Senate Bill S3771A

2013-2014 Legislative Session

Requires public adjusters to work for the benefit of insureds and requires disclosure of conflicts of interest

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Archive: Last Bill Status - Stricken


  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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Bill Amendments

2013-S3771 - Details

Law Section:
Insurance Law
Laws Affected:
Amd §§2108 & 2110, Ins L

2013-S3771 - Summary

Requires public adjusters to work for the benefit of insureds and requires disclosure of conflicts of interest.

2013-S3771 - Sponsor Memo

2013-S3771 - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  3771

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            February 14, 2013
                               ___________

Introduced  by  Sen.  KLEIN  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Insurance

AN ACT to amend the insurance law, in relation to public adjusters

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.    Subsection  (a) of section 2108 of the insurance law is
amended by adding three new paragraphs 5, 6 and 7 to read as follows:
  (5) EACH PUBLIC ADJUSTER SHALL HAVE AN  AFFIRMATIVE  DUTY  TO  ACT  ON
BEHALF  OF  AND  IN  THE  BEST INTERESTS OF THE INSURED WHEN SETTLING OR
NEGOTIATING AN INSURANCE CLAIM FOR SUCH INSURED.
  (6) NO PUBLIC ADJUSTER  SHALL  RECEIVE  ANY  COMPENSATION  OR  RECEIVE
ANYTHING OF VALUE, OTHER THAN OF NOMINAL VALUE, EITHER DIRECTLY OR INDI-
RECTLY, IN CONSIDERATION OF A REFERRAL OF AN INSURED, OR UPON THE RECOM-
MENDATION  OR SUGGESTION THAT SERVICES, WORK OR REPAIRS, RELATING TO ANY
INSURANCE CLAIM  SETTLED  OR  NEGOTIATED  BY  THE  PUBLIC  ADJUSTER,  BE
PERFORMED BY A PARTICULAR ENTITY OR INDIVIDUAL.
  (7)  A  PUBLIC  ADJUSTER SHALL NOT RECOMMEND OR SUGGEST THAT SERVICES,
WORK OR REPAIRS BE PERFORMED BY A PARTICULAR ENTITY OR INDIVIDUAL UNLESS
EXPRESSLY REQUESTED BY THE INSURED.
  S 2. Paragraph 1 of subsection (c) of section 2108  of  the  insurance
law is amended to read as follows:
  (1)  The superintendent may issue an independent adjuster's license or
a public adjuster's license to any person, firm, association  or  corpo-
ration,  hereinafter designated as licensee, who, or which, is trustwor-
thy and competent to act as an adjuster in such manner as  to  safeguard
the  interests  of  the  people  of  this  state  and who, or which, has
complied with the prerequisites herein prescribed.   FURTHERMORE,  EVERY
PERSON,  FIRM, ASSOCIATION AND CORPORATION LICENSED AS A PUBLIC ADJUSTER
SHALL ACT IN SUCH A MANNER AS TO SAFEGUARD THE  BEST  INTERESTS  OF  THE
INSUREDS WHICH HE, SHE OR IT REPRESENTS.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08964-01-3

              

co-Sponsors

2013-S3771A (ACTIVE) - Details

Law Section:
Insurance Law
Laws Affected:
Amd §§2108 & 2110, Ins L

2013-S3771A (ACTIVE) - Summary

Requires public adjusters to work for the benefit of insureds and requires disclosure of conflicts of interest.

2013-S3771A (ACTIVE) - Sponsor Memo

2013-S3771A (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 3771--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            February 14, 2013
                               ___________

Introduced  by  Sen.  KLEIN  -- read twice and ordered printed, and when
  printed to be committed to the Committee  on  Insurance  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN  ACT  to amend the insurance law, in relation to public adjusters and
  payment of property/casualty claims

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.    Subsection  (a) of section 2108 of the insurance law is
amended by adding two new paragraphs 5 and 6 to read as follows:
  (5) EACH PUBLIC ADJUSTER SHALL HAVE AN  AFFIRMATIVE  DUTY  TO  ACT  ON
BEHALF  OF  AND  IN  THE  BEST INTERESTS OF THE INSURED WHEN SETTLING OR
NEGOTIATING AN INSURANCE CLAIM FOR SUCH INSURED.
  (6) (I) NO PUBLIC ADJUSTER SHALL RECEIVE ANY COMPENSATION  OR  RECEIVE
ANYTHING OF VALUE, OTHER THAN OF NOMINAL VALUE, EITHER DIRECTLY OR INDI-
RECTLY, IN CONSIDERATION OF A REFERRAL OF AN INSURED, OR UPON THE RECOM-
MENDATION  OR SUGGESTION THAT SERVICES, WORK OR REPAIRS, RELATING TO ANY
INSURANCE CLAIM  SETTLED  OR  NEGOTIATED  BY  THE  PUBLIC  ADJUSTER,  BE
PERFORMED BY A PARTICULAR ENTITY OR INDIVIDUAL.
  (II)  PROVIDED,  HOWEVER,  THAT  A PUBLIC ADJUSTER MAY RECEIVE COMPEN-
SATION FOR A REFERRAL OF SERVICES, WORK OR REPAIRS, OR HAVE A  FINANCIAL
OR OWNERSHIP INTEREST IN A BUSINESS THAT PERFORMS SUCH SERVICES, WORK OR
REPAIRS,  IF  SUCH  REFERRAL  FEE, OR FINANCIAL OR OWNERSHIP INTEREST IS
PROMINENTLY AND CLEARLY DISCLOSED TO THE  INSURED  IN  THE  COMPENSATION
AGREEMENT WITH SUCH PUBLIC ADJUSTER OR IN ANOTHER CONTRACT OR DISCLOSURE
FORM  THAT  IS  SIGNED  BY BOTH THE PUBLIC ADJUSTER AND THE INSURED. THE
AGGREGATE OF ALL FEES RECEIVED BY SUCH PUBLIC ADJUSTER SHALL NOT  EXCEED
THE MAXIMUM COMPENSATION OR FEE PROVIDED FOR IN SUCH COMPENSATION AGREE-
MENT.
  S  2.  Paragraph  1 of subsection (c) of section 2108 of the insurance
law is amended to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08964-04-3
              

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