Assembly Bill A3048

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3048
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 23, 2025
                                ___________
 
 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  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
 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03922-01-5
              

 A. 3048                             2
 
   (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.