Relates to the use of local cost data when adjusting claims; requires an insurer and independent adjuster to adjust certain claims made under an insurance policy that provides coverage for loss of or damage to property using cost data appropriate for the region of this state where the loss or damage occurred.
Ayes (60): Addabbo, Avella, Ball, Bonacic, Boyle, Breslin, Carlucci, DeFrancisco, Dilan, Espaillat, Farley, Felder, Flanagan, Gallivan, Gianaris, Gipson, Golden, Griffo, Grisanti, Hannon, Hassell-Thomps, Hoylman, Kennedy, Klein, Krueger, Lanza, Larkin, Latimer, LaValle, Libous, Little, Marcellino, Marchione, Martins, Maziarz, Montgomery, Nozzolio, O'Brien, O'Mara, Parker, Peralta, Perkins, Ranzenhofer, Ritchie, Rivera, Robach, Sampson, Sanders, Savino, Serrano, Seward, Skelos, Smith, Squadron, Stavisky, Stewart-Cousins, Tkaczyk, Valesky, Young, Zeldin
Excused (1): Diaz
TITLE OF BILL: An act to amend the insurance law, in relation to use of local cost data when adjusting claims
PURPOSE: To assure that insurance adjusters use regionally appropriate cost data when estimating property damages for insurance claims.
SUMMARY OF PROVISIONS: This bill will require independent adjusters to adjust claims made under an insurance policy for loss of or damage to to property using cost data appropriate for the region of the state where the loss or damage occurred. It creates a new subsection (t) in section 2801 of the insurance law.
JUSTIFICATION: Super storm Sandy wreaked havoc in New York resulting in thousands of claims filed and a need to quickly provide relief to those whose homes were lost or damaged. As Insurance companies brought in out of state adjusters from across the country to handle the work load, problems emerged with computer programs supposed to provide data reflecting local costs for repair and construction services in New York City. This legislation will assure that in the future, regionally appropriate data will always be used whether during catastrophe like Sandy or on a regular day to day basis.
EXISTING LAW: New bill.
EFFECTIVE DATE: Immediate.
STATE OF NEW YORK ________________________________________________________________________ 7876 IN SENATE June 16, 2014 ___________Introduced by Sens. GOLDEN, LANZA -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend the insurance law, in relation to use of local cost data when adjusting claims THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 2108 of the insurance law is amended by adding a new subsection (t) to read as follows: (T) AN INSURER AND INDEPENDENT ADJUSTER, INCLUDING AN INDEPENDENT ADJUSTER RECEIVING A PERMIT UNDER SUBSECTION (N) OF THIS SECTION, SHALL ADJUST A CLAIM MADE UNDER AN INSURANCE POLICY THAT PROVIDES COVERAGE FOR LOSS OF OR DAMAGE TO REAL OR PERSONAL PROPERTY USING COST DATA APPROPRI- ATE FOR THE REGION OF THIS STATE WHERE THE LOSS OR DAMAGE OCCURRED. THIS SUBSECTION SHALL NOT APPLY TO AUTOMOBILE INSURANCE POLICIES. S 2. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD11366-11-4