BILL NUMBER: S9082
SPONSOR: BAILEY
 
TITLE OF BILL:
An act to amend the insurance law, in relation to prohibiting public
adjusters from contacting certain persons regarding a property that has
sustained damage from a damaging event within seventy-two hours of such
damaging event
 
PURPOSE OR GENERAL IDEA OF BILL:
To protect property owners, tenants, and occupants in the immediate
aftermath of damaging events, and to ensure that affected individuals
are given time to assess their circumstances before being approached for
professional services.
 
SUMMARY OF PROVISIONS:
Section 1 amends section 2108 of the insurance law by adding a new
subsection (t) to restrict solicitation and contact by public adjusters
following a damaging event affecting residential or commercial property.
The bill defines a "damaging event" and prohibits public adjusters, or
their representatives, from initiating contact or solicitation within
seventy-two hours after such an event. During this period, public adjus-
ters are also prohibited from coming within two hundred feet of the
affected property or associated individuals without written authori-
zation.
The bill further provides that individuals solicited in violation of
these restrictions are not liable for fees and are entitled to
reimbursement of any fees paid, and requires written disclosures to
affected individuals prior to engaging in adjusting activity.
Section 2 provides that the act shall take effect on the ninetieth day
after it becomes law.
 
JUSTIFICATION:
In the aftermath of fires, floods, storms, and other damaging events,
property owners and tenants are often vulnerable, disoriented, and under
significant emotional and financial stress. During this sensitive peri-
od, individuals may be approached by public adjusters offering assist-
ance with insurance claims and recovery.
This bill is intended to provide a short, reasonable cooling-off period
following a damaging event, allowing affected individuals time to stabi-
lize their circumstances and make informed decisions.
 
PRIOR LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become a law.

Statutes affected:
S9082: 2108 insurance law