SLS 10RS-625 ORIGINAL
Page 1 of 8
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2010
SENATE BILL NO. 662
BY SENATOR HEBERT
INSURANCE CLAIMS. Provides with respect to claims adjusters. (08/15/10)
AN ACT1
To amend and reenact R.S. 22:1661, 1662, 1664(C), 1665 (D), and 1667(A) and to enact2
R.S. 22:1665(E), relative to claims adjusters; to provide with respect to definitions3
and general exemptions; to provide for application for claims adjuster license and4
resident license; to provide with respect to catastrophe or emergency claims adjuster5
registration; and to provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 22:1661, 1662, 1664(C), 1665(D) and 1667(A) are hereby amended8
and reenacted and R. S. 22:1665(E) is hereby enacted to read as follows:9
§1661. Definitions10
As used in this Part, unless the context requires otherwise, the following11
definitions shall be applicable:12
(1) "Adjuster" means an individual a person who investigates or adjusts13
losses on behalf of an insurer as an independent contractor or as an employee of:14
(a) An adjustment bureau;15
(b) An association;16
(c) A property and casualty producer;17 SB NO. 662
SLS 10RS-625 ORIGINAL
Page 2 of 8
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
(d) An independent contractor;1
(e) An insurer; or2
(f) A managing general agent.3
(2) "Business entity" means a corporation, association, partnership, limited4
liability company, limited liability partnership or other legal entity.5
(3) "Catastrophe" means an event that results in large numbers of6
deaths or injuries; causes extensive damage or destruction of facilities that7
provide and sustain human needs; produces an overwhelming demand on state8
and local response resources and mechanisms; causes a severe long-term effect9
on general economic activity; or severely affects state, local and private sector10
capabilities to begin and sustain response activities. A catastrophe shall be11
declared by the governor of the state, district, or territory in which the12
catastrophe occurred.13
(3) (4) "Fingerprints" means an impression of the lines on the finger taken for14
purpose of identification. The impression may be electronic or in ink converted to15
electronic format.16
(4)(5) "Home state" means the District of Columbia and any state or territory17
of the United States in which the adjuster's principal place of residence or principal18
place of business is located. If neither the state in which the adjuster maintains the19
principal place of residence nor the state in which the adjuster maintains the principal20
place of business has a substantially similar law governing adjusters, the adjuster21
may declare another state in which he becomes licensed and acts as an adjuster to be22
the "home state".23
(5)(6) "Individual" means a natural person.24
(6)(7) "Insurer" means any type of insurer authorized or approved25
unauthorized to conduct business in this state.26
(7)(8) "Person" means an individual or a business entity.27
(8)(9) "Uniform individual application" means the current version of the28
National Association of Insurance Commissioners (NAIC) Uniform Individual29 SB NO. 662
SLS 10RS-625 ORIGINAL
Page 3 of 8
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Application for resident and nonresident individuals.1
(9)(10) "Uniform business entity application" means the current version of2
the National Association of Insurance Commissioners (NAIC) Uniform Business3
Entity Application for resident and nonresident business entities.4
§1662. General exemptions5
This Part does not apply to:6
(1) An attorney at law admitted to practice in this state, when acting in his7
professional capacity as an attorney.8
(2) An officer or director of an authorized insurer, surplus lines insurer,9
or risk retention group.10
(2) (3) An employee of an insurer who is not regularly engaged in the11
adjustment or investigation of insurance claims.12
(3)(4) A person employed only to furnish technical assistance to a licensed13
adjuster, including but not limited to an investigator, an attorney, an engineer, an14
estimator, a handwriting expert, a photographer, and a private detective.15
(4)A producer of an authorized insurer or a licensed employee of a producer16
who processes an undisputed or uncontested loss for the insurer under a policy issued17
by the producer.18
(5) A licensed insurance producer, attorney-in-fact of a reciprocal19
insurer, or managing general agent of the insurer, to whom claim authority has20
been granted by the insurer.21
(5) (6) A person who performs clerical duties and does not negotiate with22
parties on disputed or contested claims.23
(7) A person who collects claim information from, or furnishes claim24
information to, insured or claimants, and who conducts data entry including25
entering data into an automated claims adjudication system provided such26
person is an employee of a licensed adjuster, or an employee of an affiliate of a27
licensed adjuster, if there are no more than twenty-five persons under the28
supervision of one licensed individual adjuster or licensed producer who is29 SB NO. 662
SLS 10RS-625 ORIGINAL
Page 4 of 8
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
exempt from licensure, pursuant to Paragraph 5 of this Section. As used in this1
Part, "automated claims adjudication system" means a preprogrammed2
computer system designed for the collection, data entry, calculation and system3
generated final resolution of consumer electronic products insurance claims4
which:5
(a) May only be utilized by a licensed adjuster or licensed producer, or6
supervised individuals operating pursuant to this Paragraph;7
(b) Must comply with all claims payment requirements of the Louisiana8
Insurance Code; and9
(c) Must be certified as compliant with this Section by a licensed adjuster10
that is an officer of a licensed business entity under this Chapter.11
(6)(8) A person who handles claims arising under life, accident, and health12
insurance policies.13
(7)(9) A person who is employed principally as a right-of-way agent or a14
right-of-way and claims agent whose primary responsibility is the acquisition of15
servitudes, leases, permits, or other real property rights and who handles only claims16
arising out of operations under those servitudes, leases, permits, or other contracts17
or contractual obligations.18
(8)(10) An individual who is employed to investigate suspected fraudulent19
insurance claims but who does not adjust losses or determine claims payments.20
(9)(11) A person who handles claims arising under vehicle mechanical21
breakdown insurance policies as defined in R.S. 22:361.22
(10)(12) A person who handles claims arising under property residual value23
insurance policies as defined in R.S. 22:381.24
(11)(13) A person handling claims for workers' compensation benefits25
pursuant to Title 23 of the Louisiana Revised Statutes of 1950 or a person handling26
claims arising under a workers' compensation policy or group self insurers fund27
indemnity agreement.28
(12)(14) A person handling commercial claims for excess coverages as29 SB NO. 662
SLS 10RS-625 ORIGINAL
Page 5 of 8
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
classified by R.S. 22:47(14).1
(15) A United States manager of the United States branch of an alien2
insurer.3
(16) An individual employee, under a self-insured arrangement, who4
adjusts claims on behalf of their employer.5
(17) A person who settles only reinsurance or subrogation claims.6
(18) A licensed health care provider or its employee who provides7
managed care services provided the services do not include the determination8
of compensability.9
(19) A managed care organization or any of its employees or an employee10
of any organization providing managed care services provided the services do11
not include the determination of compensability.12
* * *13
§1664. Application for claims adjuster license14
* * *15
C.(1) In order to make a determination of eligibility, the commissioner of16
insurance is authorized to require fingerprints of applicants and submit the17
fingerprints and the fee required to perform the criminal history record checks to the18
Louisiana Bureau of Criminal Identification and Information and the Federal Bureau19
of Investigation (FBI) for state and national criminal history record checks. The20
commissioner of insurance shall require a criminal history record check on each21
applicant in accordance with this Part. The commissioner of insurance shall require22
each applicant to submit a full set of fingerprints in order for the commissioner of23
insurance to obtain and receive National Criminal History Records from the FBI24
Criminal Justice Information Services Division.25
(2) In order to make a determination of eligibility, the commissioner of26
insurance shall require all business entities to provide the names, addresses,27
social security numbers, criminal and administrative history, fingerprints,28
background checks, and biographical statement, of all executive officers and29 SB NO. 662
SLS 10RS-625 ORIGINAL
Page 6 of 8
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
directors of the applicant and of all executive officers and directors of entities1
owning and any individuals owning, directly or indirectly, fifty-one percent or2
more of the outstanding voting securities of the applicant. Any nonresident3
business entity applicant whose state of domicile complies with all of the4
provisions of this paragraph shall not be required to submit a criminal history,5
background check, and biographical statement for its executive officers,6
directors and owners of outstanding voting securities.7
(2)(3) The commissioner of insurance may contract for the collection,8
transmission, and resubmission of fingerprints required under this Section. If the9
commissioner of insurance does so, the fee for collecting, transmitting, and retaining10
fingerprints shall be payable directly to the contractor by the person. The11
commissioner of insurance may agree to a reasonable fingerprinting fee to be12
charged by the contractor.13
(3)(4) The commissioner of insurance may waive submission of fingerprints14
by any person that has previously furnished fingerprints and whose fingerprints are15
on file with the Central Repository of the National Association of Insurance16
Commissioners (NAIC), its affiliates, or subsidiaries.17
(4) (5)The commissioner of insurance is authorized to receive criminal18
history record information in lieu of the Louisiana Bureau of Criminal Identification19
and Information that submitted the fingerprints to the FBI.20
(5)(6) The commissioner of insurance is authorized to submit electronic21
fingerprint records and necessary identifying information to the National Association22
of Insurance Commissioners (NAIC), its affiliates, or subsidiaries for permanent23
retention in a centralized repository. The purpose of such a centralized repository is24
to provide insurance commissioners with access to fingerprint records in order to25
perform criminal history record checks.26
§1665. Resident license27
* * *28
D. No resident of Canada may be licensed pursuant to R.S. 22:1663, or29 SB NO. 662
SLS 10RS-625 ORIGINAL
Page 7 of 8
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
may designate Louisiana as their home state, unless such person has successfully1
passed the adjuster examination and has complied with the other applicable2
portions of this Section, except that such applicant shall not be required to3
comply with Paragraph (A) (4) of this Section.4
D.E. The commissioner of insurance may require any documents reasonably5
necessary to verify the information contained in the application.6
* * *7
§1667. Catastrophe or emergency claims adjuster registration8
A. In the event of a catastrophe or an emergency, no adjuster's license shall9
be required for an individual a person who is employed or retained by an insurer and10
brought into this state for the purpose of investigating or making adjustment of losses11
resulting from the catastrophe or emergency. Notwithstanding, the commissioner of12
insurance shall establish procedures to register all such individuals persons.13
* * *14
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Cheryl Horne.
DIGEST
Present law defines adjuster as an individual who investigates or adjusts losses on behalf of
an insurer as an independent-contractor or employee of an adjustment bureau, an association,
a property and casualty producer, an independent contractor, an insurer or a managing
general agent. Proposed law replaces "an individual" with "a person" thereby including a
business entity in the definition..
Proposed law defines catastrophe as an event that results in large numbers of deaths or
injuries; causes extensive damage or destruction of facilities that provide and sustain human
needs; produces an overwhelming demand on state and local response resources and
mechanisms; causes a severe long-term effect on general economic activity; or severely
affects state, local and private sector capabilities to begin and sustain response activities.
Present law lists exemptions from the claims adjuster provisions in Title 22. Proposed law
retains present law and adds the following to the list of exemptions:
a. An officer or director of an authorized insurer, surplus lines insurer, or risk retention
group;
b. 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, or an employee of an affiliate of a licensed
adjuster and defines an automated claims adjudication system; SB NO. 662
SLS 10RS-625 ORIGINAL
Page 8 of 8
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
c. A U.S. manager of the United States branch of an alien insurer;
d. An individual employee, under a self-insured arrangement, who adjusts claims on
behalf of their employer;
e. A person who settles only reinsurance or subrogation claims;
f. A licensed health care provider or its employee who provides managed care services
provided the services do not include the determination of compensability; and
g. A managed care organization or any of its employees or an employee of any
organization providing managed care services provided the services do not include
the determination of compensability.
Present law exempts a producer of an authorized insurer or a licensed employee of a
producer who processes an undisputed or uncontested loss for the insurer under a policy
issued by the producer from the claims adjuster provisions in Title 22. Proposed law
removes this provision and exempts a licensed insurance producer, attorney-in-fact of a
reciprocal insurer, or managing general agent of the insurer to whom claim authority has
been granted by the insurer.
Present law authorizes the commissioner of insurance to require fingerprints of applicants
to perform the criminal history record checks to the Louisiana Bureau of Criminal
Identification and Information and the Federal Bureau of Investigation for state and national
criminal history checks.
Proposed law retains present law and further authorizes the commissioner of insurance to
require all business entities to provide names, addresses, social security numbers, criminal
and administrative history, fingerprints, background checks, and biographical statement of
all executive officers and directors of the applicant and of all executive officers and directors
of entities owning and any individuals owning 51% or more of the voting securities of the
applicant. Provides that any nonresident business entity applicant whose state of domicile
complies with all of these provisions shall not be required to submit a criminal history,
background check, and biographical statement for its executive officers, directors and
owners of outstanding voting securities.
Proposed law requires the commissioner of insurance to prohibit a resident of Canada to be
licensed as a claims adjuster unless such person has successfully passed the adjuster
examination and has complied with the other applicable portions of present law.
Effective August 15, 2010.
(Amends R.S. 22:1661, 1662, 1664(C), 1665(D) and 1667(A); adds R.S. 22:1665(E))