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 insur-
ance claims, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 25, 2019 
Mr. KUSTOFF of Tennessee (for himself and Mr. FOSTER) introduced the fol-
lowing bill; which was referred to the Committee on Financial Services, 
and in addition to the Committee on Agriculture, for a period to be sub-
sequently 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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Claims Licensing Ad-
vancement for Interstate Matters Act’’ or the ‘‘CLAIM 
Act’’. 
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SEC. 2. STATE FLEXIBILITY IN MULTISTATE ADJUSTER LI-
CENSING REFORMS. 
(a) IN GENERAL.—Section 4, or in the case of crop 
adjusting section 6, shall take effect upon the expiration 
of the 4-year period beginning on the date of the enact-
ment of this Act unless, before the expiration of such pe-
riod, those States that license independent claims adjust-
ers have enacted— 
(1) uniform laws and regulations governing the 
licensure of individuals and entities authorized to 
adjust insurance claims within the State; and 
(2) reciprocity laws and regulations governing 
the licensure of nonresident individuals and entities 
authorized to adjust insurance claims within those 
States. 
(b) UNIFORMITY REQUIRED.—States shall be deemed 
to have established the uniformity necessary to comply 
with subsection (a)(1) if the States— 
(1) establish uniform criteria regarding the in-
tegrity, personal qualifications, education, training, 
and experience of licensed independent claims ad-
justers for— 
(A) property and casualty insurance; 
(B) workers compensation insurance; 
(C) crop insurance (to the extent that a 
State licenses crop insurance adjusters; and 
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(D) such other lines as a State may choose 
to regulate; 
(2) establish uniform continuing education re-
quirements for licensed independent claims adjusters 
for each line of insurance under paragraph (1) that 
a State chooses to regulate; 
(3) establish uniform ethics course require-
ments for licensed independent claims adjusters in 
conjunction with the continuing education require-
ments under paragraph (2); 
(4) do not impose any requirement upon any 
independent claims adjuster to be licensed or other-
wise qualified to do business as a nonresident that 
has the effect of limiting or conditioning that inde-
pendent claims adjuster’s activities because of its 
residence or place of operations; and 
(5) utilize a uniform license application. 
(c) 
RECIPROCITY
REQUIRED.—States 
shall 
be 
deemed to have established the reciprocity required to 
comply with subsection (a)(2) if the following conditions 
are met: 
(1) 
ADMINISTRATIVE
LICENSING
PROCE-
DURES.—Each State that licenses independent 
claims adjusters permits an independent claims ad-
juster that has a license for adjusting insurance 
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or otherwise qualified to do business as a non-
resident that has the effect of limiting or condi-
tioning that independent claims adjuster’s activities 
because of its residence or place of operations. 
(4) RECIPROCAL
RECIPROCITY.—Each of the 
States that satisfies paragraphs (1), (2), and (3) 
grants reciprocity to residents of all of the other 
States that satisfy such paragraphs. 
(d) COMPLIANCE.— 
(1) DETERMINATION.—A State shall be consid-
ered to be in compliance with subsection (a) for pur-
poses of this Act if the State, before the expiration 
of the 4-year period beginning on the date of the en-
actment of this Act, publishes a finding that it is in 
compliance with the provision. Any such publication 
shall be made following notice by the State of its in-
tention to publish the finding, and the State’s ac-
ceptance of comments on the proposed finding. After 
notice required by this paragraph, a State agency 
shall give interested persons an opportunity to par-
ticipate through submission of written data, views, 
or arguments. After consideration of the relevant 
matter presented, the agency shall incorporate in the 
finding adopted a concise general statement of the 
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basis and purpose and shall respond to the com-
ments it received in detail. 
(2) 
JUDICIAL
REVIEW.—The 
appropriate 
United States District Court shall have exclusive ju-
risdiction over any challenge arising under this sec-
tion. The court shall apply the standards set forth 
in section 706 of title 5, United States Code, in re-
viewing any such challenge. 
SEC. 3. STATE AUTHORITIES. 
Nothing in this Act shall be construed to— 
(1) require a State that does not have licensing 
requirements for independent claims adjusters to 
adopt any such requirements; 
(2) subject to section 2, limit the right of a 
State to establish licensing fees or enforce its laws 
regarding the adjusting of insurance claims, pro-
vided that such State fee is uniform regardless of 
the State of residence of the licensee in that State; 
or 
(3) affect the jurisdiction and authority of a 
State insurance regulator to prescribe and enforce 
its insurance laws, rules, and regulations regulating 
independent claims adjuster activity in its jurisdic-
tion. 
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SEC. 4. AUTHORITY FOR INTERSTATE CLAIMS ADJUSTING. 
In the case of any State that requires and issues li-
censes for independent claims adjusters (other than crop 
adjusters) but is not in compliance with section 2, after 
the expiration of the 4-year period beginning on the date 
of the enactment of this Act, an independent claims ad-
juster may apply to the National Association of Registered 
Agents and Brokers for Membership for the purpose of 
licensure in each such State not in compliance with section 
2, provided that such independent claims adjuster pays the 
requisite fees, including licensing fees. For purposes of 
this provision, upon such date an independent claims ad-
juster shall be determined to be a person that negotiates 
policies of insurance and offers advice, counsel, opinions 
or services related to insurance, as such terms are used 
in section 334(5) of Public Law 106–102, as amended by 
section 202(a) of Public Law 114–1 (15 U.S.C. 6764(5); 
129 Stat. 27). 
SEC. 5. WAIVER OF LICENSE RENEWAL IN CERTAIN CIR-
CUMSTANCES. 
If a natural person, while licensed or applying to be 
licensed to adjust claims pursuant to any State statute 
enters the military service of the United States and is in 
that service at a time prescribed for the filing of a renewal 
application or payment of a licensing fee, the filing of that 
application and the payment of the fee shall be waived, 
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and the license held by that licensee at the time of his 
or her entry into military service shall remain in force dur-
ing the period of that military service and until the end 
of the license year in which he or she is released from 
that service, but not for less than six months after that 
release. During that period, that person may secure a li-
cense of the type held by him or her on his or her entry 
into military service upon the filing of an application and 
paying the fee therefor without the necessity of taking an 
examination or paying a penalty. 
SEC. 6. CROP ADJUSTING. 
In the case of any State that requires and issues li-
censes for independent crop insurance adjusters but is not 
in compliance with section 2, after the expiration of the 
4-year period beginning on the date of the enactment of 
this Act, an independent claims adjuster may adjust 
claims in such State for crop insurance provided that the 
crop adjuster has met the certification requirements of the 
Federal Crop Insurance Corporation in his or her home 
State or designated home State, as established by the Fed-
eral Crop Insurance Act (7 U.S.C. 1501 et seq.) and pro-
vided that such crop adjuster pays the requisite fees, in-
cluding State licensing fee. 
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SEC. 7. DEFINITIONS. 
For purposes of this Act, the following definitions 
shall apply: 
(1) HOME STATE.— 
(A) ACTUAL.—The term ‘‘home State’’ 
means, with respect to an independent claims 
adjuster, the State in which the adjuster main-
tains his, her, or its principal place of residence 
or business and is licensed upon having passed 
an exam as an independent claims adjuster. 
(B) DESIGNATED.—If the State in which 
an independent claims adjuster maintains his or 
her principal place of residence or business does 
not issue an independent claims adjuster license 
or require an examination as a condition for 
such licensure for the line or lines of authority 
sought, such term means any other State in 
which the independent claims adjuster is so li-
censed upon having passed an exam and that is 
designated by such adjuster as his or her home 
State. 
(2) INDEPENDENT
CLAIMS
ADJUSTER.—The 
term ‘‘independent claims adjuster’’ means an indi-
vidual, other than a public adjuster, who undertakes 
on behalf of insurers or self-insurers to investigate, 
evaluate, and negotiate the resolution of the amount 
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