New York Governor Kathy Hochul has signed into law a bill that modifies the scope of mandatory disclosure of the defendant’s insurance coverage in a civil lawsuit. The new law applies to all actions (except those to recover “No-Fault” personal injury protection benefits) commenced on or after February 24, 2022.

The new law amends section 3101(f) of the New York Civil Practice Law and Rules (“CPLR”), and the Comprehensive Insurance Disclosure Act, passed December 31, 2021, which had previously amended CPLR section 3101(f).

Pursuant to the new law, no later than 90 days after serving an answer, any party defending a claim in a civil lawsuit (“the defendant”) must provide to the other parties a copy of all insurance policies in place at the time of the loss that would have to be used to pay part or all of any judgment entered against that party in the action, including all primary, excess and umbrella policies, contracts or agreements. (If the party bringing the claim agrees, in writing, a copy of the declarations page may be provided instead of the complete insurance policy. However, that agreement can be revoked at any time, in which case a full copy of the policy must be provided.)

In addition to the policy itself, the defendant must also provide: the name and email address of the claim adjuster; the total limits available under any policy, taking into account any offsets and/or deductions from those limits; information concerning any other lawsuits that have reduced or may reduce the policy limits available, including detailed information concerning any such lawsuit; and information regarding any attorney's fees that have reduced the face value of the policy, including the amount paid and the name and address of any attorney who received such fees.

The defendant must make reasonable efforts to ensure that the information remains accurate and complete. The defendant also must provide updated information when the case is placed on the trial calendar, when entering into any settlement negotiations and when the case is called for trial and for sixty (60) days after any settlement or entry of final judgment in the case, including all appeals.

A defendant insurance carrier providing information to a plaintiff is not new – New York State law has long required this disclosure even before litigation is commenced. However, further formalizing these disclosure requirements likely seeks to accomplish the Legislature’s goal of making sure everyone has information in their hands quickly, which may help encourage earlier resolution of claims.

This is especially pertinent information for our insurance carrier clients, who should take note of this new law and make sure that they, together with their attorneys, are in compliance with it.

If you or someone you know needs help in a legal matter, please don’t hesitate to reach out to our office. Our team of legal professionals is experienced in all areas of law and waiting for your call.