On December 31, 2021, Governor Kathy Hochul signed into law the Comprehensive Insurance Disclosure Act, New York State Senate Bill S7052.  The statute, which amends New York's Civil Practice Law & Rules (“CPLR”) Article 3101(f), imposes new insurance disclosure requirements, and greatly expands, a defendant's and their insurance carrier's obligations to provide detailed insurance information within sixty days of a party's appearance in a litigation.

The new statute mandates, among other things, disclosure of complete copies of primary, excess, and umbrella policies potentially implicated in the lawsuit, as well as any erosion of limits under the policies.  The law also requires is the disclosure of insurance applications and information on other claims, litigations, contracts, or agreements that may deplete the available coverage limits.  This information is required to be provided within sixty (60) days after a defendant files its Answer, and as of now, by March 1, 2022 for previously filed cases.  A party's obligation to provide this information is ongoing.

Logistically, plaintiff's attorneys will only invoke this law if their case erodes the policy limits and they are not properly provided with an excess or umbrella policy by defense counsel.

As your trusted advisor, upon request, Ms. Saia will provide specific guidance about compliance with this new law.  Please contact me at your convenience.

I look forward to building and growing our relationship.