Amended in Assembly March 30, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 2588


Introduced by Assembly Member Chu

February 19, 2016


begin deleteAn act to amend Sections 103875 and 103885 of the Health and Safety Code, relating to cancer data. end deletebegin insertAn act to amend Sections 1722, 1751.5, 14000, 14001, 14020, 14022, 14022.5, 14024, 14025, 14028, 14031, 14032, 14038, 14039, 14040, 14042, 14061, 14063, 14064, 14080, 14090.1, 14097, and 14099 of, to add Sections 14025.1 and 14079 to, to repeal Sections 14027, 14030, and 14037 of, and to repeal and add Sections 14010, 14021, 14026, 14029, and 14078 of, the Insurance Code, relating to insurance.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 2588, as amended, Chu. begin deleteCancer data. end deletebegin insertIndependent insurance adjusters.end insert

begin insert

Existing law, the Insurance Adjuster Act, sets forth various requirements with respect to operation as an insurance adjuster in this state, including, but not limited to, that the person be licensed, licensing qualifications and application requirements, codes of conduct, disciplinary actions, and nonresident and emergency licenses. The act defines the term, “insurance adjuster,” to include a person, other than a private investigator, who, for any consideration whatsoever, engages in business or accepts employment to furnish, or agrees to make, or makes, any investigation for the purpose of obtaining, information in the course of adjusting or otherwise participating in the disposal of, any claim under or in connection with a policy of insurance on behalf of an insurer or engages in soliciting insurance adjustment business. Any person who knowingly falsifies the fingerprints or photographs submitted as part of the application process is guilty of a felony, and any person who violates any other provision governing insurance adjusters is guilty of a misdemeanor punishable by a fine not to exceed $500, or by imprisonment in the county jail not to exceed one year, or by both that fine and imprisonment.

end insert
begin insert

This bill would revise and recast the above provisions by, among other things, changing the name of the act to the Independent Insurance Adjuster Act and redefining an “independent insurance adjuster” to mean an individual, a business entity, an independent contractor, or an employee of a contractor, who contracts for compensation with insurers, a person whose tax treatment by the insurers is consistent with that of an independent contractor rather than as an employee, and a person who investigates, negotiates, or settles property and casualty claims for insurers. The bill would expand the categories of persons exempt from the act to include, among others, an individual who is employed to investigate suspected fraudulent insurance claims but who does not adjust losses or determine claims payments, and a person who solely performs executive, administrative, managerial, or clerical duties or any combination thereof and who does not investigate, negotiate, or settle claims with policyholders, claimants, or their legal representative. The bill would impose additional information and educational requirements on applicants and would impose additional code of conduct requirements on licensees. The bill would revise the provisions relating to nonresident and emergency licenses with regards to qualifying for those licenses. The bill would also create an apprentice independent insurance adjuster license to facilitate the experience, education, and training necessary to ensure reasonable competency in the responsibilities and duties of an independent insurance adjuster and would set forth the various terms and conditions of the license, including an application fee to be fixed by the Insurance Commissioner and reasonably related to the actual cost to the Department Of Insurance in performing its duties. The bill would make an apprentice independent insurance adjuster subject to a felony conviction if he or she knowingly falsifies the fingerprints or photograph submitted as part of his or her application for a license. The bill would also make conforming changes. Because the bill would create a new crime, it would impose a state-mandated local program.

end insert
begin insert

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

end insert
begin insert

This bill would provide that no reimbursement is required by this act for a specified reason.

end insert
begin delete

Existing law requires the State Public Health Officer to establish a statewide system for the collection of information determining the incidence of cancer, as specified. Existing law authorizes the State Department of Public Health to designate any demographic parts of the state as regional cancer incidence reporting areas and establish regional cancer registries to carry out the intent of existing law.

end delete
begin delete

This bill would require the State Department of Public Health to analyze data collected pursuant to this program to assess, measure, and publicly report on the quality of cancer care in the state, as specified. The bill would require the development of a public reporting system on the quality of cancer care in the state. The bill also would require the department to develop a system for routine, automated linkages between data collected pursuant to the program and public and private health insurance payer cancer claims data, and would require the State Public Health Officer to convene a cancer care stakeholder committee to study and make recommendations for developing the automated linkage system.

end delete

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: begin deleteno end deletebegin insertyesend insert.

The people of the State of California do enact as follows:

P3    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 1722 of the end insertbegin insertInsurance Codeend insertbegin insert is amended
2to read:end insert

3

1722.  

If a natural person while licensed pursuant to the
4provisions of this chapter orbegin delete Chaptersend deletebegin insert Chapterend insert 6 (commencing
5with Section 1760), 7 (commencing with Section 1800), or 8
6(commencing with Section 1831) of this part,begin delete orend delete Part 5
7(commencing with Section 12140) of Divisionbegin delete 2end deletebegin insert 2, or Chapter 1
8(commencing with Section 14000) of Division 5end insert
enters the military
9service of the United States and is inbegin delete suchend deletebegin insert thatend insert service at a time
10prescribed for the filing of a renewal application, the filing ofbegin delete suchend delete
11begin insert thatend insert application is waived, and the license held bybegin delete suchend deletebegin insert thatend insert
12 licensee at the time of hisbegin insert or herend insert entry into military service shall
13remain in force during the period ofbegin delete suchend deletebegin insert thatend insert military service and
14until the end of the license year in which hebegin insert or sheend insert is released from
P4    1begin delete suchend deletebegin insert thatend insert service but not for less than six months afterbegin delete suchend deletebegin insert thatend insert
2 release. Duringbegin delete such period suchend deletebegin insert that period, thatend insert person may
3secure a license of the type held by himbegin insert or herend insert on hisbegin insert or herend insert entry
4into military service upon the filing of an application and paying
5the fee therefor without the necessity of taking any examination
6or paying any penalty.

7begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 1751.5 of the end insertbegin insertInsurance Codeend insertbegin insert is amended to
8read:end insert

9

1751.5.  

The fees required by this chapter and by Chapter 6
10(commencing with Section 1760), Chapter 7 (commencing with
11Section 1800), and Chapter 8 (commencing with Section 1831) of
12this partbegin insert and by Chapter 1 (commencing with Section 14000) of
13Division 5end insert
are filing fees, no portion of which shall be refunded
14whether or not the application is acted upon or the examination is
15taken.

16begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 14000 of the end insertbegin insertInsurance Codeend insertbegin insert is amended to
17read:end insert

18

14000.  

This chapter may be cited as thebegin insert Independentend insert Insurance
19Adjuster Act.

20begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 14001 of the end insertbegin insertInsurance Codeend insertbegin insert is amended to
21read:end insert

22

14001.  

As used in thisbegin delete chapter:end deletebegin insert chapter, the following terms
23have the following meanings:end insert

begin insert

24
(a) “Catastrophe” means an event that results in a large number
25of deaths or injuries, causes extensive damage or destruction of
26facilities that provide and sustain human needs, produces an
27overwhelming demand on state and local response resources and
28mechanisms, causes a severe long-term effect on general economic
29activity, or severely affects state, local, and private sector
30capabilities to begin and sustain response activities.

end insert
begin delete

31(a)

end delete

32begin insert(b)end insert “Commissioner” means the Insurance Commissioner.

begin delete

33(b)

end delete

34begin insert(c)end insert “Department” means the Department of Insurance.

begin insert

35
(d) “Fingerprints” means an impression of the lines on the
36finger taken for the purposes of identification.

end insert
begin insert

37
(e) “Home state” means the District of Columbia and any state
38or territory of the United States in which an independent insurance
39adjuster maintains his, her, or its principal place of residence or
40business and is licensed to act as a resident independent insurance
P5    1adjuster. If the resident state does not license independent
2insurance adjusters, the independent insurance adjuster may
3designate California as his, her, or its home state, provided that
4the independent insurance adjuster is licensed and in good
5standing.

end insert
begin insert

6
(f) “Individual” means a natural person.

end insert
begin delete

7(c)

end delete

8begin insert(g)end insert “Licensee” means a person licensed under this chapter.

begin delete

9(d)

end delete

10begin insert(h)end insert “Manager” means the individual under whose direction,
11control, charge, or management the business of a licensee is
12operated.

begin insert

13
(i) “Nonresident” means a person who is not a resident of
14California at the time of the performance of the act referred to in
15Section 14071.

end insert
begin delete

16(e)

end delete

17begin insert(j)end insert “Person” includes any individual, firm, company, association,
18organization, partnership, limited liability company, and
19corporation.

20begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 14010 of the end insertbegin insertInsurance Codeend insertbegin insert is repealed.end insert

begin delete
21

14010.  

The department succeeds to and is vested with all the
22duties, powers, purposes, responsibilities, and jurisdiction
23previously vested in the Bureau of Collection and Investigative
24Services with respect to the licensing of insurance adjusters.

25Any reference to prior licensing shall be deemed to licensing
26under the Private Investigator and Adjuster Act.

27The commissioner shall administer and enforce the provisions
28of this chapter.

end delete
29begin insert

begin insertSEC. 6.end insert  

end insert

begin insertSection 14010 is added to the end insertbegin insertInsurance Codeend insertbegin insert, to read:end insert

begin insert
30

begin insert14010.end insert  

The commissioner shall administer and enforce the
31provisions of this chapter.

end insert
32begin insert

begin insertSEC. 7.end insert  

end insert

begin insertSection 14020 of the end insertbegin insertInsurance Codeend insertbegin insert is amended to
33read:end insert

34

14020.  

begin delete

No

end delete

35begin insert(a)end insertbegin insertend insertbegin insertAend insert person shallbegin insert notend insert engage in a business regulated by this
36chapter, or act or assume to act as, or represent himself or herself
37to be, a licensee unless he or she is licensedbegin delete underend deletebegin insert as an
38independent insurance adjuster in accordance withend insert
this chapter.

begin delete

39No

end delete

P6    1begin insert(b)end insertbegin insertend insertbegin insertAend insert person shallbegin insert notend insert falsely represent that he or she is
2employed by a licensee.

3begin insert

begin insertSEC. 8.end insert  

end insert

begin insertSection 14021 of the end insertbegin insertInsurance Codeend insertbegin insert is repealed.end insert

begin delete
4

14021.  

An insurance adjuster within the meaning of this chapter
5is a person other than a private investigator as defined in Section
67521 of the Business and Professions Code who, for any
7consideration whatsoever, engages in business or accepts
8employment to furnish, or agrees to make, or makes, any
9investigation for the purpose of obtaining, information in the course
10of adjusting or otherwise participating in the disposal of, any claim
11under or in connection with a policy of insurance on behalf of an
12insurer or engages in soliciting insurance adjustment business or
13aids an insurer in any manner with reference to:

14Crime or wrongs done or threatened against the United States
15of America or any state or territory of the United States of America;
16the identity, habits, conduct, business, occupation, honesty,
17integrity, credibility, knowledge, trustworthiness, efficiency,
18loyalty, activity, movement, whereabouts, affiliations, associations,
19transactions, acts, reputation, or character of any person; the
20location, disposition, or recovery of lost or stolen property; the
21cause or responsibility for fires, libels, losses, accidents, or damage
22or injury to persons or to property; or securing evidence to be used
23before any court, board, officer, or investigating committee.

24Notwithstanding any other provision of law, this section is in
25no way intended to limit the ability of a duly licensed independent
26insurance adjuster to perform the duties of an independent
27insurance adjuster for any other entity.

end delete
28begin insert

begin insertSEC. 9.end insert  

end insert

begin insertSection 14021 is added to the end insertbegin insertInsurance Codeend insertbegin insert, to read:end insert

begin insert
29

begin insert14021.end insert  

An independent insurance adjuster, for purposes of this
30chapter, is all of the following:

31
(a) An individual, a business entity, an independent contractor,
32or an employee of a contractor, who contracts for compensation
33with insurers.

34
(b) A person whose tax treatment by the insurers is consistent
35with that of an independent contractor rather than an employee,
36as defined in Section 3121 of Title 26 of the United States Code.

37
(c) A person who investigates, negotiates, or settles property
38and casualty claims for insurers.

end insert
39begin insert

begin insertSEC. 10.end insert  

end insert

begin insertSection 14022 of the end insertbegin insertInsurance Codeend insertbegin insert is amended to
40read:end insert

P7    1

14022.  

This chapter does not applybegin delete to:end deletebegin insert to any of the following:end insert

begin delete end deletebegin delete

2(a) A person employed exclusively and regularly by one
3employer in connection with the affairs of such employer only and
4where there exists an employer- employee relationship.

end delete
begin delete end deletebegin delete

5(b)

end delete

6begin insert(a)end insert An officer or employee of the United States of America, or
7of this state or a political subdivision thereof, whilebegin delete suchend deletebegin insert thatend insert
8 officer or employee is engaged in the performance of his or her
9official duties.

begin delete

10(c)

end delete

11begin insert(b)end insert A person engaged exclusively in the business of obtaining
12and furnishing information as to the financial rating of persons.

begin delete

13(d)

end delete

14begin insert(c)end insert A charitable philanthropic society or association duly
15incorporated under the laws of this state, which is organized and
16maintained for the public good and not for private profit.

begin delete

17(e)

end delete

18begin insert(d)end insert An attorney at lawbegin insert admitted to practiceend insert inbegin delete performingend delete
19begin insert California, when acting inend insert his or herbegin delete dutiesend deletebegin insert professional capacityend insert
20 asbegin delete such attorney at law.end deletebegin insert an attorney.end insert

begin delete

21(f)

end delete

22begin insert(e)end insert A licensed collection agency or an employee thereof while
23acting within the scope of his or her employment, while making
24an investigation incidental to the business of the agency, including
25an investigation of the location of a debtor or his or her property
26where the contract with an assignor creditor is for the collection
27of claims owed or due or asserted to be owed or due or the
28equivalent thereof.

begin insert

29
(f) An officer, director, manager, or employee of an authorized
30insurer, surplus line insurer, a risk retention group, or an
31attorney-in-fact of a reciprocal insurer.

end insert

32(g) begin deleteAdmitted insurers and agents and end deletebegin insertA licensed end insertinsurance
33
begin delete brokers licensed by the state, performing duties in connection with
34insurance transacted by them.end delete
begin insert agent or broker, attorney-in-fact of
35a reciprocal insurer, or managing general agent of the insurer to
36whom claim authority has been granted by the insurer.end insert

37(h) The legal owner of personal propertybegin delete whichend deletebegin insert thatend insert has been
38sold under a conditional sales agreement or a mortgagee under the
39terms of a chattel mortgage.

P8    1(i) Any bank subject to the jurisdiction of the Commissioner of
2begin delete Financial Institutions of the State of Californiaend deletebegin insert Business Oversightend insert
3 under Division 1 (commencing with Section 99) of the Financial
4Code or the Comptroller of the Currency of the United States.

5(j) A personbegin delete engagedend deletebegin insert employedend insert solelybegin delete in the business of securing
6information about personsend delete
begin insert to obtain facts surrounding a claimend insert or
7
begin delete property from public records.end deletebegin insert to furnish technical assistance to a
8licensed independent insurance adjuster.end insert

9(k) Any building contractor, engineer, technical expert, or other
10person who is engaged by an insurer or licensedbegin insert independent
11insuranceend insert
adjuster to provide an expert or professional evaluation
12of the extent, cause, or origin of damage to the insured property,
13but who does not otherwise participate in the process of adjusting
14claims.

begin insert

15
(l) An individual who is employed to investigate suspected
16fraudulent insurance claims but who does not adjust losses or
17determine claims payments.

end insert
begin insert

18
(m) A person who solely performs executive, administrative,
19managerial, or clerical duties or any combination thereof and who
20does not investigate, negotiate, or settle claims with policyholders,
21claimants, or their legal representative.

end insert
begin insert

22
(n) A licensed health care provider or its employee who provides
23managed care if the services do not include the determination of
24compensability.

end insert
begin insert

25
(o) A managed care organization or any of its employees who
26 provide managed care services if the services do not include the
27determination of compensability.

end insert
begin insert

28
(p) A person who settles only reinsurance or subrogation claims.

end insert
begin insert

29
(q) A United States manager of the United States branch of an
30alien insurer.

end insert
begin insert

31
(r) A person who investigates, negotiates, or settles life, accident
32and health, annuity, or disability insurance claims.

end insert
begin insert

33
(s) An individual employee, under a self-insured arrangement,
34who adjusts claims on behalf of his or her employer.

end insert
35begin insert

begin insertSEC. 11.end insert  

end insert

begin insertSection 14022.5 of the end insertbegin insertInsurance Codeend insertbegin insert is amended
36to read:end insert

37

14022.5.  

(a) In the event of an emergency situation as declared
38by the commissioner, claims arising out of the emergency,
39catastrophe, disaster, or other similar occurrence may be adjusted
P9    1by a nonlicensedbegin insert independent insuranceend insert adjuster upon registration
2with the commissioner if all of the following requirements are met:

3(1) The work performed by the nonlicensedbegin insert independent
4insuranceend insert
adjuster is under the active direction, control, charge,
5or management of a licensedbegin insert independent insuranceend insert adjuster or
6an insurer authorized to do business in this state.

7(2) Registration with the commissioner is accomplished within
8begin delete 15end deletebegin insert fiveend insert working days from the date on which the nonlicensed
9begin insert independent insuranceend insert adjuster commences the claims adjusting
10activity in connection with the emergency situation.

11(b) “Registration,” within the meaning of this section,begin delete shall
12meanend delete
begin insert meansend insert a written letter to the commissioner, submitted by the
13supervising licensedbegin insert independent insuranceend insert adjuster or admitted
14insurer, naming the nonlicensedbegin insert independent insuranceend insert adjusters,
15identifying theirbegin insert independent insuranceend insert adjuster licenses held in
16other jurisdictions, and stating when their claims adjusting activity
17commenced.

18(c) Registration under this section is valid for a period ofbegin delete 180end delete
19begin insert 90end insert days from the date of the registration letter. Before the lapse of
20that period, the commissioner may grant furtherbegin delete 180-dayend deletebegin insert 90-dayend insert
21 extensions as he or she deems appropriate upon written request
22from the supervising licensedbegin insert independent insuranceend insert adjuster or
23the admitted insurer.

24begin insert

begin insertSEC. 12.end insert  

end insert

begin insertSection 14024 of the end insertbegin insertInsurance Codeend insertbegin insert is amended to
25read:end insert

26

14024.  

begin insert(a)end insertbegin insertend insert Anbegin insert individualend insert application shall be verified and
27shallbegin delete include:end deletebegin insert include all of the following:end insert

begin delete

28(a)

end delete

29begin insert(1)end insert The fullbegin insert legalend insert name andbegin delete business addressend deletebegin insert business, resident,
30and mailing addressesend insert
of the applicant.

begin delete

31(b)

end delete

32begin insert(2)end insert The name under whichbegin insert theend insert applicant intends to do business.

begin insert

33
(3) The applicant’s birth date and social security number.

end insert
begin insert

34
(4) The application fees set forth in Section 14097.

end insert
begin delete

35(c)

end delete

36begin insert(5)end insert A statement as to the general nature of the business in which
37the applicant intends to engage.

begin delete

38(d)

end delete

39begin insert(6)end insert A statement as to thebegin delete classification orend delete classifications under
40which the applicant desires to be qualified.

begin delete

P10   1(e) If the applicant is a person other than an individual, the

end delete
begin insert

2
(7) Two recent photographs of the applicant, of a type
3prescribed by the commissioner, and one classifiable set of his or
4her fingerprints, to be sent to a live scan fingerprint provider as
5directed by the department, if fingerprints are not submitted in
6person with a live scan fingerprinting service provider certified
7by the Department of Justice.

end insert
begin insert

8
(8) A verified statement of his or her experience qualifications,
9unless applying for an apprentice independent insurance adjuster
10license.

end insert
begin insert

11
(9) Other information, evidence, statements, or documents as
12may be required by the commissioner.

end insert
begin insert

13
(b) A business entity application shall be verified and shall
14include all of the following:

end insert

15begin insert(1)end insertbegin insertend insertbegin insertTheend insert fullbegin insert legalend insert name and residence address of each of its
16partners, officers, and directors, and its manager.

begin delete

17(f) Two recent photographs of the applicant, of a type prescribed
18by the commissioner, and two classifiable sets of his or her
19fingerprints.

end delete
begin insert

20
(2) The name under which the applicant intends to do business.

end insert
begin insert

21
(3) The name of a licensed independent insurance adjuster who
22is responsible for the business entities compliance with this chapter.

end insert
begin insert

23
(4) That the applicant paid the fees set forth in Section 14097.

end insert
begin insert

24
(5) A statement as to the general nature of the business in which
25the applicant intends to engage.

end insert
begin delete

26(g)

end delete

27begin insert(6)end insert Abegin delete verifiedend delete statementbegin delete of his or her experience qualifications.end delete
28
begin insert as to the classifications under which the applicant desires to be
29qualified.end insert

begin delete

30(h) Such other

end delete

31begin insert(7)end insertbegin insertend insertbegin insertOtherend insert information, evidence, statements, or documents as
32may be required by the commissioner.

33begin insert

begin insertSEC. 13.end insert  

end insert

begin insertSection 14025 of the end insertbegin insertInsurance Codeend insertbegin insert is amended to
34read:end insert

35

14025.  

Beforebegin delete an application forend delete a license is granted, the
36begin delete applicant, or his or her manager,end deletebegin insert applicantend insert shall meet all of the
37
begin delete following:end deletebegin insert following requirements:end insert

38(a) Be at least 18 years of age.

P11   1(b) Not have committed acts or crimes constituting grounds for
2denial of licensure underbegin delete Section 480 of the Businessend deletebegin insert Sections
31668end insert
andbegin delete Professions Code.end deletebegin insert 1669.end insert

4(c) Shall have had at least two years of experience in adjusting
5insurance claims or the equivalent thereof as determined by the
6
begin delete commissioner.end deletebegin insert commissioner, unless applying for an apprentice
7independent insurance adjuster license.end insert

begin insert

8
(d) If the applicant resides in a state that does not license
9independent insurance adjusters, he or she is required to be
10licensed in good standing to designate California as his or her
11home state.

end insert
begin insert

12
(e) (1) Completed a 20-hour prelicensing education course of
13study.

end insert
begin insert

14
(2) A nonresident applicant currently licensed as a home state
15independent insurance adjuster in another state who has met that
16state’s prelicensing education requirements is exempt from
17completing the prelicensing education requirement.

end insert
begin insert

18
(f) Successfully passed the examination for the independent
19insurance adjuster license, unless he or she qualifies for an
20exemption in Section 14026.

end insert
begin delete

21(d)

end delete

22begin insert(g)end insert Comply withbegin delete suchend deletebegin insert thoseend insert other qualificationsbegin delete asend deletebegin insert thatend insert the
23commissioner maybegin delete fixend deletebegin insert requireend insert bybegin delete rule.end deletebegin insert regulation.end insert

24begin insert

begin insertSEC. 14.end insert  

end insert

begin insertSection 14025.1 is added to the end insertbegin insertInsurance Codeend insertbegin insert, to
25read:end insert

begin insert
26

begin insert14025.1.end insert  

(a) The apprentice independent insurance adjuster
27license is a license to facilitate the experience, education, and
28training necessary to ensure reasonable competency in the
29responsibilities and duties of an independent insurance adjuster.

30
(b) An individual applying for an apprentice independent
31insurance adjuster license shall submit an application in a format
32prescribed by the commissioner and shall declare under penalty
33of suspension, revocation, or refusal of the license that the
34statements made in the application are true, correct, and complete
35to the best of the individual’s knowledge and belief. Before
36approving the application, the commissioner shall determine that
37the individual meets all of the following:

38
(1) Is at least 18 years of age.

39
(2) Is a resident of California and has designated California as
40his or her home state.

P12   1
(3) Has a business or mailing address in California for the
2acceptance of service of process.

3
(4) Has not committed any act that is a ground for suspension,
4revocation, or denial of licensure as set forth in Sections 1668,
51668.1, and 1669.

6
(5) Is trustworthy, reliable, and of good reputation, evidence
7of which may be determined by the commissioner.

8
(6) Has paid the fees set forth in subdivision (h) of Section
914097.

10
(c) The apprentice independent insurance adjuster license shall
11be subject to the following terms and conditions:

12
(1) The applicant shall submit, with the apprentice independent
13insurance adjuster application, an attestation from a licensed
14independent insurance adjuster certifying that the apprentice will
15be subject to training, direction, and control by the licensed
16independent insurance adjuster and further certifying that the
17licensed independent insurance adjuster assumes responsibility
18for the actions of the apprentice in the apprentice’s capacity as
19an independent insurance adjuster.

20
(2) The apprentice independent insurance adjuster is only
21authorized to adjust claims in California.

22
(3) The apprentice independent insurance adjuster is restricted
23to participation in the investigation, settlement, and negotiation
24of claims subject to the review and final determination of the claim
25by a supervising licensed independent insurance adjuster.

26
(4) Compensation of an apprentice independent insurance
27adjuster shall only be on a salaried or hourly basis.

28
(5) The apprentice independent insurance adjuster shall not be
29required to take and successfully complete the independent
30insurance adjuster examination to adjust claims as an apprentice
31independent insurance adjuster. At any time during the
32apprenticeship, the apprentice independent insurance adjuster
33may choose to take the examination. If the individual takes and
34successfully completes the independent insurance adjuster exam,
35the apprentice independent insurance adjuster license shall
36automatically terminate and an independent insurance adjuster
37license shall be issued to that individual in its place.

38
(6) The apprentice independent insurance adjuster license is
39valid for a period not to exceed 12 months and is nonrenewable.

P13   1
(7) The licensee shall be subject to suspension, revocation, or
2denial pursuant to Sections 1668, 1668.1, and 1669.

3
(8) The applicant shall submit two recent photographs of the
4applicant, of a type prescribed by the commissioner, and one
5classifiable set of his or her fingerprints, to be sent to a live scan
6fingerprint provider as directed by the department, if fingerprints
7are not submitted in person with a live scan fingerprinting service
8provider certified by the Department of Justice.

end insert
9begin insert

begin insertSEC. 15.end insert  

end insert

begin insertSection 14026 of the end insertbegin insertInsurance Codeend insertbegin insert is repealed.end insert

begin delete
10

14026.  

The commissioner may require an applicant, or his or
11her manager, to demonstrate his or her qualifications by a written
12or oral examination, or a combination of both.

end delete
13begin insert

begin insertSEC. 16.end insert  

end insert

begin insertSection 14026 is added to the end insertbegin insertInsurance Codeend insertbegin insert, to
14read:end insert

begin insert
15

begin insert14026.end insert  

(a) An applicant for an independent insurance adjuster
16license, unless applying for an apprentice independent insurance
17adjuster license or crop insurance adjuster license, shall pass a
18written examination.

19
(1) The examination shall test the knowledge of the applicant
20concerning the duties and responsibilities of an independent
21insurance adjuster and this code.

22
(2) An applicant applying for an examination shall remit a
23nonrefundable fee as prescribed by the commissioner in Section
2414097.

25
(b) An individual who applies for an independent insurance
26adjuster license in California who holds a home state license in
27another state as an independent insurance adjuster shall not be
28required to complete the examination if he or she successfully
29passed an examination as a condition of receiving an independent
30insurance adjuster license in his or her home state. This exemption
31applies to individuals who are currently licensed in their home
32state or if the home state license expired and the application is
33received by the commissioner within 90 days of expiration.

34
(c) An individual who applies for an apprentice independent
35insurance adjuster license pursuant to Section 14025.1, and who
36adjusts claims in that capacity, shall not be required to take and
37successfully complete the independent insurance adjuster
38examination.

end insert
39begin insert

begin insertSEC. 17.end insert  

end insert

begin insertSection 14027 of the end insertbegin insertInsurance Codeend insertbegin insert is repealed.end insert

begin delete
P14   1

14027.  

Payment of the application fee prescribed by this chapter
2entitles an applicant, or his or her manager, to one examination
3without further charge. If the person fails to pass the examination,
4he or she shall not be eligible for any subsequent examination
5except upon payment of the reexamination fee prescribed by this
6chapter for each such subsequent examination.

end delete
7begin insert

begin insertSEC. 18.end insert  

end insert

begin insertSection 14028 of the end insertbegin insertInsurance Codeend insertbegin insert is amended to
8read:end insert

9

14028.  

After abegin delete hearingend deletebegin insert hearing,end insert the commissioner may deny
10a license unless the application makes a showing satisfactory to
11the commissioner that the applicant, if an individual, has not, or
12if the applicant is a person other than an individual, that its manager
13and each of its officers and partners havebegin delete not:end deletebegin insert not done any of the
14following:end insert

begin delete

15(a) Committed any acts or crimes constituting grounds for denial
16of licensure under Section 480 of the Business and Professions
17Code.

end delete
begin delete

18(b)

end delete

19begin insert(a)end insert Been refused a license under this chapter or had a license
20revoked.

begin delete

21(c)

end delete

22begin insert(b)end insert Been an officer, partner, or manager of any person who has
23been refused a license under this chapter or whose license has been
24revoked.

begin delete

25(d)

end delete

26begin insert(c)end insert While unlicensed committed, or aided and abetted the
27commission of, any act for which a license is required by this
28chapter.

begin delete

29(e)

end delete

30begin insert(d)end insert Committed any act or crime constituting grounds for denial
31ofbegin delete licenseend deletebegin insert licensureend insert under Section 1668.

32begin insert

begin insertSEC. 19.end insert  

end insert

begin insertSection 14029 of the end insertbegin insertInsurance Codeend insertbegin insert is repealed.end insert

begin delete
33

14029.  

(a) The business of each licensee shall be operated
34under the active direction, control, charge, or management of the
35licensee, if the licensee is qualified, or the person who has qualified
36to act as the licensee’s manager, if the licensee is not qualified.

37(b) No person shall act as a manager of a licensee until he or
38she has complied with each of the following:

P15   1(1) Demonstrated his or her qualifications by a written or oral
2examination, or a combination of both, if required by the
3commissioner.

4(2) Made a satisfactory showing to the commissioner that he or
5she has the qualifications prescribed by Section 14025 and that
6none of the facts stated in Section 14028 or 14028.5 exist as to
7him or her.

8(c) If the manager, who has qualified as provided in this section,
9ceases for any reason whatsoever to be connected with the licensee
10to whom the license is issued, the licensee shall notify the
11commissioner in writing 30 days from the cessation. If notice is
12given, the license shall remain in force for a reasonable length of
13time to be determined by the rules of the commissioner pending
14the qualifications, as provided in this chapter, of another manager.
15If the licensee fails to notify the commissioner within the 30-day
16period, his or her license shall be subject to suspension or
17revocation and may be reinstated only upon the filing of an
18application for reinstatement, payment of the reinstatement fee, if
19any is due, and the qualification of a manager as provided herein.

20(d) Every manager shall renew his or her authority by satisfying
21the requirements of Article 8 (commencing with Section 14090).

end delete
22begin insert

begin insertSEC. 20.end insert  

end insert

begin insertSection 14029 is added to the end insertbegin insertInsurance Codeend insertbegin insert, to
23read:end insert

begin insert
24

begin insert14029.end insert  

Each organization licensed under this chapter shall
25designate an individual also licensed as an independent insurance
26adjuster to be responsible for the organization’s compliance with
27state law.

end insert
28begin insert

begin insertSEC. 21.end insert  

end insert

begin insertSection 14030 of the end insertbegin insertInsurance Codeend insertbegin insert is repealed.end insert

begin delete
29

14030.  

Whenever the individual on the basis of whose
30qualifications a license under this chapter has been obtained ceases
31to be connected with the licensee for any reason whatever, the
32business may be carried on for such temporary period and under
33such terms and conditions as the commissioner shall provide by
34regulation.

end delete
35begin insert

begin insertSEC. 22.end insert  

end insert

begin insertSection 14031 of the end insertbegin insertInsurance Codeend insertbegin insert is amended to
36read:end insert

37

14031.  

begin deleteWhenever a end deletebegin insertA end inserthearingbegin delete isend delete held under this chapter to
38determine whether an application for a license should be granted
39begin delete or to determine the qualifications of a licensee’s manager, the
40proceedingsend delete
shall be conducted in accordance with Chapter 5
P16   1(commencing with Section 11501) of Part 1 of Division 3 of Title
22 of the Government Code, and the commissioner shall have all
3of the powers granted therein.

4begin insert

begin insertSEC. 23.end insert  

end insert

begin insertSection 14032 of the end insertbegin insertInsurance Codeend insertbegin insert is amended to
5read:end insert

6

14032.  

The form and content of the license shall be determined
7by thebegin delete commissioner in accordance with Section 164 of the
8Business and Professions Code.end delete
begin insert commissioner.end insert

9begin insert

begin insertSEC. 24.end insert  

end insert

begin insertSection 14037 of the end insertbegin insertInsurance Codeend insertbegin insert is repealed.end insert

begin delete
10

14037.  

A licensee shall at all times be legally responsible for
11the good conduct in the business of each of his or her employees
12or agents, including his or her manager.

end delete
13begin insert

begin insertSEC. 25.end insert  

end insert

begin insertSection 14038 of the end insertbegin insertInsurance Codeend insertbegin insert is amended to
14read:end insert

15

14038.  

(a) Any licensee or officer,begin delete director, partner, orend deletebegin delete managerend delete
16begin insert director, or partnerend insert of a licensee may divulge to any law
17enforcement officer or district attorney, or to his or her
18representative, any information he or she may acquire as to any
19criminal offense, but he or she shall not divulge to any other person,
20except as he or she may be required by law to do so, any
21information acquired by him or her except at the direction of the
22employer or client for whom the information was obtained.

23(b) begin deleteNo end deletebegin insertA end insertlicensee or officer,begin delete director, partner, manager, orend delete
24begin delete employeeend deletebegin insert director, or partnerend insert of a licensee shallbegin insert notend insert knowingly
25make any false report to his or her employer or client for whom
26information was being obtained.

27(c) begin deleteNo end deletebegin insertA end insertwritten report shallbegin insert notend insert be submitted to a client except
28by thebegin delete licensee, qualifying manager, or a person authorized by one
29or either of them, and such person submitting the reportend delete
begin insert licensee
30whoend insert
shall exercise diligence in ascertaining whether or not the
31facts and information inbegin delete such aend deletebegin insert thatend insert report are true and correct.

32(d) begin deleteNo licensee, end deletebegin insertA licensee end insertor officer,begin delete director, partner, manager,
33orend delete
begin delete employeeend deletebegin insert director, or partnerend insert of a licensee shallbegin insert notend insert use a badge
34in connection with the official activities of the licensee’s business.

35(e) begin deleteNo licensee, end deletebegin insertA licensee end insertor officer,begin delete director, partner, manager,
36orend delete
begin delete of aend deletebegin delete licensee,end deletebegin insert director, or partner of a licenseeend insert shallbegin insert notend insert use a
37title,begin delete orend delete wear a uniform,begin delete orend delete use an insignia,begin delete orend delete use an identification
38card, or make any statement with the intent to give an impression
39that he or she is connected in any way with the federal government,
P17   1a state government, or any political subdivision of a state
2government.

3(f) begin deleteNo licensee, end deletebegin insertA licensee end insertor officer,begin delete director, partner, manager,
4orend delete
begin delete employeeend deletebegin insert director, or partnerend insert of a licensee, shallbegin insert notend insert enter any
5private building or portion thereof without the consent of the owner
6or of the person in legal possession thereof.

7(g) begin deleteNo end deletebegin insertA end insertlicensee shallbegin insert notend insert appear as an assignee party in any
8proceeding involving claim and delivery, replevin, or other
9possessory action, action to foreclose a chattel mortgage,
10mechanic’s lien, materialman’s lien, or any other lien.

11(h) begin deleteNo end deletebegin insertA end insertlicensee shallbegin insert notend insert permit anbegin delete employee orend delete agent in his
12or her own name to advertise, engage clients, furnish reports, or
13present bills to clients, or in any manner whatever to conduct
14business for which a license is required under this chapter. All
15business of the licensee shall be conducted in the name of and
16under the control of the licensee.

17(i) begin deleteNo end deletebegin insertA end insertlicensee acting as an independent automobile damage
18appraiser or adjuster or as an automobile insurance claims adjuster,
19begin delete appraiserend deletebegin insert appraiser,end insert or representative shallbegin insert notend insert receive any financial
20benefit from an automobile repair facility. “Financial benefit”
21means the receiving of any commission or gratuity, discount on
22repair costs, free repairs, employment by a repair facility, or
23possession of more than 3 percent direct ownership in an
24automobile repair facility located in this state.

25begin insert

begin insertSEC. 26.end insert  

end insert

begin insertSection 14039 of the end insertbegin insertInsurance Codeend insertbegin insert is amended to
26read:end insert

27

14039.  

begin deleteNo end deletebegin insertA end insertperson licensed as anbegin insert independentend insert insurance
28adjuster shallbegin insert notend insert do any of the following:

29(a) Fail to disclose his or her full financial interest in a contract
30or agreement executed by him or her for the adjustment of a claim
31prior to the execution thereof.

32(b) Use any misrepresentation to solicit a contract or agreement
33to adjust a claim.

34(c) Solicit or accept remuneration from, or have a financial
35interest exceeding 3 percent in, any salvage, repair, or otherbegin delete firm,
36whichend delete
begin insert firm thatend insert obtains business in connection with any claim
37begin delete whichend deletebegin insert thatend insert he or she has a contract or agreement to adjust.

38begin insert

begin insertSEC. 27.end insert  

end insert

begin insertSection 14040 of the end insertbegin insertInsurance Codeend insertbegin insert is amended to
39read:end insert

P18   1

14040.  

Any badge or cap insignia worn by a person who is a
2licensee, officer,begin delete director,end deletebegin delete partner, manager,end deletebegin delete orend deletebegin delete employeeend deletebegin insert director,
3or partnerend insert
of a licensee shall be of a design approved by the
4commissioner, and shall bear on its face a distinctive word
5indicating the name of thebegin delete licensee and an employee number by
6which such person may be identified by theend delete
licensee.

7begin insert

begin insertSEC. 28.end insert  

end insert

begin insertSection 14042 of the end insertbegin insertInsurance Codeend insertbegin insert is amended to
8read:end insert

9

14042.  

begin delete

No

end delete

10begin insert(a)end insertbegin insertend insertbegin insertAend insert licensee shallbegin insert notend insert conduct a business under a fictitious or
11other business name unless and until he or she has obtained the
12written authorization of the commissioner to do so.

13begin insert(b)end insertbegin insertend insert The commissioner shall not authorize the use of a fictitious
14or other business namebegin delete whichend deletebegin insert thatend insert is so similar to that of a public
15officer or agency or of that used by another licensee that the public
16may be confused or misled thereby.

17begin insert(c)end insertbegin insertend insert The authorization shall require, as a condition precedent to
18the use of any fictitious name, that the licensee comply with Section
19
begin delete 1724.5 of this code and Chapter 5 (commencing with Section
2017900) of Part 3 of Division 7 of the Business and Professions
21Code.end delete
begin insert 1724.5.end insert

22begin insert(d)end insertbegin insertend insert A licensee desiring to conduct his or her business under
23more than one fictitious business name shall obtain the
24authorization of the commissioner in the manner prescribed in this
25section for the use ofbegin delete each suchend deletebegin insert thatend insert name.

26begin insert(e)end insertbegin insertend insert The licensee shall pay a fee of ten dollars ($10) for each
27authorization to use an additional fictitious business name and for
28each change in the use of a fictitious business name. If the original
29license is issued in a nonfictitious name and authorization is
30requested to have the license reissued in a fictitious business name,
31the licensee shall pay a fee of twelve dollars ($12) forbegin delete suchend deletebegin insert thatend insert
32 authorization.

33begin insert

begin insertSEC. 29.end insert  

end insert

begin insertSection 14061 of the end insertbegin insertInsurance Codeend insertbegin insert is amended to
34read:end insert

35

14061.  

The commissioner may suspend or revoke a license
36issued under this chapter or may issue a restricted license in
37accordance with Section 14026.5 if he or she determines that the
38begin delete licensee,end deletebegin delete or his or her manager, ifend deletebegin delete an individual, or ifend deletebegin insert licensee or
39ifend insert
the licensee is a person other than an individual, that any of its
P19   1officers, directors, partners, or itsbegin delete manager, has:end deletebegin insert designated
2responsible person has done any of the following:end insert

3(a) Made any false statement or given any false information in
4connection with an application for a license or a renewal or
5reinstatement of a license.

6(b) Violated any provisions of this chapter.

7(c) Violated any rule of the commissioner adopted pursuant to
8the authority contained in this chapter.

9(d) Been convicted of any crime substantially related to the
10qualifications,begin delete functionsend deletebegin insert functions,end insert and duties of the holder of the
11registration or license in question.

12(e) Impersonated, or permitted or aided and abetted an employee
13tobegin delete impersonateend deletebegin insert impersonate,end insert a law enforcement officer or employee
14of the United States of America, or of any state or political
15subdivision thereof.

16(f) Committed or permitted any employee to commit any act,
17while the license was expiredbegin delete whichend deletebegin insert thatend insert would be cause for the
18suspension or revocation of a license, or grounds for the denial of
19an application for a license.

20(g) Willfully failed or refused to render to a client services or
21a report as agreed between the parties and for which compensation
22has been paid or tendered in accordance with the agreement of the
23parties.

24(h) Committed assault, battery, or kidnapping, or used force or
25violence on any person, without proper justification.

26(i) Knowinglybegin delete violated,end deletebegin insert violatedend insert or advised, encouraged, or
27assisted the violation of any court order or injunction in the course
28of business as a licensee.

29(j) Acted as a runner or capper for any attorney.

30(k) Committed any actbegin delete whichend deletebegin insert thatend insert is a ground for denial of an
31application for license under this chapter.

32(l) Purchased, possessed, or transported any tear gas weapon
33except as authorized by law. A violation of this subdivision may
34be punished by the suspension of a license for a period to be
35determined by the commissioner.

36begin insert

begin insertSEC. 30.end insert  

end insert

begin insertSection 14063 of the end insertbegin insertInsurance Codeend insertbegin insert is amended to
37read:end insert

38

14063.  

The commissioner may suspend or revoke a license
39issued under this chapter or may issue a restricted license in
40accordance with Section 14026.5 if the commissioner determines
P20   1that the licensee,begin delete or his or her manager,end delete if an individual, or if the
2licensee is a person other than an individual, that any of its officers,
3directors, partners, or itsbegin delete manager, has:end deletebegin insert designated responsible
4person has done any of the following:end insert

5(a) Used any letterhead, advertisement, or other printed matter,
6or in any matter whatever represented that he or she is an
7instrumentality of the federal government,begin insert or ofend insert a state or any
8political subdivision thereof.

9(b) Used a name different from that under which he or she is
10currently licensed in any advertisement, solicitation, or contract
11for business.

12begin insert

begin insertSEC. 31.end insert  

end insert

begin insertSection 14064 of the end insertbegin insertInsurance Codeend insertbegin insert is amended to
13read:end insert

14

14064.  

begin insert(a)end insertbegin insertend insert The commissioner may suspend or revoke a license
15issued under this chapter or may issue a restricted license in
16accordance with Section 14026.5 if the commissioner determines
17that the licensee,begin delete or his or her manager,end delete if an individual, or if the
18licensee is a person other than an individual, that any of its officers,
19directors, partners, or itsbegin delete manager,end deletebegin insert designated responsible personend insert
20 has committed any act in the course of the licensee’s business
21constituting dishonesty or fraud.

22begin insert (b)end insertbegin insertend insert “Dishonesty or fraud” as used in this section includes, in
23addition to other acts not specifically enumerated herein, all of the
24following:

begin delete

25(a)

end delete

26begin insert(1)end insert Knowingly making a false statement relating to evidence or
27information obtained in the course of employment, or knowingly
28publishing a slander or a libel in the course of business.

begin delete

29(b)

end delete

30begin insert(2)end insert Using illegal means in the collection or attempted collection
31of a debt or obligation.

begin delete

32(c)

end delete

33begin insert(3)end insert Manufacture of evidence.

begin delete

34(d)

end delete

35begin insert(4)end insert Acceptance of employment adverse to a client or former
36client relating to a matter with respect to which the licensee has
37obtained confidential information by reason of or in the course of
38his or her employment bybegin delete suchend deletebegin insert thatend insert client or former client.

begin delete

39(e)

end delete

P21   1begin insert(5)end insert Impersonating, or permitting or aiding and abetting an
2employee tobegin delete impersonateend deletebegin insert impersonate,end insert a law enforcement officer
3or employee of the United States of America, or of any state or
4political subdivision thereof.

5begin insert

begin insertSEC. 32.end insert  

end insert

begin insertSection 14078 of the end insertbegin insertInsurance Codeend insertbegin insert is repealed.end insert

begin delete
6

14078.  

As used in this article, “nonresident” means a person
7who is not a resident of this state at the time of the performance
8of the act referred to in Section 14071.

end delete
9begin insert

begin insertSEC. 33.end insert  

end insert

begin insertSection 14078 is added to the end insertbegin insertInsurance Codeend insertbegin insert, to
10read:end insert

begin insert
11

begin insert14078.end insert  

(a) Unless refused licensure pursuant to Sections 14060
12to 14065, inclusive, a nonresident person shall receive a
13nonresident independent insurance adjuster license if all of the
14following apply:

15
(1) The applicant is currently licensed in good standing as an
16independent insurance adjuster in his, her, or its resident or home
17state.

18
(2) The applicant paid the fees required by Section 14097.

19
(3) The applicant submitted to the commissioner the completed
20application for licensure.

21
(4) The applicant’s home state awards nonresident independent
22insurance adjuster licenses to residents of California on the same
23basis.

24
(b) The commissioner may verify the independent insurance
25adjuster’s licensing status through any appropriate database,
26including the Producer Database maintained by the National
27Association of Insurance Commissioners, its affiliates or
28subsidiaries, or may request certification of good standing.

29
(c) As a condition to the continuation of a nonresident
30independent insurance adjuster license, the licensee shall maintain
31a resident independent insurance adjuster license in his, her, or
32its home state.

33
(1) The nonresident independent insurance adjuster license
34issued under this chapter shall terminate and be surrendered
35immediately to the commissioner if the resident independent
36insurance adjuster license terminates for any reason, unless the
37termination is due to the independent insurance adjuster being
38issued a new resident independent insurance adjuster license in
39his, her, or its new home state.

P22   1
(2) The nonresident independent insurance adjuster license
2shall terminate if the person’s home state does not award
3nonresident independent insurance adjuster licenses to residents
4of California on the same basis.

5
(3) (A) The licensee is required to give notice of resident
6independent insurance adjuster license termination to any state
7that issued a nonresident independent insurance adjuster license.

8
(B) The notice is required to be given within 30 days of the
9termination date. If the resident independent insurance adjuster
10license was terminated for change in resident home state, then the
11notice is required to include both the previous and current address.

12
(4) Maintaining a resident independent insurance adjuster
13license is required for the nonresident independent insurance
14adjuster license to remain valid.

end insert
15begin insert

begin insertSEC. 34.end insert  

end insert

begin insertSection 14079 is added to the end insertbegin insertInsurance Codeend insertbegin insert, to
16read:end insert

begin insert
17

begin insert14079.end insert  

(a) An independent insurance adjuster shall be honest
18and fair in all communications with the insured, the insurer, and
19the public.

20
(b) An independent insurance adjuster shall provide
21policyholders and claimants with prompt and knowledgeable
22service and courteous, fair, and objective treatment at all times.

23
(c) An independent insurance adjuster shall not give legal advice
24and shall not deal directly with any policyholder or claimant who
25is represented by legal counsel without the consent of the legal
26counsel involved.

27
(d) An independent insurance adjuster shall comply with all
28local, state, and federal privacy and information security laws.

29
(e) An independent insurance adjuster shall identify himself or
30herself as an independent insurance adjuster and, if applicable,
31shall identify his or her employer when dealing with any
32policyholder or claimant.

33
(f) An independent insurance adjuster shall not have any
34financial interest in any adjustment or shall not acquire for himself,
35herself, or any person any interest or title in salvage, without first
36receiving written authority from the principal.

end insert
37begin insert

begin insertSEC. 35.end insert  

end insert

begin insertSection 14080 of the end insertbegin insertInsurance Codeend insertbegin insert is amended to
38read:end insert

39

14080.  

Any person who knowingly falsifies the fingerprints
40or photographs submitted underbegin insert paragraph (7) ofend insert subdivisionbegin delete (f)end delete
P23   1begin insert (a)end insert of Section 14024begin insert or paragraph (8) of subdivision (c) of Section
214025.1end insert
is guilty of a felony. Any person who violates any of the
3other provisions of this chapter is guilty of a misdemeanor
4punishable by fine not to exceed five hundred dollars ($500), or
5by imprisonment in the county jail not to exceed one year, or by
6bothbegin delete suchend deletebegin insert theend insert fine and imprisonment.

7begin insert

begin insertSEC. 36.end insert  

end insert

begin insertSection 14090.1 of the end insertbegin insertInsurance Codeend insertbegin insert is amended
8to read:end insert

9

14090.1.  

(a) An individual who holds anbegin insert independentend insert insurance
10adjuster license and who is not exempt under subdivision (b) shall
11satisfactorily complete a minimum of 24 hours, of which three
12hours are to be in ethics, of continuing education courses pertinent
13to the duties and responsibilities of anbegin insert independentend insert insurance
14adjuster licensebegin delete reportedend deletebegin insert and shall report the completion of this
15courseworkend insert
to the insurance commissioner on a biennial basis in
16conjunction with his or her license renewal cycle.

17(b) This section does not apply to any of the following:

18(1) A licensee not licensed for one full year prior to the end of
19the applicable continuing education biennium.

20(2) A licensee holding a nonresidentbegin insert independentend insert insurance
21adjuster license who has met the continuing education requirements
22of his or her designatedbegin delete residentend deletebegin insert homeend insert state.

23(3) An individual licensed as anbegin insert independentend insert insurance adjuster
24and as a property or casualty broker-agent, pursuant to Section
251625, who has met the continuing education requirements specified
26in Section 1749.3.

begin insert

27
(4) An individual licensed as an apprentice independent
28insurance adjuster pursuant to Section 14025.1.

end insert
29begin insert

begin insertSEC. 37.end insert  

end insert

begin insertSection 14097 of the end insertbegin insertInsurance Codeend insertbegin insert is amended to
30read:end insert

31

14097.  

The amount of fees prescribed by this chapter, unless
32otherwise fixed, is that fixed in the following schedule:

33(a) The application fee forbegin insert the qualifying examination forend insert an
34original license is twenty-nine dollars ($29).

35(b) The application fee for an original branch office certificate
36is eighteen dollars ($18).

37(c) The fee for an original licensebegin insert applicationend insert is an amount equal
38to the renewal fee in effect on the last regular renewal date before
39the date on which the license is issued, except that, if the license
40will expire less than one year after its issuance, then the fee is an
P24   1amount equal to 50 percent of the renewal fee in effect on the last
2regular renewal date before the date on which the license is issued.
3The commissioner may, by appropriate regulation, provide for the
4waiver or refund of the initial license fee where the license is issued
5less than 45 days before the date on which it will expire.

6(d) The renewal fee shall be fixed by the commissioner as
7follows:

8(1) For a license as anbegin insert independentend insert insurance adjuster, not more
9than one hundred eighteen dollars ($118).

10(2) For a branch office certificate, not more than twenty-four
11dollars ($24).

12(e) The application and license fee for classifications prescribed
13by the commissioner, in addition to those provided for in this
14chapter, and the application and license fees for a change in the
15type of business organization of a licensee, shall be in the amount
16prescribed by rule and regulation of the commissioner.

17(f) The delinquency fee shall be 50 percent of the renewal fee
18in effect on the date ofbegin delete expiration, but not more than twenty-nine
19dollars ($29).end delete
begin insert expiration.end insert

20(g) The fee for reexamination of an applicantbegin delete or his managerend delete is
21twelve dollars ($12).

begin insert

22
(h) The application fee for an apprentice independent insurance
23adjuster license shall be fixed by the commissioner by regulation
24and shall be reasonably related to the actual cost to the department
25in performing its duties under this chapter.

end insert
26begin insert

begin insertSEC. 38.end insert  

end insert

begin insertSection 14099 of the end insertbegin insertInsurance Codeend insertbegin insert is amended to
27read:end insert

28

14099.  

Application or licensebegin delete feeend deletebegin insert feesend insert shall not be refunded
29
begin delete Sectionend deletebegin delete 158 of the Business and Professions Code.end deletebegin insert pursuant to
30Section 1751.5.end insert

31begin insert

begin insertSEC. 39.end insert  

end insert
begin insert

No reimbursement is required by this act pursuant
32to Section 6 of Article XIII B of the California Constitution because
33the only costs that may be incurred by a local agency or school
34district will be incurred because this act creates a new crime or
35infraction, eliminates a crime or infraction, or changes the penalty
36for a crime or infraction, within the meaning of Section 17556 of
37the Government Code, or changes the definition of a crime within
38the meaning of Section 6 of Article XIII B of the California
39Constitution.

end insert
begin delete
P25   1

SECTION 1.  

Section 103875 of the Health and Safety Code
2 is amended to read:

3

103875.  

(a) The department shall conduct a program of
4epidemiological assessments of the incidence of cancer. The
5program shall encompass all areas of the state for which cancer
6incidence data are available. The program shall include the
7monitoring of cancers associated with suspected carcinogens
8encountered by the general public both in occupational locations
9and in the environment generally.

10(b) The program shall be under the direction of the State Public
11Health Officer, who may enter into contracts as are necessary for
12the conduct of the program and may accept, on behalf of the state,
13grants of public or private funds for the program. The department
14shall analyze available incidence data and prepare reports and
15perform studies as necessary to identify cancer hazards to the
16public health and their remedies.

17(c) The department shall analyze data collected pursuant to the
18program to assess, measure, and publicly report on the quality of
19cancer care in the state. In assessing and measuring the quality of
20cancer care in the state, the department shall define and identify
21oncology providers. In publicly reporting on the quality of cancer
22care in the state, the department shall identify oncology providers,
23but not individual cancer patients. The department may contract
24with an entity to assess, measure, and publicly report on the quality
25of cancer care in the state.

26(d) The department shall develop a system for routine, automated
27linkages between data collected pursuant to the program and public
28and private health insurance payer cancer claims data. The State
29Public Health Officer shall convene a cancer care stakeholder
30committee, including public and private payer representatives and
31persons with appropriate technical experience, to study and make
32recommendations for developing the automated linkage system.
33The State Public Health Officer may contract with entities or
34persons to provide the committee with appropriate technical
35expertise.

36(e) It is the intent of the Legislature that an appropriation be
37included in each Budget Act in an amount sufficient to provide
38for the annual cost of the program. It is further the intent of the
39Legislature that the cancer care quality measures be available for
40the public to use to improve health care and population health as
P26   1it relates to the prevention and treatment of cancer, including the
2cancer patients themselves.

3

SEC. 2.  

Section 103885 of the Health and Safety Code is
4amended to read:

5

103885.  

(a) The department shall establish a statewide system
6for the collection of information determining the incidence of
7cancer, using population-based cancer registries modeled after the
8Cancer Surveillance Program of Orange County. The department
9shall also identify and include in the statewide system, cancer care
10quality measures for use in public reporting. As of the effective
11date of this section the department shall begin phasing in the
12statewide cancer reporting system. By July 1, 1988, all county or
13regional registries shall be implemented or initiated. By July 1,
141990, the statewide cancer reporting system shall be fully
15operational. Within 60 days of the effective date of this section,
16the State Public Health Officer shall submit an implementation
17and funding schedule to the Legislature.

18(b) The department may designate any demographic parts of
19the state as regional cancer incidence reporting areas and may
20establish regional cancer registries, with the responsibility and
21authority to carry out the intent of this section in designated areas.
22Designated regional registries shall provide, on a timely basis,
23cancer incidence data, as required by the department. The
24department may establish a competitive process to receive
25applications for, and issue, the award of a contract, grant, or
26allocation of funds, including, but not limited to, a cooperative
27agreement, subvention agreement, or any other agreement allowed
28by law, to an agency, including, but not limited to, a health systems
29agency, single county health department, multicounty health
30department grouping, or nonprofit professional association to
31operate the statewide cancer reporting system and to enter into
32contracts, or issue grants or funding allocations to other agencies
33representing a designated cancer reporting region for the purposes
34of collecting and collating cancer incidence data. The award of
35these contracts, grants, or funding allocations shall be exempt from
36Part 2 (commencing with Section 10100) of Division 2 of the
37Public Contract Code. The department shall include appropriate
38terms and conditions in a contract, grant, or funding allocation to
39ensure the proper use of state funds, including provision for
40reimbursement of allowable costs, financial reporting, program
P27   1performance reporting, monitoring of subgrants, subcontracts, or
2suballocations to an agency representing a designated cancer
3reporting region, retention and access requirements for records,
4data use and management, independent auditing, termination, and
5disposition of assets acquired under the contract, grant, or funding
6allocation.

7(c) The State Public Health Officer shall designate cancer as a
8disease required to be reported in the state or any demographic
9parts of the state in which cancer information is collected under
10this section. All cancers diagnosed or treated in the reporting area
11shall thereafter be reported to the representative of the department
12authorized to compile the cancer data, or any individual, agency,
13or organization designated to cooperate with that representative.

14(d) (1) A hospital or other facility providing therapy to cancer
15patients within an area designated as a cancer reporting area shall
16report each case of cancer to the department or the authorized
17representative of the department in a format prescribed by the
18department. If the hospital or other facility fails to report in a
19format prescribed by the department, the department’s authorized
20representative may access the information from the hospital or the
21facility and report it in the appropriate format. In these cases, the
22hospital or other health facility shall reimburse the department or
23the authorized representative for its cost to access and report the
24information.

25(2) A physician and surgeon, dentist, podiatrist, or other health
26care practitioner diagnosing or providing treatment for cancer
27patients shall report each cancer case to the department or the
28authorized representative of the department except for those cases
29directly referred to a treatment facility or those previously admitted
30to a treatment facility for diagnosis or treatment of that instance
31of cancer.

32(e) A hospital or other facility that is required to reimburse the
33department or its authorized representative for the cost to access
34and report the information pursuant to subdivision (d) shall provide
35payment to the department or its authorized representative within
3660 days of the date this payment is demanded. In the event a
37hospital or other facility fails to make the payment to the
38 department or its authorized representative within 60 days of the
39date the payment is demanded, the department or its authorized
40representative may, at its discretion, assess a late fee not to exceed
P28   1112 percent per month of the outstanding balance. Further, in the
2event that the department or its authorized representative takes a
3legal action to recover its costs and any associated fees, and the
4department or its authorized representative receives a judgment in
5its favor, the hospital or other facility shall also reimburse the
6department or its authorized representative for any additional costs
7it incurred to pursue the legal action. Late fees and payments made
8to the department by hospitals or other facilities pursuant to this
9subdivision shall be considered as reimbursements of the additional
10costs incurred by the department.

11(f) All physicians and surgeons, hospitals, outpatient clinics,
12nursing homes and all other facilities, individuals, or agencies
13providing diagnostic or treatment services to patients with cancer
14shall grant to the department or the authorized representative access
15to all records that would identify cases of cancer or would establish
16characteristics of the cancer, treatment of the cancer, or medical
17status of any identified cancer patient. Willful failure to grant
18access to those records shall be punishable by a fine of up to five
19hundred dollars ($500) each day access is refused. Fines collected
20pursuant to this subdivision shall be deposited in the General Fund.

21(g) (1) Except as otherwise provided in this section, all
22information collected pursuant to this section shall be confidential.
23For purposes of this section, this information shall be referred to
24as “confidential information.”

25(2) The department and any regional cancer registry designated
26by the department shall use the information to determine the
27sources of malignant neoplasms and evaluate measures designed
28to eliminate, alleviate, or ameliorate their effect, and assess and
29publicly report on the quality of cancer care in the state.

30(3) The following persons who meet qualifications determined
31by the department and who agree, in writing, to maintain
32confidentiality, may be authorized access to confidential
33information:

34(A) A person with a valid scientific background who is engaged
35in demographic, epidemiologic, quality of care assessment or
36improvement, or other similar studies related to health.

37(B) A person engaged in the dissemination of data to the public
38as it relates to the prevention and treatment of cancer.

P29   1(C) A person engaged in improving health care and population
2health as it relates to the treatment and prevention of cancer,
3including cancer patients themselves.

4(4) The department and any regional cancer registry designated
5by the department may enter into agreements to furnish confidential
6information to other states’ cancer registries, federal cancer control
7agencies, local health officers, or health researchers for the
8purposes of determining the sources of cancer and evaluating
9measures designed to eliminate, alleviate, or ameliorate their effect,
10and assessing and publicly reporting on the quality of cancer care
11in the state. Before confidential information is disclosed to those
12agencies, officers, researchers, or out-of-state registries, the
13requesting entity shall agree in writing to maintain the
14confidentiality of the information, and in the case of researchers,
15shall also do both of the following:

16(A) Obtain approval of their committee for the protection of
17human subjects established in accordance with Part 46
18(commencing with Section 46.101) of Title 45 of the Code of
19Federal Regulations.

20(B) Provide documentation to the department that demonstrates
21to the department’s satisfaction that the entity has established the
22procedures and ability to maintain the confidentiality of the
23information.

24(5) Notwithstanding any other law, disclosure authorized by
25this section shall include only the information necessary for the
26stated purpose of the requested disclosure, used for the approved
27purpose, and not be further disclosed.

28(6) The furnishing of confidential information to the department
29or its authorized representative in accordance with this section
30shall not expose any person, agency, or entity furnishing
31 information to liability, and shall not be considered a waiver of
32any privilege or a violation of a confidential relationship.

33(7) The department shall maintain an accurate record of all
34persons who are given access to confidential information. The
35record shall include: the name of the person authorizing access;
36name, title, address, and organizational affiliation of persons given
37access; dates of access; and the specific purpose for which
38information is to be used. The record of access shall be open to
39public inspection during normal operating hours of the department.

P30   1(8) Notwithstanding any other law, no part of the confidential
2information shall be available for subpoena, nor shall it be
3disclosed, discoverable, or compelled to be produced in a civil,
4criminal, administrative, or other proceeding, nor shall this
5information be deemed admissible as evidence in a civil, criminal,
6administrative, or other tribunal or court for any reason.

7(9) Nothing in this subdivision shall prohibit the publication by
8the department of reports and statistical compilations that do not
9in any way identify individual cases or individual sources of
10information.

11(10) Notwithstanding the restrictions in this subdivision, the
12individual to whom the information pertains shall have access to
13his or her own information in accordance with Chapter 1
14(commencing with Section 1798) of Title 1.8 of the Civil Code.

15(h) For the purpose of this section, “cancer” means either of the
16following:

17(1) All malignant neoplasms, regardless of the tissue of origin,
18including malignant lymphoma, Hodgkins disease, and leukemia,
19but excluding basal cell and squamous cell carcinoma of the skin.

20(2) All primary intracranial and central nervous system (CNS)
21tumors occurring in the following sites, irrespective of histologic
22type: brain, meninges, spinal cord, caudae equina, cranial nerves
23and other parts of the CNS, pituitary gland, pineal gland, and
24craniopharyngeal duct.

25(i) Nothing in this section shall preempt the authority of facilities
26or individuals providing diagnostic or treatment services to patients
27with cancer to maintain their own facility-based cancer registries.

28(j) It is the intent of the Legislature that the department, in
29establishing a system pursuant to this section, maximize the use
30of available federal funds.

end delete


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