NY State Senate Bill 2015-S6464A

Archive: Last Bill Status - In Senate Committee Insurance Committee

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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Actions

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 13, 2016	print number 6464a
Jun 13, 2016	amend (t) and recommit to insurance
Jan 13, 2016	referred to insurance

Bill Amendments

Original

A (Active)

2015-S6464 - Details

See Assembly Version of this Bill:: A10197
Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Amd §§2108 & 2601, Ins L
Versions Introduced in 2017-2018 Legislative Session:: S2746, A808

2015-S6464 - 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.

2015-S6464 - Sponsor Memo

                                 BILL NUMBER:  S6464

 TITLE OF BILL :  An act to amend the insurance law, in relation to
use of local cost data when adjusting claims

 PURPOSE :

To ensure that temporary adjusters and insurers are utilizing cost
data that is regionally appropriate.

 SUMMARY OF PROVISIONS :

Section one of this bill adds a new subsection (t) to Insurance Law
section 2801 to require insurers and independent adjusters to utilize
cost data that is appropriate for the region of the State where the
loss or damage to real or personal property occurred. This requirement
will not apply to automobile insurance policies.

Section two of this bill provides that this act shall take effect
immediately.

 JUSTIFICATION :

Super Storm Sandy wreaked havoc in New York resulting in over $60
billion in damages. Thousands of claims were filed and the need to
quickly provide relief to those who lost their homes and livelihoods

forced insurance companies to import hundreds of out-of-state
adjustors from across the country to handle the work load.

Out-of-state insurance adjusters are equipped with computer software
that is supposed to adjust for local cost data to reflect the costs
for repair and construction services in New York State.
Unfortunately, that does not automatically occur and the cost data is
inaccurate. Consequently, in many cases, policy holders cannot rebuild
based on the reimbursement received from insurance companies.

In Veto Memorandum 228 of 2015, the Governor stated that this
legislation "is duplicative of Insurance Regulation 64, which already
provides that when no dispute as to coverage exists, it is the duty of
every insurer to offer claimants amounts that are 'fair and
reasonable.' The Department of Financial Services (DFS) has
interpreted 'fair and reasonable' to require insurers to use cost data
for the region of New York where the real property is located, and DFS
is committed to using enforcement powers to respond to any claimant
that demonstrates otherwise." While Insurance Regulation 64 (11 NYCRR
216.6(a)) does provide the fair and reasonable standard, the standard
itself is not defined in the regulation. While the Governor believes
that the DFS interpretation sufficiently resolves any issues in this
area and negates the need for a statutory change, the fact that the
DFS interpretation can be changed at any moment belies the Governor's
belief. To ensure that the people of this State are adequately
protected, there needs to be a statutory standard in place that cannot
be administratively changed. By providing this standard in New York
State law, we are giving New Yorkers peace of mind at a time when they
need it most.

 LEGISLATIVE HISTORY :

2015: S.4276 - Vetoed, Memo 228
2014: S.7876 - Passed Senate

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
This act shall take effect immediately.

2015-S6464 - Bill Text download pdf

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

                                  6464

                            I N  S E N A T E

                            January 13, 2016
                               ___________

Introduced  by  Sen.  GOLDEN -- 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 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.
                                                           LBD13229-01-5

2015-S6464A (ACTIVE) - Details

See Assembly Version of this Bill:: A10197
Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Amd §§2108 & 2601, Ins L
Versions Introduced in 2017-2018 Legislative Session:: S2746, A808

2015-S6464A (ACTIVE) - Summary

2015-S6464A (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S6464A

 TITLE OF BILL :  An act to amend the insurance law, in relation to
requiring out-of-state insurance adjusters employed to appraise
in-state property damages arising from emergency situations to employ
established rates used for appraisal by in-state insurance adjusters

 PURPOSE :

To ensure that temporary adjusters and insurers are utilizing cost
data that is regionally appropriate.

 SUMMARY OF PROVISIONS :

Section one of this bill amends subsection (n) of section 2108 of the
Insurance Law to require the use of regionally appropriate data for
claim adjustments, and clarifies that rules should also apply to those
granted a temporary adjuster's permit.

Section two creates a new paragraph (8) of subdivision (a)of section
2601 of the Insurance Law to prohibit lowering cost of adjusted claims
through the use of data not appropriate to the region where the loss
occurred.

Section three of this bill provides that this act shall take effect
immediately.

 JUSTIFICATION :

Super Storm Sandy wreaked havoc in New York resulting in over $60
billion in damages. Thousands of claims were filed and the need to
quickly provide relief to those who lost their homes and livelihoods
forced insurance companies to import hundreds of out-of-state
adjustors from across the country to handle the work load.

Out-of-state insurance adjusters are equipped with computer software
that is supposed to adjust for local cost data to reflect the costs
for repair and construction services in New York State.
Unfortunately, that does not automatically occur and the cost data is
inaccurate. Consequently, in many cases, policy holders cannot rebuild
based on the reimbursement received from insurance companies.

In Veto Memorandum 228 of 2015, the Governor stated that this
legislation "is duplicative of Insurance Regulation 64, which already
provides that when no dispute as to coverage exists, it is the duty of
every insurer to offer claimants amounts that are 'fair and
reasonable.' The Department of Financial Services (DFS) has
interpreted 'fair and reasonable' to require insurers to use cost data
for the region of New York where the real property is located, and DFS
is committed to using enforcement powers to respond to any claimant
that demonstrates otherwise." While Insurance Regulation 64 (11 NYCRR
216.6(a)) does provide the fair and reasonable standard, the standard
itself is not defined in the regulation. While the Governor believes
that the DFS interpretation sufficiently resolves any issues in this
area and negates the need for a statutory change, the fact that the
DFS interpretation can be changed at any moment belies the Governor's
belief. To ensure that the people of this State are adequately
protected, there needs to be a statutory standard in place that cannot
be administratively changed. By providing this standard in New York
State law, we are giving New Yorkers peace of mind at a time when they
need it most.

 LEGISLATIVE HISTORY :

2015: S.4276 - Vetoed, Memo 228
2014: S.7876 - Passed Senate
 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
This act shall take effect immediately.

2015-S6464A (ACTIVE) - Bill Text download pdf

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

                                 6464--A

                            I N  S E N A T E

                            January 13, 2016
                               ___________

Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
  printed to be committed 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 requiring out-of-state
  insurance  adjusters  employed  to  appraise in-state property damages
  arising from emergency situations to employ established rates used for
  appraisal by in-state insurance adjusters

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Subsection  (n)  of  section 2108 of the insurance law is
amended to read as follows:
  (n) Notwithstanding the provisions of this  section,  the  superinten-
dent,  in  order  to facilitate the settlement of claims under insurance
contracts involving widespread property losses arising out of a  confla-
gration  or catastrophe common to all such losses, may issue a temporary
permit for a term not exceeding one hundred twenty days to  any  person,
whether  he  be a resident of this state or a non-resident, to act as an
independent adjuster on behalf of an  authorized  insurer  or  insurers,
provided  any  such  insurer shall execute and file in the office of the
superintendent  a  written  application  for  the  permit  in  the  form
prescribed  by  the superintendent, which application shall contain such
information as he may require and shall certify that  the  person  named
therein to be designated in the temporary permit is qualified by experi-
ence  and  training  to  adjust claims arising under insurance contracts
issued by any insurer AND THAT SUCH PERSON  SHALL  ADJUST  CLAIMS  USING
COST  DATA  APPROPRIATE FOR THE REGION OF THE STATE WHERE SUCH PERSON IS
ADJUSTING CLAIMS.  The superintendent may in his discretion  renew  such
permit  for  an  additional  term or terms as may be necessary to adjust
such claims.   A PERSON ISSUED  A  TEMPORARY  PERMIT  PURSUANT  TO  THIS
SUBSECTION SHALL UTILIZE COST DATA THAT IS APPROPRIATE FOR THE REGION OF
THE STATE WHERE SUCH PERSON IS ADJUSTING CLAIMS.
  S  2.  Paragraphs  6  and  7 of subdivision (a) of section 2601 of the
insurance law, paragraph 6 as  amended  and  paragraph  7  as  added  by

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

                                                           LBD13229-03-6

S. 6464--A                          2

section  27 of part H of chapter 60 of the laws of 2014, are amended and
a new paragraph 8 is added to read as follows:
  (6)  failing  to promptly disclose coverage pursuant to subsection (d)
or subparagraph (A) of paragraph two of subsection (f) of section  three
thousand four hundred twenty of this chapter; [or]
  (7)  submitting  reasonably rendered claims to the independent dispute
resolution process  established  under  article  six  of  the  financial
services law[.]; OR
  (8)  ARTIFICIALLY  DEFLATING  OR OTHERWISE LOWERING COST DATA USED FOR
ADJUSTED CLAIMS, OR USING COST DATA THAT  IS  NOT  APPROPRIATE  FOR  THE
REGION  OF  THE STATE WHERE THE LOSS OCCURRED; THIS SHALL INCLUDE BUT IS
NOT LIMITED TO CLAIMS ADJUSTED BY A PERSON  ISSUED  A  TEMPORARY  PERMIT
PURSUANT  TO SUBSECTION (N) OF SECTION TWO THOUSAND ONE HUNDRED EIGHT OF
THIS CHAPTER.
  S 3. This act shall take effect immediately.

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Senate Bill S6464A

Sponsored By

Archive: Last Bill Status - In Senate Committee Insurance Committee

Actions

Bill Amendments

2015-S6464 - Details

2015-S6464 - Summary

2015-S6464 - Sponsor Memo

2015-S6464 - Bill Text download pdf

2015-S6464A (ACTIVE) - Details

2015-S6464A (ACTIVE) - Summary

2015-S6464A (ACTIVE) - Sponsor Memo

2015-S6464A (ACTIVE) - Bill Text download pdf

Comments

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Sponsored By

Martin J. Golden

Archive: Last Bill Status - In Senate Committee Insurance Committee

Actions

Bill Amendments

2015-S6464 - Details

2015-S6464 - Summary

2015-S6464 - Sponsor Memo

2015-S6464 - Bill Text download pdf

2015-S6464A (ACTIVE) - Details

2015-S6464A (ACTIVE) - Summary

2015-S6464A (ACTIVE) - Sponsor Memo

2015-S6464A (ACTIVE) - Bill Text download pdf

Comments