ARIZONA STATE SENATE
Phoenix, Arizona
Purpose
Expands the definition of adjuster to mean any person who adjusts, negotiates or investigates claims arising under an insurance contract and exempts certain professionals from the definition of adjuster so long as their involvement in the investigation is technical in nature.
Background
Currently, statute defines adjusters as individuals who investigate and negotiate settlement of claims arising from an insurance transaction. Under this definition, certain professionals, like photographers, or private investigators may be construed as adjusters, but are not otherwise the subject of oversight by the Department of Insurance (DOI). Further, according to DOI, some adjusters attempt to circumvent the intent of the current law by arguing they either investigate or negotiate, but not both. S.B. 1016 clarifies that an adjuster either investigates or negotiates or otherwise adjusts settlements. The bill also exempts a professional who enjoys independent contractor status in providing technical assistance in connection with a claim.
According to the DOI, there is no impact to the state general fund.
Provisions
1. Defines that an adjuster either investigates or negotiates or otherwise adjusts insurance settlements either on behalf of the insurer or the insured.
2. Exempts independent contractors retained by license adjusters and whose sole purpose is to provide technical expertise in connection with a claim.
3. Contains clarifying and technical changes.
4. Provides for a general effective date.
Amendments
Adopted by Committee
· Exempts employees of political subdivisions who fulfill adjuster duties from DOI oversight.
Senate Action
BI 1/24/02 DPA 6-0-0
Prepared by Senate Staff
January 25, 2002