I 
112TH CONGRESS 
2D SESSION 
H. R. 6415 
To facilitate prompt and efficient adjusting of insurance claims in the case 
of natural and other disasters and losses, to encourage licensing of 
insurance claims adjusters, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 14, 2012 
Mr. FINCHER introduced the following bill; which was referred to the 
Committee on Financial Services 
A BILL 
To facilitate prompt and efficient adjusting of insurance 
claims in the case of natural and other disasters and 
losses, to encourage licensing of insurance claims adjust-
ers, 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. ACCELERATING CLAIMS ADJUSTING OF LOSSES 
CAUSED BY NATURAL OR OTHER DISASTERS. 
(a) AUTHORITY TO ADJUST.—An independent claims 
adjuster meeting the requirements of subsection (b) may 
adjust claims for losses related to any natural or other 
disaster, occurring in any jurisdiction, that has been des-
ignated by the President as a major disaster pursuant to 
section 401 of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5170) notwith-
standing the licensure requirements of the State in which 
the disaster area for the major disaster is located and not-
withstanding the requirements under section 6 of this Act 
for interstate claims licensing. 
(b) ADJUSTER REQUIREMEMTS.—The requirements 
under this subsection with respect to an independent 
claims adjuster are as follows: 
(1) STATE
LICENSE.—The adjuster holds a 
valid license as an independent claims adjuster in his 
or her home State (whether actual or designated, 
pursuant to section 7(1)). 
(2) MULTI-STATE
EXAMINATION.—If the Na-
tional Association of Insurance Commissioners has 
established and administers a multi-State examina-
tion pursuant to section 4, the adjuster has passed 
such an examination, as certified by the NAIC. 
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SEC. 3. MODEL LICENSING ACT. 
To promote the policy of robust consumer protection 
for and more efficient interstate adjusting of property, 
casualty, disability, or workers’ compensation claims, the 
Congress hereby urges the NAIC to adopt a model inde-
pendent claims adjuster licensing Act that— 
(1) contains basic standards for the integrity, 
personal qualifications, education, training, and ex-
perience required of independent claims adjusters, 
including continuing education requirements and 
ethics course requirements; and 
(2) does not impose any limitation or condition 
upon any independent claims adjuster to be licensed 
or otherwise authorized to do business in a State be-
cause of his or her status as a non-resident of that 
State. 
SEC. 4. MULTI-STATE EXAMINATION. 
(a) ESTABLISHMENT.—The Congress hereby urges 
the NAIC to develop and administer a multi-State exam-
ination for an independent claims adjuster seeking to ad-
just claims in a jurisdiction other than his or her home 
State. 
(b) EXAMINEE ELIGIBILITY.—The NAIC may re-
quire that, as a condition for taking a multi-State exam-
ination administered pursuant to this section, the exam-
inee shall— 
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(1) be duly licensed as an independent claims 
adjuster by his or her home State; 
(2) meet such integrity, degree, training, and 
experience requirements as the NAIC considers nec-
essary; and, 
(3) meet any continuing education requirements 
as established by his or her home State. 
(c) CROSS-JURISDICTION COMPETENCY.—Any multi- 
State examination administered pursuant to this section 
shall require adjusters to demonstrate essential com-
petence with cross-jurisdictional legal and regulatory con-
cepts, and shall include such ethics and other testing as 
the NAIC deems necessary. 
SEC. 5. INTERSTATE CLAIMS ADJUSTING LICENSING RE-
FORMS. 
(a) IN GENERAL.—A State is in compliance with the 
requirements of this subsection, and section 6 shall not 
apply with respect to such State, if before the expiration 
of the 3-year period beginning on the date of the enact-
ment of this Act the State has enacted and has in effect— 
(1) in the case only of a State that requires and 
issues licenses for independent claims adjusters, laws 
and regulations governing individuals and entities 
authorized to operate as independent claims adjust-
ers within the State that are functionally equivalent 
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in meaning and effect to those under any model act 
developed pursuant to section 3; and 
(2) laws and regulations governing non-home 
State individuals and entities operating as inde-
pendent claims adjusters within that State that pro-
vide for the reciprocity required under subsection (c) 
with other States. 
(b) UNIFORMITY REQUIREMENTS.—A State that li-
censes independent claims adjusters shall be deemed to 
have established the uniformity referred to in subsection 
(a)(1) if it has enacted and adheres to criteria for the li-
censing and authorization of adjusters that are function-
ally equivalent in meaning and effect to those set forth 
in a model act established pursuant to section 3. 
(c) RECIPROCITY REQUIREMENTS.—The laws and 
regulations of a certain State shall be considered to pro-
vide for the reciprocity required under this subsection only 
if such laws and regulations— 
(1) permit any independent claims adjuster who 
has a license in another State that is the adjuster’s 
home State to obtain authorization to engage in the 
business of adjusting in such certain State as a non- 
resident to the same extent that such adjuster is 
permitted to practice in the adjuster’s home State, 
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without satisfying any additional requirements other 
than, if required under applicable law, to submit— 
(A) proof of being licensed in good stand-
ing in the adjuster’s home State; Provided, 
That such home State has enacted laws and 
regulations governing individuals and entities 
authorized to operate as independent claims ad-
justers within such home State that are func-
tionally equivalent in meaning and effect to 
those under any model act developed pursuant 
to section 3; and, 
(B) payment of any requisite fee to the ap-
propriate authority of the certain State; Pro-
vided, That the amount of such fee does not ex-
ceed any fee required to be paid by an adjuster 
whose home State is such certain State; or 
(2) do not require licensure of independent 
claims adjusters. 
(d) NAIC DETERMINATION.— 
(1) DETERMINATION.—A State shall be consid-
ered to be in compliance with subsection (a) for pur-
poses of this Act if the NAIC determines that, be-
fore the expiration of the 3-year period beginning on 
the date of enactment of this Act, the State is in 
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compliance with the requirements under such sub-
section. 
(2) CONTINUED REVIEW.—With respect to any 
State that the NAIC has determined to be in compli-
ance with the requirements of subsection (a), the 
Congress hereby urges NAIC to continue to review 
and determine such State’s compliance with the re-
quirements of subsection (a) on an annual basis. If 
the NAIC determines at any time that a State no 
longer is in compliance with the requirements of 
subsection (a), section 6 shall apply with respect to 
such State. 
(3) 
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. 6. AUTHORITY FOR INTERSTATE CLAIMS ADJUSTING. 
(a) AUTHORITY.—In the case of any State that re-
quires and issues licenses for independent claims adjusters 
but is not in compliance with section 5(a), after the expira-
tion of the 3-year period beginning on the date of the en-
actment of this Act, an independent claims adjuster may 
ascertain, determine, negotiate, or settle a claim in such 
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State, but only if the adjuster meets the following require-
ments: 
(1) The independent claims adjuster holds a 
valid such license in his or her home State. 
(2) If the NAIC has established and admin-
isters a multi-State examination pursuant to section 
4, the adjuster has passed such examination. 
(b) PROHIBITION OF ADDITIONAL STATE REQUIRE-
MENTS.—An independent claims adjuster authorized 
under subsection (a) to ascertain, determine, negotiate, or 
settle a claim in a State that is not in compliance with 
section 5 shall not be subject to any additional licensure 
or other requirements from such State in order to adjust 
claims and otherwise act as an independent claims ad-
juster in such State. 
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 as an independent 
claims adjuster. 
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(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 
for the line or lines of authority sought, such 
term means any other State in which the inde-
pendent claims adjuster is so licensed 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 or entity, other than a public adjuster, who 
undertakes to ascertain, determine, negotiate, or set-
tle the amount of a property, casualty, disability, or 
workers’ compensation claim, loss, or damage on be-
half of an insurance policy or insurer or as a third- 
party on behalf of a self-insurer. 
(3) NAIC.—The term ‘‘NAIC’’ means the Na-
tional Association of Insurance Commissioners. 
(4) PUBLIC ADJUSTER.—The term ‘‘public ad-
juster’’ means any person who, for compensation or 
any other thing of value, acts, aids, advertises, or so-
licits business to ascertain, determine, negotiate, or 
settle the amount of a claim, loss, or damage, solely 
in relation to first party claims arising under con-
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tracts that insure the real or personal property of 
the insured. 
(5) STATE.—The term ‘‘State’’ means the 
States of the United States, the District of Colum-
bia, the Commonwealth of Puerto Rico, the Com-
monwealth of the Northern Mariana Islands, Guam, 
the Virgin Islands, American Samoa, and any other 
territory or possession of the United States. 
(6) STATE
LAW.—The term ‘‘State law’’ in-
cludes all laws, decisions, rules, regulations, or other 
State action of any State having the effect of law; 
and a law of the United States applicable only to the 
District of Columbia shall be treated as a State law 
rather than as a law of the United States. 
Æ 
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