Asbestos Litigation Update NY Senate Bill 7052 – The Comprehensive Insurance Disclosure Act
January 14, 2022
At the close of 2021, New York signed into law Senate Bill 7052 – the “Comprehensive Insurance Disclosure Act (“CIDA”) – impacting defendants’ insurance disclosures in both pending and new litigation. Specifically, within sixty (60) days of filing its answer to the initial complaint, a defendant is now required to disclose/produce notice and proof of the existence and contents of any insurance agreement under which a judgment in the underlying action may be satisfied, including information/documentation related to the following:
All primary, excess and umbrella policies, including applications for same;
Copies of any policy and its declarations, insuring agreements, conditions, exclusions, endorsements, and similar provisions;
Contact information for the claim’s adjuster(s);
Amounts available under each policy to satisfy a judgment;
Any lawsuits that reduced/eroded or may reduce/erode the insurance amounts available under the policies; and
The amount of any attorney’s fees that may have reduced/eroded the face-value of the policies.
Further, defendants are under an on-going and continuous obligation to supplement its insurance disclosures within thirty (30) days of notice that its prior disclosure is no longer accurate. This on-going duty not only remains during the pendency of the underlying action, but it also extends to sixty (60) days after a settlement is reached, a judgment is entered (including appeals).
Finally, the CIDA requires that such disclosures be accompanied by two affidavits/affirmations – one from the defendant and another from its attorney(s) – attesting that: i) the insurance information contained therein is accurate and complete; ii) reasonable efforts were made in obtaining the disclosed insurance information; and iii) reasonable efforts will continue to be taken so that the information provided remains accurate and complete.
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This Mass Tort Litigation Update is intended to keep readers current on developments in the law. It is not intended to be legal advice. If you have any questions, please contact Robert Weller at (617) 342-6869 or email@example.com, or any other attorney at Eckert Seamans with whom you have been working.