiving informa-
36 tion rendering the prior disclosure inaccurate or incomplete in whole or
37 in part. This obligation shall exist during the entire pendency of the
38 litigation and for sixty days after any settlement or entry of final
39 judgment in the case inclusive of all appeals.
40 (3) For purposes of this subdivision, an application for insurance
41 shall be treated as part of an insurance agreement and shall be
42 disclosed.
43 (4) Information concerning the insurance agreement is not by reason of
44 disclosure admissible in evidence at trial.
45 § 3. The civil practice law and rules is amended by adding a new
46 section 3122-b to read as follows:
47 § 3122-b. Certification of insurance disclosure. Information provided
48 pursuant to subdivision (f) of section thirty-one hundred one of this
49 article shall be accompanied by a certification by the defendant, third-
50 party defendant, or defendant on a cross-claim or counter-claim and a
51 certification by any attorney appearing for the defendant, third-party
52 defendant, or defendant on a cross-claim or counter-claim, sworn in the
53 form of an affidavit or affirmation where appropriate, stating that the
54 information is accurate and complete, and that reasonable efforts have
55 been undertaken, and in accordance with paragraph two of subdivision (f)
A. 8041 3
1 of section thirty-one hundred one of this article will be undertaken, to
2 ensure that this information remains accurate and complete.
3 § 4. This act shall take effect immediately and apply to all pending
4 actions. Any information required by this act that has not previously
5 been provided in pending cases shall be provided within sixty days after
6 such effective date.
