S T A T E O F N E W Y O R K
________________________________________________________________________
3729--A
2011-2012 Regular Sessions
I N A S S E M B L Y
January 26, 2011
___________
Introduced by M. of A. WEPRIN, WEISENBERG, ORTIZ -- Multi-Sponsored by
-- M. of A. COOK, McENENY, NOLAN, PERRY -- read once and referred to
the Committee on Insurance -- recommitted to the Committee on Insur-
ance in accordance with Assembly Rule 3, sec. 2 -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee
AN ACT to amend the insurance law, in relation to claims for loss or
damage to real property, continuing education for licensed persons and
qualifications for independent adjusters
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The insurance law is amended by adding a new section 2616
to read as follows:
S 2616. CLAIMS FOR LOSS OR DAMAGE TO REAL PROPERTY; REPAIRS. (A) WHEN-
EVER AN INSURED SUFFERS A LOSS OR DAMAGE TO REAL PROPERTY, NO INSURER
PROVIDING COVERAGE THEREFOR SHALL REQUIRE THAT REPAIRS BE COMPLETED BY A
PARTICULAR ENTITY OR INDIVIDUAL.
(B) IN PROCESSING ANY SUCH CLAIM, THE INSURER SHALL NOT RECOMMEND OR
SUGGEST REPAIRS BE MADE BY A PARTICULAR ENTITY OR INDIVIDUAL UNLESS
EXPRESSLY REQUESTED BY THE INSURED, IN WHICH CASE THE INSURER SHALL
DISCLOSE TO THE INSURED WHETHER THE INSURER HAS A CONTROLLING OR BUSI-
NESS INTEREST IN ANY ENTITY OR INDIVIDUAL THAT THE INSURER RECOMMENDS OR
SUGGESTS.
S 2. Subsection (a) of section 2108 of the insurance law is amended by
adding two new paragraphs 5 and 6 to read as follows:
(5) NO PUBLIC OR INDEPENDENT ADJUSTER SHALL RECEIVE ANY COMPENSATION
OR RECEIVE ANYTHING OF VALUE IN CONSIDERATION OF A DIRECT REFERRAL OF A
CLIENT OR POTENTIAL CLIENT.
(6) AN INDEPENDENT OR PUBLIC ADJUSTER SHALL NOT RECOMMEND OR SUGGEST
REPAIRS BE MADE BY A PARTICULAR ENTITY OR INDIVIDUAL UNLESS EXPRESSLY
REQUESTED BY THE INSURED, IN WHICH CASE THE INDEPENDENT OR PUBLIC ADJUS-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05092-04-2
A. 3729--A 2
TER SHALL DISCLOSE TO THE INSURED WHETHER THE ADJUSTER HAS ANY CONTROL-
LING OR BUSINESS INTEREST IN ANY ENTITY OR INDIVIDUAL THAT THE ADJUSTER
RECOMMENDS OR SUGGESTS.
S 3. Paragraph 1 of subsection (f) of section 2108 of the insurance
law is amended to read as follows:
(1) The superintendent shall, in order to determine the trustworthi-
ness and competency to act as an independent adjuster of each individual
applicant for such license, and of each proposed sub-licensee, except in
the case of a renewal license, require every such individual to take and
pass, to the satisfaction of the superintendent, a personal written
examination. AN INDIVIDUAL SHALL NOT BE DEEMED QUALIFIED TO TAKE THE
EXAMINATION WITHOUT HAVING DEMONSTRATED BY EVIDENCE SATISFACTORY TO THE
SUPERINTENDENT THAT: (A) THE INDIVIDUAL POSSESSES A MINIMUM OF
ONE-YEAR'S EXPERIENCE IN THE INSURANCE BUSINESS, WITH INVOLVEMENT IN
SALES, UNDERWRITING, CLAIMS, OR OTHER EXPERIENCE CONSIDERED SUFFICIENT
BY THE SUPERINTENDENT; OR (B) THE INDIVIDUAL SUCCESSFULLY COMPLETED
FORTY HOURS OF FORMAL TRAINING IN A COURSE, PROGRAM OF INSTRUCTION, OR
SEMINARS APPROVED BY THE SUPERINTENDENT. The superintendent may
prescribe the types of written examinations according to the kind or
kinds of insurance claims [which] THAT the applicant is to be licensed
to investigate and adjust.
S 4. Subsection (r) of section 2108 of the insurance law, as added by
chapter 264 of the laws of 1998, is amended to read as follows:
(r) (1) The following continuing education requirements shall apply to
resident and non-resident persons licensed as public OR INDEPENDENT
adjusters.
(2) Resident and non-resident persons licensed as public OR INDEPEND-
ENT adjusters and any person previously so licensed whose license was
not in effect on the effective date of this subsection and who has
subsequently been relicensed pursuant to the provisions of this article,
shall biennially satisfactorily complete such courses or programs as may
be approved by the superintendent, as follows:
(A) Any person holding a license as a public OR INDEPENDENT adjuster
shall, during each full biennial licensing period, satisfactorily
complete courses or programs of instruction or attend seminars as may be
approved by the superintendent equivalent to fifteen credit hours of
instruction.
(B) During the same calendar year biennial licensing period, a licen-
see may use accumulated continuing education credits to meet the
requirements of similar classes of licenses including those authorized
by subsection (b) of section two thousand one hundred three, section two
thousand one hundred four, section two thousand one hundred seven of
this article with respect to general insurance consultants, and THIS
section [two thousand one hundred eight of this article] with respect to
public AND INDEPENDENT adjusters.
(C) Excess credit hours accumulated during any biennial licensing
period shall not carry forward to the next biennial licensing period for
that same class of license.
(3) (A) The courses or programs of instruction successfully completed,
which shall be deemed to meet the superintendent's standards for contin-
uing education shall be:
(i) Courses, programs of instruction or seminars, approved as to meth-
od and content by the superintendent, covering portions of the principal
branches of insurance related to the kinds of insurance covered by the
public OR INDEPENDENT adjusting license, and given by a degree confer-
ring college or university whose curriculum is registered with the state
A. 3729--A 3
education department at the time the person takes the course, whether
such course be given as part of such curriculum or separately, or by any
other institution, association, trade association or insurer, which
maintains equivalent standards of instruction and which shall have been
approved for such purpose by the superintendent.
(ii) Continuing education as required by the state in which a non-re-
sident licensee resides and maintains an office, provided the super-
intendent deems them equivalent to New York continuing education
requirements. If the state in which the non-resident licensee resides
and maintains an office has no continuing education requirements, or the
superintendent does not deem them equivalent, the licensee must satisfy
New York continuing education requirements.
(B) The number of credit hours assigned to each of the courses or
programs of instruction set forth in paragraph one of this subsection
shall be determined by the superintendent.
(4) A person who teaches any approved course of instruction or who
lectures at any approved seminar, and who is subject to these continuing
education requirements shall be granted the same number of credit hours
as would be granted to a person taking and successfully completing such
course, seminar or program, provided that such credit hours shall be
credited only once per approved course during any biennial licensing
period.
(5) Every person subject to these continuing education requirements
shall furnish, in a form satisfactory to the superintendent, written
certification attesting to the course or programs of instruction taken
and successfully completed by such person, and executed by the sponsor-
ing organization or its authorizing representative.
(6) (A) Any person failing to meet applicable continuing education
requirements shall not be eligible to renew the license.
(B) Any person whose license was not renewed shall not be eligible to
become relicensed during the next biennial licensing period until that
person has demonstrated to the satisfaction of the superintendent that
continuing education requirements for the last biennial licensing period
were met.
(C) Any person whose license was not renewed pursuant to subparagraph
(A) of this paragraph, who accumulates sufficient credit hours for the
prior licensing period to qualify for relicensing in the biennial period
following such non-renewal, may not apply those same credit hours toward
the continuing education requirements for the current biennial licensing
period.
(7) (A) Any entity eligible to provide continuing education courses,
programs of instruction, or seminars shall file for approval by the
superintendent on a biennial basis, to conform with its areas of
instruction, a provider organization application and a course submission
application for each course, program, and seminar.
(B) The provider organization application shall include the names of
all instructors to be used during the contract period, and instructors
may be added during the period by notifying the superintendent and
paying the appropriate filing fee.
(C) The completed applications shall be returned in a timely manner,
as specified by the superintendent with a non-refundable filing fee of
two hundred dollars per organization, fifty dollars per course, program,
and seminar, and fifty dollars per instructor.
(D) Approval of the application shall be at the discretion of the
superintendent.
A. 3729--A 4
(8) Each licensee shall pay a biennial fee of ten dollars per license,
for continuing education certificate filing and recording charges, to
the superintendent, or, at the direction of the superintendent, directly
to an organization under contract to provide continuing education admin-
istrative services.
S 5. The opening paragraph of subsection (a) of section 2110 of the
insurance law, as amended by chapter 499 of the laws of 2009, is amended
to read as follows:
The superintendent may refuse to renew, revoke, or may suspend for a
period the superintendent determines the license of any insurance
producer, insurance consultant, PUBLIC OR INDEPENDENT adjuster or life
settlement broker, if, after notice and hearing, the superintendent
determines that the licensee or any sub-licensee has:
S 6. Paragraph 2 of subsection (c) of section 2132 of the insurance
law, as amended by chapter 264 of the laws of 1998, is amended to read
as follows:
(2) During the same calendar year biennial licensing period, a licen-
see may use accumulated continuing education credits to meet the
requirements of similar classes of licenses, as follows: (A) subsection
(a) of section two thousand one hundred three and section two thousand
one hundred seven of this article with respect to life insurance
consultants; or (B) subsection (b) of section two thousand one hundred
three, section two thousand one hundred four, section two thousand one
hundred seven of this article with respect to general insurance consult-
ants, and section two thousand one hundred eight of this article with
respect to public AND INDEPENDENT adjusters.
S 7. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.