During the First Party Claims Conference last week, New York lawyer Jonathan Lerner and I discussed the new rules of public adjustment that had just come into force in New York on October 8. The New York Department of Financial Services listed the following in a press release announcing these new provisions:
The new consumer protections include the following:
• An insurer must include the public adjuster in all written or oral notices initiated by the insurer with the insured about the insured does not instruct otherwise;  • A public adjuster who initiates a mediation, arbitration or dispute procedure involving a dispute between an insured and a public adjuster regarding a loss in New York must file it in New York and not any other jurisdiction;
• A public adjuster may not require an insured to use a specific contractor for repairs;
• A public adjuster must include the fees for all services performed by an external expert or disadvantages are ultimately retained by the public adjuster in the indemnity agreement between the adjuster and the insured;
• An insurer must follow the insured's instructions, subject to the interests of a loss recipient or mortgagee, as to who is to be indicated on the insurer's check; and
• A public adjuster may not condition to do business with an insured on the insured who urges the insurer to make a check to be paid to the public adjuster for the adjustment fee.
Here is a link to all the new rules, including new contract terms, that all New York public adjusters should follow.
Thought For The Day
I think all agencies as part of good governance should review rules and clean up those that may be outdated, redundant, or unnecessary.