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NAIC Investigates Licensing of Claims Adjusters

During the fall meeting of the NAIC in Chicago September 13-16, 2003, an NAIC subgroup met to consider drafting a model law which would require...
September 23, 2003

During the fall meeting of the NAIC in Chicago September 13-16, 2003, an NAIC subgroup met to consider drafting a model law which would require claims adjusters to be licensed by the states. Although a few states already require their adjusters to be licensed, a model law by the NAIC would inevitably lead to an increased number of states licensing adjusters.

At the Monday, September, 15, 2003 meeting of the NAIC Uniform Adjuster Licensing Model Act Subgroup, the National Association of Independent Insurers (NAII) issued a statement discouraging the Subgroup from pursuing a model law which would require adjusters to be licensed. Rather, the NAII encouraged the Subgroup to investigate and define the problems in the marketplace involving adjusters that are not being addressed though existing regulations before compelling states to license adjusters. At the meeting, the Subgroup made no final decision as to whether it would pursue an adjuster licensing model law (despite the subgroup's title). Presently, the group is continuing to investigate the issue.

What It Means to Agents: Since agents can be given limited authority to adjust claims by their carriers, a requirement to license adjusters could have a direct impact on those agents who are permitted to adjust. Moreover, a licensing requirement is likely to drive up a carrier's cost of doing business, which could have an indirect affect on agents as well. PIA will continue to monitor the actions of the Uniform Adjuster Licensing Model Act Subgroup.