I 

113TH CONGRESS 

1ST SESSION H. R. 2156 

To encourage uniformity and reciprocity among States that license insurance 

claims adjusters and to facilitate prompt and efficient adjusting of insurance claims in the case of natural and other disasters and losses, and 

for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 23, 2013 

Mr. FINCHER (for himself, Mrs. BLACKBURN, and Mr. TIBERI) introduced the 

following bill; which was referred to the Committee on Financial Services 

A BILL 

To encourage uniformity and reciprocity among States that 

license insurance claims adjusters and to facilitate 

prompt and efficient adjusting of insurance claims in 

the case of natural and other disasters and losses, and 

for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Claims Licensing Ad5 vancement for Interstate Matters Act’’ or the ‘‘CLAIM 

6 Act’’. 


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1 SEC. 2. MODEL LICENSING ACT. 

2 To promote the policy of robust consumer protection 

3 for and more efficient interstate adjusting of property, 

4 casualty, disability, or workers’ compensation claims, the 

5 Congress hereby urges the National Association of Insur6 ance Commissioners to adopt a model independent claims 

7 adjuster licensing Act that— 

8 (1) contains basic standards for the integrity, 

9 personal qualifications, education, training, and ex10 perience required of independent claims adjusters, 

11 including continuing education requirements and 

12 ethics course requirements; and 

13 (2) does not impose any limitation or condition 

14 upon any independent claims adjuster to be licensed 

15 or otherwise authorized to do business in a State be16 cause of his or her status as a non-resident of that 

17 State. 

18 SEC. 3. MULTI-STATE EXAMINATION. 

19 (a) ESTABLISHMENT.—The Congress hereby urges 

20 the NAIC to adopt and administer a multi-State examina21 tion for an independent claims adjuster seeking to adjust 

22 claims in a jurisdiction other than his or her home State. 

23 (b) EXAMINEE ELIGIBILITY.—The NAIC may re24 quire that, as a condition for taking a multi-State exam25 ination administered pursuant to this section, the exam26 inee shall— 


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1 (1) be duly licensed as an independent claims 

2 adjuster by his or her home State; 

3 (2) meet such integrity, degree, training, and 

4 experience requirements as the NAIC considers nec5 essary; and 

6 (3) meet any continuing education requirements 

7 as established by his or her home State. 

8 (c) CROSS-JURISDICTION COMPETENCY.—Any multi9 State examination administered pursuant to this section 

10 shall require adjusters to demonstrate essential com11 petence with cross-jurisdictional legal and regulatory con12 cepts, and shall include such ethics and other testing as 

13 the NAIC deems necessary. 

14 SEC. 4. STATE AUTHORITIES. 

15 Nothing in this Act shall be construed to— 

16 (1) require a State that does not have licensing 

17 requirements for independent claims adjusters to 

18 adopt any such requirements; 

19 (2) subject to section 6, limit the right of a 

20 State to establish licensing fees or enforce its laws 

21 regarding the adjusting of insurance claims, pro22 vided that such fee is uniform regardless of the 

23 State of residence of the licensee; or 

24 (3) affect the jurisdiction and authority of a 

25 State insurance regulator to prescribe and enforce 


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1 its insurance laws, rules, and regulations regulating 

2 independent claims adjuster activity in its jurisdic3 tion. 

4 SEC. 5. INTERSTATE CLAIMS ADJUSTING LICENSING RE5 FORMS. 

6 (a) IN GENERAL.—A State is in compliance with the 

7 requirements of this subsection, and section 6 shall not 

8 apply with respect to such State, if before the expiration 

9 of the 4-year period beginning on the date of the enact10 ment of this Act the State has enacted and has in effect— 

11 (1) in the case only of a State that requires and 

12 issues licenses for independent claims adjusters, laws 

13 and regulations governing individuals and entities 

14 authorized to operate as independent claims adjust15 ers within the State that are functionally equivalent 

16 in meaning and effect to those under any model act 

17 developed pursuant to section 2; and 

18 (2) laws and regulations governing non-home 

19 State individuals and entities operating as inde20 pendent claims adjusters within that State that pro21 vide for the reciprocity required under subsection (c) 

22 with other States. 

23 (b) UNIFORMITY REQUIREMENTS.—A State that li24 censes independent claims adjusters shall be deemed to 

25 have established the uniformity referred to in subsection 


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1 (a)(1) if it has enacted and adheres to criteria for the li2 censing and authorization of adjusters that are function3 ally equivalent in meaning and effect to those set forth 

4 in a model act established pursuant to section 2. 

5 (c) RECIPROCITY REQUIREMENTS.—The laws and 

6 regulations of a certain State shall be considered to pro7 vide for the reciprocity required under this subsection only 

8 if such laws and regulations— 

9 (1) do not require licensure of independent 

10 claims adjusters; or 

11 (2) permit any independent claims adjuster who 

12 has a license in another State that is the adjuster’s 

13 home State to obtain authorization to engage in the 

14 business of adjusting in such certain State as a non15 resident to the same extent that such adjuster is 

16 permitted to practice in the adjuster’s home State, 

17 without satisfying any additional requirements other 

18 than, if required under applicable law, to submit— 

19 (A) proof of being licensed in good stand20 ing in the adjuster’s home State; Provided, 

21 That such home State has enacted laws and 

22 regulations governing individuals and entities 

23 authorized to operate as independent claims ad24 justers within such home State that are func25 tionally equivalent in meaning and effect to 


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1 those under any model act developed pursuant 

2 to section 2; and 

3 (B) payment of any requisite fee to the ap4 propriate authority of the certain State; Pro5 vided, That the amount of such fee does not ex6 ceed any fee required to be paid by an adjuster 

7 whose home State is such certain State. 

8 (d) NAIC DETERMINATION.— 

9 (1) DETERMINATION.—A State shall be consid10 ered to be in compliance with subsection (a) for pur11 poses of this Act if the NAIC determines that, be12 fore the expiration of the 4-year period beginning on 

13 the date of enactment of this Act, the State is in 

14 compliance with the requirements under such sub15 section. 

16 (2) CONTINUED REVIEW.—With respect to any 

17 State that the NAIC has determined to be in compli18 ance with the requirements of subsection (a), the 

19 Congress hereby urges NAIC to continue to review 

20 and determine such State’s compliance with the re21 quirements of subsection (a) on an annual basis. If 

22 the NAIC determines at any time that a State no 

23 longer is in compliance with the requirements of 

24 subsection (a), section 6 shall apply with respect to 

25 such State. 


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1 (3) JUDICIAL REVIEW.—The appropriate 

2 United States District Court shall have exclusive ju3 risdiction over any challenge arising under this sec4 tion. The court shall apply the standards set forth 

5 in section 706 of title 5, United States Code, in re6 viewing any such challenge. 

7 SEC. 6. AUTHORITY FOR INTERSTATE CLAIMS ADJUSTING. 

8 (a) AUTHORITY.—In the case of any State that re9 quires and issues licenses for independent claims adjusters 

10 but is not in compliance with section 5(a), after the expira11 tion of the 4-year period beginning on the date of the en12 actment of this Act, an independent claims adjuster and 

13 the adjuster’s employer may ascertain, determine, nego14 tiate, or settle a claim in such State, but only if the ad15 juster meets the following requirements: 

16 (1) The independent claims adjuster holds a 

17 valid such license in his or her home State. 

18 (2) If the NAIC has established and admin19 isters a multi-State examination pursuant to section 

20 3, the adjuster has passed such examination. 

21 (b) PROHIBITION OF ADDITIONAL STATE REQUIRE22 MENTS.—An independent claims adjuster authorized 

23 under subsection (a) to investigate, evaluate, negotiate the 

24 resolution of a claim in a State that is not in compliance 

25 with section 5 shall not be subject to any additional licenVerDate Mar 15 2010 05:12 May 30, 2013 Jkt 029200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H2156.IH H2156

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1 sure or other requirements from such State in order to 

2 adjust claims and otherwise act as an independent claims 

3 adjuster in such State. 

4 SEC. 7. ACCELERATING CLAIMS ADJUSTING OF LOSSES 

5 CAUSED BY NATURAL OR OTHER DISASTERS. 

6 (a) AUTHORITY TO ADJUST.—An independent claims 

7 adjuster meeting the requirements of subsection (b) may 

8 adjust claims for losses related to any natural or other 

9 disaster, occurring in any jurisdiction, that has been des10 ignated by the President as a major disaster pursuant to 

11 section 401 of the Robert T. Stafford Disaster Relief and 

12 Emergency Assistance Act (42 U.S.C. 5170) notwith13 standing the licensure requirements of the State in which 

14 the disaster area for the major disaster is located and not15 withstanding the requirements under section 6 of this Act 

16 for interstate claims licensing. 

17 (b) ADJUSTER REQUIREMENTS.—The requirements 

18 under this subsection with respect to an independent 

19 claims adjuster are as follows: 

20 (1) STATE LICENSE.—The adjuster holds a 

21 valid license as an independent claims adjuster in his 

22 or her home State (whether actual or designated, 

23 pursuant to section 8(a)(1)). 

24 (2) MULTI-STATE EXAMINATION.—If the NAIC 

25 has adopted and administers a multi-State examinaVerDate Mar 15 2010 05:12 May 30, 2013 Jkt 029200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H2156.IH H2156

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1 tion pursuant to section 3, the adjuster has passed 

2 such an examination. 

3 SEC. 8. DEFINITIONS. 

4 For purposes of this Act, the following definitions 

5 shall apply: 

6 (1) HOME STATE.— 

7 (A) ACTUAL.—The term ‘‘home State’’ 

8 means, with respect to an independent claims 

9 adjuster, the State in which the adjuster main10 tains his, her, or its principal place of residence 

11 or business and is licensed as an independent 

12 claims adjuster. 

13 (B) DESIGNATED.—If the State in which 

14 an independent claims adjuster maintains his or 

15 her principal place of residence or business does 

16 not issue an independent claims adjuster license 

17 for the line or lines of authority sought, such 

18 term means any other State in which the inde19 pendent claims adjuster is so licensed and that 

20 is designated by such adjuster as his or her 

21 home State. 

22 (2) INDEPENDENT CLAIMS ADJUSTER.—The 

23 term ‘‘independent claims adjuster’’ means an indi24 vidual, other than a public adjuster, who undertakes 

25 on behalf of insurers or self-insurers to investigate, 


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1 evaluate, and negotiate the resolution of the amount 

2 of a property, casualty, disability, or workers’ com3 pensation claim, loss, or damage on behalf of an in4 surance policy or insurer or as a third-party on be5 half of a self-insurer. Such term includes company 

6 or staff adjusters, who are individuals, other than a 

7 public adjuster, employed by property casualty in8 surers and undertake to investigate, evaluate, and 

9 negotiate the resolution of a property, casualty, dis10 ability, or workers’ compensation claim, loss, or 

11 damage on behalf of an insurance policy or insurer. 

12 (3) NAIC.—The term ‘‘NAIC’’ means the Na13 tional Association of Insurance Commissioners. 

14 (4) PUBLIC ADJUSTER.—The term ‘‘public ad15 juster’’ means any person who, for compensation or 

16 any other thing of value, on behalf of the insured 

17 acts, aids, advertises, or solicits business to ascer18 tain, determine, negotiate, or settle the amount of a 

19 claim, loss, or damage, solely in relation to first 

20 party claims arising under contracts that insure the 

21 real or personal property of the insured. 

22 (5) STATE.—The term ‘‘State’’ means the 

23 States of the United States, the District of Colum24 bia, the Commonwealth of Puerto Rico, the Com25 monwealth of the Northern Mariana Islands, Guam, 


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1 the Virgin Islands, American Samoa, and any other 

2 territory or possession of the United States. 

3 (6) STATE LAW.—The term ‘‘State law’’ in4 cludes all laws, decisions, rules, regulations, or other 

5 State action of any State having the effect of law; 

6 and a law of the United States applicable only to the 

7 District of Columbia shall be treated as a State law 

8 rather than as a law of the United States. 

Æ 


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