California Senate Bill SB1291

California 2017-2018 Regular Session

• Introduced: 2/16/18
• Refer: 3/1/18
• Refer: 3/15/18
• Report Pass: 4/30/18
• Refer: 5/1/18

Caption

Independent insurance adjusters.

Impact

This legislation is expected to impact state laws regarding the licensing and operation of insurance adjusters significantly. By formalizing the educational and ethical standards required for insurance adjusters, the bill aims to enhance the professionalism and reliability of adjusters in California. The creation of new roles, such as the apprentice adjuster, is intended to build a competency pathway for entering the field while ensuring that the public is well-served by knowledgeable professionals. The changes prescribed by the bill also streamline administrative processes associated with licensing and compliance oversight by the Department of Insurance.

Summary

Senate Bill 1291, introduced by Senator Dodd, proposes significant amendments to the existing Insurance Adjuster Act, redefining the role and responsibilities of independent insurance adjusters in California. The bill aims to establish clearer licensing requirements, including the introduction of an apprentice independent insurance adjuster license, which is designed to provide prospective adjusters with necessary training and experience. It reinforces the criteria under which individuals can qualify for such licenses and extends reporting and continuing education requirements to maintain active license status, particularly emphasizing the importance of compliance for those adjusting property and casualty claims.

Sentiment

The sentiment surrounding SB 1291 appears generally supportive among stakeholders who recognize the need for more stringent standards in the insurance adjusting industry. Advocates argue that the bill will ultimately protect consumers and ensure that insurance claims are handled professionally. However, there may also be concerns regarding the potential burden of the additional fees and educational requirements imposed on new and current adjusters, reflecting a mixed sentiment regarding accessibility within the profession.

Contention

One notable point of contention surrounding SB 1291 is its establishment of felony charges for individuals who falsify information during the licensing process. This aspect raises concerns about the strictness of penalties and the implications for those who may inadvertently make errors during their applications. Additionally, while supporters laud the reforms for enhancing consumer protections, some critics may question whether the bill could inadvertently limit the supply of adjusters due to the new regulatory burdens imposed.