New York State Seal
STATE OF NEW YORK
INSURANCE DEPARTMENT
25 BEAVER STREET
NEW YORK, NEW YORK 10004

The Office of General Counsel issued the following informal opinion on January 9, 2001, representing the position of the New York State Insurance Department.

RE: Exclusion of Need for Adjuster’s Licenses for Insurance Company Employees Adjusting Claims

Question Presented:

Are insurance company employees required to obtain an independent adjuster’s license to adjust claims pursuant to N.Y. Ins. Law § 2101(g)(1) (McKinney 2000)?

Conclusion:

Insurance company employees who adjust claims for their authorized insurer employer, unless they are acting as auto body repair estimators, are exempted from the requirement to obtain an adjuster’s license with regard to such claims. N.Y. Ins. Law § 2101(g)(1) & (2) (McKinney 2000).

Analysis:

N.Y. Ins. Law § 2101(g) (McKinney 2000) defines "adjuster" to mean any "independent adjuster" or "public adjuster". Both types of adjusters require licensing. Independent adjuster means one that "acts in this state on behalf of an insurer in investigating and adjusting claims arising under insurance contracts issued by such insurer". N.Y. Ins. Law § 2101(g)(1)(McKinney 2000). Public adjuster means one whom, for money, acts or aids in any manner on behalf of an insured in negotiating for, or effecting the settlement of a claim for loss or damage to property of the insured in this state. N.Y. Ins. Law § 2101(g)(2)(McKinney 2000). Excluded from the definition of "independent adjuster" is any officer, director or regular salaried employee of an authorized insurer, or any manager thereof, individual or corporate…unless acting as an auto body repair estimator. N.Y. Ins. Law § 2101(g)(1)(A) (McKinney 2000). There are other exclusions to the definition of "independent adjuster" that should be carefully reviewed for a complete understanding of the definition. See N.Y. Ins. Law § 2101(g)(1) (A through F) (McKinney 2000).

For further information you may contact Associate Counsel Sidney B. Glaser at the New York City Office.