assembly Bill A8539A

2021-2022 Legislative Session

Relates to public adjuster disclosures and financial or ownership interests

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Sponsored By

Current Bill Status - In Assembly Committee


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

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Actions

view actions (4)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Apr 07, 2022 print number 8539a
Apr 07, 2022 amend (t) and recommit to insurance
Jan 05, 2022 referred to insurance
Dec 13, 2021 referred to insurance

Co-Sponsors

A8539 - Details

Current Committee:
Assembly Insurance
Law Section:
Insurance Law
Laws Affected:
Amd §2108, Ins L

A8539 - Summary

Prohibits an individual or entity that performs services, work, or repairs from performing the services, work, or repairs relating to any insurance claim for which a public adjuster represents the insured or has negotiated or effected a settlement where such public adjuster has a financial or ownership interest in such individual or entity that performs the services, work, or repairs; requires public adjusters to make certain disclosures.

A8539 - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8539
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             December 13, 2021
                                ___________
 
 Introduced  by M. of A. DILAN -- read once and referred to the Committee
   on Insurance
 
 AN ACT to amend the insurance law, in relation to public  adjusters  who
   have a financial or ownership interest in an individual or entity that
   performs the services, work, or repairs relating to an insurance claim

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subparagraph (B)  of  paragraph  2  of  subsection  (s)  of
 section  2108  of the insurance law, as added by chapter 546 of the laws
 of 2013, is amended and a new subparagraph  (C)  is  added  to  read  as
 follows:
   (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 finan-
 cial 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  indi-
 vidual,  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, then the public adjuster shall disclose the
 relationship to the insured  in  the  written  memorandum  described  in
 subsection (p) of this section.
   (C)  NO  INDIVIDUAL OR ENTITY THAT PERFORMS SERVICES, WORK, OR REPAIRS
 MAY PERFORM THE SERVICES, WORK, OR REPAIRS  RELATING  TO  ANY  INSURANCE
 CLAIM  FOR WHICH A PUBLIC ADJUSTER REPRESENTS THE INSURED OR HAS NEGOTI-
 ATED OR EFFECTED A SETTLEMENT WHERE SUCH PUBLIC ADJUSTER HAS A FINANCIAL
 OR OWNERSHIP INTEREST IN SUCH INDIVIDUAL OR  ENTITY  THAT  PERFORMS  THE
 SERVICES, WORK, OR REPAIRS.
   §  2. This act shall take effect on the first of January next succeed-
 ing the date on which it shall have become a law.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

Co-Sponsors

A8539A (ACTIVE) - Details

Current Committee:
Assembly Insurance
Law Section:
Insurance Law
Laws Affected:
Amd §2108, Ins L

A8539A (ACTIVE) - Summary

Prohibits an individual or entity that performs services, work, or repairs from performing the services, work, or repairs relating to any insurance claim for which a public adjuster represents the insured or has negotiated or effected a settlement where such public adjuster has a financial or ownership interest in such individual or entity that performs the services, work, or repairs; requires public adjusters to make certain disclosures.

A8539A (ACTIVE) - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8539--A
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             December 13, 2021
                                ___________
 
 Introduced  by  M.  of  A. DILAN, GLICK, SIMON, STECK, DeSTEFANO -- read
   once and referred to the Committee on Insurance -- recommitted to  the
   Committee  on  Insurance 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 public adjuster
   disclosures and financial or ownership interests
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subsection  (s)  of section 2108 of the insurance law, as
 added by chapter 546 of the laws of 2013, is amended to read as follows:
   (s) (1) (A) 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
 otherwise acting as a public adjuster.
   (B) IN THE EVENT OF A CLAIM, AN  ADJUSTER  WORKING  ON  BEHALF  OF  AN
 INSURANCE COMPANY MUST DISCLOSE IN ITS INITIAL WRITTEN AND VERBAL COMMU-
 NICATION WITH THE INSURED THE FOLLOWING STATEMENT:
   "I AM AN INSURANCE COMPANY ADJUSTER WORKING ON BEHALF OF THE INSURANCE
 COMPANY.  I  DO  NOT  REPRESENT YOUR INTERESTS, I REPRESENT THEIRS.  YOU
 HAVE THE RIGHT TO HIRE YOUR  OWN  LICENSED  PUBLIC  ADJUSTER  WHO  WOULD
 REPRESENT YOUR INTERESTS EXCLUSIVELY, FOR A FEE, AND WHO OWES YOU, THEIR
 CLIENT, A FIDUCIARY RESPONSIBILITY."
   (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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13614-02-2