New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter II - Agents, Brokers And Adjusters › Part 25 - Public Adjusters › Section 25.6 - Compensation agreement

Current through Register Vol. 46, No. 28, July 10, 2024
(a) A
				public adjuster may be compensated by an insured for or on account of services
				rendered to the insured by the public adjuster solely as provided for by a
				written compensation agreement obtained by the public adjuster consistent with
				Form 1 in section
				25.13(a) 
				of this Part.
(b) Every such
				compensation agreement shall contain the names and addresses of the public
				adjuster and the insured. If the public adjuster is a business entity, then a
				sublicensee of the public adjuster shall also be named.
(c) Every such compensation agreement shall
				be signed by the public adjuster or, if a business entity, then by a
				sublicensee, or by the duly authorized licensed employee who entered into the
				agreement; and by the insured, or other party to be charged.
(d) Every such compensation agreement shall
				be in the same language as that principally used in the oral negotiations and
				presentation.
(e)
(1) Pursuant to Insurance Law section
				2108(s)(2)(A), a public adjuster shall not 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 compensation agreement.
(2) Pursuant to Insurance Law section
				2108(s)(2)(B), a public adjuster who has a financial or ownership interest,
				directly or indirectly, in an individual or entity that performs services,
				work, or repairs, or is the spouse of the individual having such an interest,
				shall not 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 compensation agreement. If a public adjuster refers an insured to such
				an individual or entity, then the written compensation agreement required by
				this section shall be a separate document from any agreement or contract
				entered into to perform services, work, or repairs. Every such agreement or
				contract shall itemize all fees in writing and shall not be used as a means to
				circumvent or in any way increase the amount that the public adjuster may
				charge pursuant to section
				25.7  of this
				Part.
(3) Pursuant to Insurance Law
				section 2108(s)(2)(B), if a public adjuster refers an insured to an individual
				who is related to the public adjuster by blood or affinity within 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 compensation agreement.
(4) If a public adjuster refers an insured to
				an individual or entity described in this subdivision subsequent to the written
				compensation agreement being signed by the party to be charged, then the public
				adjuster shall not receive any compensation for the referral unless the public
				adjuster obtains an acknowledged disclosure statement consistent with Form 2 in
				section
				25.13(b) 
				of this Part. The disclosure statement shall be limited to the disclosure of
				the referral fees, and the party to be charged who signed the original
				compensation agreement shall acknowledge by signature the disclosure statement.
				The public adjuster shall provide a copy of the signed disclosure statement to
				the insurer.
(5) A public adjuster
				shall not require an insured to use any individual or entity for services,
				work, or repairs relating to any insurance claim for which the public adjuster
				represents or represented the insured or has negotiated or effected a
				settlement.