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 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. "Home state" has the same meaning prescribed in section 20‑281.

4. "Nonresident" has the same meaning prescribed in section 20-281.

5. "Resident" has the same meaning prescribed in section 20-281.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 fingerprints and the fee 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.END_STATUTE

Sec. 3. Renumber

Section 20‑321.02, Arizona Revised Statutes, is renumbered as section 20‑321.06.

Sec. 4. Title 20, chapter 2, article 3.2, Arizona Revised Statutes, is amended by adding a new section 20-321.02 and sections 20-321.03, 20-321.04 and 20-321.05, to read:

START_STATUTE20-321.02. Application for examination

A. A resident applying for an insurance adjuster license shall pass an examination within the one year period that precedes the date the director received the individual's license application unless the individual is exempt from examination pursuant to section 20‑321.04. The examination shall test the knowledge of the individual concerning the duties and responsibilities of an insurance adjuster and the insurance laws of this state.

B. The director shall make the examination available to applicants for licenses with such frequency as meets the reasonable convenience of both the director and applicants, but at least every sixty days. The director may reasonably prescribe by rule the time, places and conduct of examinations.

C. The director shall ensure that all examinations are given, conducted and graded in a fair and impartial manner and without unfair discrimination as among individuals examined. At the director's discretion, any written examination may be supplemented by an oral examination of the applicant. The director shall inform the applicant of the result of the examination within thirty days after the examination.

D. The director may appoint one or more advisory committees to make recommendations to the director as to the scope, type and conduct of written examinations under this article. The members of the committee shall serve without compensation and without expense to this state.

E. An individual who fails to appear for the examination as scheduled or who fails to pass the examination shall reapply for an examination and remit all required fees and forms before being rescheduled for another examination.

F. The director may require a reasonable waiting period before examination of an applicant who failed to pass a previous similar examination. The director shall not allow an individual to take an examination more than four times within a twelve month period. If an individual fails an examination four times, the individual may not take an examination for one year.END_STATUTE

START_STATUTE20-321.03. Nonresident licensing

A. The director shall issue a nonresident person a nonresident adjuster license if all of the following apply:

1. The person is currently licensed as a resident and in good standing in the person's home state.

2. The person has submitted the proper request for licensure and has paid the prescribed fees.

3. The person has submitted the application for licensure as an insurance adjuster that the person submitted to the person's home state or a completed uniform application on a form prescribed by the national association of insurance commissioners.

4. The person's home state issues nonresident adjuster licenses to residents of this state on the same basis.

B. A nonresident insurance adjuster who moves from one state to another state or a resident insurance adjuster who moves from this state to another state shall file a change of address form as prescribed in section 20‑286, subsection C and provide the director with certification of licensure from the new resident state within thirty days after receiving the new resident license. A fee or license application is not required.

C. Except as otherwise provided in this title, a nonresident licensee is subject to the requirements of this title as though the licensee were licensed as a resident.END_STATUTE

START_STATUTE20-321.04. Exemption from examination

A. An individual who applies for an insurance adjuster license in this state and who was previously licensed in another state is not required to take an examination if one of the following applies:

1. The applicant is currently licensed in another state.

2. The application is received within ninety days after the cancellation of the applicant's previous license and the other state issues a certification that at the time of cancellation the applicant was in good standing in that state.

3. The director receives other reliable information that indicates that the applicant was licensed in good standing.

B. The following applicants are not required to take an examination:

1. An applicant for timely renewal of a license.

2. An applicant for the same type of license for which the applicant was licensed in this state, other than under a temporary license, within the twelve months preceding the date of application.

3. An applicant for a license as a nonresident insurance adjuster who meets the requirement of section 20‑321.03, subsection A.END_STATUTE

START_STATUTE20-321.05. Reciprocity

The director shall waive any requirements of this chapter, except the requirements prescribed in section 20‑321.03, for a nonresident license applicant who holds a license in good standing from the applicant's home state if the applicant's home state issues nonresident licenses to residents of this state on the same basis. END_STATUTE

Sec. 5. Section 25-320, Arizona Revised Statutes, is amended to read:

START_STATUTE25-320. Child support; factors; methods of payment; additional enforcement provisions; definitions

A. In a proceeding for dissolution of marriage, legal separation, maintenance or child support, the court may order either or both parents owing a duty of support to a child, born to or adopted by the parents, to pay an amount reasonable and necessary for support of the child, without regard to marital misconduct.

B. If child support has not been ordered by a child support order and if the court deems child support appropriate, the court shall direct, using a retroactive application of the child support guidelines to the date of filing a dissolution of marriage, legal separation, maintenance or child support proceeding, the amount that the parents shall pay for the past support of the child and the manner in which payment shall be paid, taking into account any amount of temporary or voluntary support that has been paid. Retroactive child support is enforceable in any manner provided by law.

C. If the parties lived apart before the date of the filing for dissolution of marriage, legal separation, maintenance or child support and if child support has not been ordered by a child support order, the court may order child support retroactively to the date of separation, but not more than three years before the date of the filing for dissolution of marriage, legal separation, maintenance or child support. The court must first consider all relevant circumstances, including the conduct or motivation of the parties in that filing and the diligence with which service of process was attempted on the obligor spouse or was frustrated by the obligor spouse. If the court determines that child support is appropriate, the court shall direct, using a retroactive application of the child support guidelines, the amount that the parents must pay for the past support of the child and the manner in which payments must be paid, taking into account any amount of temporary or voluntary support that has been paid.

D. The supreme court shall establish guidelines for determining the amount of child support. The amount resulting from the application of these guidelines is the amount of child support ordered unless a written finding is made, based on criteria approved by the supreme court, that application of the guidelines would be inappropriate or unjust in a particular case. The supreme court shall review the guidelines at least once every four years to ensure that their application results in the determination of appropriate child support amounts. The supreme court shall base the guidelines and criteria for deviation from them on all relevant factors, including:

1. The financial resources and needs of the child.

2. The financial resources and needs of the custodial parent.

3. The standard of living the child would have enjoyed had the marriage not been dissolved.

4. The physical and emotional condition of the child, and the child's educational needs.

5. The financial resources and needs of the noncustodial parent.

6. The medical support plan for the child. The plan should include the child's medical support needs, the availability of medical insurance or services provided by the Arizona health care cost containment system and whether a cash medical support order is necessary.

7. Excessive or abnormal expenditures, destruction, concealment or fraudulent disposition of community, joint tenancy and other property held in common.

8. The duration of parenting time and related expenses.

E. Even if a child is over the age of majority when a petition is filed or at the time of the final decree, the court may order support to continue past the age of majority if all of the following are true:

1. The court has considered the factors prescribed in subsection D of this section.

2. The child is severely mentally or physically disabled as demonstrated by the fact that the child is unable to live independently and be self-supporting.

3. The child's disability began before the child reached the age of majority.

F. If a child reaches the age of majority while the child is attending high school or a certified high school equivalency program, support shall continue to be provided during the period in which the child is actually attending high school or the equivalency program but only until the child reaches nineteen years of age unless the court enters an order pursuant to subsection E of this section. Notwithstanding any other law, a parent paying support for a child over the age of majority pursuant to this section is entitled to obtain all records related to the attendance of the child in the high school or equivalency program.

G. If a personal check for support payments and handling fees is rightfully dishonored by the payor bank or other drawee, the person obligated to pay support shall make any subsequent support payments and handling fees only by cash, money order, cashier's check, traveler's check or certified check. If a person required to pay support other than by personal check demonstrates full and timely payment for twenty‑four consecutive months, that person may pay support by personal check if these payments are for the full amount, are timely tendered and are not rightfully dishonored by the payor bank or other drawee.

H. Subsection G of this section does not apply to payments made by means of an assignment.

I. If after reasonable efforts to locate the obligee the clerk or support payment clearinghouse is unable to deliver payments for the period prescribed in section 25‑503 due to the failure of the person to whom the support has been ordered to be paid to notify the clerk or support payment clearinghouse of a change in address, the clerk or support payment clearinghouse shall not deliver further payments and shall return the payments to the obligor consistent with the requirements of section 25‑503.

J. An order for child support shall assign responsibility for providing medical insurance for the child who is the subject of the support order to one of the parents and shall assign responsibility for the payment of any medical costs of the child that are not covered by insurance according to the child support guidelines. Each parent shall provide information to the court regarding the availability of medical insurance for the child that is accessible and available at a reasonable cost. In title IV‑D cases, the parent responsible pursuant to court order for providing medical insurance for the child shall notify the child support enforcement agency in the department of economic security if medical insurance has been obtained or if the child is no longer covered under an insurance plan.

K. If the court finds that neither parent has the ability to obtain medical insurance for the child that is accessible and available at a reasonable cost, the court shall:

1. In a title IV-D case, in accordance with established title IV‑D criteria, establish a reasonable monthly cash medical support order to be paid by the obligor. If medical assistance is being provided to a child under title XIX of the social security act, cash medical support is assigned to the state pursuant to section 46‑407. On verification that the obligor has obtained private insurance, the cash medical support order terminates by operation of law on the first day of the month after the policy's effective date or on the date the court, or the department in a title IV-D case, is notified that insurance has been obtained, whichever is later. If the private insurance terminates, the cash medical support order automatically resumes by operation of law on the first day of the month following the termination date of the policy.

2. Order one parent to provide medical insurance when it becomes accessible and available at a reasonable cost.

3. Order that medical costs in excess of the cash medical support amount shall be paid by each parent according to the percentage assigned for payment of uninsured costs.

L. In a title IV-D case, if the court orders the noncustodial parent to obtain medical insurance the court shall also set an alternative cash medical support order to be paid by that parent if the child is not covered under an insurance plan within ninety days after entry of the order or if the child is no longer covered by insurance. The court shall not order the custodial parent to pay cash medical support.

M. In title IV‑D cases the superior court shall accept for filing any documents that are received through electronic transmission if the electronically reproduced document states that the copy used for the electronic transmission was certified before it was electronically transmitted.

N. The court shall presume, in the absence of contrary testimony, that a parent is capable of full‑time employment at least at the applicable state or federal adult minimum wage, whichever is higher. This presumption does not apply to noncustodial parents who are under the age of eighteen and who are attending high school.

O. An order for support shall provide for an assignment pursuant to sections 25‑504 and 25‑323.

P. Notwithstanding title 20, chapter 2, article 3.2 as it relates to licensing Canadian residents, each licensing board or agency that issues professional, recreational or occupational licenses or certificates shall record on the application the social security number of the applicant and shall enter this information in its database in order to aid the department of economic security in locating parents or their assets or to enforce child support orders. This subsection does not apply to a license that is issued pursuant to title 17 and that is not issued by an automated drawing system. If a licensing board or agency allows an applicant to use a number other than the social security number on the face of the license or certificate while the licensing board or agency keeps the social security number on file, the licensing board or agency shall advise an applicant of this fact.

Q. For the purposes of this section:

1. "Accessible" means that insurance is available in the geographic region where the child resides.

2. "Child support guidelines" means the child support guidelines that are adopted by the state supreme court pursuant to 42 United States Code sections 651 through 669B.

3. "Date of separation" means the date the married parents ceased to cohabit.

4. "Reasonable cost" means an amount that does not exceed the higher of five per cent of the gross income of the obligated parent or an income‑based numeric standard that is prescribed in the child support guidelines.

5. "Support" has the same meaning prescribed in section 25‑500.

6. "Support payments" means the amount of money ordered by the court to be paid for the support of the minor child or children. END_STATUTE