senate Bill S5775

Signed By Governor
2013-2014 Legislative Session

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

download bill text pdf

Sponsored By

Archive: Last Bill Status - Signed by Governor


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

do you support this legislation?

You must fill out the form below in order to support or oppose this bill. X

You must login or fill out the fields below for the senator to have an accurate account of the support or opposition to this bill.

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.
Use this box to enter a message to your senator.

Actions

view actions (12)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Dec 18, 2013 signed chap.546
Dec 06, 2013 delivered to governor
Jun 20, 2013 returned to senate
passed assembly
ordered to third reading rules cal.526
substituted for a6786b
Jun 18, 2013 referred to codes
delivered to assembly
passed senate
ordered to third reading cal.1468
committee discharged and committed to rules
Jun 14, 2013 referred to insurance

Co-Sponsors

S5775 - Details

See Assembly Version of this Bill:
A6786B
Law Section:
Insurance Law
Laws Affected:
Amd ยงยง2108 & 2110, Ins L

S5775 - Summary

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

S5775 - Sponsor Memo

S5775 - Bill Text download pdf

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

                                  5775

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              June 14, 2013
                               ___________

Introduced  by  Sens.  KLEIN, MARTINS -- 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  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
SECTION.  IF A PUBLIC ADJUSTER REFERS AN INSURED TO AN INDIVIDUAL WHO IS
RELATED  TO  THE INDIVIDUAL BY BLOOD OR AFFINITY TO THE SECOND DEGREE OF
CONSANGUINITY, OR TO AN ENTITY OWNED OR CONTROLLED BY SUCH  AN  INDIVID-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08964-06-3

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.