senate Bill S7876

Relates to the use of local cost data when adjusting claims

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Sponsor

Co-Sponsors

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 16 / Jun / 2014
    • REFERRED TO RULES
  • 18 / Jun / 2014
    • ORDERED TO THIRD READING CAL.1586
  • 19 / Jun / 2014
    • PASSED SENATE
  • 19 / Jun / 2014
    • DELIVERED TO ASSEMBLY
  • 19 / Jun / 2014
    • REFERRED TO CODES

Summary

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.

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Bill Details

See Assembly Version of this Bill:
A8834B
Versions:
S7876
Legislative Cycle:
2013-2014
Current Committee:
Assembly Codes
Law Section:
Insurance Law
Laws Affected:
Amd ยง2108, Ins L

Sponsor Memo

BILL NUMBER:S7876

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 appro-
priate 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.

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

                                  7876

                            I N  S E N A T E

                              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

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