S 166 New York Senate · 2025 Regular Session

Relates to unfair claim settlement practices

Summary

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.

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2025

Committee Review

Floor Vote

Governor

Introduced Jan 8, 2025 Last action Jan 7, 2026

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What changed between versions

S166 → S166A · 5 edits

MODERATE

This bill was amended to rename the legislation to the 'Fair Insurance Settlement Practice Act (FISPA)' and significantly expanded the list of unfair insurance claim settlement practices from 13 to 14 items. The changes add new protections against insurers delaying claims, requiring clear explanations for denials, and prohibiting insurers from requiring jury trial waivers. The bill also establishes a formal demand process before lawsuits can be filed and adds stronger penalties for willful violations.

Scope change

The bill's scope was expanded to include additional unfair practices and new enforcement mechanisms, including a 30-day demand requirement before filing lawsuits and protections against insurers refusing to renew policies based on prior lawsuits.

DEFINITION

Added a formal title for the act (FISPA) and reorganized the structure to include a dedicated definition section for unfair claim settlement practices.

REQUIREMENT

Added new unfair practices including delaying claims by requiring duplicate paperwork, failing to explain claim denials clearly, and making known a policy of appealing arbitration awards to force lower settlements.

ENFORCEMENT

Added a 30-day written demand requirement that claimants must send to insurers before filing lawsuits, and added protections against jury trial waivers in insurance contracts.

Added provisions prohibiting insurers from refusing to renew policies based on prior lawsuits filed under this act.

Modified penalty structure to include a 30-day demand period and enhanced damages for willful violations, including double damages plus attorneys' fees.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Jan 7, 2026

Committee

REFERRED TO INSURANCE

upper

May 15, 2025

Upper · Passed

PRINT NUMBER 166A

upper

May 15, 2025

Upper · Passed

AMEND AND RECOMMIT TO INSURANCE

upper

Jan 8, 2025

Committee

REFERRED TO INSURANCE

upper

1 primary · 11 co-sponsors