SB1090 - 542R

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

In this article, unless the context otherwise requires:

1. "Adjuster":

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

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

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

(b) Does not include:

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

(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.

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

(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.

(v) An independent contractor retained by a licensed adjuster or a person listed in items (i), through (ii), (iii) and (iv) of this subdivision for the sole purpose of providing technical assistance in connection with a claim. Independent 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 not more than twenty‑five persons, as described in this item, are under the supervision of a single licensed adjuster or licensed producer.

(vii) A licensed insurance producer who is supervising or adjusting supervises or adjusts claims pursuant to this item is not required to be licensed as an adjuster (vi) of this subdivision.

(vii) (viii) Registered third‑party administrators and their employees who are engaged in administering accident and health or life insurance claims.

(ix) An employee of a third‑party administrator or self‑insured employer who adjusts, investigates or negotiates settlement of only workers' compensation claims.

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, a 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. Notwithstanding subsection D of this section, the requirements under this paragraph are waived if the applicant holds a claims certificate issued by a national or state‑based claims association with a certification program that consists of at least forty hours of preexamination course work, a proctored examination of sufficient length to adequately determine the competency of the applicant and at least twenty‑four hours of continuing education required for certification renewals on a biennial basis.

D. An adjuster who is licensed or permitted allowed 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 the submission of the fee and the fingerprints as required by section 20‑285, 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 apply for a license that grants the applicant the authority only to adjust portable electronics insurance claims in this state if the person has obtained an adjuster license in another state that permits allows that person to adjust portable electronics insurance claims in that state. A Canadian resident who qualifies for licensure as an adjuster under this subsection is not subject to section 25‑320, subsection P.

H. An applicant who resides in a state that does not issue licenses to adjusters and who is otherwise permitted allowed to adjust portable electronics insurance claims in the applicant's resident state may apply for a license that grants the applicant the authority only to adjust portable electronics insurance claims in this state. END_STATUTE