Prohibits an individual or entity that performs services, work, or repairs from performing the services, work, or repairs relating to any insurance claim for which a public adjuster represents the insured or has negotiated 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; requires public adjusters to make certain disclosures.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A3048
SPONSOR: Dilan TITLE OF BILL:
An act to amend the insurance law, in relation to public adjuster
disclosures and financial or ownership interests
PURPOSE OR GENERAL IDEA OF BILL:
To set a verbal and written disclosure by the adjuster working on behalf
of the insurance company and prevent an individual that performs
services relating to any insurance claim for which the public adjuster
represents the insured.
SUMMARY OF PROVISIONS:
Section 1. Subparagraph (A) Subsection (s) of paragraph 2 of section
2108 of the insurance law, as added by chapter 546 of the laws of 2019,
is amended and a new subparagraph (B) an adjuster working on behalf of
an insurance company must disclose an initial written and verbal warning
(C) is added to prevent public adjusters from having a financial stake
in the individual or entity that performs the services, work, or repairs
for the insured they represent.
JUSTIFICATION:
This bill would ensure that public adjusters act in the best interests
of the insured when negotiating or settling a claim on the insured's
behalf. By disclosing an initial written and verbal communication with
the insured's behalf and preventing the adjuster from having a financial
stake in any entity that performs on services related to the insurance
claim.
PRIOR LEGISLATIVE HISTORY:
None
FISCAL IMPLICATIONS:
None
EFFECTIVE DATE:;:
This act shall take effect on the first of January next succeeding the
date on which it shall have become a law.
STATE OF NEW YORK
________________________________________________________________________
3048
2025-2026 Regular Sessions
IN ASSEMBLY
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:
1 Section 1. Subsection (s) of section 2108 of the insurance law, as
2 added by chapter 546 of the laws of 2013, is amended to read as follows:
3 (s) (1) (A) Every public adjuster shall have an affirmative duty to
4 act on behalf and in the best interests of the insured when negotiating
5 for or effecting the settlement of an insurance claim for the insured or
6 otherwise acting as a public adjuster.
7 (B) In the event of a claim, an adjuster working on behalf of an
8 insurance company must disclose in its initial written and verbal commu-
9 nication with the insured the following statement:
10 "I am an insurance company adjuster working on behalf of the insurance
11 company. I do not represent your interests, I represent theirs. You
12 have the right to hire your own licensed Public Adjuster who would
13 represent your interests exclusively, for a fee, and who owes you, their
14 client, a fiduciary responsibility."
15 (2) (A) No public adjuster shall receive any compensation, either
16 directly or indirectly, for a referral of the insured to an individual
17 or entity for services, work or repairs, relating to any insurance claim
18 for which the public adjuster represents the insured or has negotiated
19 or effected a settlement, unless the compensation is prominently and
20 clearly disclosed to the insured in the written memorandum described in
21 subsection (p) of this section. Any such compensation received shall be
22 deemed to be compensation from the insured and, in combination with any
23 other compensation received from the insured, shall not exceed the maxi-
24 mum amount that the adjuster may charge in accordance with the regu-
25 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
1 (B) No public adjuster who has a financial or ownership interest in
2 the individual or entity that performs the services, work, or repairs,
3 shall refer the insured to the individual or entity [unless the finan-
4 cial or ownership interest is prominently and clearly disclosed to the
5 insured in the written memorandum described in subsection (p) of this
6 section]. If a public adjuster refers an insured to an individual who
7 is related to the individual by blood or affinity to the second degree
8 of consanguinity, or to an entity owned or controlled by such an indi-
9 vidual, for services, work, or repairs, relating to any insurance claim
10 for which the public adjuster represents the insured or has negotiated
11 or effected a settlement, then the public adjuster shall disclose the
12 relationship to the insured in the written memorandum described in
13 subsection (p) of this section.
14 (C) No individual or entity that performs services, work, or repairs
15 may perform the services, work, or repairs relating to any insurance
16 claim for which a public adjuster represents the insured or has negoti-
17 ated or effected a settlement where such public adjuster has a financial
18 or ownership interest in such individual or entity that performs the
19 services, work, or repairs.
20 § 2. This act shall take effect on the first of January next succeed-
21 ing the date on which it shall have become a law.
