House of Representatives

SB 1016

insurance adjuster; definition

Sponsors: Senator Cirillo

 

DP

Committee on Financial Institutions and Insurance

DP

Committee on Commerce and Economic Development

X

Caucus and COW

 

Third Read

 

 

As Passed the House

 

SB 1016 amends the definition of insurance adjuster to mean any person who adjusts,  investigates or negotiates insurance settlements.

 

Current Status

SB 1016 passed out of the Financial Institutions and Insurance Committee unamended.  SB 1016 passed out of the Commerce and Economic Development unamended.

 

History

Currently Arizona law defines adjuster to mean any person who for compensation, as an independent contractor or as the employee of the independent contractor, or for fee or commission investigates and negotiates settlements of insurance claims.  As the law is written now, a loophole exists in statute whereby a person performing only one of these tasks does not fall under the definition of adjuster and may not be required to be licensed by the Department of Insurance.  If passed, the legislation would clarify that individuals who adjust or negotiate  the settlement of claims meet the definition of adjuster.  Additionally, certain individuals provide professional technical expertise in support of a claims investigation that should not be regulated by the department.  SB 1016 provides an exception for these individuals.     

 

 

Provisions

§         Modifies the definition of adjuster to mean any person who for compensation, fee, or commission either:

1.      Adjusts, investigates, or negotiates settlements of insurance contract claims on behalf of the insurer or insured.

2.      Performs a service of adjusting, investigating, or negotiating insurance contract claims.

§         Clarifies that the following individuals are excluded for the purposes of the article:

1.      An employee of a county, city or town who adjusts or assists in the adjustment of losses arising under policies covering that county, city or town or persons indemnified by the county, city or town.

2.      An independent contractor used by a licensed adjuster or a person fulfilling the requirements of the other exclusions of this subsection for the sole purpose of providing technical assistance in connection with a claim.  An independent contractor could include photographers, estimators, engineers, private detectives, or handwriting experts.

§         Defines salaried employee to mean an employee whose compensation is not contingent on the result of a claim.

§         Contains other technical and conforming changes.

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§         45th Legislature                

§         Second Regular Session     2          April 9, 2002

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