SB 240 — Insurance Adjuster Act.

Summary

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.

Bill Text

• Chaptered 10/03/19 - Chaptered Current pdf October 03, 2019
• Enrolled 09/03/19 - Enrolled pdf September 03, 2019
• Amended 08/12/19 - Amended Assembly pdf August 12, 2019
• Amended 07/11/19 - Amended Assembly pdf July 11, 2019
• Amended 07/03/19 - Amended Assembly pdf July 03, 2019
• Amended 04/29/19 - Amended Senate pdf April 29, 2019
• Amended 04/11/19 - Amended Senate pdf April 11, 2019
• Amended 03/14/19 - Amended Senate pdf March 14, 2019
• Introduced 02/11/19 - Introduced pdf February 11, 2019
• SB240 View text html

Action History

1. October 03, 2019

   Chaptered by Secretary of State. Chapter 502, Statutes of 2019.

2. October 03, 2019

   Approved by the Governor.

3. September 06, 2019

   Enrolled and presented to the Governor at 2 p.m.

4. August 30, 2019

   Assembly amendments concurred in. (Ayes 37. Noes 0. Page 2327.) Ordered to engrossing and enrolling.

5. August 30, 2019

   Urgency clause adopted.

6. August 27, 2019

   Ordered to special consent calendar.

7. August 22, 2019

   In Senate. Concurrence in Assembly amendments pending.

8. August 22, 2019

   Read third time. Urgency clause adopted. Passed. (Ayes 75. Noes 0. Page 2806.) Ordered to the Senate.

9. August 15, 2019

   Read second time. Ordered to third reading.

10. August 14, 2019

    From committee: Do pass. (Ayes 18. Noes 0.) (August 14).

11. August 12, 2019

    From committee with author's amendments. Read second time and amended. Re-referred to Com. on APPR.

12. July 11, 2019

    Read second time and amended. Re-referred to Com. on APPR.

13. July 10, 2019

    From committee: Do pass as amended and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 14. Noes 0.) (July 10).

14. July 03, 2019

    From committee with author's amendments. Read second time and amended. Re-referred to Com. on INS.

15. June 03, 2019

    Referred to Com. on INS.

16. May 21, 2019

    In Assembly. Read first time. Held at Desk.

17. May 20, 2019

    Read third time. Passed. (Ayes 38. Noes 0. Page 1158.) Ordered to the Assembly.

18. May 14, 2019

    Read second time. Ordered to third reading.

19. May 13, 2019

    From committee: Do pass. (Ayes 6. Noes 0. Page 1033.) (May 13).

20. May 03, 2019

    Set for hearing May 13.

21. April 29, 2019

    Read second time and amended. Re-referred to Com. on APPR.

22. April 25, 2019

    From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 13. Noes 0. Page 850.) (April 24).

23. April 11, 2019

    From committee with author's amendments. Read second time and amended. Re-referred to Com. on INS.

24. April 09, 2019

    Set for hearing April 24.

25. March 27, 2019

    Re-referred to Com. on INS.

26. March 14, 2019

    From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.

27. February 21, 2019

    Referred to Com. on RLS.

28. February 12, 2019

    From printer. May be acted upon on or after March 14.

29. February 11, 2019

    Introduced. Read first time. To Com. on RLS. for assignment. To print.

Sponsors

• Dodd · Primary

Votes

Subjects