S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7088

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                             March 20, 2009
                               ___________

Introduced by M. of A. CARROZZA, WEISENBERG, ORTIZ -- Multi-Sponsored by
  --  M.  of  A. COOK, MAYERSOHN, McENENY, NOLAN, PERRY -- read once and
  referred to the Committee on Insurance

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:

  Section  1.  The insurance law is amended by adding a new section 2616
to read as follows:
  S 2616. CLAIMS FOR LOSS OR DAMAGE TO REAL PROPERTY; REPAIRS. (A) WHEN-
EVER AN INSURED SUFFERS A LOSS OR DAMAGE TO REAL  PROPERTY,  NO  INSURER
PROVIDING COVERAGE THEREFOR SHALL REQUIRE THAT REPAIRS BE COMPLETED BY A
PARTICULAR CONSTRUCTION FIRM OR BUILDING RESTORATION FIRM.
  (B) IN PROCESSING ANY SUCH CLAIM, IF AN INSURER RECOMMENDS OR SUGGESTS
THAT  REPAIRS  BE  COMPLETED  BY  A  PARTICULAR  FIRM, THE INSURER SHALL
DISCLOSE TO THE INSURED WHETHER THE INSURER HAS A  CONTROLLING  INTEREST
IN SUCH FIRM.
  S 2. Subsection (a) of section 2108 of the insurance law is amended by
adding two new paragraphs 5 and 6 to read as follows:
  (5)  NO  PUBLIC OR INDEPENDENT ADJUSTER SHALL RECEIVE ANY COMPENSATION
OR RECEIVE ANYTHING OF VALUE FROM ANY PERSON, FIRM, ASSOCIATION,  CORPO-
RATION, PARTNERSHIP, OR JOINT-STOCK COMPANY IN CONSIDERATION OF A DIRECT
REFERRAL OF A CLIENT OR POTENTIAL CLIENT.
  (6)  NO  PUBLIC  OR  INDEPENDENT  ADJUSTER  SHALL HAVE ANY CONTROLLING
INTEREST IN ANY CONSTRUCTION FIRM, SALVAGE FIRM, OR  BUILDING  APPRAISAL
FIRM.  THE WORD "FIRM" SHALL INCLUDE ANY CORPORATION, PARTNERSHIP, ASSO-
CIATION, JOINT-STOCK COMPANY OR INDIVIDUAL.
  S  3.  Paragraph  1 of subsection (e) of section 2108 of the insurance
law, as amended by chapter 264 of the laws of 1998, is amended  to  read
as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10255-01-9
              

A. 7088                             2

  (1)  The  superintendent shall, in order to determine the trustworthi-
ness and competency to act as a public OR INDEPENDENT adjuster  of  each
individual  applicant  for such license, and of each proposed sub-licen-
see, except in the case of a renewal license, require every  such  indi-
vidual  to  take  and pass, to the satisfaction of the superintendent, a
personal written examination. No individual shall be deemed qualified to
take the examination without having demonstrated by  evidence  satisfac-
tory to the superintendent that (A) the applicant possesses a minimum of
one  year  experience  in  the  insurance  business, with involvement in
sales, underwriting or claims or other experience considered  sufficient
by the superintendent, or (B) the applicant successfully completed forty
hours of formal training in a course, program of instruction or seminars
approved by the superintendent.
  S  4. Subsection (r) of section 2108 of the insurance law, as added by
chapter 264 of the laws of 1998, is amended to read as follows:
  (r) (1) The following continuing education requirements shall apply to
resident and non-resident persons  licensed  as  public  OR  INDEPENDENT
adjusters.
  (2)  Resident and non-resident persons licensed as public OR INDEPEND-
ENT adjusters and any person previously so licensed  whose  license  was
not  in  effect  on  the  effective  date of this subsection and who has
subsequently been relicensed pursuant to the provisions of this article,
shall biennially satisfactorily complete such courses or programs as may
be approved by the superintendent, as follows:
  (A) Any person holding a license as a public OR  INDEPENDENT  adjuster
shall,  during  each  full  biennial  licensing  period,  satisfactorily
complete courses or programs of instruction or attend seminars as may be
approved by the superintendent equivalent to  fifteen  credit  hours  of
instruction.
  (B)  During the same calendar year biennial licensing period, a licen-
see may  use  accumulated  continuing  education  credits  to  meet  the
requirements  of  similar classes of licenses including those authorized
by subsection (b) of section two thousand one hundred three, section two
thousand one hundred four, section two thousand  one  hundred  seven  of
this  article  with  respect  to general insurance consultants, and THIS
section [two thousand one hundred eight of this article] with respect to
public AND INDEPENDENT adjusters.
  (C) Excess credit hours  accumulated  during  any  biennial  licensing
period shall not carry forward to the next biennial licensing period for
that same class of license.
  (3) (A) The courses or programs of instruction successfully completed,
which shall be deemed to meet the superintendent's standards for contin-
uing education shall be:
  (i) Courses, programs of instruction or seminars, approved as to meth-
od and content by the superintendent, covering portions of the principal
branches  of  insurance related to the kinds of insurance covered by the
public OR INDEPENDENT adjusting license, and given by a  degree  confer-
ring college or university whose curriculum is registered with the state
education  department  at  the time the person takes the course, whether
such course be given as part of such curriculum or separately, or by any
other institution, association,  trade  association  or  insurer,  which
maintains  equivalent standards of instruction and which shall have been
approved for such purpose by the superintendent.
  (ii) Continuing education as required by the state in which a  non-re-
sident  licensee  resides  and  maintains an office, provided the super-
intendent  deems  them  equivalent  to  New  York  continuing  education

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requirements.  If  the  state in which the non-resident licensee resides
and maintains an office has no continuing education requirements, or the
superintendent does not deem them equivalent, the licensee must  satisfy
New York continuing education requirements.
  (B)  The  number  of  credit  hours assigned to each of the courses or
programs of instruction set forth in paragraph one  of  this  subsection
shall be determined by the superintendent.
  (4)  A  person  who  teaches any approved course of instruction or who
lectures at any approved seminar, and who is subject to these continuing
education requirements shall be granted the same number of credit  hours
as  would be granted to a person taking and successfully completing such
course, seminar or program, provided that such  credit  hours  shall  be
credited  only  once  per  approved course during any biennial licensing
period.
  (5) Every person subject to these  continuing  education  requirements
shall  furnish,  in  a  form satisfactory to the superintendent, written
certification attesting to the course or programs of  instruction  taken
and  successfully completed by such person, and executed by the sponsor-
ing organization or its authorizing representative.
  (6) (A) Any person failing to  meet  applicable  continuing  education
requirements shall not be eligible to renew the license.
  (B)  Any person whose license was not renewed shall not be eligible to
become relicensed during  the next biennial licensing period until  that
person  has  demonstrated to the satisfaction of the superintendent that
continuing education requirements for the last biennial licensing period
were met.
  (C) Any person whose license was not renewed pursuant to  subparagraph
(A)  of  this paragraph, who accumulates sufficient credit hours for the
prior licensing period to qualify for relicensing in the biennial period
following such non-renewal, may not apply those same credit hours toward
the continuing education requirements for the current biennial licensing
period.
  (7) (A) Any entity eligible to provide continuing  education  courses,
programs  of  instruction,  or  seminars  shall file for approval by the
superintendent on a  biennial  basis,  to  conform  with  its  areas  of
instruction, a provider organization application and a course submission
application for each course, program, and seminar.
  (B)  The  provider organization application shall include the names of
all instructors to be used during the contract period,  and  instructors
may  be  added  during  the  period  by notifying the superintendent and
paying the appropriate filing fee.
  (C) The completed applications shall be returned in a  timely  manner,
as  specified  by the superintendent with a non-refundable filing fee of
two hundred dollars per organization, fifty dollars per course, program,
and seminar, and fifty dollars per instructor.
  (D) Approval of the application shall be  at  the  discretion  of  the
superintendent.
  (8) Each licensee shall pay a biennial fee of ten dollars per license,
for  continuing  education  certificate filing and recording charges, to
the superintendent, or, at the direction of the superintendent, directly
to an organization under contract to provide continuing education admin-
istrative services.
  S 5. The opening paragraph of subsection (a) of section  2110  of  the
insurance law, as amended by chapter 687 of the laws of 2003, is amended
to read as follows:

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  The  superintendent  may refuse to renew, revoke, or may suspend for a
period the  superintendent  determines  the  license  of  any  insurance
producer,  insurance  consultant  or PUBLIC OR INDEPENDENT adjuster, if,
after notice and hearing, the superintendent determines that the  licen-
see or any sub-licensee has:
  S  6.  Paragraph  2 of subsection (c) of section 2132 of the insurance
law, as amended by chapter 264 of the laws of 1998, is amended  to  read
as follows:
  (2)  During the same calendar year biennial licensing period, a licen-
see may  use  accumulated  continuing  education  credits  to  meet  the
requirements  of similar classes of licenses, as follows: (A) subsection
(a) of section two thousand one hundred three and section  two  thousand
one  hundred  seven  of  this  article  with  respect  to life insurance
consultants; or (B) subsection (b) of section two thousand  one  hundred
three,  section  two thousand one hundred four, section two thousand one
hundred seven of this article with respect to general insurance consult-
ants, and section two thousand one hundred eight of  this  article  with
respect to public AND INDEPENDENT adjusters.
  S  7. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.