New York Imposes Sweeping New Insurance Disclosure Requirements on Defense Counsel and Insurers

January 12, 2022 | Updated January 21, 2022
Insights for Insurers

On December 31, 2021, New York Governor Kathy Hochul signed the Comprehensive Insurance Disclosure Act (the Act). The Act amends CPLR 3101(f) and was ostensibly implemented to combat "delaying tactics" by defense counsel and compel the disclosure of primary, excess, and umbrella policies related to a claim or lawsuit. The sweeping changes engineered by the Act have significant implications for both defense counsel and insurance companies.

As currently written, the Act will require the following disclosures by March 1, 2022, for all pending legal actions and within 60 days of a defendant's answer in future litigation.

General Obligations Under the Act:

Insurance Policies Disclosure:

Erosion of Policy Limits:

Claims Handling Information:

Certification of Response:

Recognizing that the Act is overly burdensome and could potentially reveal confidential information that would unfairly prejudice defendants and their carriers, Governor Kathy Hochul "red-lined" certain portions of the Act. The Governor also issued an Approval Memorandum that stated she had reached an "agreement with the Legislature to ensure that the scope of insurance coverage information that parties must provide is properly tailored for the intended purpose..." Our  understanding of the details of that agreement and Governor Hochul's proposed amendments are as follows:


While we wait for the legislature to take up Governor Hochul's proposed amendments, the Act, as passed and signed into law, is in full force and effect. As such, carriers and their defense counsel must be prepared to provide disclosures pursuant to the Act or seek a protective order from the appropriate court. Please contact your Hinshaw attorney to ensure you are ready to comply with these new onerous requirements.

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