New York lawmakers are reviewing a bill that proposes several changes to state insurance regulations, including new requirements for claims handling, adjuster oversight and documentation practices.
Assembly Bill 8536 was introduced on May 20 and referred to the Assembly Insurance Committee, according to legislative records.
The bill outlines a revised definition of the “period of restoration”, expanding it to include the time needed for inspection, evaluation, assessment, and repair of damages. It also accounts for time spent obtaining permits and securing funds, with benefits required to be provided throughout this period.
Under the proposal, insurers would need to acknowledge receipt of a claim within five business days and provide policyholders with a digital copy of their full policy, according to a Best Wire report. Carriers would also be required to deliver an estimate within 60 days of a claim submission.
The bill would prohibit insurers from denying a claim solely because another individual or entity may be responsible for the loss. It also calls for mandatory training for adjusters and directs the state to establish a code of ethics for licensed public adjusters. An identification card system for both public and company adjusters is also included. Violations of the proposed code could result in penalties, including license revocation.
Additional provisions address the use of professionals in the damage assessment process. Insurers would be required to hire licensed professional engineers for engineering-related property damage evaluations. If a technician is used, the insurer would be obligated to provide the policyholder with the technician’s name, title, and company affiliation. The technician would also be required to submit a certificate of insurance listing the policyholder as an additional insured.
The legislation also includes new standards for the handling and preservation of claim documents, with the stated goal of increasing transparency in the claims process.
The New York Insurance Association said it is reviewing the bill and declined to comment further.
In a separate development, Governor Kathy Hochul signed the state’s fiscal year 2026 budget, which includes a provision allowing the Jacob K. Javits Convention Center to establish a captive insurance company.
