2022 -- S 2739

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LC005623

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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: Senator Roger Picard

     Date Introduced: March 24, 2022

     Referred To: Senate Commerce

     It is enacted by the General Assembly as follows:

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

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

     27-10-6. Examination.

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

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

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

regulations of this state.

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

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

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

prescribed by the department.

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

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

rescheduled for another examination.

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

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

company/independent adjusters.

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

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

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

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

by the department of business regulation.

     27-10-7.1. Nonresident license reciprocity.

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

license if:

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

her home state;

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

by § 27-10-3(a)(6);

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

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

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

on the same basis.

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

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

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

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

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

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

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

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

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

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

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

to terminate.

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

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

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

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

department of business regulation.

     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

***

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

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

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

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

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

     This act would take effect on January 1, 2023.

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