Over the years, many of the Senator’s constituents have questioned why a violation of New York’s insurance law would not allow a New York citizen the right to bring a private cause of action against an insurer.
New York State Senate Bill S6813A and Assembly Bill A7285A, if passed, would drastically level the playing field. Senate Bill S6813A would give policyholders and injured third parties a private right to file a lawsuit against an insurer for an insurer’s unfair claim handling, including bad faith conduct.
However, insurance companies across the county are diligently opposing the bill arguing that an expansion of the state’s bad faith law would open the floodgates to litigation and increase premiums.
In a review of the bill, policyholders and injured third parties would be permitted to file claims against an insurer under the State’s existing insurance bad faith law, which at present can only be enforced by the Department of Financial Services.
The bill would also allow claimants who win in court the right to receive attorney’s fees and costs, damages, punitive damages, and any interest on any amounts due.
