P&CNew Yorkmedium
A New York Public Adjuster licensed under NY Ins. Law § 2108 is authorized to act on behalf of which party in a first-party property claim?
AThe insurer, in negotiating settlement with the insured
BEither the insurer or insured, depending on assignment
COnly commercial insureds; not residential policyholders
The insured (policyholder), in negotiating settlement of a first-party loss
Why this is the answer
Under § 2108, a Public Adjuster is licensed to represent only the insured (never the insurer) for compensation in negotiating the settlement of first-party property claims. The PA's compensation is contingent (typically a percentage of the recovery) and capped by 11 NYCRR 25.7 at 12.5% of the recovery (up to 20% on a supplemental claim, so long as the total fee stays within 12.5% of the full claim payment). PAs cannot act as company adjusters or independent (insurer-retained) adjusters — those roles are mutually exclusive.
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