The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Cheryl Cooper.
DIGEST
SB 266 Original 2016 Regular Session Long
Present law requires 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, 10% or more of
the outstanding voting securities of the applicant. Provides that in order to make a determination of
eligibility, the commissioner may require all executive officers and directors to submit addresses,
social security numbers, criminal and administrative history, fingerprints, background checks, and
biographical statements.
Proposed law changes "owning" to "controlling" and defines "control" to have the same definition
as in present law (R.S. 22:691.2).
Present law provides for reciprocity for licensed claims adjusters for those from states that require
licensure.
Proposed law deletes present law and provides for the designation of La. the home state for licensure
for nonresident adjusters from states that do not require licensure and provides that the adjusters
meet all of the requirements required of La resident adjusters.
Present law provides that an individual who applies for a claims adjuster license in La. who was
previously licensed as a claims adjuster in another state based on a claims adjuster examination shall
not be required to complete an examination. Provides that this exemption is available only if the
person is currently licensed in that state or if the application is received within 12 months of the
cancellation of the applicant's previous claims adjuster license and if the prior state issues a
certification that, at the time of cancellation, the applicant was in good standing in that state, or the
state's producer database records or records maintained by the National Association of Insurance
Commissioners (NAIC), its affiliates, or subsidiaries, indicate that the adjuster is or was licensed in
good standing.
Proposed law deletes present law.
Present law provides that an individual licensed as a claims adjuster in another state based on a
claims adjuster examination who moves to this state shall make application within 90 days of
establishing legal residence to become a resident claims adjuster licensee pursuant to present law
(R.S. 22:1665). Provides that no examination is required of that individual to obtain a claims adjuster
license.
Proposed law limits this exemption from examination requirements to a person who is currently
licensed in another state or if the application is received within 90 days of the cancellation of the applicant's previous claims adjuster license and if the prior state issues a certification that, at the time
of cancellation, the applicant was in good standing in that state or the state's producer database
records or records maintained by the National Association of Insurance Commissioners (NAIC), its
affiliates, or subsidiaries, indicate that the adjuster is or was licensed in good standing.
Present law provides that an individual who applies for a claims adjuster license in La. who was
previously licensed as a claims adjuster in La. shall not be required to complete an examination. This
exemption is available only if the application is received within 12 months of the cancellation of the
applicant's previous claims adjuster license in La. and if, at the time of cancellation, the applicant
was in good standing in La., and had passed the required examination.
Proposed law changes the exemption time frame from 12 to 24 months.
Proposed law permits the commissioner to waive the workers' compensation examination
requirement for an individual who has three years of verifiable experience adjusting workers'
compensation claims within the preceding five years, provided the application is received on or
before August 1, 2017.
Proposed law provides that a claims adjuster may receive qualification for a license in one or more
of the following lines of authority:
(1)Property and casualty.
(2)Workers' compensation.
(3)Crop.
(4)Any limited line for which the commissioner issues a limited license.
Present law provides that a claims adjuster whose license has lapsed may, within 12 months from
the expiration date of the renewal, reinstate the license upon approval of the commissioner. Provides
that a penalty in the amount of double the unpaid renewal fee shall be required for the reinstatement
of the claims adjuster license. Provides that reinstatement shall be effective on the date the
commissioner of insurance approves the request for reinstatement.
Proposed law deletes present law and provides that a licensed claims adjuster who allows his license
to lapse may, within two years from the expiration date of the license, reinstate the same license upon
proof of fulfilling all continuing education requirements through the date of reinstatement and upon
payment of all fees due. Provides that if the license has been lapsed for more than two years, the
applicant shall fulfill the requirements for issuance of a new license.
Present law provides that the commissioner may place on probation, suspend, revoke, or refuse to
issue, renew, or reinstate a claims adjuster's license or may levy a fine not to exceed $500 for each
violation up to $10,000 aggregate for all violations in a calendar year, unless a fine is established by separate statute Title 22 authorizing a greater penalty, or any combination of actions, for any one or
more of the following causes:
(1)Providing incorrect, misleading, incomplete, or materially false information in the license
application.
(2)Violating any state insurance law or regulation or a subpoena or order of the commissioner
of insurance or of another state's insurance commissioner.
(3)Obtaining or attempting to obtain a license through misrepresentation or fraud.
(4) Improperly withholding, misappropriating, or converting any money or property received in
the course of conducting insurance business.
(5) Intentionally misrepresenting the terms of an actual or proposed insurance contract or
application for insurance.
(6) Conviction of a felony related to the adjustment of insurance claims.
(7) Admitting to or committing fraud or unfair trade practices.
(8) Using fraudulent, coercive, or dishonest practices.
(9) Demonstrating incompetence, untrustworthiness, or financial irresponsibility while
conducting business.
(10) Denial, suspension, or revocation of an insurance license, or its equivalent, in any other state,
province, district, or territory.
(11) Forging a name on an application for insurance or any document related to an insurance
transaction.
(12) Cheating, including improperly using notes or any other reference material, to complete an
examination for an insurance license.
(13) Knowingly accepting insurance business from an individual who is not licensed but who is
required to be licensed by the commissioner of insurance.
(14) Failure to comply with an administrative or court order imposing a child support obligation.
(15) Failure to pay state income tax or comply with any administrative or court order directing
payment of state income tax.
(16) Violating R.S. 22:1674(F). (17) Failure to complete assignment of adjustment of a claim in a thorough and timely manner,
including submission of the adjustment of a claim to the party which made that assignment.
Proposed law retains present law and adds the following reasons:
(1) Providing incorrect, misleading, incomplete, or materially false information in the license
renewal application.
(2) Violating the insurance laws or regulations of the United States or any other jurisdiction.
(3) Intentionally misrepresenting the terms of an actual or proposed insurance binder, rider, or
plan, including all forms or documents that are attached, or will be attached, to an actual or
proposed insurance contract, binder, rider, plan, or application for insurance.
(4) Conviction of or a nolo contendere plea to any felony, participation in a pretrial diversion
program pursuant to a felony charge, suspension and deferral of sentence and probation
pursuant to Article 893 of the Code of Criminal Procedure or similar law of another state,
or conviction of any misdemeanor involving moral turpitude, or public corruption, or the
adjustment of insurance claims.
(5) The refusal to submit physical evidence of identity or the conviction of a felony, in
accordance with R.S. 22:1922(B) and (C).
(6) Employing or allowing to associate with his business, in any manner, any person engaged in
the business of insurance who has been convicted of a felony under the laws of this or any
other state, the United States, or any other jurisdiction. As used in proposed law, "business
of insurance" means the writing of insurance or the reinsuring of risks by an insurance
producer or insurer, including all acts necessary or incidental to such writing or reinsuring,
and the activities of persons who act as, or are, officers, directors, agents, or employees of
producers or insurers, or who are other persons authorized to act on behalf of such persons.
(7) The conviction of a felony involving dishonesty or breach of trust pursuant to 18 U.S.C.
§1033 and §1034, without written consent from the commissioner of insurance pursuant to
18 U.S.C. §1033, or any successor statute regulating crimes by or affecting persons engaged
in the business of insurance whose activities affect interstate commerce.
The above provisions are effective August 1, 2016.
Present law provides an exemption from licensure for workers' compensation adjusters.
Proposed law repeals that exemption effective August 1, 2017.
(Amends R.S. 22:1664(C)(2), 1665(D) and (E), 1669, 1671(A), (D), (E), (F), and (G), and 1672 (A);
adds R.S. 22:1665 (F) and 1671(H); repeals R.S. 22:1662(13))