NYPIAA hails Cuomo signature of new law.
The New York Public Insurance Adjusters Association has applauded Governor Cuomo for enacting into law legislation which it says "promises to help consumers make better choices when hiring a public adjuster and contractor in the event of a fire, flood or other catastrophe?'
The new law will prohibit a contractor from also serving as an adjuster on an insurance claim without disclosing the relationship between them.
The new law, sponsored by Senate Co-Leader Jeff Klein and Member of the Assembly David Weprin, goes a long way to help consumers understand some of the conflicts involved when a contractor also tries to serve as a public adjuster on the same claim, Bob DAmore, president of the NYPAA stated, adding: "As a result of a series of complaints filed against a single City Island business that was operating as both contractor and public adjuster referring business from one to the other without making disclosure to the consumer and creating a conflict of interest, this legislation was introduced and passed by both houses of the Legislature in one session. Both the Senate and the Assembly are to be congratulated for moving so swiftly to prevent further abuse."
"Honest, hard working public adjusters know that this situation was wrong, and were at the forefront of support for this bill's passage," he continued.
The Public Adjusting industry worked closely with Senator Jeff Klein, Counsel to Governor Cuomo and representatives of the Department of Financial Services to draft language that had the best hope of protecting consumers from conflicts of interests that could arise if an unscrupulous adjuster conspires with a contractor they control to take advantage of a fire victim by unfairly profiting from the loss while doing substandard repairs.
The new law is designed to require disclosure of any relationships or referral fees between the adjusters and the contractor to avoid any inappropriate conflicts of interest. The Bill became effective January 7th.
The NYPIAA holds that most public adjusters in New York are well trained professionals who are experts in claim presentation, issues of coverage and construction. "This action was motivated by the activities of just one adjuster, but will protect insurance consumers from any repetition," a spokesman for the association added.
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|Title Annotation:||IN THE ASSOCIATIONS|
|Date:||Jan 27, 2014|
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