Kansen Chu
- Democratic
Author
Existing law, the Insurance Adjuster Act, sets forth various requirements with respect to operation as an insurance adjuster in this state, including, but not limited to, that the person be licensed, licensing qualifications and application requirements, continuing education and reporting requirements, codes of conduct, disciplinary actions, and nonresident and emergency licenses. The act defines the term "insurance adjuster" to include a person, other than a private investigator, who, for any consideration whatsoever, engages in business or accepts employment to furnish, or agrees to make, or makes, any investigation for the purpose of obtaining, information in the course of adjusting or otherwise participating in the disposal of, any claim under or in connection with a policy of insurance on behalf of an insurer or engages in soliciting insurance adjustment business. Any person who knowingly falsifies the fingerprints or photographs submitted as part of the application process is guilty of a felony, and any person who violates any other provision governing insurance adjusters is guilty of a misdemeanor punishable by a fine not to exceed $500, or by imprisonment in the county jail not to exceed one year, or by both that fine and imprisonment. Existing law prescribes a schedule for various insurance adjuster application, license, and license renewal fees. This bill would revise and recast the above provisions by, among other things, changing the name of the act to the Independent Insurance Adjuster Act and redefining an "independent insurance adjuster" to mean an individual, a business entity, an independent contractor, or an employee of a contractor who contracts for compensation with insurers, a person whose tax treatment by the insurers is consistent with that of an independent contractor rather than as an employee, and a person who investigates, negotiates, or settles property and casualty claims for insurers. The bill would expand the categories of persons exempt from the act to include, among others, an individual who is employed to investigate suspected fraudulent insurance claims but who does not adjust losses or determine claims payments, and a person who solely performs administrative or clerical duties, or any combination thereof, and who does not investigate, negotiate, or settle claims with policyholders, claimants, or their legal representatives. The bill would impose additional information and educational requirements on applicants and would impose additional administrative and code of conduct requirements on licensees. The bill would require a person who fails to meet continuing education and reporting requirements, and who has not been granted an extension of time by the commissioner to comply, to have his or her license placed on inactive status, as specified, and would prohibit a licensee on inactive status from performing specified activities. The bill would revise the provisions relating to nonresident and emergency licenses with regards to qualifying for those licenses. The bill would also create an apprentice independent insurance adjuster license to facilitate the experience, education, and training necessary to ensure reasonable competency in the responsibilities and duties of an independent insurance adjuster and would set forth the various terms and conditions of the license, including an application fee to be fixed at up to $80. The bill would make an apprentice independent insurance adjuster subject to a felony conviction if he or she knowingly falsifies the fingerprints or photograph submitted as part of his or her application for a license. The bill would impose a 3-year reporting requirement on the Department of Insurance. The bill would also make conforming changes. Because the bill would create a new crime, it would impose a state-mandated local program. The bill would also change various independent insurance adjuster application, license, and renewal fees, as prescribed. This bill also would incorporate additional changes in Sections 1722 and 1751.5 of the Insurance Code proposed by SB 488, to be operative if SB 488 and this bill are both enacted and become effective on or before January 1, 2017, and this bill is enacted last. 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.
Vetoed by Governor.
Enrolled and presented to the Governor at 12 p.m.
Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 50. Noes 29. Page 6382.).
In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 26 pursuant to Assembly Rule 77.
Read third time. Passed. Ordered to the Assembly. (Ayes 25. Noes 13. Page 5275.).
Read second time. Ordered to third reading.
Read third time and amended. Ordered to second reading.
Read second time and amended. Ordered to third reading.
From committee: Amend, and do pass as amended. (Ayes 5. Noes 2.) (August 11).
From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on APPR.
From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 2.) (June 22). Re-referred to Com. on APPR.
From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on INS.
In Senate. Read first time. To Com. on RLS. for assignment.
Read third time. Passed. Ordered to the Senate. (Ayes 50. Noes 29. Page 5199.)
Read second time. Ordered to third reading.
Read second time and amended. Ordered returned to second reading.
From committee: Amend, and do pass as amended. (Ayes 14. Noes 6.) (May 27).
In committee: Set, first hearing. Referred to APPR. suspense file.
From committee chair, with author's amendments: Amend, and re-refer to Com. on APPR. Read second time and amended.
From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 4.) (April 20). Re-referred to Com. on APPR.
From committee chair, with author's amendments: Amend, and re-refer to Com. on INS. Read second time and amended.
From committee: Be re-referred to Com. on INS. Re-referred. (Ayes 9. Noes 0.) (April 11). Re-referred to Com. on INS.
Re-referred to Com. on RLS. pursuant to Assembly Rule 96.
From committee chair, with author's amendments: Amend, and re-refer to Com. on HEALTH. Read second time and amended.
Read first time.
From printer. May be heard in committee March 22.
Introduced. To print.
| Bill Text Versions | Format |
|---|---|
| AB2588 | HTML |
| 02/19/16 - Introduced | |
| 03/30/16 - Amended Assembly | |
| 04/18/16 - Amended Assembly | |
| 05/09/16 - Amended Assembly | |
| 05/31/16 - Amended Assembly | |
| 06/13/16 - Amended Senate | |
| 08/01/16 - Amended Senate | |
| 08/15/16 - Amended Senate | |
| 08/19/16 - Amended Senate | |
| 08/31/16 - Enrolled |
| Document | Format |
|---|---|
| No related documents. |
Data on Open States is updated periodically throughout the day from the official website of the California State Legislature.
If you notice any inconsistencies with these official sources, feel free to file an issue.