Significant Amendments Affecting Litigation Disclosure Rules and Defendant Obligations
As part of our ongoing partnership with our clients and broker partners, we strive to always keep you up to date regarding the new laws and regulations that may have an impact on your business.
On February 25, 2022, Governor Hochcul signed amendments to the recently enacted Comprehensive Insurance Disclosure Act, CPLR 3101 (the “Act”), that first went into effect on December 31, 2021 Comprehensive Insurance Disclosure Act.
The updates to the Act require defendants, in litigated liability matters, to provide significant insurance-related information within 90 days from the answer including:
(a) insurance adjuster contact information;
(b) the limits remaining under any insurance policies;
(c) copies of primary, excess and umbrella policies, as well as “contracts or agreements” issued by “risk retention groups” or captive insurance companies; and
(d) defendant and defendant’s attorney certification that the insurance disclosure is accurate. The disclosure rule requires reasonable efforts to update throughout the litigation.
The law now only applies to litigated matters filed on or after December 31, 2021.
Key Amendment Updates:
- Eliminates the need to disclose policy applications, information in other actions, and attorney information fees that erode policy limits.
- Excludes PIP cases from the Act’s applicability.
While the amendments to the Act have streamlined the process, we continue to encourage you to work closely with your defense counsel, insurance carrier and/or brokers to ensure compliance with this law.
In the meantime, visit www.nysenate.gov, or consult with your defense counsel for more detailed information and situational questions that may have an impact on current or future litigation.