Relates to claims for loss or damage to real property; creates continuing education requirements for licensed persons and qualifications for public and independent adjusters; allows for a revocation of licenses with an opportunity to reapply for such licenses.
STATE OF NEW YORK
________________________________________________________________________
7802
IN SENATE
June 19, 2012
___________
Introduced by Sen. ROBACH -- 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 claims for loss or
damage to real property, continuing education for licensed persons and
qualifications for independent adjusters
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The insurance law is amended by adding a new section 2616
2 to read as follows:
3 § 2616. Claims for loss or damage to real property; repairs. (a) When-
4 ever an insured suffers a loss or damage to real property, no insurer
5 providing coverage therefor shall require that repairs be completed by a
6 particular entity or individual.
7 (b) In processing any such claim, the insurer shall not recommend or
8 suggest repairs be made by a particular entity or individual unless
9 expressly requested by the insured, in which case the insurer shall
10 disclose to the insured whether the insurer has a controlling or busi-
11 ness interest in any entity or individual that the insurer recommends or
12 suggests.
13 § 2. Subsection (a) of section 2108 of the insurance law is amended by
14 adding two new paragraphs 5 and 6 to read as follows:
15 (5) No public or independent adjuster shall receive any compensation
16 or receive anything of value in consideration of a direct referral of a
17 client or potential client.
18 (6) An independent or public adjuster shall not recommend or suggest
19 repairs be made by a particular entity or individual unless expressly
20 requested by the insured, in which case the independent or public adjus-
21 ter shall disclose to the insured whether the adjuster has any control-
22 ling or business interest in any entity or individual that the adjuster
23 recommends or suggests.
24 § 3. Paragraph 1 of subsection (f) of section 2108 of the insurance
25 law is amended to read as follows:
26 (1) The superintendent shall, in order to determine the trustworthi-
27 ness and competency to act as an independent adjuster of each individual
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05092-05-2
S. 7802 2
1 applicant for such license, and of each proposed sub-licensee, except in
2 the case of a renewal license, require every such individual to take and
3 pass, to the satisfaction of the superintendent, a personal written
4 examination. An individual shall not be deemed qualified to take the
5 examination without having demonstrated by evidence satisfactory to the
6 superintendent that: (A) the individual possesses a minimum of one-
7 year's experience in the insurance business, with involvement in sales,
8 underwriting, claims, or other experience considered sufficient by the
9 superintendent; or (B) the individual successfully completed forty hours
10 of formal training in a course, program of instruction, or seminars
11 approved by the superintendent. The superintendent may prescribe the
12 types of written examinations according to the kind or kinds of insur-
13 ance claims [which] that the applicant is to be licensed to investigate
14 and adjust.
15 § 4. Subsection (r) of section 2108 of the insurance law, as added by
16 chapter 264 of the laws of 1998, is amended to read as follows:
17 (r) (1) The following continuing education requirements shall apply to
18 resident and non-resident persons licensed as public or independent
19 adjusters.
20 (2) Resident and non-resident persons licensed as public or independ-
21 ent adjusters and any person previously so licensed whose license was
22 not in effect on the effective date of this subsection and who has
23 subsequently been relicensed pursuant to the provisions of this article,
24 shall biennially satisfactorily complete such courses or programs as may
25 be approved by the superintendent, as follows:
26 (A) Any person holding a license as a public or independent adjuster
27 shall, during each full biennial licensing period, satisfactorily
28 complete courses or programs of instruction or attend seminars as may be
29 approved by the superintendent equivalent to fifteen credit hours of
30 instruction.
31 (B) During the same calendar year biennial licensing period, a licen-
32 see may use accumulated continuing education credits to meet the
33 requirements of similar classes of licenses including those authorized
34 by subsection (b) of section two thousand one hundred three, section two
35 thousand one hundred four, section two thousand one hundred seven of
36 this article with respect to general insurance consultants, and this
37 section [two thousand one hundred eight of this article] with respect to
38 public and independent adjusters.
39 (C) Excess credit hours accumulated during any biennial licensing
40 period shall not carry forward to the next biennial licensing period for
41 that same class of license.
42 (3) (A) The courses or programs of instruction successfully completed,
43 which shall be deemed to meet the superintendent's standards for contin-
44 uing education shall be:
45 (i) Courses, programs of instruction or seminars, approved as to meth-
46 od and content by the superintendent, covering portions of the principal
47 branches of insurance related to the kinds of insurance covered by the
48 public or independent adjusting license, and given by a degree confer-
49 ring college or university whose curriculum is registered with the state
50 education department at the time the person takes the course, whether
51 such course be given as part of such curriculum or separately, or by any
52 other institution, association, trade association or insurer, which
53 maintains equivalent standards of instruction and which shall have been
54 approved for such purpose by the superintendent.
55 (ii) Continuing education as required by the state in which a non-re-
56 sident licensee resides and maintains an office, provided the super-
S. 7802 3
1 intendent deems them equivalent to New York continuing education
2 requirements. If the state in which the non-resident licensee resides
3 and maintains an office has no continuing education requirements, or the
4 superintendent does not deem them equivalent, the licensee must satisfy
5 New York continuing education requirements.
6 (B) The number of credit hours assigned to each of the courses or
7 programs of instruction set forth in paragraph one of this subsection
8 shall be determined by the superintendent.
9 (4) A person who teaches any approved course of instruction or who
10 lectures at any approved seminar, and who is subject to these continuing
11 education requirements shall be granted the same number of credit hours
12 as would be granted to a person taking and successfully completing such
13 course, seminar or program, provided that such credit hours shall be
14 credited only once per approved course during any biennial licensing
15 period.
16 (5) Every person subject to these continuing education requirements
17 shall furnish, in a form satisfactory to the superintendent, written
18 certification attesting to the course or programs of instruction taken
19 and successfully completed by such person, and executed by the sponsor-
20 ing organization or its authorizing representative.
21 (6) (A) Any person failing to meet applicable continuing education
22 requirements shall not be eligible to renew the license.
23 (B) Any person whose license was not renewed shall not be eligible to
24 become relicensed during the next biennial licensing period until that
25 person has demonstrated to the satisfaction of the superintendent that
26 continuing education requirements for the last biennial licensing period
27 were met.
28 (C) Any person whose license was not renewed pursuant to subparagraph
29 (A) of this paragraph, who accumulates sufficient credit hours for the
30 prior licensing period to qualify for relicensing in the biennial period
31 following such non-renewal, may not apply those same credit hours toward
32 the continuing education requirements for the current biennial licensing
33 period.
34 (7) (A) Any entity eligible to provide continuing education courses,
35 programs of instruction, or seminars shall file for approval by the
36 superintendent on a biennial basis, to conform with its areas of
37 instruction, a provider organization application and a course submission
38 application for each course, program, and seminar.
39 (B) The provider organization application shall include the names of
40 all instructors to be used during the contract period, and instructors
41 may be added during the period by notifying the superintendent and
42 paying the appropriate filing fee.
43 (C) The completed applications shall be returned in a timely manner,
44 as specified by the superintendent with a non-refundable filing fee of
45 two hundred dollars per organization, fifty dollars per course, program,
46 and seminar, and fifty dollars per instructor.
47 (D) Approval of the application shall be at the discretion of the
48 superintendent.
49 (8) Each licensee shall pay a biennial fee of ten dollars per license,
50 for continuing education certificate filing and recording charges, to
51 the superintendent, or, at the direction of the superintendent, directly
52 to an organization under contract to provide continuing education admin-
53 istrative services.
54 § 5. The opening paragraph of subsection (a) of section 2110 of the
55 insurance law, as amended by chapter 499 of the laws of 2009, is amended
56 to read as follows:
S. 7802 4
1 The superintendent may refuse to renew, revoke, or may suspend for a
2 period the superintendent determines the license of any insurance
3 producer, insurance consultant, public or independent adjuster or life
4 settlement broker, if, after notice and hearing, the superintendent
5 determines that the licensee or any sub-licensee has:
6 § 6. Paragraph 2 of subsection (c) of section 2132 of the insurance
7 law, as amended by chapter 264 of the laws of 1998, is amended to read
8 as follows:
9 (2) During the same calendar year biennial licensing period, a licen-
10 see may use accumulated continuing education credits to meet the
11 requirements of similar classes of licenses, as follows: (A) subsection
12 (a) of section two thousand one hundred three and section two thousand
13 one hundred seven of this article with respect to life insurance
14 consultants; or (B) subsection (b) of section two thousand one hundred
15 three, section two thousand one hundred four, section two thousand one
16 hundred seven of this article with respect to general insurance consult-
17 ants, and section two thousand one hundred eight of this article with
18 respect to public and independent adjusters.
19 § 7. This act shall take effect on the first of January next succeed-
20 ing the date on which it shall have become a law.
