New York Laws
Article 21 - Agents, Brokers, Adjusters, Consultants and Intermediaries
2108 - Adjusters; Licensing and Duties.

(2) The superintendent may prescribe the types of independent
adjusters' licenses according to the kind or kinds of insurance claims
which the licensee is to be authorized to investigate and adjust.
(3) No adjuster shall act on behalf of an insurer unless licensed as
an independent adjuster, and no adjuster shall act on behalf of an
insured unless licensed as a public adjuster.
(4) No insurer, agent or other representative of an insurer shall pay
any fees or other compensation to any person, firm, association or
corporation for acting as an independent adjuster except to a licensed
independent adjuster or to a person excepted from the licensing
requirement pursuant to subsection (g) of section two thousand one
hundred one of this article.
(b) The holder of a license under this section may act as an adjuster
without any other or additional license.
(c) (1) The superintendent may issue an independent adjuster's license
or a public adjuster's license to any person, firm, association or
corporation, hereinafter designated as licensee, who, or which, is
trustworthy and competent to act as an adjuster in such manner as to
safeguard the interests of the people of this state and who, or which,
has complied with the prerequisites herein prescribed.
(2) A license issued to a corporation may name as sub-licensees only
the officers and directors of such corporation, and a license issued to
a firm or association may name as sub-licensees only the individual
members of such firm or association. Each sub-licensee named as such in
the license issued to a firm, association or corporation must be
qualified to obtain a license as an independent adjuster or as a public
adjuster, as the case may be, and for each such sub-licensee a fee must
be paid at the times and at the rate hereinafter specified. Each such
sub-licensee shall be authorized, pursuant to such license, to act as an
independent adjuster or as a public adjuster, as the case may be, only
on behalf of the licensee.
(3) Every individual applicant for a license under this section and
every proposed sub-licensee shall be eighteen years of age or over at
the time of the issuance of such license.
(d) (1) Before any such license or any renewal thereof shall be issued
by the superintendent there shall be filed in his office a written
application therefor. Such application shall be in the form or forms and
supplements and contain information the superintendent prescribes.
(2) Each person or individual signing such application shall, with
such application, submit to the superintendent fingerprints of his two
hands recorded in such manner as may be specified by the superintendent
or his authorized representative. Before approving such application it
shall be the duty of the superintendent or his authorized representative
to compare such fingerprints with fingerprints filed with the division
of criminal justice services. Such fingerprints may also be submitted to
the federal bureau of investigation for a national criminal history
record check.
(3) Except in the case of an application for a license to act as an
independent adjuster, such application shall be approved, as to each
person or individual so signing the same, by not less than five
reputable citizens of the community in which such applicant resides or
transacts business, each of whom shall certify that he or she has
personally known the person or individual for a period of at least five
years prior to the filing of such application, that he or she has read
such application and believes each of the statements made therein to be
true, that such person is honest, of good character and competent, and

not related or connected to the person so certifying by blood or
marriage. The certificate of approval shall be subscribed by such
reputable citizens and affirmed by them as true under the penalties of
perjury.
(e) (1) The superintendent shall, in order to determine the
trustworthiness and competency to act as a public adjuster of each
individual applicant for such license, and of each proposed
sub-licensee, except in the case of a renewal license, require every
such individual to take and pass, to the satisfaction of the
superintendent, a personal written examination. No individual shall be
deemed qualified to take the examination without having demonstrated by
evidence satisfactory to the superintendent that (A) the applicant
possesses a minimum of one year experience in the insurance business,
with involvement in sales, underwriting or claims or other experience
considered sufficient by the superintendent, or (B) the applicant
successfully completed forty hours of formal training in a course,
program of instruction or seminars approved by the superintendent.
(2) The superintendent may, in his discretion and on such terms as he
prescribes, dispense with such examination in the case of any individual
applicant or proposed sub-licensee who shall previously have held a
public adjuster's license issued subsequent to January first, nineteen
hundred thirty-six.
(f) (1) The superintendent shall, in order to determine the
trustworthiness and competency to act as an independent adjuster of each
individual applicant for such license, and of each proposed
sub-licensee, except in the case of a renewal license, require every
such individual to take and pass, to the satisfaction of the
superintendent, a personal written examination. The superintendent may
prescribe the types of written examinations according to the kind or
kinds of insurance claims which the applicant is to be licensed to
investigate and adjust.
(2) Any person who at any time served with the armed forces of the
United States, and who immediately prior to entering such military
service had been continuously engaged in bona fide operation in this
state as an independent adjuster for a period of five years, may within
one year after the termination of such military service file with the
superintendent an application in such form as he prescribes, and upon
the payment of the requisite license fee may be licensed by the
superintendent as an independent adjuster without being required to take
and pass such examination.
(3) The superintendent may also, in the superintendent's discretion
and on such terms the superintendent prescribes, dispense with such
examination in the case of any individual applicant or proposed
sub-licensee who shall previously have held an independent adjuster's
license provided the applicant applies within two years following the
date of termination of such license.
(g) The superintendent may, in his discretion require an applicant for
a license under this section to present evidence, in such form as he
prescribes, that such applicant has been employed, for a period which he
deems reasonable, by an insurer, an independent adjuster or a public
adjuster, in the performance of duties which in his opinion would
provide the applicant with a satisfactory preliminary training for the
duties and responsibilities which would devolve upon him as a licensee
under this section.
(h) (1) Any person who has had at least five years experience in
adjusting claims as an employee of an authorized insurer and has made
application for a license as an independent adjuster, or any person
holding a valid estimator's license issued by the commissioner of motor

vehicles and has made application for a license as an independent
adjuster within ninety days of the expiration of the estimator's
license, may file with the superintendent, in such form as the
superintendent prescribes, a written application for a temporary permit
to adjust claims, during the pendency of the application for a license
as an independent adjuster, as:
(i) an employee of a licensed independent adjuster; or
(ii) in the case of an auto body repair estimator, an employee of an
authorized insurer or any adjustment bureau or association owned and
maintained by insurers to adjust or investigate motor vehicle body
damage losses.
(2) Notwithstanding the requirement of subsection (f) of this section
that each individual applicant for an independent adjuster's license or
sub-license shall take and pass a personal written examination in order
to satisfy the superintendent as to trustworthiness and competency, the
superintendent may in the superintendent's discretion, if satisfied that
the person applying for such temporary permit has in all other respects
met the requirements of this section with respect to the licensing of
independent adjusters and is qualified by training and experience to
adjust claims as an employee of a licensed independent adjuster,
authorized insurer, or any adjustment bureau or association owned and
maintained by insurers to adjust or investigate motor vehicle body
damage losses, issue such temporary permit to be effective for such
period of time as the superintendent may specify therein but, in no
event, for a period in excess of one hundred twenty days. The
superintendent may summarily suspend or revoke any temporary permit
issued pursuant to this subsection upon ten days' notice in writing to
the permittee of the superintendent's intention to do so, which notice
shall be given in accordance with the applicable provisions of
subsections (a) and (d) of section three hundred four of the financial
services law.
(i) (1) At the time of application for every adjuster's license and
for every renewal thereof, there shall be paid to the superintendent by
each individual applicant and by each proposed sub-licensee a fee of
fifty dollars for each year or fraction of a year in which a license
shall be valid; except that amounts paid to the commissioner of motor
vehicles pursuant to subdivision five of section three hundred
ninety-eight-d of the vehicle and traffic law, by any person who held an
auto body repair estimator license prior to January first, nineteen
hundred ninety-six shall be considered by the superintendent.
(2) No license fee shall be required of any person who served as a
member of the armed forces of the United States at any time and who (A)
shall have been discharged, under conditions other than dishonorable, or
(B) has a qualifying condition, as defined in section one of the
veterans' services law, and has received a discharge other than bad
conduct or dishonorable from such service, or (C) is a discharged LGBT
veteran, as defined in section one of the veterans' services law, and
has received a discharge other than bad conduct or dishonorable from
such service, in a current licensing period, for the duration of such
period.
(3) A license fee of fifty dollars for each year or fraction of a year
in which a license shall be valid for an independent adjuster's license
shall cover any one or more of the various types of independent
adjusters' licenses issued by the department.
(4) Every individual applying to take any written examination shall at
the time of applying therefor pay to the superintendent, or at the
discretion of the superintendent, directly to any organization that is
under contract to provide examination services, an examination fee of an

amount which is the actual documented administrative cost of conducting
said qualifying examination as certified by the superintendent from time
to time. An examination fee represents an administrative expense and is
not refundable. If, however, the applicant or a proposed sub-licensee
should withdraw his or its application or the superintendent should deny
his or its application before the license applied for is issued, the
superintendent may refund the fee paid by the applicant for the license
applied for, excepting any examination fees required pursuant to this
subsection.
(j) (1) Every adjuster's license issued pursuant to this section shall
be for a term expiring on the thirty-first day of December of even
numbered years, and may be renewed for the ensuing two calendar years
upon the filing of an application in conformity with subsection (d)
hereof. In the case of a license issued to a new applicant, the
superintendent may issue a license for a term of more than two years,
provided however, such term shall not exceed thirty months.
(2) If an application for a renewal license shall have been filed with
the superintendent by December thirty-first of the year of expiration,
the license sought to be renewed shall continue in full force and effect
either until the issuance by the superintendent of the renewal license
applied for or until five days after the superintendent shall have
refused to issue such renewal license and shall have given notice of
such refusal to the applicant and to all proposed sub-licensees named in
such application.
(3) If such refusal is based on any grounds other than failure to pass
a written examination and if the applicant or any proposed sub-licensee
shall within thirty days after such notice is given notify the
superintendent of his or its request for a hearing on such refusal, the
superintendent shall within a reasonable time after receipt of such
notice grant such a hearing, and he may, in his discretion, reinstate
such license.
(k) Any firm, association or corporation licensed as an adjuster under
this section may at any time make an application to the superintendent
for the issuance of a supplemental license authorizing additional
officers or directors of such corporation or additional members of such
firm or association, as the case may be, to act as sub-licensees, and,
if the requirements of this section are fully complied with as to each
of such proposed sub-licensees, the superintendent may thereupon issue
to such licensee a supplemental license naming such additional person,
or persons, as sub-licensees.
(l) (1) No adjuster's license or renewal license, other than an
independent adjuster's license, shall be issued to any applicant unless
there shall be on file with the superintendent of financial services a
bond, executed by such applicant and by approved sureties, in the penal
sum of one thousand dollars conditioned on the faithful performance by
such licensee and by all sub-licensees named in such license, of their
duties as such adjusters.
(2) Such bond shall be approved as to form by the attorney general and
as to sufficiency of security by the superintendent.
(3) Such bond shall be made to the state of New York and shall
specifically authorize recovery by the state of the penal sum provided
therein in case the adjuster or any sub-licensee shall have been guilty
of fraudulent or dishonest practices in connection with the transaction
of his or its business as such adjuster or shall have been convicted
under any of the sections contained in article one hundred fifty of the
penal law.
(m) If an application for a license under this section be rejected by
the superintendent, he shall forthwith give notice to the applicant, or
to the licensee, as the case may be.
(n) Notwithstanding the provisions of this section, the
superintendent, in order to facilitate the settlement of claims under
insurance contracts involving widespread property losses arising out of
a conflagration or catastrophe common to all such losses, may issue a
temporary permit for a term not exceeding one hundred twenty days to any
person, whether he be a resident of this state or a non-resident, to act
as an independent adjuster on behalf of an authorized insurer or
insurers, provided any such insurer shall execute and file in the office
of the superintendent a written application for the permit in the form
prescribed by the superintendent, which application shall contain such
information as he may require and shall certify that the person named
therein to be designated in the temporary permit is qualified by
experience and training to adjust claims arising under insurance
contracts issued by any insurer. The superintendent may in his
discretion renew such permit for an additional term or terms as may be
necessary to adjust such claims.
(o) No licensee shall in connection with the transaction of his
business as an adjuster make any misrepresentation of facts or advise
any person on questions of law.
(p) No adjuster shall have any right to compensation from any insured
for or on account of services rendered to such insured as a public
adjuster unless such right to compensation is based upon a written
memorandum, signed by the party to be charged, and specifying or clearly
defining the amount or extent of such compensation. The superintendent
shall establish and prescribe regulations:
(1) to provide for a standard form and terms of said written
memorandum for compensation, including the maximum amount to be charged;
(2) to provide for compliance with article ten-A of the personal
property law relating to door to door sales; however, for the purpose of
this section, "door to door sale" in addition to the definition thereof
contained in subdivision one of section four hundred twenty-six of the
personal property law, shall include any contract entered into by a
public adjuster to adjust losses;
(3) to provide for maintenance of appropriate books and records to be
maintained by public adjusters which shall be kept subject to inspection
and examination by the superintendent; and
(4) to provide for such other regulations that are deemed necessary by
the superintendent for the proper and adequate supervision of public
adjusters.
(q) The superintendent may issue a replacement for a currently in
force license which has been lost or destroyed. Before such replacement
license shall be issued, there shall be on file in the office of the
superintendent a written application for such replacement license,
affirming under penalty of perjury that the original license has been
lost or destroyed, together with a fee of fifteen dollars.
(r) (1) The following continuing education requirements shall apply to
resident and non-resident persons licensed as public adjusters.
(2) Resident and non-resident persons licensed as public adjusters and
any person previously so licensed whose license was not in effect on the
effective date of this subsection and who has subsequently been
relicensed pursuant to the provisions of this article, shall biennially
satisfactorily complete such courses or programs as may be approved by
the superintendent, as follows:
(A) Any person holding a license as a public adjuster shall, during
each full biennial licensing period, satisfactorily complete courses or

programs of instruction or attend seminars as may be approved by the
superintendent equivalent to fifteen credit hours of instruction.
(B) During the same calendar year biennial licensing period, a
licensee may use accumulated continuing education credits to meet the
requirements of similar classes of licenses including those authorized
by subsection (b) of section two thousand one hundred three, section two
thousand one hundred four, section two thousand one hundred seven of
this article with respect to general insurance consultants, and section
two thousand one hundred eight of this article with respect to public
adjusters.
(C) Excess credit hours accumulated during any biennial licensing
period shall not carry forward to the next biennial licensing period for
that same class of license.
(3) (A) The courses or programs of instruction successfully completed,
which shall be deemed to meet the superintendent's standards for
continuing education shall be:
(i) Courses, programs of instruction or seminars, approved as to
method and content by the superintendent, covering portions of the
principal branches of insurance related to the kinds of insurance
covered by the public adjusting license, and given by a degree
conferring college or university whose curriculum is registered with the
state education department at the time the person takes the course,
whether such course be given as part of such curriculum or separately,
or by any other institution, association, trade association or insurer,
which maintains equivalent standards of instruction and which shall have
been approved for such purpose by the superintendent.
(ii) Continuing education as required by the state in which a
non-resident licensee resides and maintains an office, provided the
superintendent deems them equivalent to New York continuing education
requirements. If the state in which the non-resident licensee resides
and maintains an office has no continuing education requirements, or the
superintendent does not deem them equivalent, the licensee must satisfy
New York continuing education requirements.
(B) The number of credit hours assigned to each of the courses or
programs of instruction set forth in paragraph one of this subsection
shall be determined by the superintendent.
(4) A person who teaches any approved course of instruction or who
lectures at any approved seminar, and who is subject to these continuing
education requirements shall be granted the same number of credit hours
as would be granted to a person taking and successfully completing such
course, seminar or program, provided that such credit hours shall be
credited only once per approved course during any biennial licensing
period.
(5) Every person subject to these continuing education requirements
shall furnish, in a form satisfactory to the superintendent, written
certification attesting to the course or programs of instruction taken
and successfully completed by such person, and executed by the
sponsoring organization or its authorizing representative.
(6) (A) Any person failing to meet applicable continuing education
requirements shall not be eligible to renew the license.
(B) Any person whose license was not renewed shall not be eligible to
become relicensed during the next biennial licensing period until that
person has demonstrated to the satisfaction of the superintendent that
continuing education requirements for the last biennial licensing period
were met.
(C) Any person whose license was not renewed pursuant to subparagraph
(A) of this paragraph, who accumulates sufficient credit hours for the
prior licensing period to qualify for relicensing in the biennial period

following such non-renewal, may not apply those same credit hours toward
the continuing education requirements for the current biennial licensing
period.
(7) (A) Any entity eligible to provide continuing education courses,
programs of instruction, or seminars shall file for approval by the
superintendent on a biennial basis, to conform with its areas of
instruction, a provider organization application and a course submission
application for each course, program, and seminar.
(B) The provider organization application shall include the names of
all instructors to be used during the contract period, and instructors
may be added during the period by notifying the superintendent and
paying the appropriate filing fee.
(C) The completed applications shall be returned in a timely manner,
as specified by the superintendent with a non-refundable filing fee of
two hundred dollars per organization, fifty dollars per course, program,
and seminar, and fifty dollars per instructor.
(D) Approval of the application shall be at the discretion of the
superintendent.
(8) Each licensee shall pay a biennial fee of ten dollars per license,
for continuing education certificate filing and recording charges, to
the superintendent, or, at the direction of the superintendent, directly
to an organization under contract to provide continuing education
administrative services.
(s) (1) Every public adjuster shall have an affirmative duty to act on
behalf and in the best interests of the insured when negotiating for or
effecting the settlement of an insurance claim for the insured or
otherwise acting as a public adjuster.
(2) (A) No public adjuster shall receive any compensation, either
directly or indirectly, for a referral of the insured to an individual
or entity for services, work or repairs, relating to any insurance claim
for which the public adjuster represents the insured or has negotiated
or effected a settlement, unless the compensation is prominently and
clearly disclosed to the insured in the written memorandum described in
subsection (p) of this section. Any such compensation received shall be
deemed to be compensation from the insured and, in combination with any
other compensation received from the insured, shall not exceed the
maximum amount that the adjuster may charge in accordance with the
regulations required pursuant to subsection (p) of this section.
(B) No public adjuster who has a financial or ownership interest in
the individual or entity that performs the services, work, or repairs,
shall refer the insured to the individual or entity unless the financial
or ownership interest is prominently and clearly disclosed to the
insured in the written memorandum described in subsection (p) of this
section. If a public adjuster refers an insured to an individual who is
related to the individual by blood or affinity to the second degree of
consanguinity, or to an entity owned or controlled by such an
individual, for services, work, or repairs, relating to any insurance
claim for which the public adjuster represents the insured or has
negotiated or effected a settlement, then the public adjuster shall
disclose the relationship to the insured in the written memorandum
described in subsection (p) of this section.