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Author: Scarinci Hollenbeck, LLC
Date: March 25, 2022
The Firm
201-896-4100 info@sh-law.comNew York litigants must disclose information about available insurance coverage under a new law known as the Comprehensive Insurance Disclosure Act (CIDA or the Act), which took effect on December 31, 2021. However, in response to concerns about the compliance burdens placed on civil defendants, the new law has already been amended to remove some of its most onerous requirements.
As initially enacted, CIDA amended New York Civil Practice Law and Rules (CPLR) section 3101(f) to require civil defendants in New York Courts to provide a complete copy of all insurance policies that “may be liable to satisfy part or all of a judgment.” Initially, CIDA’s disclosure requirements applied to all pending cases as of its effective date.
The Act also mandated the disclosure of the policies’ application, as well as information about the policies’ erosion (if any) by prior payments of claims, settlements and/or attorneys’ fees. Defendants were also required to provide information regarding the identity of the claims handler or third-party administrator. As originally enacted, the CIDA required disclosures be provided within 60 days of service of an answer to a complaint. It also mandated that defendants update their insurance disclosures regularly.
Even before the CIDA became law, lawmakers were having discussions about possible amendments aimed at reducing the burden on defendants. On February 24, 2022, Gov. Kathy Hochul signed amendments into law. Below are several key changes under Senate Bill S7882A:
While the amendments are favorable to defendants, CIDA represents a significant change in insurance disclosure obligations for New York litigants. We encourage businesses and their counsel to familiarize themselves with the new requirements.
If you have any questions or if you would like to discuss the matter further, please contact me, Ajoe Abraham, or the Scarinci Hollenbeck attorney with whom you work, at 201-896-4100.
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