SB1400 - 501R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 20-321, Arizona Revised Statutes, is amended to read:

START_STATUTE20-321. Definitions

A. In this article, unless the context otherwise requires: ,

1. "Adjuster":

(a) Means any person who for compensation, fee or commission either:

1. (i) Adjusts, investigates or negotiates settlement of claims arising under insurance contracts on behalf of either the insurer or the insured.

2. (ii) Holds oneself out to perform a service listed in paragraph 1 of this subsection item (i) of this subdivision.

B. (b) For the purposes of this article, an adjuster Does not include:

1. (i) A licensed attorney‑at‑law who is qualified to practice law in this state.

2. (ii) A salaried employee of an insurer or of a managing general agent. For the purposes of this item, "salaried employee" means an employee whose compensation is not contingent on the outcome of a claim determination.

3. (iii) A licensed insurance producer who adjusts or assists in adjustment of losses arising under policies procured through the insurance producer.

4. (iv) An employee of a political subdivision who adjusts or assists in the adjustment of losses arising under policies covering the political subdivision or persons indemnified by the political subdivision.

5. (v) An independent contractor retained by a licensed adjuster or a person listed in paragraphs 1 items (i) through 4 (iv) of this subsection subdivision for the sole purpose of providing technical assistance in connection with a claim. An Independent contractor contractors may include photographers, estimators, engineers, private detectives or handwriting experts.

(vi) An individual who collects claim information from or furnishes claim information to insureds or claimants and who conducts data entry, including entering data into an automated claims adjudication system, if no more than twenty‑five persons, as described in this item, are under the supervision of a single licensed adjuster or licensed producer. A licensed insurance producer who is supervising or adjusting claims pursuant to this item is not required to be licensed as an adjuster.

C. For the purposes of subsection B, "salaried employee" means an employee whose compensation is not contingent on the outcome of a claim determination.

2. "Automated claims adjudication system" means a preprogrammed computer system that is designed for the collection, data entry, calculation and final resolution of portable consumer electronic products insurance claims and that:

(a) May be used only by a licensed adjuster, licensed producer or supervised individuals operating pursuant to this paragraph.

(b) Must comply with all claims payment requirements under this title and be certified as compliant by a licensed adjuster.

3. "Portable consumer electronic products" means electronic devices and related accessories that are portable in nature. END_STATUTE

Sec. 2. Section 20-321.01, Arizona Revised Statutes, is amended to read:

START_STATUTE20-321.01. Licensing of adjusters; qualifications; exemption

A. A person shall not act as or claim to be an adjuster unless the person is licensed under this article.

B. To obtain a license as an adjuster a person shall apply to the director for the license and use the forms prescribed and provided by the director. The director shall issue the license to qualified persons on payment of the license fee prescribed in section 20‑167.

C. To be licensed as an adjuster the applicant shall meet all of the following qualifications:

1. Be a person who is at least eighteen years of age.

2. Be a resident of this state, or a resident of another state that allows residents of this state to act as adjusters in the other state.

3. Take and pass an examination that is given by or under the supervision of the director and that reasonably tests the applicant's knowledge of insurance and legal responsibilities as an adjuster and otherwise comply with section 20‑321.02.

4. Have and maintain in this state an office accessible to the public and keep at the office the usual and customary records pertaining to transactions under the license. This paragraph does not prohibit maintaining an office in the home of the licensee.

D. A firm or corporation, whether or not organized under the laws of this state, may be licensed as an adjuster if each individual who is to exercise the license powers is qualified for an individual license as an adjuster.

E. D. An adjuster who is licensed or permitted to act as an adjuster in the state of the adjuster's domicile is not required to be licensed pursuant to this section or meet the qualifications prescribed in this section if the adjuster is sent to this state on behalf of an insurer for the purpose of investigating or making adjustment of a particular loss under an insurance policy or a series of losses resulting from a catastrophe common to all those losses.

E. To determine license eligibility, the director may require fingerprints of applicants and submit the fee and the fingerprints as required by section 20‑285, subsection E, paragraph 2.

F. The director may contract with nongovernmental entities to perform any ministerial functions, including collection of fees and data related to licensing, that the director deems appropriate.

G. A resident of Canada may not be licensed as a nonresident adjuster unless the person has obtained a resident adjuster license in another state and designated that state as the person's home state. A canadian resident who qualifies for licensure as an adjuster under this subsection need not comply with section 25-320, subsection P. END_STATUTE

Sec. 3. Section 20-321.02, Arizona Revised Statutes, is amended to read:

START_STATUTE20-321.02. Application of other laws

To the extent not inconsistent with permitted by this article, section sections 20‑281 and 20-284, section 20‑286, subsections B, C and D and sections 20-287, 20-288, 20‑289, 20‑289.01, 20‑291, 20‑292, 20‑295, 20‑296, 20‑297, 20‑299, 20‑301 and 20‑302 apply to adjusters. END_STATUTE