As a follow-up to the HKMP prior E-Alert of January 27, 2022 concerning the New York Comprehensive Insurance Disclosure Act (CIDA), the amended CIDA Act has now been signed into law and applies to all lawsuits initiated after December 31, 2021. The amended CIDA removed several of the invasive initial requirements, but nevertheless requires the following disclosures within ninety (90) days of a defendants’ answer being filed and without a specific demand from opposing counsel:
- Disclosure of full policies for all primary, excess and umbrella coverage;
- The name and email address of the claims adjuster;
- The amount of erosion or offsets on the policies, if applicable.
The disclosures must be accompanied by an affidavit signed by the defense attorney and the defendant swearing that the information is accurate and complete and that reasonable efforts will be undertaken to ensure that the information remains accurate and complete.
Furthermore, defendants must take reasonable efforts to ensure the insurance disclosures remain accurate during the following stages of the litigation:
- When the Note of Issue is filed;
- When entering into court-supervised settlement negotiations or voluntary mediation;
- When the case is called for trial; and
- Sixty (60) days after settlement or final judgment (including appeals).
If you have any questions regarding implementation of the CIDA and the effect on any filed lawsuit after December 31, 2021, please do not hesitate to contact HKMP.
