ENGROSSED HOUSE
BILL NO. 1996	By:	Sullivan of the House

			   and

		Brown of the Senate

An Act relating to insurance; amending 36 O.S. 2001, Sections 6202, as amended by Section 23, Chapter 125, O.S.L. 2007, 6203, as amended by Section 40, Chapter 176, O.S.L. 2009 and 6205, as last amended by Section 42, Chapter 176, O.S.L. 2009 (36 O.S. Supp. 2010, Sections 6202, 6203 and 6205), which relate to the Insurance Adjusters Licensing Act; adding definition; modifying exceptions to licensing requirements; prohibiting licensing of certain applicants unless certain conditions are met; and providing an effective date.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1.     AMENDATORY     36 O.S. 2001, Section 6202, as amended by Section 23, Chapter 125, O.S.L. 2007 (36 O.S. Supp. 2010, Section 6202), is amended to read as follows:
Section 6202.  Terms As used in the Insurance Adjusters Licensing Act are defined as follows:
1.  "Commissioner" means the Insurance Commissioner of the state or his or her lawfully authorized representative;
2.  "Adjuster" means either an insurance adjuster or a public adjuster;
3.  "Insurance adjuster" means any person, firm, association, company, or legal entity that acts in this state for an insurer, and that investigates claims, adjusts losses, negotiates claim settlements, or performs incidental duties arising pursuant to the provisions of insurance contracts on behalf of an insurer and includes:
a.	"independent adjusters", meaning any insurance adjuster that suggests or presents to the insurance industry and public that said adjuster acts as an adjuster for a fee or other compensation, and
b.	"company or staff adjusters", meaning adjusters who engage in the investigation, adjustment, and negotiation of claims as salaried employees of an insurer;
4.  "Public adjuster" means any person, firm, association, company, or corporation that suggests or presents to members of the public that said public adjuster represents the interests of an insured or third party for a fee or compensation.  Public adjusters may investigate claims and negotiate losses to property only; 
5.  "Insurer" means any authorized insurance company, corporation, reciprocal group, mutual group, underwriting association or bureau, or any combination thereof, writing or underwriting any insurance contracts; and
6.  “Home state” means the District of Columbia and any state or territory of the United States in which the adjuster’s principal place of residence or principal place of business is located.  If neither the state in which the adjuster maintains the principal place of residence nor the state in which the adjuster maintains the principal place of business has a licensing or examination requirement, the adjuster may declare another state which has an examination requirement and in which the adjuster is licensed to be the “home state”; and
7.  “Automated claims adjudication system” means a preprogrammed computer system designed for the collection, data entry, calculation and final resolution of property insurance claims which:
a.	may only be utilized by a licensed independent adjuster, licensed agent, or individuals supervised by a licensed independent adjuster or licensed agent,
b.	shall comply with all claims payment requirements of the Oklahoma Insurance Code, and
c.	shall be certified as compliant by a licensed independent adjuster.
SECTION 2.     AMENDATORY     36 O.S. 2001, Section 6203, as amended by Section 40, Chapter 176, O.S.L. 2009 (36 O.S. Supp. 2010, Section 6203), is amended to read as follows:
Section 6203.  For the purpose of the Insurance Adjusters Licensing Act, no one shall be deemed to be an adjuster or be required to obtain a license as an adjuster who is The definition of an insurance adjuster shall not be deemed to include, and a license as an insurance adjuster shall not be required of the following:
1.  A licensed agent or general agent of an insurer who processes undisputed or uncontested losses for said insurers solely pursuant to the provisions of policies issued by the agent, or his agency, if the agent or general agent receives no extra compensation for such services; or
2.  Engaged in investigating, adjusting, negotiating, or processing claims arising pursuant to the provisions of life insurance, annuity, or accident and health insurance contracts; or
3.  A nonresident who occasionally is in this state to adjust a single loss or losses arising pursuant to the provisions of a policy of marine insurance; or
4.  A salaried employee of a licensed insurer whose primary duties are not adjusting, investigating, or supervising insurance claims; or
5.  A licensed attorney in the State of Oklahoma who adjusts insurance losses from time to time, incidental to the practice of law, and who does not advertise or represent that he is an adjuster; or
6.  A person employed solely for the purpose of furnishing technical assistance to a licensed adjuster, including but not limited to photographers, appraisers, estimators, private detectives, engineers, handwriting experts, and attorneys-at-law; or 
7.  A person who performs clerical duties for a licensed insurer or organization that handles claims and who does not negotiate disputed or contested claims for the insurer or organization that handles claims; or
8.  A nonresident insurance adjuster who is actively licensed in another state and who is in this state no more than once a year for the purpose of adjusting a single loss or losses arising out of an occurrence common to all such losses, or who is acting as a temporary substitute for a licensed adjuster; or
9.  An individual who collects claim information from, or furnishes claim information to, insured customers or claimants, and who conducts data entry including entering data into an automated claims adjudication system, provided that the individual is an employee of a licensed independent adjuster or an affiliate where no more than twenty-five persons are under the supervision of one licensed independent adjuster or licensed agent who is exempt from licensure pursuant to the requirements of the Insurance Adjusters Licensing Act.
SECTION 3.     AMENDATORY     36 O.S. 2001, Section 6205, as last amended by Section 42, Chapter 176, O.S.L. 2009 (36 O.S. Supp. 2010, Section 6205), is amended to read as follows:
Section 6205.  A.  Application for a license as an adjuster shall be made to the Insurance Commissioner upon forms prescribed and furnished by the Commissioner.  As a part of and in connection with the application, the applicant shall furnish such information concerning the applicant's identity, personal history, business experience, business record and such other pertinent information which the Commissioner shall reasonably require.
B.  Unless denied licensure pursuant to Section 6220 of this title, a nonresident applicant shall receive a nonresident adjuster license if:
1.  The applicant has passed an examination in the applicant’s home state;
2.  The applicant is currently licensed and in good standing in the home state of the applicant;
3.  The applicant has submitted the proper request for licensure and has paid the fees required by Section 6212 of this title; and
4.  The applicant’s home state awards nonresident adjuster licenses to residents of this state on the same basis.
C.  If a nonresident applicant’s home state does not license or require an examination for an adjuster license, the adjuster may declare another state which has an examination requirement and in which the adjuster is licensed to be the home state.  Should the applicant not hold an active adjuster license in his or her home state or declared home state, the applicant shall pass the adjuster examination of this state prior to receiving a nonresident adjuster license.
D.  An individual who is a resident of Canada shall not be licensed pursuant to the Insurance Adjusters Licensing Act nor designate this state as the individual's home state, unless the individual has successfully passed the adjuster examination and has complied with all applicable requirements of the Insurance Adjusters Licensing Act.
SECTION 4.  This act shall become effective November 1, 2011.
Passed the House of Representatives the 17th day of March, 2011.

	
Presiding Officer of the House of
	Representatives

Passed the Senate the ____ day of __________, 2011.

	
Presiding Officer of the Senate