New York Senate Bill S09746

New York 2025-2026 Regular Session

• Introduced: 4/2/26
• Refer: 4/2/26

Caption

Clarifies that residents of the state and any policyholder, contract holder, certificate holder, or beneficiary of a policy, contract, or certificate of life, accident and health insurance may sue an insurer for violations related to misrepresentations, misleading statements and incomplete comparisons.

Summary

This bill amends subsection (d) of section 4226 of the Insurance Law to clarify who may bring a private action against an insurer that knowingly violates the section or knowingly receives premium or other compensation from such a violation. Under the bill, the right to sue for recovery of the penalty amount is expressly extended to a resident of New York State, as well as to any policyholder, contract holder, certificate holder, or beneficiary of a covered life, accident, or health insurance policy, contract, or certificate. The measure is aimed at clarifying the application of existing insurance-law remedies involving misrepresentations, misleading statements, and incomplete comparisons. It does not create a new substantive insurance prohibition; rather, it narrows and specifies the class of people who may seek recovery under the statute and confirms that the action may be brought for the aggrieved party’s own use and benefit under the Civil Practice Law and Rules.

Impact

The bill would amend Insurance Law section 4226(d) to replace the prior broad reference to "any person" with a more specific list of eligible plaintiffs: New York residents and certain insureds, contract holders, certificate holders, and beneficiaries connected to life, accident, and health insurance products covered by section 3201(b)(1). This would affect insurers by preserving exposure to penalties for knowing violations while clarifying standing and enforcement rights for affected consumers. The bill takes effect immediately and would be applied within the existing insurance enforcement framework.

Sentiment

The available context suggests generally favorable sentiment toward the bill. It was introduced, reported favorably from the Senate Insurance Committee, and advanced through multiple readings with amendment and reprinting, indicating committee support and no recorded opposition in the provided materials. The bill’s purpose is framed as a clarification of consumer enforcement rights rather than a controversial policy change.

Contention

The main point of contention appears to be the scope of who may sue an insurer under section 4226(d). The bill replaces the broader term "any person" with a narrower, enumerated set of plaintiffs tied to New York residency and specific insurance relationships, which may reflect an effort to clarify or limit standing. No committee transcript or vote record is provided showing active opposition, but the statutory change itself suggests attention to who can recover penalties and under what circumstances.