S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8539--A
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             December 13, 2021
                                ___________
 
 Introduced  by  M.  of  A. DILAN, GLICK, SIMON, STECK, DeSTEFANO -- read
   once and referred to the Committee on Insurance -- recommitted to  the
   Committee  on  Insurance in accordance with Assembly Rule 3, sec. 2 --
   committee discharged, bill amended, ordered reprinted as  amended  and
   recommitted to said committee

 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:
 
   Section  1.  Subsection  (s)  of section 2108 of the insurance law, as
 added by chapter 546 of the laws of 2013, is amended to read as follows:
   (s) (1) (A) Every public adjuster shall have an  affirmative  duty  to
 act  on behalf and in the best interests of the insured when negotiating
 for or effecting the settlement of an insurance claim for the insured or
 otherwise acting as a public adjuster.
   (B) IN THE EVENT OF A CLAIM, AN  ADJUSTER  WORKING  ON  BEHALF  OF  AN
 INSURANCE COMPANY MUST DISCLOSE IN ITS INITIAL WRITTEN AND VERBAL COMMU-
 NICATION WITH THE INSURED THE FOLLOWING STATEMENT:
   "I AM AN INSURANCE COMPANY ADJUSTER WORKING ON BEHALF OF THE INSURANCE
 COMPANY.  I  DO  NOT  REPRESENT YOUR INTERESTS, I REPRESENT THEIRS.  YOU
 HAVE THE RIGHT TO HIRE YOUR  OWN  LICENSED  PUBLIC  ADJUSTER  WHO  WOULD
 REPRESENT YOUR INTERESTS EXCLUSIVELY, FOR A FEE, AND WHO OWES YOU, THEIR
 CLIENT, A FIDUCIARY RESPONSIBILITY."
   (2)  (A)  No  public  adjuster  shall receive any compensation, either
 directly or indirectly, for a referral of the insured to  an  individual
 or entity for services, work or repairs, relating to any insurance claim
 for  which  the public adjuster represents the insured or has negotiated
 or effected a settlement, unless the  compensation  is  prominently  and
 clearly  disclosed to the insured in the written memorandum described in
 subsection (p) of this section. Any such compensation received shall  be
 deemed  to be compensation from the insured and, in combination with any
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13614-02-2
              

 A. 8539--A                          2
 
 other compensation received from the insured, shall not exceed the maxi-
 mum amount that the adjuster may charge in  accordance  with  the  regu-
 lations required pursuant to subsection (p) of this section.
   (B)  No  public  adjuster who has a financial or ownership interest in
 the individual or entity that performs the services, work,  or  repairs,
 shall  refer  the insured to the individual or entity [unless the finan-
 cial or ownership interest is prominently and clearly disclosed  to  the
 insured  in  the  written memorandum described in subsection (p) of this
 section].  If a public adjuster refers an insured to an  individual  who
 is  related  to the individual by blood or affinity to the second degree
 of consanguinity, or to an entity owned or controlled by such  an  indi-
 vidual,  for services, work, or repairs, relating to any insurance claim
 for which the public adjuster represents the insured or  has  negotiated
 or  effected  a  settlement, then the public adjuster shall disclose the
 relationship to the insured  in  the  written  memorandum  described  in
 subsection (p) of this section.
   (C)  NO  INDIVIDUAL OR ENTITY THAT PERFORMS SERVICES, WORK, OR REPAIRS
 MAY PERFORM THE SERVICES, WORK, OR REPAIRS  RELATING  TO  ANY  INSURANCE
 CLAIM  FOR WHICH A PUBLIC ADJUSTER REPRESENTS THE INSURED OR HAS NEGOTI-
 ATED 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.
   §  2. This act shall take effect on the first of January next succeed-
 ing the date on which it shall have become a law.