By: Eric S. Schlesinger, Esq. [1] and Lauren M. Solari, Esq. [2]
As previously reported, on December 31, 2021, New York Gov. Kathy Hochul signed into law the Comprehensive Insurance Disclosure Act, significantly enlarging the scope of a defendant’s insurance disclosure-related obligations as formerly required under CPLR 3101(f). Our prior discussion of the Act and its extensive requirements, along with our recommendations for effectuating compliance, is contained here.
Subsequently however, the New York State Senate drafted a bill to serve as an Amendment to the Act. The New York Assembly then passed the bill and on February 24, 2022 Governor Hochul signed the Amendment to the Comprehensive Insurance Disclosure Act into law. This new legislation notably reduces the newly-enacted disclosure obligations and limit some of the more obvious pitfalls inherent in the Act. The Amendment modifies the Comprehensive Insurance Disclosure Act, as follows:
- Insurance policy applications no longer need to be disclosed;
- A defendant does not need to disclose the existence of other lawsuits that could potentially reduce the applicable policy limits, or the amount of attorneys’ fees that have reduced those limits;
- Only the total limits available under the applicable policies, after accounting for erosion and any other offsets, need to be disclosed;
- The Insurance Disclosure Act no longer applies retroactively, and disclosure obligations only apply to lawsuits filed on or after December 31, 2021;
- With the written consent of the plaintiff, a defendant can provide only the declaration pages of any applicable policies. However, a plaintiff is able to revoke such consent and request a full copy of the policy, at any time;
- A defendant does not need to disclose detailed contact information of claims representatives, only their name and e-mail address, and a Third-Party Administrator does not need to disclose the name of the person at an insurance company to whom they are reporting;
- The Act does not apply to actions brought to recover automobile No-Fault and Personal Injury Protection benefits;
- The deadline to disclose insurance information is extended from sixty (60) days to ninety (90) days upon the defendant’s filing of an Answer;
- The ongoing obligation to update plaintiffs with new information within thirty (30) days of receipt of same is reduced to only: (1) When the Note of Issue is filed, certifying trial-readiness; (2) when entering into formal settlement negotiations that are conducted or supervised by the Court; (3) at voluntary mediation; and (4) when the case is called for trial.
CPLR 3101(f) is further be amended to include language that the “disclosure of policy limits under this section shall not constitute an admission that an alleged injury or damage is covered by the policy.”
GRSLBG&B will continue to monitor the status of any further amendments and remains committed to answering any questions you may have about the new Statute and the proposed Amendments. A copy of the full text of the bill as available here.
[1] Eric S. Schlesinger, Esq. is a Shareholder in GRSLBG&B’s Litigation Department. He defends wide variety of clients in the Courts in New York and New Jersey State and Federal Courts. In addition to his general liability practice, he handles appeals in both States. Eric can be reached at Eschlesinger@grsl.com.
[2] Lauren M. Solari, Esq. is an Associate in GRSLBG&B’s Litigation Department. She defends a wide variety of clients in New York State and Federal Courts. Lauren can be reached at LSolari@grsl.com.
