Senate Bill Report, SHB 1037 — Insurance adjusters (March 10, 2021)
Summary
Senate Bill Report on SHB 1037, as of March 10, 2021, titled An act relating to insurance adjusters, prepared for the Senate Committee on Business, Financial Services & Trade. The brief summary says the bill modifies the definition of adjuster for property and casualty insurance, allows the Office of the Insurance Commissioner (OIC) to establish minimum continuing education requirements for adjusters, and requires nonresident independent insurance adjusters operating in the state to register as emergency adjusters with the OIC. The report states that an emergency adjuster must not operate longer than 180 days, unless extended by the OIC. It lists the appropriation as none and the fiscal note as not requested.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
- Issuer
- Congressional materials
- Document type
- Report
- Date
- 2021-03-11
- Case
- 2021 03 11 A28695 D231133 Bill Report 1037 S Sba Bfst 21
Cite this document
“Senate Bill Report, SHB 1037 — Insurance adjusters (March 10, 2021).”
Original at app.leg.wa.gov, dated 2021-03-11. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2021-03-11-2021-03-11-a28695-d231133-bill-report-1037-s-sba-bfst-21/
, SHA-256 b0871b7400bb08346b306125666918b4e7c52162f7cf4b9fc1235fad3068f68b.Full text
SENATE BILL REPORT
SHB 1037
As of March 10, 2021
Title: An act relating to insurance adjusters.
Brief Description: Concerning insurance adjusters.
Sponsors: House Committee on Consumer Protection & Business (originally sponsored by
Representatives Kirby and Vick; by request of Insurance Commissioner).
Brief History: Passed House: 2/3/21, 96-0.
Committee Activity: Business, Financial Services & Trade: 3/11/21.
Brief Summary of Bill
• Modifies the definition of adjuster for property and casualty insurance.
• Allows the Office of the Insurance Commissioner (OIC) to establish
minimum continuing education requirements for adjusters.
• Requires nonresident independent insurance adjusters operating in the
state to register as emergency adjusters with the OIC.
SENATE COMMITTEE ON BUSINESS, FINANCIAL SERVICES & TRADE
Staff: Kellee Gunn (786-7429)
Background: Insurance Adjusters. Under current state law, an adjuster is defined as an
independent contractor who investigates or reports to either the principal in an insurance
contract, the insurer, or the insured for compensation.
Types of adjusters defined in law include:
• an independent adjuster who represents the interest of the insurer;
• a public adjuster who represents the financial interest of the insured; and
• a crop adjuster who acts as an adjuster for claims arising under crop insurance.
This analysis was prepared by non-partisan legislative staff for the use of legislative
members in their deliberations. This analysis is not part of the legislation nor does it
constitute a statement of legislative intent.
Senate Bill Report -1- SHB 1037
To qualify for a resident adjuster license to work in Washington State, adjusters must take
an exam, have at least 12 months of experience, complete specific training requirements, be
a resident of the state, and meet certain other criteria required in law and by rule. A
nonresident adjuster license may be issued to applicants who have a license in good
standing in their home state, or have taken an adjuster exam in Washington State if their
home state does not issue an adjuster license. The Office of the Insurance Commissioner
(OIC) licenses adjusters.
The Appraisal Clause. In a property and casualty insurance contract, an appraisal clause
allows either the insurer or the insured to demand a compulsory appraisal of damaged
property if there is a dispute as to its value, and establishes the procedure in which the
appraisal occurs.
Summary of Bill: Definition of Adjuster, Appraiser, and Umpire. The definition of
adjuster is amended to clarify the role of the adjuster in an insurance claim. The amended
definition establishes that an adjuster may be the person who investigates and negotiates a
settlement for insurance claims or the person who applies the factual circumstances of an
insurance claim arising under property and casualty contracts. The definition explicitly
excludes an appraiser or umpire functioning under the appraisal clause in an insurance
contract.
An appraiser is defined as a person selected by the insurer or the insured to place value or
estimate the amount of loss under an appraisal clause.
An umpire is defined as a person selected by the appraiser representing the insurer and the
insurers or, if there is a disagreement, by the court to resolve differences between
appraisers.
Continuing Education for Adjusters. Minimum continuing education requirements for the
renewal or reissuance of an adjuster license may be established by rule for independent
adjusters and public adjusters.
Nonresident Independent Adjuster. During a state of emergency as proclaimed by the
Governor, a nonresident adjuster may register with the OIC by providing certain
information including where their home state is, where they are licensed, and which insurer
they are representing, among other information.
An emergency adjuster must not operate longer than 180 days, unless extended by the OIC,
is subject to all disciplinary provisions and penalties under state law and rule, and is subject
to the courts concerning civil liability.
Appropriation: None.
Senate Bill Report -2- SHB 1037
Fiscal Note: Not requested.
Creates Committee/Commission/Task Force that includes Legislative members: No.
Effective Date: Ninety days after adjournment of session in which bill is passed.
Senate Bill Report -3- SHB 1037
File and source
- File
- 2021-03-11_a28695_d231133_bill-report-1037-s-sba-bfst-21.pdf
- Size
- 8,491 bytes
- SHA-256
- b0871b7400bb08346b306125666918b4e7c52162f7cf4b9fc1235fad3068f68b
- Original
- app.leg.wa.gov