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. Existing law requires an insurer to provide an insured with a written status report if the insurer assigns a 3rd or subsequent adjuster to be primarily responsible for a claim within a 6-month period. Existing law provides that if a specified licensee, not including an insurance adjuster, enters the military service of the United States and is in the military service at the time of filing a license renewal application, the application filing is waived and the license remains in force during the licensee's military service and for a specified time afterward. This bill would require an insurer to establish a primary point of contact for a claim under a policy of residential property insurance and provide the insured with one or more direct means of communication with the primary point of contact if, within a 6-month period, the insurer assigns a 3rd or subsequent first-party real or personal property claims adjuster to be primarily responsible for a claim. The bill would require the primary point of contact to remain assigned to the insured's claim until the insurer determines that the claim is closed or litigation has been filed. This bill would add insurance adjusters to the list of licensees whose application filing is waived during military service and for whom a license remains in force during military service. 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 policies, as well as a handbook for adjusting in California that includes information relevant to evaluating damage caused by an emergency. The bill would require the commissioner to make the notice, handbook, and certification process, as described below, accessible on the department's internet website. This bill would require a licensee or insurer to register a nonlicensed insurance adjuster, not including a nonlicensed adjuster employed exclusively and regularly by one employer with which there exists an employer-employee relationship, no later than 15 calendar days from the date on which the nonlicensed adjuster began claims adjusting activity in California in connection with an emergency situation as declared by the commissioner. The bill would require a supervising licensed adjuster or manager to ensure their registered nonlicensed adjusters and employee nonlicensed adjusters have read and understand the most recent significant law notice and adjusting handbook no later than 15 calendar days from the date on which the nonlicensed adjuster began claims adjusting activity in California after a declared state of emergency. The bill would require a registered nonlicensed adjuster, under penalty of perjury, to certify that the nonlicensed adjuster has read and understands the notice and handbook no later than 15 calendar days from the date on which the nonlicensed adjuster began claims adjusting activity in California in connection with an emergency situation as declared by the commissioner. 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. This bill would declare that it is to take effect immediately as an urgency statute.