Bill Text: NY S02746 | 2017-2018 | General Assembly | Introduced

Bill Title: Relates to the use of local cost data when adjusting claims; requires an insurer and independent adjuster to adjust certain claims made under an insurance policy that provides coverage for loss of or damage to property using cost data appropriate for the region of this state where the loss or damage occurred.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2018-12-21 - APPROVAL MEMO.16 [S02746 Detail]

Download: New_York-2017-S02746-Introduced.html

                STATE OF NEW YORK
                               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 Assem-
        bly, do enact as follows:
     1    Section 1. Subsection (n) of section 2108  of  the  insurance  law  is
     2  amended to read as follows:
     3    (n)  Notwithstanding  the  provisions of this section, the superinten-
     4  dent, in order to facilitate the settlement of  claims  under  insurance
     5  contracts  involving widespread property losses arising out of a confla-
     6  gration or catastrophe common to all such losses, may issue a  temporary
     7  permit  for  a term not exceeding one hundred twenty days to any person,
     8  whether he be a resident of this state or a non-resident, to act  as  an
     9  independent  adjuster  on  behalf  of an authorized insurer or insurers,
    10  provided any such insurer shall execute and file in the  office  of  the
    11  superintendent  a  written  application  for  the  permit  in  the  form
    12  prescribed by the superintendent, which application shall  contain  such
    13  information  as  he  may require and shall certify that the person named
    14  therein to be designated in the temporary permit is qualified by experi-
    15  ence and training to adjust claims  arising  under  insurance  contracts
    16  issued  by  any  insurer  and that such person shall adjust claims using
    17  cost data appropriate for the region of the state where such  person  is
    18  adjusting  claims.   The superintendent may in his discretion renew such
    19  permit for an additional term or terms as may  be  necessary  to  adjust
    20  such  claims.    A  person  issued  a  temporary permit pursuant to this
    21  subsection shall utilize cost data that is appropriate for the region of
    22  the state where such person is adjusting claims.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        S. 2746                             2
     1    § 2. Paragraphs 6 and 7 of subdivision (a)  of  section  2601  of  the
     2  insurance  law,  paragraph  6  as  amended  and  paragraph 7 as added by
     3  section 27 of part H of chapter 60 of the laws of 2014, are amended  and
     4  a new paragraph 8 is added to read as follows:
     5    (6)  failing  to promptly disclose coverage pursuant to subsection (d)
     6  or subparagraph (A) of paragraph two of subsection (f) of section  three
     7  thousand four hundred twenty of this chapter; [or]
     8    (7)  submitting  reasonably rendered claims to the independent dispute
     9  resolution process  established  under  article  six  of  the  financial
    10  services law[.]; or
    11    (8)  artificially  deflating  or otherwise lowering cost data used for
    12  adjusted claims, or using cost data that  is  not  appropriate  for  the
    13  region  of  the state where the loss occurred; this shall include but is
    14  not limited to claims adjusted by a person  issued  a  temporary  permit
    15  pursuant  to subsection (n) of section two thousand one hundred eight of
    16  this chapter.
    17    § 3. This act shall take effect immediately.