The Office of General Counsel issued the following opinion on July 31, 2000, representing the position of the New York State Insurance Department.
Re: Banking Questions
Questions Presented:
1) Does the Department require that an independent adjuster maintain its bank account with a New York State domiciled bank if its client is a New York domiciled insurer?
2) Does the Department require an independent adjuster to identify itself on checks issued on behalf of an insurer?
Conclusion:
1) No.
2) No.
Facts:
A licensed independent adjuster that performs claims administration services for several disability income insurers stated that when it corresponds with an insurers policyholder, it identifies itself on its letterhead as an independent adjuster for that insurer.
Analysis:
There are no pertinent statutes or regulations governing the location of a bank used by an independent adjuster as opposed to, for example, requirements that licensees such as agents and brokers must maintain their premium account in a New York bank.
In addition, there is no requirement that an independent adjuster's company name must appear on the checks it writes on behalf of an insurer whose name is presumably listed on said checks.
For further information you may contact Associate Attorney Jeffrey A. Stonehill at the New York City Office.