2023 New York Laws › ISC - Insurance › Article 21 - Agents, Brokers, Adjusters, Consultants and Intermediaries › 2108 - Adjusters; Licensing and Duties.

§  2108.  Adjusters;  licensing and duties. (a) (1) Adjusters shall be
licensed as independent adjusters or as public adjusters.
(2)  The  superintendent  may  prescribe  the  types  of   independent
adjusters'  licenses  according to the kind or kinds of insurance claims
which the licensee is to be authorized to investigate and adjust.
(3) No adjuster shall act on behalf of an insurer unless  licensed  as
an  independent  adjuster,  and  no  adjuster  shall act on behalf of an
insured unless licensed as a public adjuster.
(4) No insurer, agent or other representative of an insurer shall  pay
any  fees  or  other  compensation  to  any person, firm, association or
corporation for acting as an independent adjuster except to  a  licensed
independent  adjuster  or  to  a  person  excepted  from  the  licensing
requirement pursuant to subsection  (g)  of  section  two  thousand  one
hundred one of this article.
(b)  The holder of a license under this section may act as an adjuster
without any other or additional license.
(c) (1) The superintendent may issue an independent adjuster's license
or a public adjuster's license  to  any  person,  firm,  association  or
corporation,  hereinafter  designated  as  licensee,  who,  or which, is
trustworthy and competent to act as an adjuster in  such  manner  as  to
safeguard  the  interests of the people of this state and who, or which,
has complied with the prerequisites herein prescribed.
(2) A license issued to a corporation may name as  sub-licensees  only
the  officers and directors of such corporation, and a license issued to
a firm or association may name  as  sub-licensees  only  the  individual
members  of such firm or association. Each sub-licensee named as such in
the license issued  to  a  firm,  association  or  corporation  must  be
qualified  to obtain a license as an independent adjuster or as a public
adjuster, as the case may be, and for each such sub-licensee a fee  must
be  paid  at  the times and at the rate hereinafter specified. Each such
sub-licensee shall be authorized, pursuant to such license, to act as an
independent adjuster or as a public adjuster, as the case may  be,  only
on behalf of the licensee.
(3)  Every  individual  applicant for a license under this section and
every proposed sub-licensee shall be eighteen years of age  or  over  at
the time of the issuance of such license.
(d) (1) Before any such license or any renewal thereof shall be issued
by  the  superintendent  there  shall  be  filed in his office a written
application therefor. Such application shall be in the form or forms and
supplements and contain information the superintendent prescribes.
(2) Each person or individual signing  such  application  shall,  with
such  application,  submit to the superintendent fingerprints of his two
hands recorded in such manner as may be specified by the  superintendent
or  his  authorized representative. Before approving such application it
shall be the duty of the superintendent or his authorized representative
to compare such fingerprints with fingerprints filed with  the  division
of criminal justice services. Such fingerprints may also be submitted to
the  federal  bureau  of  investigation  for a national criminal history
record check.
(3) Except in the case of an application for a license to  act  as  an
independent  adjuster,  such  application  shall be approved, as to each
person or individual  so  signing  the  same,  by  not  less  than  five
reputable  citizens  of the community in which such applicant resides or
transacts business, each of whom  shall  certify  that  he  or  she  has
personally  known the person or individual for a period of at least five
years prior to the filing of such application, that he or she  has  read
such  application and believes each of the statements made therein to be
true, that such person is honest, of good character and  competent,  and

not  related  or  connected  to  the  person  so  certifying by blood or
marriage. The certificate  of  approval  shall  be  subscribed  by  such
reputable  citizens  and affirmed by them as true under the penalties of
perjury.
(e)   (1)   The  superintendent  shall,  in  order  to  determine  the
trustworthiness and competency to act  as  a  public  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. No individual  shall  be
deemed  qualified to take the examination without having demonstrated by
evidence satisfactory 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.
(2)  The superintendent may, in his discretion and on such terms as he
prescribes, dispense with such examination in the case of any individual
applicant or proposed sub-licensee who  shall  previously  have  held  a
public  adjuster's  license issued subsequent to January first, nineteen
hundred thirty-six.
(f)  (1)  The  superintendent  shall,  in  order  to   determine   the
trustworthiness 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. The  superintendent  may
prescribe  the  types  of  written examinations according to the kind or
kinds of insurance claims which the  applicant  is  to  be  licensed  to
investigate and adjust.
(2)  Any  person  who  at any time served with the armed forces of the
United States, and who  immediately  prior  to  entering  such  military
service  had  been  continuously  engaged in bona fide operation in this
state as an independent adjuster for a period of five years, may  within
one  year  after  the termination of such military service file with the
superintendent an application in such form as he  prescribes,  and  upon
the  payment  of  the  requisite  license  fee  may  be  licensed by the
superintendent as an independent adjuster without being required to take
and pass such examination.
(3) The superintendent may also, in  the  superintendent's  discretion
and  on  such  terms  the  superintendent prescribes, dispense with such
examination  in  the  case  of  any  individual  applicant  or  proposed
sub-licensee  who  shall  previously have held an independent adjuster's
license provided the applicant applies within two  years  following  the
date of termination of such license.
(g) The superintendent may, in his discretion require an applicant for
a  license  under  this  section to present evidence, in such form as he
prescribes, that such applicant has been employed, for a period which he
deems reasonable, by an insurer, an independent  adjuster  or  a  public
adjuster,  in  the  performance  of  duties  which  in his opinion would
provide the applicant with a satisfactory preliminary training  for  the
duties  and  responsibilities which would devolve upon him as a licensee
under this section.
(h) (1) Any person who has had  at  least  five  years  experience  in
adjusting  claims  as  an employee of an authorized insurer and has made
application for a license as an  independent  adjuster,  or  any  person
holding  a valid estimator's license issued by the commissioner of motor

vehicles and has made  application  for  a  license  as  an  independent
adjuster  within  ninety  days  of  the  expiration  of  the estimator's
license,  may  file  with  the  superintendent,  in  such  form  as  the
superintendent  prescribes, a written application for a temporary permit
to adjust claims, during the pendency of the application for  a  license
as an independent adjuster, as:
(i) an employee of a licensed independent adjuster; or
(ii)  in  the case of an auto body repair estimator, an employee of an
authorized insurer or any adjustment bureau  or  association  owned  and
maintained  by  insurers  to  adjust  or  investigate motor vehicle body
damage losses.
(2) Notwithstanding the requirement of subsection (f) of this  section
that  each individual applicant for an independent adjuster's license or
sub-license shall take and pass a personal written examination in  order
to  satisfy the superintendent as to trustworthiness and competency, the
superintendent may in the superintendent's discretion, if satisfied that
the person applying for such temporary permit has in all other  respects
met  the  requirements  of this section with respect to the licensing of
independent adjusters and is qualified by  training  and  experience  to
adjust  claims  as  an  employee  of  a  licensed  independent adjuster,
authorized insurer, or any adjustment bureau or  association  owned  and
maintained  by  insurers  to  adjust  or  investigate motor vehicle body
damage losses, issue such temporary permit  to  be  effective  for  such
period  of  time  as  the  superintendent may specify therein but, in no
event,  for  a  period  in  excess  of  one  hundred  twenty  days.  The
superintendent  may  summarily  suspend  or  revoke any temporary permit
issued pursuant to this subsection upon ten days' notice in  writing  to
the  permittee  of the superintendent's intention to do so, which notice
shall  be  given  in  accordance  with  the  applicable  provisions   of
subsections  (a)  and (d) of section three hundred four of the financial
services law.
(i) (1) At the time of application for every  adjuster's  license  and
for  every renewal thereof, there shall be paid to the superintendent by
each individual applicant and by each proposed  sub-licensee  a  fee  of
fifty  dollars  for  each  year or fraction of a year in which a license
shall be valid; except that amounts paid to the  commissioner  of  motor
vehicles   pursuant   to  subdivision  five  of  section  three  hundred
ninety-eight-d of the vehicle and traffic law, by any person who held an
auto body repair estimator license  prior  to  January  first,  nineteen
hundred ninety-six shall be considered by the superintendent.
(2)  No  license  fee  shall be required of any person who served as a
member of the armed forces of the United States at any time and who  (A)
shall have been discharged, under conditions other than dishonorable, or
(B)  has  a  qualifying  condition,  as  defined  in  section one of the
veterans' services law, and has received  a  discharge  other  than  bad
conduct  or  dishonorable from such service, or (C) is a discharged LGBT
veteran, as defined in section one of the veterans'  services  law,  and
has  received  a  discharge  other than bad conduct or dishonorable from
such service, in a current licensing period, for the  duration  of  such
period.
(3) A license fee of fifty dollars for each year or fraction of a year
in  which a license shall be valid for an independent adjuster's license
shall cover any  one  or  more  of  the  various  types  of  independent
adjusters' licenses issued by the department.
(4) Every individual applying to take any written examination shall at
the  time  of  applying  therefor  pay  to the superintendent, or at the
discretion of the superintendent, directly to any organization  that  is
under contract to provide examination services, an examination fee of an

amount  which is the actual documented administrative cost of conducting
said qualifying examination as certified by the superintendent from time
to time. An examination fee represents an administrative expense and  is
not  refundable.  If,  however, the applicant or a proposed sub-licensee
should withdraw his or its application or the superintendent should deny
his or its application before the license applied  for  is  issued,  the
superintendent  may refund the fee paid by the applicant for the license
applied for, excepting any examination fees required  pursuant  to  this
subsection.
(j) (1) Every adjuster's license issued pursuant to this section shall
be  for  a  term  expiring  on  the thirty-first day of December of even
numbered years, and may be renewed for the ensuing  two  calendar  years
upon  the  filing  of  an  application in conformity with subsection (d)
hereof. In the case  of  a  license  issued  to  a  new  applicant,  the
superintendent  may  issue  a license for a term of more than two years,
provided however, such term shall not exceed thirty months.
(2) If an application for a renewal license shall have been filed with
the superintendent by December thirty-first of the year  of  expiration,
the license sought to be renewed shall continue in full force and effect
either  until  the issuance by the superintendent of the renewal license
applied for or until five  days  after  the  superintendent  shall  have
refused  to  issue  such  renewal license and shall have given notice of
such refusal to the applicant and to all proposed sub-licensees named in
such application.
(3) If such refusal is based on any grounds other than failure to pass
a written examination and if the applicant or any proposed  sub-licensee
shall  within  thirty  days  after  such  notice  is  given  notify  the
superintendent of his or its request for a hearing on such refusal,  the
superintendent  shall  within  a  reasonable  time after receipt of such
notice grant such a hearing, and he may, in  his  discretion,  reinstate
such license.
(k) Any firm, association or corporation licensed as an adjuster under
this  section  may at any time make an application to the superintendent
for the  issuance  of  a  supplemental  license  authorizing  additional
officers  or directors of such corporation or additional members of such
firm or association, as the case may be, to act as  sub-licensees,  and,
if  the  requirements of this section are fully complied with as to each
of such proposed sub-licensees, the superintendent may  thereupon  issue
to  such  licensee a supplemental license naming such additional person,
or persons, as sub-licensees.
(l) (1) No adjuster's  license  or  renewal  license,  other  than  an
independent  adjuster's license, shall be issued to any applicant unless
there shall be on file with the superintendent of financial  services  a
bond,  executed by such applicant and by approved sureties, in the penal
sum of one thousand dollars conditioned on the faithful  performance  by
such  licensee  and by all sub-licensees named in such license, of their
duties as such adjusters.
(2) Such bond shall be approved as to form by the attorney general and
as to sufficiency of security by the superintendent.
(3) Such bond shall be made  to  the  state  of  New  York  and  shall
specifically  authorize  recovery by the state of the penal sum provided
therein in case the adjuster or any sub-licensee shall have been  guilty
of  fraudulent or dishonest practices in connection with the transaction
of his or its business as such adjuster or  shall  have  been  convicted
under  any of the sections contained in article one hundred fifty of the
penal law.
(m) If an application for a license under this section be rejected  by
the  superintendent, he shall forthwith give notice to the applicant, or
to the licensee, as the case may be.
(n)    Notwithstanding   the   provisions   of   this   section,   the
superintendent, in order to facilitate the settlement  of  claims  under
insurance  contracts involving widespread property losses arising out of
a conflagration or catastrophe common to all such losses,  may  issue  a
temporary permit for a term not exceeding one hundred twenty days to any
person, whether he be a resident of this state or a non-resident, to act
as  an  independent  adjuster  on  behalf  of  an  authorized insurer or
insurers, provided any such insurer shall execute and file in the office
of the superintendent a written application for the permit in  the  form
prescribed  by  the superintendent, which application shall contain such
information as he may require and shall certify that  the  person  named
therein  to  be  designated  in  the  temporary  permit  is qualified by
experience  and  training  to  adjust  claims  arising  under  insurance
contracts   issued  by  any  insurer.  The  superintendent  may  in  his
discretion renew such permit for an additional term or terms as  may  be
necessary to adjust such claims.
(o)  No  licensee  shall  in  connection  with  the transaction of his
business as an adjuster make any misrepresentation of  facts  or  advise
any person on questions of law.
(p)  No adjuster shall have any right to compensation from any insured
for or on account of services rendered  to  such  insured  as  a  public
adjuster  unless  such  right  to  compensation  is based upon a written
memorandum, signed by the party to be charged, and specifying or clearly
defining the amount or extent of such compensation.  The  superintendent
shall establish and prescribe regulations:
(1)  to  provide  for  a  standard  form  and  terms  of  said written
memorandum for compensation, including the maximum amount to be charged;
(2) to provide for compliance  with  article  ten-A  of  the  personal
property law relating to door to door sales; however, for the purpose of
this  section, "door to door sale" in addition to the definition thereof
contained in subdivision one of section four hundred twenty-six  of  the
personal  property  law,  shall  include  any contract entered into by a
public adjuster to adjust losses;
(3) to provide for maintenance of appropriate books and records to  be
maintained by public adjusters which shall be kept subject to inspection
and examination by the superintendent; and
(4) to provide for such other regulations that are deemed necessary by
the  superintendent  for  the  proper and adequate supervision of public
adjusters.
(q) The superintendent may issue a  replacement  for  a  currently  in
force  license which has been lost or destroyed. Before such replacement
license shall be issued, there shall be on file in  the  office  of  the
superintendent  a  written  application  for  such  replacement license,
affirming under penalty of perjury that the original  license  has  been
lost or destroyed, together with a fee of fifteen dollars.
(r) (1) The following continuing education requirements shall apply to
resident and non-resident persons licensed as public adjusters.
(2) Resident and non-resident persons licensed as public 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  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
licensee 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 section
two thousand one hundred eight of this article with  respect  to  public
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
continuing education shall be:
(i)  Courses,  programs  of  instruction  or  seminars, approved as to
method and content by  the  superintendent,  covering  portions  of  the
principal  branches  of  insurance  related  to  the  kinds of insurance
covered  by  the  public  adjusting  license,  and  given  by  a  degree
conferring 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-resident  licensee  resides  and  maintains  an office, provided the
superintendent 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
sponsoring 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
administrative services.
(s) (1) 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.
(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
other  compensation  received  from  the  insured,  shall not exceed the
maximum amount that the adjuster  may  charge  in  accordance  with  the
regulations 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 financial
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
individual,  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.