Labor Law Pointers - Special CIDA Edition

CIDA BILL PASSED

 

From the Editors:
 

Today we have a Special Joint Edition of Labor Law Pointers and Premises Pointers on the recently signed Comprehensive Insurance Disclosure Act (CIDA).  We have all been on the edge of our seats for far too long, but CIDA has had the proposed amendments passed by the Legislature and the Senate and signed by the Governor just now.  The bill, as passed, is below. 

 
Most importantly is what are the obligations under the amended law.  Dan Kohane and Ryan Maxwell have prepared the following checklist which will provide a roadmap assuring compliance.  Recall that this is not a demand that will be made by plaintiff’s counsel, but rather a mandatory disclosure within 90 days of the answer. 
 
Many thanks to Dan and Ryan for keeping us updated with the progress of the amendment, and with a roadmap to compliance.  Please feel free to reach out to any of us with questions regarding this disclosure. View Dan and Ryan's checklist here.


David and Jody


David R. Adams
Hurwitz & Fine, P.C.
Email:  [email protected]


Jody E. Briandi
Hurwitz & Fine, P.C.
Email: [email protected]
 

                    IN SENATE
 
                                    January 18, 2022
                                       ___________
 
        Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
          printed  to be committed to the Committee on Rules -- reported favora-
          bly from said committee, ordered to a third reading, passed by  Senate
          and  delivered  to the Assembly, recalled, vote reconsidered, restored
          to third reading, amended and ordered reprinted, retaining  its  place
          in the order of third reading
 
        AN  ACT to amend the civil practice law and rules, in relation to insur-
          ance disclosures; and to amend a chapter of the laws of 2021  amending
          the civil practice law and rules relating to insurance disclosures, as
          proposed in legislative bills numbers S. 7052 and A. 8041, in relation
          to the effectiveness thereof
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Subdivision (f) of section 3101 of the civil  practice  law
     2  and  rules,  as  amended  by  a chapter of the laws of 2021 amending the
     3  civil practice law and  rules  relating  to  insurance  disclosures,  as
     4  proposed in legislative bills numbers S. 7052 and A. 8041, is amended to
     5  read as follows:
     6    (f)  Contents  of insurance agreement.  (1) [Any] No later than ninety
     7  days after service of an answer pursuant to rule three hundred twenty or
     8  section three thousand eleven or three thousand nineteen of  this  chap-
     9  ter, any defendant, third-party defendant, or defendant on a cross-claim
    10  or  counter-claim shall provide to the plaintiff, third-party plaintiff,
    11  plaintiff on counter-claim, and any other party in  the  action  [within
    12  sixty days after serving an answer pursuant to rule three hundred twenty
    13  or  section  three  thousand  eleven  or three thousand nineteen of this
    14  chapter notice and] proof of the existence and contents of any insurance
    15  agreement in the form of a copy of the insurance policy in place at  the
    16  time of the loss or, if agreed to by such plaintiff or party in writing,
    17  in  the form of a declaration page, under which any person or entity may
    18  be liable to satisfy part or all of a judgment that may  be  entered  in
    19  the action or to indemnify or reimburse for payments made to satisfy the
    20  entry  of  final  judgment.  A plaintiff or party who agrees to accept a
    21  declaration page in lieu of a copy of  any  insurance  policy  does  not
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11693-04-2
        S. 7882--A                          2
 
     1  waive the right to receive any other information required to be provided
     2  under  this  subdivision, and may revoke such agreement at any time, and
     3  upon notice to an applicable defendant  of  such  revocation,  shall  be
     4  provided with the full copy of the insurance policy in place at the time
     5  of  the loss. Information and documentation, as evidenced in the form of
     6  a copy of the insurance policy in place at the time of the loss  or  the
     7  declaration page, pursuant to this subdivision shall include:
     8    (i) all primary, excess and umbrella policies, contracts or agreements
     9  issued  by  private or publicly traded stock companies, mutual insurance
    10  companies, captive insurance entities, risk retention groups, reciprocal
    11  insurance exchanges, syndicates, including, but not limited to,  Lloyd's
    12  Underwriters  as  defined in section six thousand one hundred sixteen of
    13  the insurance law, surplus line  insurers  and  self-insurance  programs
    14  [sold  or  delivered within the state of New York] insofar as such docu-
    15  ments relate to the claim being litigated;
    16    (ii) if the insurance policy in place is provided, a complete copy  of
    17  any  policy,  contract or agreement under which any person or entity may
    18  be liable to satisfy part or all of a judgment that may  be  entered  in
    19  the action or to indemnify or reimburse for payments made to satisfy the
    20  entry  of  final  judgment  as referred to in [subparagraph (i) of] this
    21  paragraph, including, but not limited to, declarations, insuring  agree-
    22  ments, conditions, exclusions, endorsements, and similar provisions;
    23    (iii)  the  contact information, including [telephone number] the name
    24  and e-mail address, of [any person or persons responsible for  adjusting
    25  the  claim made to or against the person or entity described in subpara-
    26  graph (i) of this paragraph, including  third-party  administrators  and
    27  persons within the insuring entity to whom the third-party administrator
    28  is  required to report] an assigned individual responsible for adjusting
    29  the claim at issue; and
    30    (iv) the [amounts] total limits available under any  policy,  contract
    31  or  agreement,  which  shall  mean  the  actual funds, after taking into
    32  account erosion and any other offsets, that can be  used  to  satisfy  a
    33  judgment described in this subdivision or to reimburse for payments made
    34  to satisfy the judgment[;
    35    (v)  any  lawsuits  that have reduced or eroded or may reduce or erode
    36  such amounts referred to in subparagraph (iv) of this paragraph, includ-
    37  ing the caption of any such lawsuit, the date the lawsuit was filed, and
    38  the identity and contact information of the attorneys  for  all  repres-
    39  ented parties therein; and
    40    (vi)  the  amount, if any, of any payment of attorney's fees that have
    41  eroded or reduced the face value of the policy, along with the name  and
    42  address of any attorney who received such payments].
    43    (2)  A defendant, third-party defendant, or defendant on a cross-claim
    44  or counter-claim required to  produce  to  a  plaintiff  or  third-party
    45  plaintiff  or  plaintiff on a counter-claim all information set forth in
    46  paragraph one of this subdivision [has an ongoing  obligation  tomust
    47  make  reasonable efforts to ensure that the information remains accurate
    48  and complete, and provide updated information to any party to whom  this
    49  information  has been provided [within thirty days of receiving informa-
    50  tion rendering the prior disclosure inaccurate or incomplete in whole or
    51  in part. This obligation shall exist during the entire pendency  of  the
    52  litigationat  the filing of the note of issue, when entering into any
    53  formal settlement negotiations conducted or supervised by the court,  at
    54  a  voluntary  mediation,  and when the case is called for trial, and for
    55  sixty days after any settlement or entry of final judgment in  the  case
    56  inclusive of all appeals.
        S. 7882--A                          3
 
     1    (3)  For  purposes  of  this subdivision, an application for insurance
     2  shall not be treated as part of an insurance  agreement  [and  shall  be
     3  disclosed].  Disclosure  of  policy  limits under this section shall not
     4  constitute an admission that an alleged injury or damage is  covered  by
     5  the policy.
     6    (4) Information concerning the insurance agreement is not by reason of
     7  disclosure admissible in evidence at trial.
     8    (5)  The  requirements  of this subdivision shall not apply to actions
     9  brought to recover motor vehicle insurance  personal  injury  protection
    10  benefits  under  article  fifty-one  of  the insurance law or regulation
    11  sixty-eight of title eleven of the  New  York  codes,  rules  and  regu-
    12  lations.
    13    §  2.  Section  4  of a chapter of the laws of 2021 amending the civil
    14  practice law and rules relating to insurance disclosures, as proposed in
    15  legislative bills numbers S. 7052 and A. 8041, is  amended  to  read  as
    16  follows:
    17    § 4. This act shall take effect immediately and apply to all [pending]
    18  actions[.   Any information required by this act that has not previously
    19  been provided in pending cases shall  be  provided  within  sixty  days]
    20  commenced on or after such effective date.
    21    §  3.  This  act  shall take effect immediately provided, however that
    22  section one of this act shall take effect on the same date  and  in  the
    23  same manner as a chapter of the laws of 2021 amending the civil practice
    24  law and rules relating to insurance disclosures, as proposed in legisla-
    25  tive bills numbers S. 7052 and A. 8041, takes effect.

 

      <td valign="top" style="padding:0in 0in 0in 0in" "="">

Hurwitz & Fine, P.C.
 
Buffalo
1300 Liberty Building, Buffalo, NY 14202
Phone: 716-849-8900, Fax: 716-855-0874
             
Long Island
575 Broadhollow Road, Melville, NY 11747
Phone: 631-465-0700, Fax: 631-465-0313

Albany
Phone:  518-641-0398

Additional Offices
Albion  |  Amherst  |  Connecticut  |  Niagara Falls  |  Palm Beach Gardens  |  Rochester  |  Toronto


Hurwitz & Fine, P.C. is a full-service law firm providing legal services
throughout the State of New York
 
www.hurwitzfine.com
© 2022, Hurwitz & Fine, P.C. All Rights Reserved

In some jurisdictions, newsletters such as this may be considered Attorney Advertising.

Newsletter Sign Up