Bill Text: CA SB240 | 2019-2020 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Insurance Adjuster Act.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2019-10-03 - Chaptered by Secretary of State. Chapter 502, Statutes of 2019. [SB240 Detail]
Download: California-2019-SB240-Amended.html
NOYES
Local Program:
NOYES
all both of the following requirements are met:
Bill Title: Insurance Adjuster Act.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2019-10-03 - Chaptered by Secretary of State. Chapter 502, Statutes of 2019. [SB240 Detail]
Download: California-2019-SB240-Amended.html
|
Amended
IN
Senate
March 14, 2019 |
CALIFORNIA LEGISLATURE—
2019–2020 REGULAR SESSION
| Senate Bill | No. 240 |
| Introduced by Senator Dodd |
February 11, 2019 |
An act to amend Section 14020 of Sections 14020, 14022, and 14022.5 of, and to add Section 14046 to, the Insurance Code, relating to insurance.
LEGISLATIVE COUNSEL'S DIGEST
SB 240, as amended, Dodd.
Insurance Adjuster Act.
Existing law creates the Department of Insurance, headed by the Insurance Commissioner, and prescribes the department’s powers and duties. Existing law, the Insurance Adjuster Act, sets forth various requirements with respect to operation as an insurance adjuster in this state and prohibits a person from engaging in a business regulated by the act, or acting or assuming to act as, or representing themselves to be, an insurance adjuster unless the person is licensed under the act. Existing law also prohibits a person from falsely representing that the person is employed by a licensee. Existing law exempts a person from the requirements of the Insurance Adjuster Act if the person is employed
exclusively and regularly by one employer, as specified, with which the person has an employer-employee relationship. If the commissioner declares an emergency situation, existing law authorizes a nonlicensed insurance adjuster to adjust claims if certain requirements are met, including that the nonlicensed insurance adjuster registers with the commissioner via a written letter naming the nonlicensed adjuster, identifying adjuster licenses held in other jurisdictions, and stating when the claims adjusting activity began in the emergency situation.
This bill would require the department to annually prepare and deliver to every Insurance Adjuster Act licensee a notice describing the most significant California laws pertaining to property insurance policies. The bill would exempt an individual in an employer-employee relationship from the requirements of the
Insurance Adjuster Act if the individual additionally certifies, under penalty of perjury, that the individual read and understands the most recent significant law notice. The bill would require registration of a nonlicensed insurance adjuster during an emergency situation to include a self-certification, under penalty of perjury, that a nonlicensed individual has read and understands the most recent significant law notice. By expanding the scope of the crime of perjury, the bill would impose a state-mandated local program. The bill would also make technical, nonsubstantive changes to those provisions.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee:Bill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 14020 of the Insurance Code is amended to read:14020.
(a) A person shall not engage in a business regulated by this chapter, or act or assume to act as, or represent themselves to be, a licensee unless the person is licensed under this chapter.(b) A person shall not falsely represent that the person is employed by a licensee.
SEC. 2.
Section 14022 of the Insurance Code is amended to read:14022.
This chapter does not apply to:(a) A person employed exclusively and regularly by one employer in connection with the affairs of such that employer only and where only, if there exists an employer- employee relationship.
employer-employee relationship, and if the person certifies, under penalty of perjury, that the person has read and understands the most recent notice prepared by the department pursuant to Section 14046 that describes the most significant California laws pertaining to property insurance policies.
(b) An officer or employee of the United States of America, or of this state or a political subdivision thereof, while such that officer or employee is engaged in the performance of his or her official duties.
(c) A person engaged exclusively in the business of obtaining and
furnishing information as to the financial rating of persons.
(d) A charitable philanthropic society or association duly incorporated under the laws of this state, which is organized and maintained for the public good and not for private profit.
(e) An attorney at law in performing his or her the duties as such attorney at law. of an attorney.
(f) A licensed
collection agency or an employee thereof while acting within the scope of his or her
employment, while making an investigation incidental to the business of the agency, including an investigation of the location of a debtor or his or her the debtor’s property where if the contract with an assignor creditor is for the collection of claims owed or due or asserted to be owed or due or the equivalent thereof.
(g) Admitted insurers and agents and insurance brokers licensed by the state, performing duties in connection with insurance transacted by them.
(h) The legal owner of
personal property which
that has been sold under a conditional sales agreement or a mortgagee under the terms of a chattel mortgage.
(i) Any A bank subject to the jurisdiction of the Commissioner of Financial Institutions of the State of California under Division 1 (commencing with Section 99) of the Financial Code or the Comptroller of the Currency of the United States.
(j) A person engaged solely in the business of securing information about persons or property from public records.
(k) Any A
building contractor, engineer, technical expert, or other person who is engaged by an insurer or licensed adjuster to provide an expert or professional evaluation of the extent, cause, or origin of damage to the insured property, but who does not otherwise participate in the process of adjusting claims.
SEC. 3.
Section 14022.5 of the Insurance Code is amended to read:14022.5.
(a) In the event of an emergency situation as declared by the commissioner, claims arising out of the emergency, catastrophe, disaster, or other similar occurrence may be adjusted by a nonlicensed adjuster upon registration with the commissioner if(1) The work performed by the nonlicensed adjuster is under the active direction, control, charge, or management of a licensed adjuster or an insurer authorized to do business in this state.
(2) Registration with the commissioner is accomplished within 15 working days from the date on which the nonlicensed adjuster commences the claims adjusting activity in connection with the emergency situation.
(b) “Registration,” within the meaning of this section, shall mean means a written letter to the commissioner, submitted by the supervising licensed adjuster or admitted insurer, naming the nonlicensed adjusters, identifying their adjuster licenses held in other jurisdictions, and stating when their claims adjusting activity commenced.
commenced, and including a self-certification, under penalty of perjury, that the nonlicensed individual has read and understands the most recent notice prepared by the department pursuant to Section 14046 that describes the most significant California laws pertaining to property insurance policies.
(c) Registration under this section is valid for a period of 180 days from the date of the registration letter. Before the lapse of that period, the commissioner may grant further 180-day extensions as he or she the commissioner deems appropriate upon written request from the supervising licensed adjuster or the admitted insurer.
