Assembly Bill A6786B

Signed By Governor
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 Via S5775 - Signed by Governor

  • 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-A6786 - Details

See Senate Version of this Bill:
S5775
Law Section:
Insurance Law
Laws Affected:
Amd §§2108 & 2110, Ins L

2013-A6786 - Summary

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

2013-A6786 - Bill Text download pdf 

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

                                  6786

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                             April 18, 2013
                               ___________

Introduced by M. of A. WEPRIN -- read once and referred 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

2013-A6786A - Details

See Senate Version of this Bill:
S5775
Law Section:
Insurance Law
Laws Affected:
Amd §§2108 & 2110, Ins L

2013-A6786A - Summary

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

2013-A6786A - Bill Text download pdf 

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

                                 6786--A

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                             April 18, 2013
                               ___________

Introduced by M. of A. WEPRIN -- read once and referred 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.
                                                           LBD08964-05-3

2013-A6786B (ACTIVE) - Details

See Senate Version of this Bill:
S5775
Law Section:
Insurance Law
Laws Affected:
Amd §§2108 & 2110, Ins L

2013-A6786B (ACTIVE) - Summary

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

2013-A6786B (ACTIVE) - Bill Text download pdf 

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

                                 6786--B

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                             April 18, 2013
                               ___________

Introduced by M. of A. WEPRIN -- read once and referred to the Committee
  on  Insurance -- committee discharged, bill amended, ordered reprinted
  as amended and recommitted to said committee -- reported and  referred
  to  the  Committee  on  Codes  --  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.  Section 2108 of the insurance law is amended by  adding  a
new subsection (s) to read as follows:
  (S) (1) EVERY PUBLIC ADJUSTER SHALL HAVE AN AFFIRMATIVE DUTY TO ACT ON
BEHALF  AND IN THE BEST INTERESTS OF THE INSURED WHEN NEGOTIATING FOR OR
EFFECTING THE SETTLEMENT OF AN INSURANCE CLAIM FOR THE INSURED OR OTHER-
WISE ACTING AS A PUBLIC ADJUSTER.
  (2) (A) NO PUBLIC ADJUSTER  SHALL  RECEIVE  ANY  COMPENSATION,  EITHER
DIRECTLY  OR  INDIRECTLY, FOR A REFERRAL OF THE INSURED TO AN INDIVIDUAL
OR ENTITY FOR SERVICES, WORK OR REPAIRS, RELATING TO ANY INSURANCE CLAIM
FOR WHICH THE PUBLIC ADJUSTER REPRESENTS THE INSURED OR  HAS  NEGOTIATED
OR  EFFECTED  A  SETTLEMENT,  UNLESS THE COMPENSATION IS PROMINENTLY AND
CLEARLY DISCLOSED TO THE INSURED IN THE WRITTEN MEMORANDUM DESCRIBED  IN
SUBSECTION (P) OF THIS SECTION.  ANY SUCH COMPENSATION RECEIVED SHALL BE
DEEMED  TO BE COMPENSATION FROM THE INSURED AND, IN COMBINATION WITH ANY
OTHER COMPENSATION RECEIVED FROM THE INSURED, SHALL NOT EXCEED THE MAXI-
MUM AMOUNT THAT THE ADJUSTER MAY CHARGE IN  ACCORDANCE  WITH  THE  REGU-
LATIONS REQUIRED PURSUANT TO SUBSECTION (P) OF THIS SECTION.
  (B)  NO  PUBLIC  ADJUSTER WHO HAS A FINANCIAL OR OWNERSHIP INTEREST IN
THE INDIVIDUAL OR ENTITY THAT PERFORMS THE SERVICES, WORK,  OR  REPAIRS,
SHALL REFER THE INSURED TO THE INDIVIDUAL OR ENTITY UNLESS THE FINANCIAL
OR  OWNERSHIP  INTEREST  IS  PROMINENTLY  AND  CLEARLY  DISCLOSED TO THE
INSURED IN THE WRITTEN MEMORANDUM DESCRIBED IN SUBSECTION  (P)  OF  THIS

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08964-08-3

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