Governor Hochul signed the Comprehensive Insurance Disclosure Act (“CIDA”) into law on December 31, 2021. However, she did so subject to a “signing memo” stating that she agreed with the intent of the bill but had reached an agreement with the Legislature to ensure that the scope of the disclosure it required was “properly tailored for the intended purpose,” i.e., to ensure litigants were adequately notified about of the potential limits of insurance coverage.
There are two important points to consider. First, the CIDA is presently the law and effective immediately. Defendants’ compliance in pending actions is presently due in 60 days (March 1st), and within 60 days of answering in new actions. However, the Governor’s agreement with the Legislature refers to chapter amendments modifying the CIDA which must be agreed to and passed by the Legislature and Governor. We understand that proposed amendments have already been drafted that address many concerns raised in our petition against the CIDA’s present form. When passed, the proposed changes should significantly lessen the time, expense and burden to defendants and their insurers, in complying with the CIDA.
Since the CIDA is presently law, the proposed amendments have not been agreed to or passed, and it is unclear when they may be, we summarize the CIDA’s requirements due by March 1st, as well as the proposed modifications. The CIDA significantly expands defendants and their insurers’ obligations, amending CPLR §3101(f) to require the following additional disclosures:
Compliance with these directives will significantly increase the time and expense required of defendants, their attorneys and adjusters alike. There is understandably confusion and concern over whether to immediately begin complying with them in pending matters or wait and see whether less onerous changes will be enacted in time to render the present requirements moot.
The most significant proposed amendments to the CIDA, include:
The difference between the enacted CIDA’s requirements and the proposed changes are significant. We will continue monitoring the legislative and executive branches’ progress in agreeing to and passing less onerous amendments to the CIDA.