News Summary
New York’s Assembly Bill 8536 proposes key revisions to insurance regulations, including enhanced claims handling, transparency for policyholders, and mandatory training for adjusters. The bill outlines new standards for inspections and documentation, requiring insurers to communicate more efficiently with policyholders. If approved, these reforms could significantly improve the insurance claims process in the state, promoting greater accountability and professionalism within the industry.
New York lawmakers are currently reviewing Assembly Bill 8536, which proposes significant revisions to the state’s insurance regulations. Introduced on May 20, the bill has been forwarded to the Assembly Insurance Committee for consideration, as recorded in legislative documentation.
The proposed legislation aims to enhance the insurance claims process by establishing new requirements for claims handling, oversight of adjusters, and documentation practices. Among the most notable changes, the bill redefines the “period of restoration” to encompass not just the repairs of damages, but also the necessary time for inspection, evaluation, assessment, and obtaining permits and funding. Moreover, insurers will be mandated to provide benefits throughout this defined period.
Under the new regulations, insurers will be required to acknowledge the receipt of a claim within five business days. Additionally, policyholders will receive a digital copy of their complete insurance policy, which aims to promote greater accessibility and transparency. Once a claim is submitted, insurance carriers must deliver an estimate within 60 days. In a significant shift, the bill prohibits insurers from denying claims based solely on the possibility that another individual or entity may be liable for the loss.
The proposed bill also emphasizes the professionalism and ethics of adjusters. It includes a provision for mandatory training for claims adjusters and directs the state to establish a code of ethics that licensed public adjusters must adhere to. Violations of this code could lead to serious consequences, including the revocation of an adjuster’s license. An identification card system for both public and company adjusters is introduced, aiming to improve accountability within the industry.
Moreover, the legislation stipulates that insurers must hire licensed professional engineers for evaluations related to property damage. Any technicians working for the insurers will be required to provide their name, title, and company affiliation, along with a certificate of insurance that lists the policyholder as an additional insured party.
These reforms are centered around increasing transparency for policyholders in the insurance claims process, with new standards established for the handling and preservation of claim documents. As part of the review process, the New York Insurance Association is currently evaluating the bill, although detailed comments have not been issued yet.
This insurance bill comes in the wake of other significant legislative actions within the state. Recently, Governor Kathy Hochul signed the fiscal year 2026 budget, which includes a measure for the Jacob K. Javits Convention Center to establish a captive insurance company. This financial development further underscores the broader context of evolving insurance practices in New York.
As Assembly Bill 8536 moves through the legislative process, stakeholders in the insurance industry and advocates for policyholder rights are expected to closely monitor its potential approval and implementation, which could transform aspects of insurance regulations in New York significantly.
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Author: STAFF HERE NEW YORK WRITER
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