ARIZONA STATE
SENATE
Fifty-Fourth
Legislature, Second Regular Session
insurance adjusters; claims
certificate
Purpose
Waives the examination requirement
for adjuster license applicants who hold a claims certificate that meets
outlined criteria.
Background
Statute prohibits a person from acting as or
claiming to be an adjuster unless the
person obtains a license from the Director of the Department of Insurance
(DOI), with certain exceptions. Individuals applying for an adjuster license
must: 1) be at least 18 years old; 2) be an Arizona resident or be a resident
of another state that allows Arizona residents to act as adjusters in that
state; and 3) take and pass an examination that is given by or under the
supervision of the Director of DOI that reasonably tests the individual's
knowledge of insurance and legal responsibilities as an adjuster (A.R.S. § 20-321.01).
An adjuster is a person who is paid to adjust, investigate or
negotiate settlements of claims under property and casualty insurance contracts
on behalf of an insurer or an insured and is not:
1) a licensed attorney-at-law who is qualified to practice law in Arizona; 2) a
salaried employee of an insurer or of a managing general agent whose
compensation is not contingent on the outcome of a claim determination; 3) a
licensed insurance producer who adjusts or assists in adjustment of losses
arising under policies procured through the insurance producer; 4) 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) an independent contractor who
solely provides technical assistance in connection with a claim; 6) a person
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 25 of these persons are
under the supervision of a licensed adjuster or licensed insurance producer; or
7) a registered third-party administrator and their employees who engage in
administering accident and health or life insurance claims. Currently, a
licensed insurance producer who supervises no more than 25 persons who collect
and conduct claim data is not required to obtain an adjuster license (A.R.S. § 20-321).
There is no anticipated fiscal
impact to the state General Fund associated with this legislation.
Provisions
1.
Waives
the requirement that an adjuster license applicant take and pass an examination
that is given by or under the supervision of the Director of DOI, if the
applicant holds a claims certificate issued by a national or state-based claims
association with a certification program that consists of:
a)
at least
40 hours of pre-examination course work;
b) a proctored examination of sufficient length
to adequately determine the competency of the applicant; and
c)
at least
24 hours of continuing education that is required for certification renewals on
a biennial basis.
2.
Excludes,
from the definition of adjuster, a
salaried employee of a third-party administrator or self-insured employer who
adjusts, investigates or negotiates settlement of workers' compensation claims.
3.
Excludes,
from the definition of adjuster, a licensed insurance producer who
supervises no more than 25 persons who collect and conduct claim data.
4.
Makes
technical and conforming changes.
5.
Becomes
effective on the general effective date.
Prepared by Senate Research
January 17, 2020
MG/AB/kja