What's happening
This bill requires out-of-state insurance adjusters to use local cost data when appraising New York property damage from emergencies.
Why it matters
Ensures fair compensation for New Yorkers. By requiring out-of-state adjusters to use local cost data, the bill aims to prevent insurers from underestimating the actual costs of repairs or replacements, which can happen if they use out-of-area or national averages that don’t reflect higher New York prices.
Closes a common loophole after disasters. Insurance companies often bring in adjusters from other states following major emergencies. Without this law, those adjusters might use unfamiliar or cheaper cost benchmarks, leading to lower payouts for property owners at a time when quick, fair settlements are essential.
Makes cost-lowering practices an explicit violation. The bill specifically bans the use of inappropriately low or non-local cost data, treating it as an unfair claims practice under state law. This gives regulators clear authority to investigate and penalize insurers who don’t comply.
Promotes consistency and transparency in claims handling. By mandating the use of regional data for all adjusters, the legislation helps ensure that all policyholders—regardless of who appraises their damage—are treated equitably and can more easily challenge unfair estimates.
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Who cares
Property insurance policyholders
The bill would classify artificially lowering claim cost data or using data inappropriate for the region where a loss occurred as an unfair claims settlement practice.
Temporary-permit independent adjusters
Adjusters handling widespread catastrophe losses would have to use cost data appropriate for the New York region where they adjust claims.
Authorized insurers
Insurers applying for temporary adjuster permits would have to certify that the adjusters will use regionally appropriate cost data.
State insurance regulators
The bill would add improper claim cost data to the statutory list of unfair claims settlement practices, including claims handled by temporary-permit adjusters.
Headline styles
Use Local Data for Claims
Plain English, a few words. Used as the page title.
Sponsors
11 Co-sponsors
1 Multi-sponsor
History
- Substituted by S2746
- Ordered to third reading cal.59
- Advanced to third reading cal.89
- Reported
- Reported referred to codes
- Referred to insurance
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Use Local Cost Data
Signed by Governor · Sponsor Martin J. Golden
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
808
2017-2018 Regular Sessions
IN ASSEMBLY
January 9, 2017
Introduced by M. of A. PERRY -- read once and referred to the Committee on Insurance
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 Assembly, 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 superintendent, in order to facilitate the settlement of claims under insurance contracts involving widespread property losses arising out of a conflagration 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 experience 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.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06031-01-7
A. 808 2
§ 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 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.
§ 3. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.