Bill Text: CA SB1291 | 2017-2018 | Regular Session | Introduced
Bill Title: Independent insurance adjusters.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-05-25 - May 25 hearing: Held in committee and under submission. [SB1291 Detail]
Download: California-2017-SB1291-Introduced.html
Senate Bill | No. 1291 |
Introduced by Senator Dodd |
February 16, 2018 |
LEGISLATIVE COUNSEL'S DIGEST
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 1722 of the Insurance Code is amended to read:1722.
If a natural person while licensed pursuant to the provisions of this chapter or Chapter 6 (commencing with Section 1760), Chapter 7 (commencing with Section 1800), or Chapter 8 (commencing with Section 1831) of this part, Part 5 (commencing with Section 12140) of Division 2, or Chapter 1 (commencing with Section 14000) or Chapter 2 (commencing with Section 15000) of Division 5 enters the military service of the United States and is in that service at a time prescribed for the filing of a renewal application, the filing of that application is waived, and the license held by that licensee at the time of his or her entry into military service shall remain in force during the period of that military service and until the end of the license year in which he or she is released from that service but not for less than six months after that release. During thatSEC. 2.
Section 1751.5 of the Insurance Code is amended to read:1751.5.
The fees required by this chapter and by Chapter 6 (commencing with Section 1760), Chapter 7 (commencing with Section 1800), and Chapter 8 (commencing with Section 1831) of this part, and by Chapter 1 (commencing with Section 14000) and Chapter 2 (commencing with Section 15000) of Division 5 are filing fees, no portion of which shall be refunded whether or not the application is acted upon or the examination is taken.SEC. 3.
Section 14000 of the Insurance Code is amended to read:14000.
This chapter may be cited as the Independent Insurance Adjuster Act.SEC. 4.
Section 14001 of the Insurance Code is repealed.As used in this chapter:
(a)“Commissioner” means the Insurance Commissioner.
(b)“Department” means the Department of Insurance.
(c)“Licensee” means a person licensed under this chapter.
(d)“Manager” means the individual under whose direction, control, charge, or management the business of a licensee is operated.
(e)“Person” includes any individual, firm, company, association, organization, partnership, limited liability company, and corporation.
SEC. 5.
Section 14001 is added to the Insurance Code, to read:14001.
As used in this chapter, the following terms have the following meanings:SEC. 6.
Section 14010 of the Insurance Code is repealed.The department succeeds to and is vested with all the duties, powers, purposes, responsibilities, and jurisdiction previously vested in the Bureau of Collection and Investigative Services with respect to the licensing of insurance adjusters.
Any reference to prior licensing shall be deemed to licensing under the Private Investigator and Adjuster Act.
The commissioner shall administer and enforce the provisions of this chapter.
SEC. 7.
Section 14010 is added to the Insurance Code, to read:14010.
The commissioner shall administer and enforce the provisions of this chapter.SEC. 8.
Section 14020 of the Insurance Code is amended to read:14020.
No
SEC. 9.
Section 14021 of the Insurance Code is repealed.An insurance adjuster within the meaning of this chapter is a person other than a private investigator as defined in Section 7521 of the Business and Professions Code who, for any consideration whatsoever, engages in business or accepts employment to furnish, or agrees to make, or makes, any investigation for the purpose of obtaining, information in the course of adjusting or otherwise participating in the disposal of, any claim under or in connection with a policy of insurance on behalf of an insurer or engages in soliciting insurance adjustment business or aids an insurer in any manner with reference to:
Crime or wrongs done or threatened against the United States of America or any state or territory of the United States of America; the identity, habits, conduct, business, occupation, honesty, integrity, credibility, knowledge, trustworthiness, efficiency, loyalty, activity, movement, whereabouts, affiliations, associations, transactions, acts, reputation, or character of any person; the location, disposition, or recovery of lost or stolen property; the cause or responsibility for fires, libels, losses, accidents, or damage or injury to persons or to property; or securing evidence to be used before any court, board, officer, or investigating committee.
Notwithstanding any other provision of law, this section is in no way intended to limit the ability of a duly licensed independent insurance adjuster to perform the duties of an independent insurance adjuster for any other entity.
SEC. 10.
Section 14021 is added to the Insurance Code, to read:14021.
An independent insurance adjuster, for purposes of this chapter, is to meet all of the following requirements:SEC. 11.
Section 14022 of the Insurance Code is amended to read:14022.
This chapter does not apply(g)Admitted insurers and agents and insurance brokers licensed by the state, performing duties in connection with insurance transacted by them.
(h)
(i)
(j)
(k)
SEC. 12.
Section 14022.5 of the Insurance Code is amended to read:14022.5.
(a) In the event of an emergency situation as declared by the commissioner, claims arising out of the emergency, catastrophe, disaster, or other similar occurrence may be adjusted by a nonlicensed independent insurance adjuster upon registration with the commissioner if all of the following requirements are met:SEC. 13.
Section 14024 of the Insurance Code is repealed.An application shall be verified and shall include:
(a)The full name and business address of the applicant.
(b)The name under which applicant intends to do business.
(c)A statement as to the general nature of the business in which the applicant intends to engage.
(d)A statement as to the classification or classifications under which the applicant desires to be qualified.
(e)If the applicant is a person other than an individual, the full name and residence address of each of its partners, officers, and directors, and its manager.
(f)Two recent photographs of the applicant, of a type prescribed by the commissioner, and two classifiable sets of his or her fingerprints.
(g)A verified statement of his or her experience qualifications.
(h)Such other information, evidence, statements, or documents as may be required by the commissioner.
SEC. 14.
Section 14024 is added to the Insurance Code, to read:14024.
(a) An individual application shall be verified and shall include all of the following:SEC. 15.
Section 14025 of the Insurance Code is repealed.Before an application for a license is granted, the applicant, or his or her manager, shall meet all of the following:
(a)Be at least 18 years of age.
(b)Not have committed acts or crimes constituting grounds for denial of licensure under Section 480 of the Business and Professions Code.
(c)Shall have had at least two years of experience in adjusting insurance claims or the equivalent thereof as determined by the commissioner.
(d)Comply with such other qualifications as the commissioner may fix by rule.
SEC. 16.
Section 14025 is added to the Insurance Code, to read:14025.
Before a license is granted, the applicant shall meet all of the following requirements:SEC. 17.
Section 14025.1 is added to the Insurance Code, to read:14025.1.
(a) The apprentice independent insurance adjuster license is a license to facilitate the experience, education, and training necessary to ensure reasonable competency in the responsibilities and duties of an independent insurance adjuster.SEC. 18.
Section 14026 of the Insurance Code is repealed.The commissioner may require an applicant, or his or her manager, to demonstrate his or her qualifications by a written or oral examination, or a combination of both.
SEC. 19.
Section 14026 is added to the Insurance Code, to read:14026.
(a) An applicant for an independent insurance adjuster license, unless applying for an apprentice independent insurance adjuster license or crop insurance adjuster license, shall pass a written examination.SEC. 20.
Section 14027 of the Insurance Code is repealed.Payment of the application fee prescribed by this chapter entitles an applicant, or his or her manager, to one examination without further charge. If the person fails to pass the examination, he or she shall not be eligible for any subsequent examination except upon payment of the reexamination fee prescribed by this chapter for each such subsequent examination.
SEC. 21.
Section 14028 of the Insurance Code is amended to read:14028.
After a(a)Committed any acts or crimes constituting grounds for denial of licensure under Section 480 of the Business and Professions Code.
(b)
(c)
(d)
(e)
SEC. 22.
Section 14029 of the Insurance Code is amended to read:14029.
(a) The business of each licensee shall be operated under the active direction, control, charge, or management of the licensee, if the licensee is qualified, or the person who has qualified to act as the licensee’s manager, if the licensee is not qualified.SEC. 23.
Section 14029 is added to the Insurance Code, to read:14029.
(a) Each organization licensed under this chapter shall designate an individual also licensed as an independent insurance adjuster to be responsible for the organization’s compliance with state law.SEC. 24.
Section 14030 of the Insurance Code is amended to read:14030.
(a) Whenever the individual on the basis of whose qualifications a license under this chapter has been obtained ceases to be connected with the licensee for any reason whatever, the business may be carried on forSEC. 25.
Section 14031 of the Insurance Code is amended to read:14031.
SEC. 26.
Section 14032 of the Insurance Code is amended to read:14032.
The form and content of the license shall be determined by theSEC. 27.
Section 14037 of the Insurance Code is amended to read:14037.
(a) A licensee shall at all times be legally responsible for the good conduct in the business of each of his or her employees or agents, including his or her manager.SEC. 28.
Section 14038 of the Insurance Code is amended to read:14038.
(a) Any licensee or officer, director, partner, or manager of a licensee may divulge to any law enforcement officer or district attorney, or to his or her representative, any information he or she may acquire as to any criminalSEC. 29.
Section 14038 is added to the Insurance Code, to read:14038.
(a) Any licensee or officer, director, or partner of a licensee may divulge to any law enforcement officer or district attorney, or to his or her representative, any information he or she may acquire as to any criminal offense. However, he or she shall not divulge to any other person any information acquired by him or her, except as he or she may be required by law to do so or as is necessary to effectuate or enforce a transaction, except at the direction of the employer or client for whom the information was obtained and only if authorized by the insured.SEC. 30.
Section 14039 of the Insurance Code is amended to read:14039.
SEC. 31.
Section 14040 of the Insurance Code is amended to read:14040.
(a) Any badge or cap insignia worn by a person who is a licensee, officer, director, partner, manager, or employee of a licensee shall be of a design approved by the commissioner, and shall bear on its face a distinctive word indicating the name of the licensee and an employee number by whichSEC. 32.
Section 14040 is added to the Insurance Code, to read:14040.
(a) Any badge or cap insignia worn by a person who is a licensee, officer, director, or partner of a licensee shall be of a design approved by the commissioner, and shall bear on its face a distinctive word indicating the name of either the licensee or the adjusting firm the licensee represents.SEC. 33.
Section 14042 of the Insurance Code is amended to read:14042.
(a) A licensee shall not conduct a business under a fictitious or other business name unless and until he or she has obtained the written authorization of the commissioner to do so. The
The
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The
SEC. 34.
Section 14050 of the Insurance Code is amended to read:14050.
SEC. 35.
Section 14061 of the Insurance Code is amended to read:14061.
(a) The commissioner may suspend or revoke a license issued under this chapter or may issue a restricted license in accordance with Section 14026.5 if he or she determines that the licensee, or his or her manager, if an individual, or if the licensee is a person other than an individual, that any of its officers, directors, partners, or its(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
(l)
SEC. 36.
Section 14061 is added to the Insurance Code, to read:14061.
(a) The commissioner may suspend or revoke a license issued under this chapter or may issue a restricted license in accordance with Section 14026.5 if he or she determines that the licensee or if the licensee is a person other than an individual, that any of its officers, directors, partners, or its designated responsible person has done any of the following:SEC. 37.
Section 14063 of the Insurance Code is amended to read:14063.
(a) The commissioner may suspend or revoke a license issued under this chapter or may issue a restricted license in accordance with Section 14026.5 if the commissioner determines that the licensee, or his or her manager, if an individual, or if the licensee is a person other than an individual, that any of its officers, directors, partners, or its(a)
(b)
SEC. 38.
Section 14063 is added to the Insurance Code, to read:14063.
(a) The commissioner may suspend or revoke a license issued under this chapter or may issue a restricted license in accordance with Section 14026.5 if the commissioner determines that the licensee, if an individual, or if the licensee is a person other than an individual, that any of its officers, directors, or partners has done any of the following:SEC. 39.
Section 14064 of the Insurance Code is amended to read:14064.
(a) The commissioner may suspend or revoke a license issued under this chapter or may issue a restricted license in accordance with Section 14026.5 if the commissioner determines that the licensee, or his or her manager, if an individual, or if the licensee is a person other than an individual, that any of its officers, directors, partners, or its manager, has committed any act in the course of the licensee’s business constituting dishonesty or fraud.“Dishonesty
(a)
(b)
(c)
(d)
(e)
SEC. 40.
Section 14064 is added to the Insurance Code, to read:14064.
(a) The commissioner may suspend or revoke a license issued under this chapter or may issue a restricted license in accordance with Section 14026.5 if the commissioner determines that the licensee, if an individual, or if the licensee is a person other than an individual, that any of its officers, directors, partners, or its designated responsible person has committed any act in the course of the licensee’s business constituting dishonesty or fraud.SEC. 41.
Section 14078 of the Insurance Code is repealed.As used in this article, “nonresident” means a person who is not a resident of this state at the time of the performance of the act referred to in Section 14071.