In the first post on this topic, I wrote about the Florida statute regarding the definition for independent adjuster and how that legal definition can be misunderstood by the public. So I got to thinking, how many other states have similar laws? I next reviewed is the state of New York, which is where I was born and raised near Buffalo, New York.

New York ISC Law Section 2108 (3) states:

No adjuster shall act on behalf of an insurer unless licensed as an "independent adjuster". . . .

Again I am baffled by this definition because to me the public at large (at least folks I have discussed the topic with or been involved in insurance claims with) has an understanding when they hear the term “independent adjuster” that it is someone independent of the insurance company. Now I realize that technically an independent adjuster is independent of the insurance carrier in the sense they are a separate entity or they work for a separate entity. I also understand and agree there are many independent adjusters (as reflected by some comments to the first post on this topic by Mr. Max Bray, AIC and James W. Greer, CPCU) in the industry who strive to do their best estimation of the damages and the cost to restore the property without necessarily favoring one side or the other.

But back to the public perception; I just wonder why the term “independent adjuster” came into use in the industry as it has if they by definition work on behalf of an insurance carrier solely and they derive their business and livelihood from the work they get from an insurance carrier. Would you agree that an elderly widow, with her first ever claim for her residence, may have a misconception about who the independent adjuster is working for as she has never been involved in a claim before?