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Regular Session, 2010
SENATE BILL NO. 662
BY SENATOR HEBERT
INSURANCE CLAIMS. Provides with respect to claims adjusters. (8/15/10)
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
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(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) "Fingerprints" means an impression of the lines on the finger taken for6
purpose of identification. The impression may be electronic or in ink converted to7
electronic format.8
(4) "Home state" means the District of Columbia and any state or territory9
of the United States in which the adjuster's principal place of residence or principal10
place of business is located. If neither the state in which the adjuster maintains the11
principal place of residence nor the state in which the adjuster maintains the principal12
place of business has a substantially similar law governing adjusters, the adjuster13
may declare another state in which he becomes licensed and acts as an adjuster to be14
the "home state".15
(5) "Individual" means a natural person.16
(6) "Insurer" means any type of insurer authorized or approved unauthorized17
to conduct business in this state.18
(7) "Person" means an individual or a business entity.19
(8) "Uniform individual application" means the current version of the20
National Association of Insurance Commissioners (NAIC) Uniform Individual21
Application for resident and nonresident individuals.22
(9) "Uniform business entity application" means the current version of the23
National Association of Insurance Commissioners (NAIC) Uniform Business Entity24
Application for resident and nonresident business entities.25
§1662. General exemptions26
This Part does not apply to:27
(1) An attorney at law admitted to practice in this state, when acting in his28
professional capacity as an attorney.29 SB NO. 662
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(2) An employee of an insurer who is not regularly engaged in the1
adjustment or investigation of insurance claims.2
(3) A person employed only to furnish technical assistance to a licensed3
adjuster, including but not limited to an investigator, an attorney, an engineer, an4
estimator, a handwriting expert, a photographer, and a private detective.5
(4)A producer of an authorized insurer or a licensed employee of a producer6
who processes an undisputed or uncontested loss for the insurer under a policy issued7
by the producer.8
(4) A licensed insurance producer or managing general agent of the9
insurer, to whom claim authority has been granted by the insurer.10
(5) A person who performs clerical duties and does not negotiate with parties11
on disputed or contested claims.12
(6) A person who collects claim information from, or furnishes claim13
information to, insured or claimants, and who conducts data entry including14
entering data into an automated claims adjudication system provided such15
person is an employee of a licensed adjuster, or an employee of an affiliate of a16
licensed adjuster, if there are no more than twenty-five persons under the17
supervision of one licensed individual adjuster or licensed producer who is18
exempt from licensure, pursuant to Paragraph 5 of this Section. As used in this19
Part, "automated claims adjudication system" means a preprogrammed20
computer system designed for the collection, data entry, calculation and system21
generated final resolution of consumer electronic products insurance claims22
which:23
(a) May only be utilized by a licensed adjuster or licensed producer, or24
supervised individuals operating pursuant to this Paragraph;25
(b) Must comply with all claims payment requirements of the Louisiana26
Insurance Code; and27
(c) Must be certified as compliant with this Section by a licensed adjuster28
that is an officer of a licensed business entity under this Chapter.29 SB NO. 662
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(6)(7) A person who handles claims arising under life, accident, and health1
insurance policies.2
(7)(8) A person who is employed principally as a right-of-way agent or a3
right-of-way and claims agent whose primary responsibility is the acquisition of4
servitudes, leases, permits, or other real property rights and who handles only claims5
arising out of operations under those servitudes, leases, permits, or other contracts6
or contractual obligations.7
(8)(9) An individual who is employed to investigate suspected fraudulent8
insurance claims but who does not adjust losses or determine claims payments.9
(10) A full-time salaried employee of a property owner or a property10
management company retained by a property owner who either does not hold11
the employee out as an insurance adjuster or who has not been hired to handle12
a specific claim resulting from a fire or casualty loss and who acts at the sole13
discretion of the property owner or management company regarding a claim14
related to the owner’s property.15
(9)(11) A person who handles claims arising under vehicle mechanical16
breakdown insurance policies as defined in R.S. 22:361.17
(10)(12) A person who handles claims arising under property residual value18
insurance policies as defined in R.S. 22:381.19
(11)(13) A person handling claims for workers' compensation benefits20
pursuant to Title 23 of the Louisiana Revised Statutes of 1950 or a person handling21
claims arising under a workers' compensation policy or group self insurers fund22
indemnity agreement.23
(12)(14) A person handling commercial claims for excess coverages as24
classified by R.S. 22:47(14).25
(15) A United States manager of the United States branch of an alien26
insurer.27
(16) A person who settles only reinsurance or subrogation claims.28
* * *29 SB NO. 662
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§1664. Application for claims adjuster license1
* * *2
C.(1) In order to make a determination of eligibility, the commissioner of3
insurance is authorized to require fingerprints of applicants and submit the4
fingerprints and the fee required to perform the criminal history record checks to the5
Louisiana Bureau of Criminal Identification and Information and the Federal Bureau6
of Investigation (FBI) for state and national criminal history record checks. The7
commissioner of insurance shall require a criminal history record check on each8
applicant in accordance with this Part. The commissioner of insurance shall require9
each applicant to submit a full set of fingerprints in order for the commissioner of10
insurance to obtain and receive National Criminal History Records from the FBI11
Criminal Justice Information Services Division.12
(2) In order to make a determination of eligibility, the commissioner of13
insurance shall require all business entities that are applying to do business as14
independent adjusting companies to provide the names, addresses, social15
security numbers, criminal and administrative history, fingerprints,16
background checks, and biographical statement, of all executive officers and17
directors of the applicant and of all executive officers and directors of entities18
owning and any individuals owning, directly or indirectly, fifty-one percent or19
more of the outstanding voting securities of the applicant. Any nonresident20
business entity applicant whose state of domicile complies with all of the21
provisions of this Paragraph shall not be required to submit a criminal history,22
background check, and biographical statement for its executive officers,23
directors and owners of outstanding voting securities.24
(2)(3) The commissioner of insurance may contract for the collection,25
transmission, and resubmission of fingerprints required under this Section. If the26
commissioner of insurance does so, the fee for collecting, transmitting, and retaining27
fingerprints shall be payable directly to the contractor by the person. The28
commissioner of insurance may agree to a reasonable fingerprinting fee to be29 SB NO. 662
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charged by the contractor.1
(3)(4) The commissioner of insurance may waive submission of fingerprints2
by any person that has previously furnished fingerprints and whose fingerprints are3
on file with the Central Repository of the National Association of Insurance4
Commissioners (NAIC), its affiliates, or subsidiaries.5
(4) (5)The commissioner of insurance is authorized to receive criminal6
history record information in lieu of the Louisiana Bureau of Criminal Identification7
and Information that submitted the fingerprints to the FBI.8
(5)(6) The commissioner of insurance is authorized to submit electronic9
fingerprint records and necessary identifying information to the National Association10
of Insurance Commissioners (NAIC), its affiliates, or subsidiaries for permanent11
retention in a centralized repository. The purpose of such a centralized repository is12
to provide insurance commissioners with access to fingerprint records in order to13
perform criminal history record checks.14
§1665. Resident license15
* * *16
D. No resident of Canada may be licensed pursuant to R.S. 22:1663, or17
may designate Louisiana as their home state, unless such person has successfully18
passed the adjuster examination and has complied with the other applicable19
portions of this Section, except that such applicant shall not be required to20
comply with Paragraph (A) (4) of this Section.21
D.E. The commissioner of insurance may require any documents reasonably22
necessary to verify the information contained in the application.23
* * *24
§1667. Catastrophe or emergency claims adjuster registration25
A. In the event of a catastrophe or an emergency, no adjuster's license shall26
be required for an individual a person who is employed or retained by an insurer and27
brought into this state for the purpose of investigating or making adjustment of losses28
resulting from the catastrophe or emergency. Notwithstanding, the commissioner of29 SB NO. 662
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insurance shall establish procedures to register all such individuals persons.1
* * *2
The original instrument was prepared by Cheryl Horne. The following digest,
which does not constitute a part of the legislative instrument, was prepared
by Thomas L. Tyler.
DIGEST
Hebert (SB 662)
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.
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:
(1)A licensed insurance producer or managing general agent of the insurer to whom
claim authority has been granted by the insurer.
(2)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.
(3)A full-time salaried employee or a property owner or management company retained
by the owner who either does not hold the employee out as an adjuster or been hired
to handle a specific claim and the employee acts at the discretion of the owner or
management company.
(4)A U.S. manager of the United States branch of an alien insurer.
(5)An individual employee, under a self-insured arrangement, who adjusts claims on
behalf of their employer.
(6)A person who settles only reinsurance or subrogation claims.
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, directly or indirectly, 51% or more of the SB NO. 662
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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))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Insurance to the original
bill.
1. Removes definition of "catastrophe".
2. Removes exclusion from present law for an officer or director of an
authorized insurer, surplus lines insurer, or risk retention group; and licensed
health care providers, or managed care organizations, or their employees
providing managed care services which don't include determination of
compensability;
3. Add to exclusion from present law full-time salaried employees of a property
owner or management company.