BILL NUMBER: S8262
SPONSOR: BAILEY
 
TITLE OF BILL:
An act to amend the insurance law, in relation to improving transparency
in the insurance claims process, regulating insurance adjusting profes-
sionals, instituting licensing standards for insurance professionals,
ensuring timely responses to insurance claims, and enhancing policyhold-
er protections
 
PURPOSE OR GENERAL IDEA OF BILL:
This legislation outlines a critical legislative agenda aimed at reform-
ing the insurance claims process in New York. The bill is modeled after
a California law that proved to be very effective in streamlining the
claims process for homeowners and businesses alike. Most recently this
law proved effective in the fair and timely settlement of claims for
California homeowners whose homes were ravaged by wildfires.
 
SUMMARY OF SPECIFIC PROVISIONS:
Sections 1-8 amend the insurance law related to reforming the insurance
claim process in New York.
 
JUSTIFICATION:
A uniform definition for the "period of restoration" is crucial to
ensuring clarity and consistency in the insurance claims process. This
period is currently defined as the time required to repair, rebuild, or
replace damaged property with reasonable speed and similar quality. The
need for a standardized definition arises from the frequent disputes and
delays that can occur when insurance companies and policyholders have
differing interpretations of when this period should begin and end.
Having a uniform definition for the period of restoration ensures that
both policyholders and insurance companies have a clear understanding of
the timeframe during which the insured property can be restored to its
pre-loss condition. This clarity helps in avoiding disputes, allowing
for a smoother and more efficient claims settlement process. Moreover,
it ensures that delays by insurance companies do not unfairly prejudice
the insured, particularly in cases where these delays prevent timely
repairs.
Implementing a uniform definition for the period of restoration is good
business practice because it ensures transparency and fairness in the
claims process. Clear and consistent definitions prevent misunder-
standings and disputes, leading to a smoother and more efficient claims
settlement process, By reducing delays in payments and ensuring that
policyholders receive timely funds for repairs, the uniform definition
helps avoid unnecessary litigation and fosters trust between insurers
and insureds. This approach benefits all parties involved by promoting
efficiency, reducing administrative burdens, and enhancing customer
satisfaction, ultimately leading to a healthier and more reliable insur-
ance market.
 
PRIOR LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect on the first of January next succeeding the
date on which it shall have become a law.

Statutes affected:
S8262: 2107 insurance law, 2108 insurance law