Jennifer Kosiba of Manhattan Public Adjustment & New York Public Adjuster’s Association (NYPAA) secure major win against State Farm Insurance Company
State Farm Revises Payment Protocols for Public Adjusters in New York Following Regulatory Compliance Review
Important Update for New York Public Adjusters
Through the diligent efforts of Roman Rabinovich and Jennifer Kosiba of Manhattan Public Adjustment, State Farm is set to implement a significant change that will positively impact the claims process for all New York public adjusters with State Farm claims.
A representative from State Farm announced today that, based on the information and position statements provided by this office and Manhattan Public Adjustment regarding the handling of public adjustment fees, State Farm headquarters will revise its company-wide protocols and guidelines for Public Adjuster payments in New York. It is our understanding that a memo will be distributed to all State Farm Managers and Adjusters, and the compliance system will be updated to align with the directives of the New York State Department of Financial Services’ Seventh Amendment to 11 NYCRR 25 (Insurance Regulation 10).
State Farm has acknowledged that they were previously unaware of the full scope of this amendment and had incorrectly issued payments to vendors without notifying the Public Adjuster or allowing them to take their percentage fee. Moving forward, once State Farm has a valid Direction to Pay, it will no longer require an updated Reg 10 for each payment released. The Direction to Pay will remain valid until revoked by the insured for all parts of the claim.
Additionally, before any payments are issued, the public adjuster or record will be consulted to confirm whether they will take a fee on the various payments. State Farm has also recognized that Public Adjusters are entitled to take a fee on all coverages. This change means you will no longer need to submit multiple Reg 10s for each portion of the claim. More importantly, you will avoid awkward conversations with clients regarding fees owed on direct-to-vendor payments, such as those for remediation contractors or board-up companies.
If you encounter any State Farm adjusters who refuse to adhere to these new protocols, please contact our office, and we will assist.
Roman Rabinovich
WILKOFSKY, FRIEDMAN, KAREL & CUMMINS
299 Broadway, Suite 1700
New York, NY 10007
