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

                                   908

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  M.  of  A.  WEPRIN  --  Multi-Sponsored  by  -- M. of A.
  BROOK-KRASNY, COOK, ORTIZ, PERRY, WEISENBERG -- 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 ENTITY OR INDIVIDUAL.
  (B) IN PROCESSING ANY SUCH CLAIM, THE INSURER SHALL NOT  RECOMMEND  OR
SUGGEST  REPAIRS  BE  MADE  BY  A PARTICULAR ENTITY OR INDIVIDUAL UNLESS
EXPRESSLY REQUESTED BY THE INSURED, IN  WHICH  CASE  THE  INSURER  SHALL
DISCLOSE  TO  THE INSURED WHETHER THE INSURER HAS A CONTROLLING OR BUSI-
NESS INTEREST IN ANY ENTITY OR INDIVIDUAL THAT THE INSURER RECOMMENDS OR
SUGGESTS.
  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 IN CONSIDERATION OF A DIRECT REFERRAL OF A
CLIENT OR POTENTIAL CLIENT.
  (6) AN INDEPENDENT OR PUBLIC ADJUSTER SHALL NOT RECOMMEND  OR  SUGGEST
REPAIRS  BE  MADE  BY A PARTICULAR ENTITY OR INDIVIDUAL UNLESS EXPRESSLY
REQUESTED BY THE INSURED, IN WHICH CASE THE INDEPENDENT OR PUBLIC ADJUS-
TER SHALL DISCLOSE TO THE INSURED WHETHER THE ADJUSTER HAS ANY  CONTROL-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03815-01-3
              

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LING  OR BUSINESS INTEREST IN ANY ENTITY OR INDIVIDUAL THAT THE ADJUSTER
RECOMMENDS OR SUGGESTS.
  S  3.  Paragraph  1 of subsection (f) of section 2108 of the insurance
law is amended to read as follows:
  (1) The superintendent shall, in order to determine  the  trustworthi-
ness and competency to act as an independent adjuster of each individual
applicant for such license, and of each proposed sub-licensee, except in
the case of a renewal license, require every such individual to take and
pass,  to  the  satisfaction  of  the superintendent, a personal written
examination.  AN INDIVIDUAL SHALL NOT BE DEEMED QUALIFIED  TO  TAKE  THE
EXAMINATION  WITHOUT HAVING DEMONSTRATED BY EVIDENCE SATISFACTORY TO THE
SUPERINTENDENT  THAT:  (A)  THE  INDIVIDUAL  POSSESSES  A   MINIMUM   OF
ONE-YEAR'S  EXPERIENCE  IN  THE  INSURANCE BUSINESS, WITH INVOLVEMENT IN
SALES, UNDERWRITING, CLAIMS, OR OTHER EXPERIENCE  CONSIDERED  SUFFICIENT
BY  THE  SUPERINTENDENT;  OR  (B)  THE INDIVIDUAL SUCCESSFULLY COMPLETED
FORTY HOURS OF FORMAL TRAINING IN A COURSE, PROGRAM OF  INSTRUCTION,  OR
SEMINARS   APPROVED   BY  THE  SUPERINTENDENT.  The  superintendent  may
prescribe the types of written examinations according  to  the  kind  or
kinds  of  insurance claims [which] THAT the applicant is to be licensed
to investigate and adjust.
  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

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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
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

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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 499 of the laws of 2009, is amended
to read as follows:
  The superintendent may refuse to renew, revoke, or may suspend  for  a
period  the  superintendent  determines  the  license  of  any insurance
producer, insurance consultant, PUBLIC OR INDEPENDENT adjuster  or  life
settlement  broker,  if,  after  notice  and hearing, the superintendent
determines that the licensee 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.