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Regular Session, 2010 ENROLLED
SENATE BILL NO. 662
BY SENATOR HEBERT
AN ACT1
To amend and reenact R.S. 22:1662, 1664(C), and 1665(D), to enact R.S. 22:1665(E), and2
to repeal R.S. 22:1669(C), relative to claims adjusters; to provide with respect to3
general exemptions; to provide for application for claims adjuster license and4
resident license; and to provide for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 22:1662, 1664(C) and 1665(D) are hereby amended and reenacted7
and R. S. 22:1665(E) is hereby enacted to read as follows:8
§1662. General exemptions9
This Part does not apply to:10
(1) An attorney at law admitted to practice in this state, when acting in his11
professional capacity as an attorney.12
(2) An employee of an insurer who is not regularly engaged in the13
adjustment or investigation of insurance claims.14
(3) A person employed only to furnish technical assistance to a licensed15
adjuster, including but not limited to an investigator, an attorney, an engineer, an16
estimator, a handwriting expert, a photographer, and a private detective.17
(4) A producer of an authorized insurer or a licensed employee of a producer18
who processes an undisputed or uncontested loss for the insurer under a policy issued19
by the producer.20
(5) A person who performs clerical duties and does not negotiate with parties21
on disputed or contested claims.22
(6)(a) An individual who collects claim information from, or furnishes23
claim information to, insured or claimants, who conducts data entry including24
ACT No. 1007 SB NO. 662 ENROLLED
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entering data into an automated claims adjudication system provided such1
individual is an employee of a business entity licensed pursuant to this Chapter,2
or an employee of an affiliate of a business entity licensed pursuant to the3
Chapter, if there are no more than twenty-five individuals under the4
supervision of one licensed individual adjuster or licensed individual insurance5
producer. As used in this Part, "automated claims adjudication system" means6
a preprogrammed computer system designed for the collection, data entry,7
calculation and system generated final resolution of consumer electronic8
products insurance claims which:9
(i) May be utilized only by a licensed adjuster or licensed producer, or10
supervised individuals operating pursuant to this Paragraph;11
(ii) Must comply with all claims payment requirements of the Louisiana12
Insurance Code; and13
(iii) Must be certified as compliant with this Section by a licensed14
adjuster that is an officer of a licensed business entity under this Chapter.15
(b) Individuals who are licensed as producers pursuant to R.S. 22:154316
are not required to be licensed as an adjuster for purposes of this Section.17
(6)(7) A person who handles claims arising under life, accident, and health18
insurance policies.19
(7)(8) A person who is employed principally as a right-of-way agent or a20
right-of-way and claims agent whose primary responsibility is the acquisition of21
servitudes, leases, permits, or other real property rights and who handles only claims22
arising out of operations under those servitudes, leases, permits, or other contracts23
or contractual obligations.24
(8)(9) An individual who is employed to investigate suspected fraudulent25
insurance claims but who does not adjust losses or determine claims payments.26
(10) A full-time salaried employee of a property owner or a property27
management company retained by a property owner who either does not hold28
the employee out as an insurance adjuster or who has not been hired to handle29
a specific claim resulting from a fire or casualty loss and who acts at the sole30 SB NO. 662 ENROLLED
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discretion of the property owner or management company regarding a claim1
related to the owner’s property.2
(9)(11) A person who handles claims arising under vehicle mechanical3
breakdown insurance policies as defined in R.S. 22:361.4
(10)(12) A person who handles claims arising under property residual value5
insurance policies as defined in R.S. 22:381.6
(11)(13) A person handling claims for workers' compensation benefits7
pursuant to Title 23 of the Louisiana Revised Statutes of 1950 or a person handling8
claims arising under a workers' compensation policy or group self insurers fund9
indemnity agreement.10
(12)(14) A person handling commercial claims for excess coverages as11
classified by R.S. 22:47(14).12
(15) A person who settles only reinsurance or subrogation claims.13
* * *14
§1664. Application for claims adjuster license15
* * *16
C.(1) In order to make a determination of eligibility, the commissioner of17
insurance is authorized to require fingerprints of applicants and submit the18
fingerprints and the fee required to perform the criminal history record checks to the19
Louisiana Bureau of Criminal Identification and Information and the Federal Bureau20
of Investigation (FBI) for state and national criminal history record checks. The21
commissioner of insurance shall require a criminal history record check on each22
applicant in accordance with this Part. The commissioner of insurance shall require23
each applicant to submit a full set of fingerprints in order for the commissioner of24
insurance to obtain and receive National Criminal History Records from the FBI25
Criminal Justice Information Services Division.26
(2) All business entities applying to do business as independent adjusting27
companies must provide a listing of all executive officers and directors of the28
applicant and of all executive officers and directors of entities owning and any29
individuals owning, directly or indirectly, ten percent or more of the30 SB NO. 662 ENROLLED
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outstanding voting securities of the applicant. In order to make a determination1
of eligibility, the commissioner may require any person listed above to submit2
addresses, social security numbers, criminal and administrative history,3
fingerprints, background checks, and biographical statements.4
(2)(3) The commissioner of insurance may contract for the collection,5
transmission, and resubmission of fingerprints required under this Section. If the6
commissioner of insurance does so, the fee for collecting, transmitting, and retaining7
fingerprints shall be payable directly to the contractor by the person. The8
commissioner of insurance may agree to a reasonable fingerprinting fee to be9
charged by the contractor.10
(3)(4) The commissioner of insurance may waive submission of fingerprints11
by any person that has previously furnished fingerprints and whose fingerprints are12
on file with the Central Repository of the National Association of Insurance13
Commissioners (NAIC), its affiliates, or subsidiaries.14
(4) (5) The commissioner of insurance is authorized to receive criminal15
history record information in lieu of the Louisiana Bureau of Criminal Identification16
and Information that submitted the fingerprints to the FBI.17
(5)(6) The commissioner of insurance is authorized to submit electronic18
fingerprint records and necessary identifyi ng information to the National Association19
of Insurance Commissioners (NAIC), its affiliates, or subsidiaries for permanent20
retention in a centralized repository. The purpose of such a centralized repository is21
to provide insurance commissioners with access to fingerprint records in order to22
perform criminal history record checks.23
§1665. Resident license24
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D. No resident of Canada may be licensed pursuant to R.S. 22:1663, or26
may designate Louisiana as their home state, unless such person has successfully27
passed the adjuster examination and has complied with the other applicable28
portions of this Section, except that such applicant shall not be required to29
comply with Paragraph (A) (4) of this Section.30 SB NO. 662 ENROLLED
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D.E. The commissioner of insurance may require any documents reasonably1
necessary to verify the information contained in the application.2
Section 2. The provisions of R.S. 22:1669(C) are hereby repealed.3
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: