New York 2025-2026 Regular Session

New York Assembly Bill A06010

Introduced
2/25/25  

Caption

Relates to claim settlement practices when an insurer refuses to pay or is delaying payment of a settlement; provides a policyholder a private right of action against such insurer doing business in the state who has refused or delayed payment of an insurance claim.

Impact

If enacted, A06010 would establish a private right of action for individuals against insurers that refuse or delay payment of claims. This means that policyholders could initiate legal action if they believe their claims have been mishandled. Notably, the bill requires insurers to provide a reasonable explanation for any denial of claims and prohibits insurers from penalizing policyholders who choose to exercise their legal rights under this new provision. The intended outcome is to deter unfair practices by insurers and to promote transparency in the claims process.

Summary

Bill A06010, also known as the Fair Insurance Settlement Practice Act (FISPA), seeks to amend the insurance law to address unfair claim settlement practices. The bill outlines a variety of acts that would be classified as unfair, including misrepresentation of policy facts, failure to acknowledge claims promptly, and refusal to pay claims without reasonable investigation. By codifying these unfair practices, the bill aims to protect the rights of policyholders and ensure fair treatment in the insurance claims process.

Contention

Discussions surrounding Bill A06010 have highlighted potential conflicts between consumer protections and the insurance industry’s operational practices. Supporters of the bill argue that it will empower consumers and provide necessary protections against exploitative practices. However, some industry representatives have expressed concerns that the bill could lead to increased litigation and strain resources within insurance companies. Critics worry that mandatory changes to settlement procedures could result in higher premiums for consumers, ultimately undermining the legislative intent to enhance affordability and accessibility in insurance coverage.

Companion Bills

NY S00166

Same As Relates to claim settlement practices when an insurer refuses to pay or is delaying payment of a settlement; provides a policyholder a private right of action against such insurer doing business in the state who has refused or delayed payment of an insurance claim.

Previously Filed As

NY S01797

Relates to claim settlement practices when an insurer refuses to pay or is delaying payment of a settlement; provides a policyholder a private right of action against such insurer doing business in the state who has refused or delayed payment of an insurance claim.

NY A07139

Relates to claim settlement practices when an insurer refuses to pay or is delaying payment of a settlement; provides a policyholder a private right of action against such insurer doing business in the state who has refused or delayed payment of an insurance claim.

NY A03187

Expands the description of unfair insurance claim settlement practices.

NY S02814

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.

NY A01119

Provides that an insurer doing business in this state shall be liable to a policy holder for such insurer's refusal to pay or unreasonable delay of payment to the policy holder if such refusal or delay was not substantially justified; enumerates instances whereby an insurer's refusal or delay of payment is not substantially justified including intentional negligence, failure to act in good faith, failure to provide written denial of claim, failure to make final determination of claim within six months, and failure to promptly proceed with the appraisal process.

NY S02487

Provides that an insurer doing business in this state shall be liable to a policy holder for such insurer's refusal to pay or unreasonable delay of payment to the policy holder if such refusal or delay was not substantially justified; enumerates instances whereby an insurer's refusal or delay of payment is not substantially justified including intentional negligence, failure to act in good faith, failure to provide written denial of claim, failure to make final determination of claim within six months, and failure to promptly proceed with the appraisal process.

NY A02558

Relates to actions by health care providers against patients; provides that it shall be an affirmative defense to an action by a health care provider against a patient for recovery of payment for an outstanding bill that such health care provider failed to submit such insurance claim to the patient's insurer in a timely manner.

NY S00344

Requires that insurers providing no-fault coverage reimburse other insurers for the payment of claims to providers which should have been covered by a no-fault insurer.

NY A02281

Requires that insurers providing no-fault coverage reimburse other insurers for the payment of claims to providers which should have been covered by a no-fault insurer.

NY S02602

Provides that for settlements that require a court order, the order, or the judgment in a special proceeding, shall provide for the payment of interest on the settlement amount at the statutory interest rate on judgments.

Similar Bills

No similar bills found.