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Bill

A 937

Prohibits insurers from limiting payment on claims based on pricing caps and from recommending a particular repair facility

2025 Regular Session Introduced by Bill Magnarelli

Bans pricing-cap limits on claim payments in New York and prohibits insurers from steering insureds to specific repair facilities.

REFERRED TO INSURANCE
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Bill Summary · A 937

Summary of Bill A 937 (New York Assembly)

Basic Information

  • Bill Number: A 937
  • Title: Prohibits insurers from limiting payment on claims based on pricing caps and from recommending a particular repair facility
  • Sponsor: William Magnarelli (primary)
  • Status: Referred to Insurance
  • Introduced: January 8, 2025
  • Related Bills (prior sessions): A 3961, A 546, A 483, A 316, A 1537, A 392, A 2911, A 1265, A 414

Purpose and Intent

  • The bill aims to protect consumers by prohibiting two practices commonly associated with auto and property claims: 1) Using pricing caps to limit or deny payment on claims. 2) Insurer involvement in directing or steering insureds to a particular repair facility.

Key Provisions (as indicated by the bill’s title)

  • Prohibition on pricing-cap-based limits: Insurers would be barred from limiting claim payments through the use of pricing caps or similar mechanisms that reduce or constrain the amount paid on a claim.
  • Prohibition on steering or facility recommendations: Insurers would be barred from recommending, steering, or pressuring insureds to use any specific repair facility.

Note: The exact statutory text, definitions, exemptions, enforcement mechanisms, and penalties would be specified in the bill’s full language. The summary reflects the core prohibitions described in the title.

Who Would Be Affected

  • Insurers operating within the state that issue policies or handle insurance claims, particularly those involved in auto or property repairs where repair facilities are common.
  • Policyholders and insureds who rely on insurer claim settlements and are choosing repair services.

Potential Impact

  • Consumer protection: Increases transparency and autonomy for insureds in settlement decisions and repair-provider choice.
  • Market conduct: Could affect insurer claim-handling practices and network/steering arrangements, potentially leveling the playing field among repair facilities.
  • Compliance considerations: Insurers would need to review and adjust claim payment practices and any internal guidelines that reference pricing caps or facility recommendations.
  • Enforcement: Details would depend on the final text, including which agency enforces the provisions and what penalties apply for violations.

Procedural and Timeline Aspects

  • Status: Referred to the Assembly Committee on Insurance.
  • Next steps: If advanced, the committee would review the bill, possibly amend it, and vote; otherwise, it could proceed to floor consideration or encounter changes in subsequent sessions.

Related Context

  • The bill is part of a broader set of legislative efforts in prior sessions (A 3961, A 546, A 483, A 316, A 1537, A 392, A 2911, A 1265, A 414) addressing similar concerns about insurer claim practices, pricing, and provider networks.

For readers seeking more detail, the full bill text would define key terms (e.g., “pricing caps,” “claim payment,” and “repair facility”), outline any exceptions, specify enforcement mechanisms (agency authority, penalties), and establish effective dates.

Compiled from official sources — confirm details with the bill’s official record.

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