SB275 By Senator Albritton RFD Banking and Insurance Rd 1 23-FEB-16

SYNOPSIS: Under existing law, an independent insurance adjuster is generally required to be licensed in the state by the Insurance Department with certain reciprocity provisions. An applicant is required to complete a prelicensing course or examination.

This bill would provide that an applicant for a license as an independent adjuster who has been employed as an adjuster for 20 years or more with an insurance company in this state may be licensed without completing a prelicensing course or examination.

A BILL TO BE ENTITLED AN ACT

Relating to the licensing of independent insurance adjusters by the Department of Insurance; to amend Section 27-9A-9 of the Code of Alabama 1975, to provide further under certain conditions for the licensing of an applicant without a prelicensing course or examination if the applicant has certain experience as an adjuster with an insurance company in this state.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:Section 1. Section 27-9A-9 of the Code of Alabama 1975, is amended to read as follows:

§27-9A-9.

"(a) An individual applicant for an independent adjuster license in this state shall not be required to complete any prelicensing course or examination if the person is currently licensed in another state for the same line or lines of authority based on an independent adjuster examination or if such state license has expired and the application is received by this state within 90 days of expiration. The applicant shall either provide certification from the other state that the applicant's license is currently in good standing or was in good standing at the time of expiration or the state's producer database records maintained by the NAIC must indicate that the applicant is or was licensed in good standing. The certification must be of a license with the same line of authority for which the individual has applied.

"(b) A person licensed as an independent adjuster in another state based on an independent adjuster examination who, within 90 days of establishing legal residency in this state, applies to become a resident independent adjuster licensee pursuant to Section 27-9A-6 shall not be required to complete a prelicensing course or an examination.

"(c) An individual who applies for an independent adjuster license in this state who was previously licensed as an independent adjuster in this state shall not be required to complete a prelicensing course or examination, but this exemption is only available if the application is received within 12 months of the cancellation of the applicant's previous license in this state and if, at the time of cancellation, the applicant was in good standing in this state.

"(d) An individual applicant for an independent adjuster license in this state shall not be required to complete a prelicensing course or examination if the applicant was previously employed for a minimum of 20 years as an adjuster in this state by an insurance company licensed in this state and the applicant submits his or her application within 12 months of leaving the employment of the company. The insurance company upon request shall certify to the department the time period that the applicant was employed by the insurance company."

Section 2. This act shall become effective immediately following its passage and approval by the Governor, or its otherwise becoming law.

Insurance Department

Insurance

Code Amended