2022 -- H 7368

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LC004537

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2022

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A N   A C T

RELATING TO INSURANCE -- CLAIMS ADJUSTERS

     

     Introduced By: Representatives Kennedy, and Azzinaro

     Date Introduced: February 09, 2022

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 27-10-6 and 27-10-7.1 of the General Laws in Chapter 27-10 entitled

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"Claim Adjusters" are hereby amended to read as follows:

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     27-10-6. Examination.

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     (a) The department shall subject the applicant to a written examination as to his or her

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competency to act as an insurance claim adjuster. The examination shall test the knowledge of the

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individual concerning the duties and responsibilities of an adjuster and the insurance laws and

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regulations of this state.

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     (b) The department may make arrangements, including contracting with an outside testing

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service, for administering examinations and collecting a nonrefundable fee for the examination.

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     (c) Each individual applying for an examination shall remit a non-refundable fee as

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prescribed by the department.

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     (d) An individual who fails to appear for the examination as scheduled or fails to pass the

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examination shall reapply for an examination and remit all required fees and forms before being

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rescheduled for another examination.

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     (e) The department may accept successful completion of an examination administered by

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a federal entity in substitute for a state examination for the crop line of authority for

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company/independent adjusters.

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     (f) The department may also accept, in lieu of the written examination referred to in

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subsection (a) of this section, a certification issued by a national or state based claims association

 

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with a program approved by the department, that includes a proctored exam of sufficient length

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and rigor to adequately determine the competence of the applicant and any other requirements set

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by the department of business regulation.

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     27-10-7.1. Nonresident license reciprocity.

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     (a) Unless denied licensure, a nonresident person shall receive a nonresident adjuster

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license if:

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     (1) The person is currently licensed as a resident adjuster and is in good standing in his or

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her home state;

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     (2) The person has submitted the proper request for licensure and has paid the fees required

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by ยง 27-10-3(a)(6);

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     (3) The person has submitted or transmitted to the department the appropriate, completed

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application for licensure for the equivalent type of license and lines of authority; and

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     (4) The person's home state awards nonresident adjuster licenses to residents of this state

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on the same basis.

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     (b) The insurance commissioner may verify the adjuster's licensing status through the

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database maintained by the NAIC, its affiliates, or subsidiaries.

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     (c) As a condition to continuation of an adjuster license issued under this section, the

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licensee shall maintain a resident adjuster license in his or her home state. The nonresident adjuster

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license issued under this section shall terminate and be surrendered immediately if the home state

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adjuster license terminates for any reason, unless the adjuster has been issued a license as a resident

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adjuster in his or her new home state. Notification to any state where a nonresident license is issued

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must be made as soon as possible, yet no later than thirty (30) days of change in new state resident

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license. The licensee shall include new and old addresses in the notification to the department. A

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new state resident license is required for nonresident licenses to remain valid. The new state resident

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license must have reciprocity with the licensing nonresident state(s) for the nonresident license not

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to terminate.

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     (d) The department may grant a nonresident license to an adjuster that holds a current

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certificate issued by a national or state based claims association with a program, approved by the

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department, that includes at a minimum, a proctored exam of sufficient length and rigor to

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adequately determine the competence of the applicant and any other requirements set by the

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department of business regulation.

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     SECTION 2. This act shall take effect on January 1, 2023.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO INSURANCE -- CLAIMS ADJUSTERS

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     This act would authorize the department of insurance, within the department of business

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regulation, in lieu of passing in-state licensing examination, to recognize the competence of an

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applicant for an insurance claims adjuster license, through an out-of-state proctored examination.

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It would also allow the department to grant a nonresident insurance claims adjuster license based

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on an out-of-state proctored license qualifying examination.

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     This act would take effect on January 1, 2023.

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