S. 8610(Defrancisco)/A. 11541(Weinstein)

Declaratory Judgment Actions

Summary:  The bill permits a party suing an insured individual in a personal injury or wrongful death action to commence a declaratory judgment action against the defendant's liability insurer, in limited circumstances where the insurer has disclaimed liability or denies coverage based on the failure to provide timely notice.  The bill also prohibits a liability insurer from denying coverage for a claim based on the failure to provide timely notice, unless the insurer suffers prejudice as a result of the delayed notice.  The insurer must demonstrate that the failure to provide notice materially impairs its ability to investigate or defend the claim.

Effective Date:  180 days after enactment.

Last Action: Approved and signed by the Governor on July 21, 2008 (Chapter 388 of the Laws of 2008).