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As the Waves of Superstorms Recede, States Seek to Amend Insurance Laws

By Elizabeth Ahlstrand
June 25, 2013

From an October 2011 blizzard, to Hurricane Irene, and most recently, Superstorm Sandy, states along the East Coast have endured an unprecedented torrent of intense storms in recent years. The storms have caused tremendous property damage and, as citizens continue to rebuild, legislatures in the affected areas are responding. Indeed, many state legislatures began the 2013 legislative session several months early, with a majority convening in January.

Significantly, legislatures in three Eastern Seaboard states ' New York, New Jersey and Florida ' have already proposed new bills, which if enacted, would change their state's insurance laws with respect to insurer bad faith. As explained in more detail below, bills proposed in New York and New Jersey emerged in the wake of Superstorm Sandy and, if passed, will amend and strengthen existing bad faith law in favor of policyholders. In contrast, the legislation proposed in Florida, which died in the House Judiciary Committee, sought to clarify existing law and implement legislation favorable to insurers.

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