I 

116TH CONGRESS 

1ST SESSION H. R. 4037 

To promote uniformity and reciprocity among States that license insurance 

claims adjusters and to facilitate prompt and efficient adjusting of insurance claims, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 25, 2019 

Mr. KUSTOFF of Tennessee (for himself and Mr. FOSTER) introduced the following bill; which was referred to the Committee on Financial Services, 

and in addition to the Committee on Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of 

such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To promote uniformity and reciprocity among States that 

license insurance claims adjusters and to facilitate 

prompt and efficient adjusting of insurance claims, 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. STATE FLEXIBILITY IN MULTISTATE ADJUSTER LI2 CENSING REFORMS. 

3 (a) IN GENERAL.—Section 4, or in the case of crop 

4 adjusting section 6, shall take effect upon the expiration 

5 of the 4-year period beginning on the date of the enact6 ment of this Act unless, before the expiration of such pe7 riod, those States that license independent claims adjust8 ers have enacted— 

9 (1) uniform laws and regulations governing the 

10 licensure of individuals and entities authorized to 

11 adjust insurance claims within the State; and 

12 (2) reciprocity laws and regulations governing 

13 the licensure of nonresident individuals and entities 

14 authorized to adjust insurance claims within those 

15 States. 

16 (b) UNIFORMITY REQUIRED.—States shall be deemed 

17 to have established the uniformity necessary to comply 

18 with subsection (a)(1) if the States— 

19 (1) establish uniform criteria regarding the in20 tegrity, personal qualifications, education, training, 

21 and experience of licensed independent claims ad22 justers for— 

23 (A) property and casualty insurance; 

24 (B) workers compensation insurance; 

25 (C) crop insurance (to the extent that a 

26 State licenses crop insurance adjusters; and 


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1 (D) such other lines as a State may choose 

2 to regulate; 

3 (2) establish uniform continuing education re4 quirements for licensed independent claims adjusters 

5 for each line of insurance under paragraph (1) that 

6 a State chooses to regulate; 

7 (3) establish uniform ethics course require8 ments for licensed independent claims adjusters in 

9 conjunction with the continuing education require10 ments under paragraph (2); 

11 (4) do not impose any requirement upon any 

12 independent claims adjuster to be licensed or other13 wise qualified to do business as a nonresident that 

14 has the effect of limiting or conditioning that inde15 pendent claims adjuster’s activities because of its 

16 residence or place of operations; and 

17 (5) utilize a uniform license application. 

18 (c) RECIPROCITY REQUIRED.—States shall be 

19 deemed to have established the reciprocity required to 

20 comply with subsection (a)(2) if the following conditions 

21 are met: 

22 (1) ADMINISTRATIVE LICENSING PROCE23 DURES.—Each State that licenses independent 

24 claims adjusters permits an independent claims ad25 juster that has a license for adjusting insurance 


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1 claims in their home State to receive a license to ad2 just insurance claims in those other States as a non3 resident to the same extent that such independent 

4 claims adjuster is permitted to adjust insurance 

5 claims in their home State without satisfying any 

6 additional requirements other than submitting— 

7 (A) a request for licensure utilizing the 

8 uniform license application; 

9 (B) a copy of, or evidence of, a valid li10 cense held by the adjuster in their home State 

11 (unless such information is available in the Na12 tional Insurance Producer Registry Producer 

13 Database); and 

14 (C) the payment of any requisite fee to the 

15 appropriate authority. 

16 (2) CONTINUING EDUCATION REQUIRE17 MENTS.—Each State that licenses an independent 

18 claims adjuster accepts an insurance claims adjust19 er’s satisfaction of their home State’s continuing 

20 education requirements for licensed insurance claims 

21 adjusters to satisfy the State’s own continuing edu22 cation requirements. 

23 (3) NO LIMITING NONRESIDENT REQUIRE24 MENTS.—A State does not impose any requirement 

25 upon any independent claims adjuster to be licensed 


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1 or otherwise qualified to do business as a non2 resident that has the effect of limiting or condi3 tioning that independent claims adjuster’s activities 

4 because of its residence or place of operations. 

5 (4) RECIPROCAL RECIPROCITY.—Each of the 

6 States that satisfies paragraphs (1), (2), and (3) 

7 grants reciprocity to residents of all of the other 

8 States that satisfy such paragraphs. 

9 (d) COMPLIANCE.— 

10 (1) DETERMINATION.—A State shall be consid11 ered to be in compliance with subsection (a) for pur12 poses of this Act if the State, before the expiration 

13 of the 4-year period beginning on the date of the en14 actment of this Act, publishes a finding that it is in 

15 compliance with the provision. Any such publication 

16 shall be made following notice by the State of its in17 tention to publish the finding, and the State’s ac18 ceptance of comments on the proposed finding. After 

19 notice required by this paragraph, a State agency 

20 shall give interested persons an opportunity to par21 ticipate through submission of written data, views, 

22 or arguments. After consideration of the relevant 

23 matter presented, the agency shall incorporate in the 

24 finding adopted a concise general statement of the 


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1 basis and purpose and shall respond to the com2 ments it received in detail. 

3 (2) JUDICIAL REVIEW.—The appropriate 

4 United States District Court shall have exclusive ju5 risdiction over any challenge arising under this sec6 tion. The court shall apply the standards set forth 

7 in section 706 of title 5, United States Code, in re8 viewing any such challenge. 

9 SEC. 3. STATE AUTHORITIES. 

10 Nothing in this Act shall be construed to— 

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

12 requirements for independent claims adjusters to 

13 adopt any such requirements; 

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

15 State to establish licensing fees or enforce its laws 

16 regarding the adjusting of insurance claims, pro17 vided that such State fee is uniform regardless of 

18 the State of residence of the licensee in that State; 

19 or 

20 (3) affect the jurisdiction and authority of a 

21 State insurance regulator to prescribe and enforce 

22 its insurance laws, rules, and regulations regulating 

23 independent claims adjuster activity in its jurisdic24 tion. 


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1 SEC. 4. AUTHORITY FOR INTERSTATE CLAIMS ADJUSTING. 

2 In the case of any State that requires and issues li3 censes for independent claims adjusters (other than crop 

4 adjusters) but is not in compliance with section 2, after 

5 the expiration of the 4-year period beginning on the date 

6 of the enactment of this Act, an independent claims ad7 juster may apply to the National Association of Registered 

8 Agents and Brokers for Membership for the purpose of 

9 licensure in each such State not in compliance with section 

10 2, provided that such independent claims adjuster pays the 

11 requisite fees, including licensing fees. For purposes of 

12 this provision, upon such date an independent claims ad13 juster shall be determined to be a person that negotiates 

14 policies of insurance and offers advice, counsel, opinions 

15 or services related to insurance, as such terms are used 

16 in section 334(5) of Public Law 106–102, as amended by 

17 section 202(a) of Public Law 114–1 (15 U.S.C. 6764(5); 

18 129 Stat. 27). 

19 SEC. 5. WAIVER OF LICENSE RENEWAL IN CERTAIN CIR20 CUMSTANCES. 

21 If a natural person, while licensed or applying to be 

22 licensed to adjust claims pursuant to any State statute 

23 enters the military service of the United States and is in 

24 that service at a time prescribed for the filing of a renewal 

25 application or payment of a licensing fee, the filing of that 

26 application and the payment of the fee shall be waived, 


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1 and the license held by that licensee at the time of his 

2 or her entry into military service shall remain in force dur3 ing the period of that military service and until the end 

4 of the license year in which he or she is released from 

5 that service, but not for less than six months after that 

6 release. During that period, that person may secure a li7 cense of the type held by him or her on his or her entry 

8 into military service upon the filing of an application and 

9 paying the fee therefor without the necessity of taking an 

10 examination or paying a penalty. 

11 SEC. 6. CROP ADJUSTING. 

12 In the case of any State that requires and issues li13 censes for independent crop insurance adjusters but is not 

14 in compliance with section 2, after the expiration of the 

15 4-year period beginning on the date of the enactment of 

16 this Act, an independent claims adjuster may adjust 

17 claims in such State for crop insurance provided that the 

18 crop adjuster has met the certification requirements of the 

19 Federal Crop Insurance Corporation in his or her home 

20 State or designated home State, as established by the Fed21 eral Crop Insurance Act (7 U.S.C. 1501 et seq.) and pro22 vided that such crop adjuster pays the requisite fees, in23 cluding State licensing fee. 


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1 SEC. 7. DEFINITIONS. 

2 For purposes of this Act, the following definitions 

3 shall apply: 

4 (1) HOME STATE.— 

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

6 means, with respect to an independent claims 

7 adjuster, the State in which the adjuster main8 tains his, her, or its principal place of residence 

9 or business and is licensed upon having passed 

10 an exam as an independent claims adjuster. 

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

12 an independent claims adjuster maintains his or 

13 her principal place of residence or business does 

14 not issue an independent claims adjuster license 

15 or require an examination as a condition for 

16 such licensure for the line or lines of authority 

17 sought, such term means any other State in 

18 which the independent claims adjuster is so li19 censed upon having passed an exam and that is 

20 designated by such adjuster as his or her home 

21 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, 

26 evaluate, and negotiate the resolution of the amount 


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1 of a property, casualty, liability, disability, or work2 ers’ compensation claim, loss, or damage on behalf 

3 of an insurance policy or insurer or as a third party 

4 on behalf of a self-insurer. Such term includes com5 pany or staff adjusters, who are individuals, other 

6 than a public adjuster, employed by property cas7 ualty insurers and undertake to investigate, evalu8 ate, and negotiate the resolution of a property, cas9 ualty, liability, disability, crop loss, or workers’ com10 pensation claim, loss, or damage on behalf of an in11 surance policy or insurer or as a third party on be12 half of a self-insurer. 

13 (3) PUBLIC ADJUSTER.—The term ‘‘public ad14 juster’’ means any person who, for compensation or 

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

16 acts, aids, advertises, or solicits business to ascer17 tain, determine, negotiate, or settle the amount of a 

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

19 party claims arising under contracts that insure the 

20 real or personal property of the insured. 

21 (4) STATE.—The term ‘‘State’’ means the 

22 States of the United States, the District of Colum23 bia, the Commonwealth of Puerto Rico, the Com24 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 (5) 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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