The Comprehensive Insurance Disclosure Act (“CIDA”) was signed into New York law late last year and has caused quite a stir. CIDA, as initially enacted, requires that a civil defendant automatically disclose a staggering amount of insurance policy information including insurance applications and complete copies of all primary, excess, and umbrella policies, among other things, within 60 days after service of an answer, or by March 1, 2022, in pending cases. To put things in perspective, prior to CIDA, in response to a discovery request or standard preliminary conference order (i.e., not automatically), defendants typically satisfied their insurance information disclosure obligations by providing a copy of the declarations pages of the applicable policy and the total limits of insurance.
Fortunately (for defendants), the original version of CIDA was never intended to remain the law. Specifically, Governor Hochul announced that she was signing CIDA into law on the condition that the New York Legislature act swiftly to amend it for its intended purpose, provide plaintiff with accurate information about remaining limits on insurance policies available to satisfy a judgment or liability, and she provided a red-lined version of the bill to kick off the process. Proposed amendments were introduced two weeks later and, after a month of discussions, Senate Bill 7882A—a gutted version of CIDA—has now been passed in both houses of the New York Legislature. Governor Hochul signed it into law on February 28, 2022.
Under the new version of CIDA, the required disclosures are significantly less onerous and do not apply to defendant policyholders in cases filed on or before December 31, 2021.
Affected Parties - Defendant policyholders in civil actions commenced after January 1, 2022.
Timing - 90 days of serving the answer.
Scope and Extent of Mandatory Disclosures
Declaration pages of a policy may be provided if the plaintiff agrees in writing. Plaintiff can always revoke and request complete copies.
Chartwell Law is actively monitoring legislative developments, as events continue to unfold. We will keep you apprised of any changes that may affect your insurance information disclosure obligations. Please contact the Chartwell attorney handling your case for further information or guidance, or if you have any questions relating to the above.