What's happening
This bill removes the requirement that out-of-state insurance adjusters use regional cost data when appraising property damage claims in New York after emergencies.
Why it matters
May impact claim payouts and repair costs. By removing the requirement for out-of-state adjusters to use local or regional cost data, insurance claim settlements could be based on potentially lower (or higher) non-local estimates, which might affect how much policyholders receive for repairs after disasters.
Could speed up the claims process. Without the mandate to source and apply regional cost data, out-of-state adjusters may process claims more quickly, potentially allowing disaster victims to receive settlements and begin recovery sooner.
Raises concerns about fairness to New Yorkers. Local contractors and property owners might find that insurance payouts no longer reflect the actual costs of repairs in New York, leading to possible shortfalls that policyholders would have to cover out-of-pocket.
Changes oversight and consistency in disaster response. The amendment reduces regulatory control over the methods adjusters use, possibly resulting in greater variability in claim assessments and less uniformity in how disaster claims are handled across the state.
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Who cares
Headline styles
Stop Adjuster Cost Manipulation
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Signed chap.197
- Delivered to governor
- Returned to senate
- Passed assembly
- Ordered to third reading cal.57
- Substituted for A1916
- Referred to insurance
- Delivered to assembly
- Passed senateVote 61–0
- Ordered to third reading cal.16
- Referred to rules
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.
Stop Adjuster Rate Underpayments
Assembly Floor Calendar · Sponsor N. Nick Perry
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1196
2019-2020 Regular Sessions
IN SENATE
January 11, 2019
Introduced by Sen. BRESLIN -- read twice and ordered printed, and when printed to be committed to the Committee on Rules
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, as amended by a chapter of the laws of 2018 amending the insurance law relating 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, as proposed in legislative bills numbers S. 2746 and A. 808, 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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07030-01-9
S. 1196 2
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.]
§ 2. This act shall take effect on the same date and in the same manner as a chapter of the laws of 2018 amending the insurance law relating 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, as proposed in legislative bills numbers S. 2746 and A. 808, takes effect.
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 aris- ing from emergency situations to employ established rates used for appraisal by in-state insurance adjusters
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 aris- ing from emergency situations to employ established rates used for appraisal by in-state insurance adjusters
Purpose
This is a chapter amendment that makes changes to provisions of L.2018, c.458, to clarify provisions relating to cost data in insurance claims adjusting.
Summary of provisions
Section 1 of the chapter amendment deletes language specifying that an out-of-state insurance adjuster operating pursuant to a temporary permit must adjust claims using cost data appropriate for the region.
Existing law
Section 2108 of the Insurance Law addresses the licensing and duties of insurance claims adjusters. Chapter 458 of the laws of 2018 specifies that out-of-state claims adjusters operating pursuant to a temporary permit must use cost data that is appropriate for the region of the state where such person is adjusting claims.
Justification
Concern was raised that the original bill's language was vague, in not defining "region" for purposes of requiring adjusters to adjust claims using region-specific cost data. Concern was also raised that the region-specific language was not necessary, given that insurers are already required to offer covered claimants amounts that are "fair and reasonable," which the Department of Financial Services has interpreted to require insurers to use cost data for the region in New York where the property is located (if the loss pertains to real property).
Legislative history
Chapter amendment to Chapter 458 of the Laws of 2018. S.2746 and A.808 passed both the Senate and Assembly in June of 2018.
Fiscal implications
Unknown
Effective date
This act shall take effect on the same date and in the same manner as a chapter of the laws of 2018 amending the insurance law relating 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, as proposed in legislative bills numbers S. 2746 and A. 808, takes effect.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.