What's happening
This bill requires out-of-state insurance adjusters to use regional cost data when adjusting in-state property claims after emergencies.
Why it matters
Ensures fair compensation for property owners. By requiring out-of-state adjusters to use local cost data, residents affected by disasters are more likely to receive insurance payouts that truly reflect the real costs of repairs and rebuilding in their specific region, rather than being shortchanged by national or out-of-area estimates.
Targets potential abuse after emergencies. The bill addresses a common issue where out-of-state adjusters, brought in during crises, might use unfamiliar or lower-cost data, leading to underpayment on claims at precisely the time when residents are most vulnerable and in urgent need of adequate funds to recover.
Creates enforceable standards with penalties for non-compliance. Including the new language in the insurance law’s “unfair claims settlement practices” section means insurers and their adjusters face consequences if they use inappropriate cost data—helping to deter bad practices and protect consumers.
Promotes transparency and accountability in insurance adjusting. By codifying the use of regionally appropriate cost data, the bill strengthens oversight of insurance companies’ disaster response, making it easier for regulators to spot and address unfair claim settlements.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Temporary-permit insurance adjusters
Adjusters handling widespread catastrophe-related property losses would have to use cost data appropriate to the New York region where they are adjusting claims.
Property insurers
Insurers would have to certify regional cost-data use in temporary-permit applications and would face an unfair claims settlement practice prohibition on artificially lowering cost data or using data inappropriate to the loss location.
Property insurance policyholders
Those filing claims would gain protections against estimates based on artificially lowered costs or cost data inappropriate to their region.
State insurance regulators
The superintendent would oversee the added certification requirement and the new regional cost-data standards.
Headline styles
Use Local Cost Data
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Approval memo.16
- Signed chap.458
- Delivered to governor
- Returned to senate
- Passed assembly
- Ordered to third reading cal.59
- Substituted for A808
- Referred to codes
- Delivered to assembly
- Passed senateVote 59–1
- Ordered to third reading cal.1822
- Committee discharged and committed to rules
Show 5 earlier actions
- Referred to insurance
- Recommitted to rules
- Ordered to third reading cal.1617
- Committee discharged and committed to rules
- 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 Data for Claims
Assembly Floor Calendar · Sponsor N. Nick Perry
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2746
2017-2018 Regular Sessions
IN SENATE
January 17, 2017
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 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
S. 2746 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.
Sponsor's memo
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 the bill amends Insurance Law section 2108(n) to require independent adjusters issued a temporary permit by the superintendent of financial services to utilize cost data that is appropriate for the region of the state where they are adjusting.
Section two of this bill amends Insurance Law section 2601(a) to add a new paragraph (8) to make it an unfair claims settlement practice for insurers to either artificially lower cost data used for adjusted claims or use cost data that is not appropriate for the region of the state 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 workload. 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. As a result, in many cases, policy holders cannot rebuild based on the reimbursement received from insurance companies, leaving them with the choice of either accepting an underpayment for claims or keep fighting a prolonged battle when the monetary relief is needed immediately.
If enacted, this bill would help to address the issue of underpayment of insurance claims by ensuring appropriate regional cost data is used by insurance adjusters during appraisals to determine the correct reimbursement amounts to homeowners in order to expedite their rebuilding efforts after a tragic disaster.
Legislative history
2016: S.6464-A - Referred to Insurance 2015: S.4276 - Vetoed, Memo 228 2014: S.7876 - Passed Senate
Fiscal implications
None.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.