News Summary
New York lawmakers are assessing Assembly Bill 8536, which seeks to enhance consumer protection in insurance through stricter regulations on claims handling and adjuster training. The bill introduces new timelines for insurers, ensures policyholders receive updates and a full policy copy, and aims to improve the professionalism of adjusters. It also mandates penalties for non-compliance and aims to elevate consumer rights in the claims process, representing significant reform in the insurance regulatory framework of New York.
Albany, New York – New York lawmakers are currently reviewing Assembly Bill 8536, a significant piece of legislation aimed at overhauling state insurance regulations. Introduced on May 20, the bill proposes stricter requirements for claims handling and adjuster training, with the goal of enhancing consumer protection for policyholders in the state.
The proposed bill seeks to redefine the “period of restoration,” a term that encompasses the time necessary for inspection, evaluation, assessment, and repairs following an insured event. Under the new rules, benefits would have to be maintained throughout this entire period, ensuring that policyholders receive adequate support while their claims are being processed.
Additionally, the legislation sets forth new timelines and requirements for insurers. Companies must acknowledge receipt of a claim within five business days to keep policyholders informed about the status of their claims. Furthermore, insurers are required to provide a digital copy of the complete policy to policyholders, enabling them to review their coverage comprehensively.
Under the bill, insurance providers must also deliver a claims estimate within 60 days of receiving a claim. Importantly, the legislation prohibits insurers from denying claims solely based on the accountability of another party for the loss, safeguarding policyholders from potential unfair practices.
A key focus of Assembly Bill 8536 is to enhance the professionalism and accountability of insurance adjusters. The bill mandates that all adjusters undergo specific training programs and adhere to a newly established code of ethics. Additionally, an identification card system will be created for both public and company adjusters to promote transparency and trust in the claims process.
Penalties have been outlined for violating the proposed code, including the possibility of license revocation for adjusters who fail to comply with the new regulations. Insurers will also be required to employ licensed professional engineers for any property damage evaluations that necessitate engineering expertise, ensuring that assessments are accurate and reliable.
If insurers choose to utilize technicians for claims evaluations, they will need to provide policyholders with the technician’s name, title, and company affiliation. Furthermore, these technicians must submit a certificate of insurance naming the policyholder as an additional insured, reinforcing the protection of consumers throughout the claims process.
To improve the overall transparency of claims handling, Assembly Bill 8536 sets forth new standards for documentation related to claims, which insurers must adhere to in order to preserve the integrity of the claims process.
As the New York Insurance Association reviews the bill, they have refrained from providing additional comments at this time. Stakeholders across the state are closely monitoring the progress and potential implications of the legislation.
In a related development, Governor Kathy Hochul recently signed the state’s fiscal year 2026 budget, which enables the Jacob K. Javits Convention Center to establish a captive insurance company. This move may have ramifications for the broader insurance landscape in New York, particularly as legislative changes are discussed and implemented.
The review of Assembly Bill 8536 represents a crucial step in reforming the insurance regulatory environment in New York, with lawmakers aiming to bolster consumer rights and improve the claims experience for policyholders across the state.
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Additional Resources
- Insurance Business Magazine: New York Considers Changes to State Insurance Regulations
- Gothamist: 2M New Yorkers Could Lose Health Coverage Under GOP’s Beautiful Bill
- News10: Assembly Pushed to Update New York’s 1989 Temporary Disability Insurance
- Times Union: Bill Aims to End Lead Poisoning Exemptions in New York
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- Google Search: New York insurance regulations
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- Encyclopedia Britannica: New York insurance law
- Google News: New York insurance legislation
