Title: CLAIM Act
Policy area: Finance and Financial Sector

Summary:
Claims Licensing Advancement for Interstate Matters Act or the CLAIM Act
This bill addresses state licensure of independent insurance claims adjusters.
Specifically, the bill authorizes an independent insurance claims adjuster to apply to the National Association of Registered Agents and Brokers for membership for the purpose of licensure in any state that requires a license for such adjusters and that does not have in effect, four years after this bill's enactment (1) uniform laws and regulations governing the licensure of individuals and entities within the state, and (2) reciprocity laws and regulations governing the licensure of nonresident individuals and entities.
Similarly, an independent crop insurance adjuster may meet the certification requirements of the Federal Crop Insurance Corporation for licensure.
The bill also waives license renewal requirements for certain service members.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4037 Introduced in House (IH)]

<DOC>






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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Claims Licensing Advancement for 
Interstate Matters Act'' or the ``CLAIM Act''.

SEC. 2. STATE FLEXIBILITY IN MULTISTATE ADJUSTER LICENSING 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 enactment of this Act unless, before the 
expiration of such period, those States that license independent claims 
adjusters 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 integrity, 
        personal qualifications, education, training, and experience of 
        licensed independent claims adjusters for--
                    (A) property and casualty insurance;
                    (B) workers compensation insurance;
                    (C) crop insurance (to the extent that a State 
                licenses crop insurance adjusters; and
                    (D) such other lines as a State may choose to 
                regulate;
            (2) establish uniform continuing education requirements for 
        licensed independent claims adjusters for each line of 
        insurance under paragraph (1) that a State chooses to regulate;
            (3) establish uniform ethics course requirements for 
        licensed independent claims adjusters in conjunction with the 
        continuing education requirements under paragraph (2);
            (4) do not impose any requirement upon any independent 
        claims adjuster to be licensed or otherwise qualified to do 
        business as a nonresident that has the effect of limiting or 
        conditioning that independent 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 procedures.--Each State that 
        licenses independent claims adjusters permits an independent 
        claims adjuster that has a license for adjusting insurance 
        claims in their home State to receive a license to adjust 
        insurance claims in those other States as a nonresident to the 
        same extent that such independent claims adjuster is permitted 
        to adjust insurance claims in their home State without 
        satisfying any additional requirements other than submitting--
                    (A) a request for licensure utilizing the uniform 
                license application;
                    (B) a copy of, or evidence of, a valid license held 
                by the adjuster in their home State (unless such 
                information is available in the National Insurance 
                Producer Registry Producer Database); and
                    (C) the payment of any requisite fee to the 
                appropriate authority.
            (2) Continuing education requirements.--Each State that 
        licenses an independent claims adjuster accepts an insurance 
        claims adjuster's satisfaction of their home State's continuing 
        education requirements for licensed insurance claims adjusters 
        to satisfy the State's own continuing education requirements.
            (3) No limiting nonresident requirements.--A State does not 
        impose any requirement upon any independent claims adjuster to 
        be licensed or otherwise qualified to do business as a 
        nonresident that has the effect of limiting or conditioning 
        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 considered to be in 
        compliance with subsection (a) for purposes of this Act if the 
        State, before the expiration of the 4-year period beginning on 
        the date of the enactment 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 intention to 
        publish the finding, and the State's acceptance of comments on 
        the proposed finding. After notice required by this paragraph, 
        a State agency shall give interested persons an opportunity to 
        participate 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 basis and purpose and shall 
        respond to the comments it received in detail.
            (2) Judicial review.--The appropriate United States 
        District Court shall have exclusive jurisdiction over any 
        challenge arising under this section. The court shall apply the 
        standards set forth in section 706 of title 5, United States 
        Code, in reviewing 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, provided 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 jurisdiction.

SEC. 4. AUTHORITY FOR INTERSTATE CLAIMS ADJUSTING.

    In the case of any State that requires and issues licenses 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 adjuster 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 adjuster 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 CIRCUMSTANCES.

    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, 
and the license held by that licensee at the time of his or her entry 
into military service shall remain in force during 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 
license 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 licenses 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 Federal Crop Insurance Act (7 U.S.C. 1501 
et seq.) and provided that such crop adjuster pays the requisite fees, 
including State licensing fee.

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 maintains 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 licensed 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 individual, other than a public 
        adjuster, who undertakes on behalf of insurers or self-insurers 
        to investigate, evaluate, and negotiate the resolution of the 
        amount of a property, casualty, liability, disability, or 
        workers' compensation claim, loss, or damage on behalf of an 
        insurance policy or insurer or as a third party on behalf of a 
        self-insurer. Such term includes company or staff adjusters, 
        who are individuals, other than a public adjuster, employed by 
        property casualty insurers and undertake to investigate, 
        evaluate, and negotiate the resolution of a property, casualty, 
        liability, disability, crop loss, or workers' compensation 
        claim, loss, or damage on behalf of an insurance policy or 
        insurer or as a third party on behalf of a self-insurer.
            (3) Public adjuster.--The term ``public adjuster'' means 
        any person who, for compensation or any other thing of value, 
        on behalf of the insured acts, aids, advertises, or solicits 
        business to ascertain, determine, negotiate, or settle the 
        amount of a claim, loss, or damage, solely in relation to first 
        party claims arising under contracts that insure the real or 
        personal property of the insured.
            (4) State.--The term ``State'' means the States of the 
        United States, the District of Columbia, the Commonwealth of 
        Puerto Rico, the Commonwealth of the Northern Mariana Islands, 
        Guam, the Virgin Islands, American Samoa, and any other 
        territory or possession of the United States.
            (5) State law.--The term ``State law'' includes 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.
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