Bill
A 7418
Overview: Bill Number: A 7418, Title: Relates to notice of disclaimer of liability for certain revived claims or causes of action, Status: REFERRED TO INSURANCE, Introduced: March
Overview: Bill Number: A 7418, Title: Relates to notice of disclaimer of liability for certain revived claims or causes of action, Status: REFERRED TO INSURANCE, Introduced: March 25, 2025
Purpose and Intent: This bill aims to establish notification requirements for insurance providers when they choose to disclaim liability for certain revived claims or causes of action. The intent is to ensure that policyholders and claimants are informed of the insurer's decision to deny coverage for these previously time-barred claims.
Key Provisions:
- Requires insurance providers to provide written notice to policyholders and claimants when they decide to disclaim liability for a claim or cause of action that has been revived due to changes in the statute of limitations.
- Specifies the information that must be included in the notice, such as the reasons for the disclaimer, the applicable policy provisions, and the policyholder's or claimant's right to appeal the decision.
- Mandates that the notice be provided within a specified timeframe, such as 30 days, after the insurer's decision to disclaim liability.
Affected Parties and Impacts:
- Policyholders and claimants who have previously time-barred claims or causes of action that have been revived due to changes in the law, who will be informed of the insurer's decision to deny coverage.
- Insurance providers, who will be required to comply with the new notification requirements when disclaiming liability for revived claims.
- The insurance industry, which may need to update its policies and procedures to ensure compliance with the new law.
Procedural and Timeline Considerations:
The bill has been referred to the Insurance Committee for further consideration. If passed, the new notification requirements would likely take effect within a specified timeframe, such as 6 months to 1 year, to allow insurance providers to update their processes and systems.
Compiled from official sources — confirm details with the bill’s official record.
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