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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), to enact R.S.2
22:1665(E), and to repeal R.S. 22:1669(C), relative to claims adjusters; to provide3
with respect to definitions and general exemptions; to provide for application for4
claims adjuster license and resident license; to provide with respect to catastrophe5
or emergency claims adjuster 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 who investigates or adjusts losses on13
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
(5) A person who performs clerical duties and does not negotiate with parties9
on disputed or contested claims.10
(6)(a) An individual who collects claim information from, or furnishes11
claim information to, insured or claimants, who conducts data entry including12
entering data into an automated claims adjudication system provided such13
individual is an employee of a business entity licensed pursuant to this Chapter,14
or an employee of an affiliate of a business entity licensed pursuant to the15
Chapter, if there are no more than twenty-five individuals under the16
supervision of one licensed individual adjuster or licensed individual insurance17
producer. As used in this Part, "automated claims adjudication system" means18
a preprogrammed computer system designed for the collection, data entry,19
calculation and system generated final resolution of consumer electronic20
products insurance claims which:21
(i) May be utilized only by a licensed adjuster or licensed producer, or22
supervised individuals operating pursuant to this Paragraph;23
(ii) Must comply with all claims payment requirements of the Louisiana24
Insurance Code; and25
(iii) Must be certified as compliant with this Section by a licensed26
adjuster that is an officer of a licensed business entity under this Chapter.27
(b) Individuals who are licensed as producers pursuant to R.S. 22:154328
are not required to be licensed as an adjuster for purposes of this Section.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 person who settles only reinsurance or subrogation claims.26
* * *27
§1664. Application for claims adjuster license28
* * *29 SB NO. 662
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C.(1) In order to make a determination of eligibility, the commissioner of1
insurance is authorized to require fingerprints of applicants and submit the2
fingerprints and the fee required to perform the criminal history record checks to the3
Louisiana Bureau of Criminal Identification and Information and the Federal Bureau4
of Investigation (FBI) for state and national criminal history record checks. The5
commissioner of insurance shall require a criminal history record check on each6
applicant in accordance with this Part. The commissioner of insurance shall require7
each applicant to submit a full set of fingerprints in order for the commissioner of8
insurance to obtain and receive National Criminal History Records from the FBI9
Criminal Justice Information Services Division.10
(2) All business entities applying to do business as independent adjusting11
companies must provide a listing of all executive officers and directors of the12
applicant and of all executive officers and directors of entities owning and any13
individuals owning, directly or indirectly, ten percent or more of the14
outstanding voting securities of the applicant. In order to make a determination15
of eligibility, the commissioner may require any person listed above to submit16
addresses, social security numbers, criminal and administrative history,17
fingerprints, background checks, and biographical statements.18
(2)(3) The commissioner of insurance may contract for the collection,19
transmission, and resubmission of fingerprints required under this Section. If the20
commissioner of insurance does so, the fee for collecting, transmitting, and retaining21
fingerprints shall be payable directly to the contractor by the person. The22
commissioner of insurance may agree to a reasonable fingerprinting fee to be23
charged by the contractor.24
(3)(4) The commissioner of insurance may waive submission of fingerprints25
by any person that has previously furnished fingerprints and whose fingerprints are26
on file with the Central Repository of the National Association of Insurance27
Commissioners (NAIC), its affiliates, or subsidiaries.28
(4) (5) The commissioner of insurance is authorized to receive criminal29 SB NO. 662
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history record information in lieu of the Louisiana Bureau of Criminal Identification1
and Information that submitted the fingerprints to the FBI.2
(5)(6) The commissioner of insurance is authorized to submit electronic3
fingerprint records and necessary identifyi ng information to the National Association4
of Insurance Commissioners (NAIC), its affiliates, or subsidiaries for permanent5
retention in a centralized repository. The purpose of such a centralized repository is6
to provide insurance commissioners with access to fingerprint records in order to7
perform criminal history record checks.8
§1665. Resident license9
* * *10
D. No resident of Canada may be licensed pursuant to R.S. 22:1663, or11
may designate Louisiana as their home state, unless such person has successfully12
passed the adjuster examination and has complied with the other applicable13
portions of this Section, except that such applicant shall not be required to14
comply with Paragraph (A) (4) of this Section.15
D.E. The commissioner of insurance may require any documents reasonably16
necessary to verify the information contained in the application.17
* * *18
§1667. Catastrophe or emergency claims adjuster registration19
A. In the event of a catastrophe or an emergency, no adjuster's license shall20
be required for an individual who is employed or retained by an insurer and brought21
into this state for the purpose of investigating or making adjustment of losses22
resulting from the catastrophe or emergency. Notwithstanding, the commissioner23
of insurance shall establish procedures to register all such individuals.24
* * *25
Section 2. The provisions of R.S. 22:1669(C) are hereby repealed.26 SB NO. 662
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The original instrument was prepared by Cheryl Horne. The following digest,
which does not constitute a part of the legislative instrument, was prepared
by Ann S. Brown.
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 retains present law.
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)An individual who collects claim information from, or furnishes claim information
to, insured or claimants, and who conducts data entry including entering data into an
automated claims adjudication system provided such individual is an employee of
a business entity licensed pursuant to law, or an employee of an affiliate of a
business entity licensed pursuant to law. Also defines an automated claims
adjudication system.
(2)Individuals who are licensed as producers.
(3)A full-time salaried employee of a property owner or management company retained
by the owner who either does not hold the employee out as an adjuster or has not
been hired to handle a specific claim and the employee acts at the discretion of the
owner or management company regarding a claim related to the owner's property.
(4)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 retains
present law.
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 applying to do business as independent adjusting companies to
provide a listing 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,
ten percent or more of the outstanding voting securities of the applicant. Further provides
that in order to make a determination of eligibility, the commissioner may require any person
listed above to submit addresses, social security numbers, criminal and administrative
history, fingerprints, background checks, and biographical statement.
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.
Present law exempts the following individuals from prelicensing or examination
requirements for claim adjusting: SB NO. 662
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(1)Any individual previously licensed as a claim adjuster in another state.
(2)Any individual licensed as a claim adjuster in another state who moves here and
makes application for a license within 90 days.
(3)Any individual who, as of January 1, 2007, has been actively engaged in the business
of adjusting insurance claims for at least three consecutive years or who has five
years of such experience.
(4)Any individual who was previously licensed as a claim adjuster in this state.
Proposed law retains present law relative to individuals who have been or are licensed as
claim adjusters (Items 1, 2, and 4 above)
Proposed law repeals the exemption for persons having only experience as a claim adjuster.
(Item #3 above).
Effective August 15, 2010.
(Amends R.S. 22:1661, 1662, 1664(C), 1665(D) and 1667(A); adds R.S. 22:1665(E); repeals
R.S. 22:1669(C))
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.
Summary of Amendments Adopted by Senate
Senate Floor Amendments to engrossed bill.
1. Removes proposed law changes to the definition of an adjuster.
2. Removes the following from the additional list of proposed law exemptions:
(a)A licensed insurance producer or managing general agent of the
insurer to whom claim authority has been granted by the insurer.
(b) U.S. manager of the U.S. branch of an alien insurer.
3. Removes present law exemption for a producer of an authorized insurer or
a licensed employee who processes an undisputed or uncontested loss. SB NO. 662
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4. Removes an exemption from present law for person having only experience
as claim adjuster from prelicensing or examination requirements.
5. Provides for and defines an automated claims adjudication system.