Amended in Assembly May 9, 2016

Amended in Assembly April 18, 2016

Amended in Assembly March 30, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 2588


Introduced by Assembly Member Chu

February 19, 2016


An act to amendbegin delete and repeal Sections 14027, 14030, and 14037 of, to amend, repeal, and add Sections 1722, 1751.5, 14000, 14001, 14010, 14020, 14021, 14022, 14022.5, 14024, 14025, 14026, 14028, 14029, 14031, 14032, 14038, 14039, 14040, 14042, 14061, 14063, 14064, 14078, 14080, 14090.1, 14097, and 14099 of, and to add Sections 14025.1 and 14079 to, the Insurance Code, relating to insurance.end deletebegin insert Sections 1722, 1751.5, 14000, 14001, 14020, 14022, 14022.5, 14024, 14025, 14028, 14031, 14032, 14039, 14042, 14080, 14090.1, 14097, and 14099 of, to amend and repeal Sections 14030 and 14037 of, to amend, repeal, and add Sections 14029, 14038, 14040, 14061, 14063, and 14064 of, to add Sections 14025.1 and 14079 to, to repeal Section 14027 of, and to repeal and add Sections 14010, 14021, 14026, and 14078 of, the Insurance Code, relating to insurance.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 2588, as amended, Chu. Independent insurance adjusters.

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. Existing law prescribes a schedule for various insurance adjuster application, license, and license renewal fees.

Thisbegin delete bill, beginning January 1, 2018,end deletebegin insert billend insert 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 administrative 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 additionalbegin insert administrative andend insert 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 at up to $170. 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. The bill would also change various independent insurance adjuster application, license, and renewal fees, as prescribed.

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.

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

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

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),begin insert Chapterend insert 7 (commencing with Section 1800),
6orbegin insert Chapterend insert 8 (commencing with Section 1831) of this part,begin delete orend delete Part
75 (commencing with Section 12140) of Divisionbegin delete 2end deletebegin insert 2, or Chapter
81 (commencing with Section 14000) of Division 5end insert
enters the
9military service of the United States and is inbegin delete suchend deletebegin insert thatend insert service at
10a time prescribed for the filing of a renewal application, the filing
11ofbegin delete suchend deletebegin insert thatend insert application is waived, and the license held bybegin delete suchend delete
12begin insert thatend insert licensee at the time of hisbegin insert or herend insert entry into military service
13shall remain in force during the period ofbegin delete suchend deletebegin insert thatend insert military service
14and until the end of the license year in which hebegin insert or sheend insert is released
15frombegin delete suchend deletebegin insert thatend insert service but not for less than six months afterbegin delete suchend delete
16begin insert thatend insert release. Duringbegin delete such period suchend deletebegin insert that period, thatend insert person may
17secure a license of the type held by himbegin insert or herend insert on hisbegin insert or herend insert entry
18into military service upon the filing of an application and paying
19the fee therefor without the necessity of taking any examination
20or paying any penalty.

21begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 1751.5 of the end insertbegin insertInsurance Codeend insertbegin insert is amended to
22read:end insert

P4    1

1751.5.  

The fees required by this chapter and by Chapter 6
2(commencing with Section 1760), Chapter 7 (commencing with
3Section 1800), and Chapter 8 (commencing with Section 1831) of
4this partbegin insert and by Chapter 1 (commencing with Section 14000) of
5Division 5end insert
are filing fees, no portion of which shall be refunded
6whether or not the application is acted upon or the examination is
7taken.

8begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 14000 of the end insertbegin insertInsurance Codeend insertbegin insert is amended to
9read:end insert

10

14000.  

This chapter may be cited as thebegin insert Independentend insert Insurance
11Adjuster Act.

12begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 14001 of the end insertbegin insertInsurance Codeend insertbegin insert is amended to
13read:end insert

14

14001.  

As used in thisbegin delete chapter:end deletebegin insert chapter, the following terms
15have the following meanings:end insert

begin insert

16
(a) “Catastrophe” means an event that results in a large number
17of deaths or injuries, causes extensive damage or destruction of
18facilities that provide and sustain human needs, produces an
19overwhelming demand on state and local response resources and
20mechanisms, causes a severe long-term effect on general economic
21activity, or severely affects state, local, and private sector
22capabilities to begin and sustain response activities.

end insert
begin delete

23(a)

end delete

24begin insert(b)end insert “Commissioner” means the Insurance Commissioner.

begin delete

25(b)

end delete

26begin insert(c)end insert “Department” means the Department of Insurance.

begin insert

27
(d) “Fingerprints” means an impression of the lines on the
28finger taken for the purposes of identification.

end insert
begin insert

29
(e) “Home state” means the District of Columbia and any state
30or territory of the United States in which an independent insurance
31adjuster maintains his, her, or its principal place of residence or
32business and is licensed to act as a resident independent insurance
33adjuster. If the resident state does not license independent
34insurance adjusters for the line of authority sought, the independent
35insurance adjuster shall designate as his, her, or its home state
36either California or any state in which the independent insurance
37adjuster is licensed following an examination, provided that the
38independent insurance adjuster is licensed and in good standing
39in that state.

end insert
begin insert

40
(f) “Individual” means a natural person.

end insert
begin delete

P5    1(c)

end delete

2begin insert(g)end insert “Licensee” means a person licensed under this chapter.

begin delete

3(d)

end delete

4begin insert(h)end insert “Manager” means the individual under whose direction,
5control, charge, or management the business of a licensee is
6operated.

begin insert

7
(i) “Nonresident” means a person who is not a resident of
8California at the time of the performance of the act referred to in
9Section 14071.

end insert
begin delete

10(e)

end delete

11begin insert(j)end insert “Person” includes any individual, firm, company, association,
12organization, partnership, limited liability company, and
13corporation.

14begin 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
15

14010.  

The department succeeds to and is vested with all the
16duties, powers, purposes, responsibilities, and jurisdiction
17previously vested in the Bureau of Collection and Investigative
18Services with respect to the licensing of insurance adjusters.

19Any reference to prior licensing shall be deemed to licensing
20under the Private Investigator and Adjuster Act.

21The commissioner shall administer and enforce the provisions
22of this chapter.

end delete
23begin 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
24

begin insert14010.end insert  

The commissioner shall administer and enforce the
25provisions of this chapter.

end insert
26begin insert

begin insertSEC. 7.end insert  

end insert

begin insertSection 14020 of the end insertbegin insertInsurance Codeend insertbegin insert is amended to
27read:end insert

28

14020.  

begin deleteNo end deletebegin insert(a)end insertbegin insertend insertbegin insertAend insertbegin insert end insertperson shallbegin insert notend insert engage in a business
29regulated by this chapter, or act or assume to act as, or represent
30himself or herself to be, a licensee unless he or she is licensed
31begin delete underend deletebegin insert as an independent insurance adjuster in accordance withend insert
32 this chapter.

begin delete

33No

end delete

34begin insert(b)end insertbegin insertend insertbegin insertAend insert person shallbegin insert notend insert falsely represent that he or she is
35employed by a licensee.

36begin 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
37

14021.  

An insurance adjuster within the meaning of this chapter
38is a person other than a private investigator as defined in Section
397521 of the Business and Professions Code who, for any
40consideration whatsoever, engages in business or accepts
P6    1employment to furnish, or agrees to make, or makes, any
2investigation for the purpose of obtaining, information in the course
3of adjusting or otherwise participating in the disposal of, any claim
4under or in connection with a policy of insurance on behalf of an
5insurer or engages in soliciting insurance adjustment business or
6aids an insurer in any manner with reference to:

7Crime or wrongs done or threatened against the United States
8of America or any state or territory of the United States of America;
9the identity, habits, conduct, business, occupation, honesty,
10integrity, credibility, knowledge, trustworthiness, efficiency,
11loyalty, activity, movement, whereabouts, affiliations, associations,
12transactions, acts, reputation, or character of any person; the
13location, disposition, or recovery of lost or stolen property; the
14cause or responsibility for fires, libels, losses, accidents, or damage
15or injury to persons or to property; or securing evidence to be used
16before any court, board, officer, or investigating committee.

17Notwithstanding any other provision of law, this section is in
18no way intended to limit the ability of a duly licensed independent
19insurance adjuster to perform the duties of an independent
20insurance adjuster for any other entity.

end delete
21begin 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
22

begin insert14021.end insert  

An independent insurance adjuster, for purposes of this
23chapter, is all of the following:

24
(a) An individual, a business entity, an independent contractor,
25or an employee of a contractor, who contracts for compensation
26with insurers.

27
(b) A person whose tax treatment by the insurers is consistent
28with that of an independent contractor rather than an employee,
29as defined in Section 3121 of Title 26 of the United States Code.

30
(c) A person who investigates, negotiates, or settles property
31and casualty claims for insurers.

end insert
32begin insert

begin insertSEC. 10.end insert  

end insert

begin insertSection 14022 of the end insertbegin insertInsurance Codeend insertbegin insert is amended to
33read:end insert

34

14022.  

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

35(a) A person employed exclusively and regularly by one
36employer in connection with the affairs ofbegin delete suchend deletebegin insert thatend insert employer only
37and where there exists anbegin delete employer- employeeend deletebegin insert employer-employeeend insert
38 relationship.begin insert This subdivision shall become inoperative on January
391, 2018.end insert

P7    1(b) An officer or employee of the United States of America, or
2of this state or a political subdivision thereof, whilebegin delete suchend deletebegin insert thatend insert
3 officer or employee is engaged in the performance of his or her
4official duties.

5(c) A person engaged exclusively in the business of obtaining
6and furnishing information as to the financial rating of persons.

7(d) A charitable philanthropic society or association duly
8incorporated under the laws of this state, which is organized and
9maintained for the public good and not for private profit.

10(e) An attorney at lawbegin delete in performing his or her duties as such
11attorney at law.end delete
begin insert admitted to practice in California, when acting in
12his or her professional capacity as an attorney.end insert

13(f) A licensed collection agency or an employee thereof while
14acting within the scope of his or her employment, while making
15an investigation incidental to the business of the agency, including
16an investigation of the location of a debtor or his or her property
17where the contract with an assignor creditor is for the collection
18of claims owed or due or asserted to be owed or due or the
19 equivalent thereof.

begin delete

20(g) Admitted insurers and agents and insurance brokers licensed
21by the state, performing duties in connection with insurance
22transacted by them.

end delete
begin insert

23
(g)  An officer, director, manager, or employee of an authorized
24insurer, surplus line insurer, a risk retention group, or an
25attorney-in-fact of a reciprocal insurer.

end insert
begin delete

26(h)

end delete
begin insert

27
(h) A licensed insurance agent or broker or managing general
28agent of the insurer to whom claim authority has been granted by
29the insurer.

end insert

30begin insert(i)end insert The legal owner of personal propertybegin delete whichend deletebegin insert thatend insert has been
31sold under a conditional sales agreement or a mortgagee under the
32terms of a chattel mortgage.

begin delete

33(i)

end delete

34begin insert(j)end insert Any bank subject to the jurisdiction of the Commissioner of
35begin delete Financial Institutions of the State of Californiaend deletebegin insert Business Oversightend insert
36 under Division 1 (commencing with Section 99) of the Financial
37Code or the Comptroller of the Currency of the United States.

begin delete

38(j)

end delete

39begin insert(k)end insert A personbegin delete engaged solely in the business of securing
40information about persons or property from public records.end delete

P8    1
begin insert employed solely to obtain facts surrounding a claim or to furnish end insert
2
begin inserttechnical assistance to a licensed independent insurance adjuster.end insert

begin delete

3(k)

end delete

4begin insert(l)end insert Any building contractor, engineer, technical expert, or other
5person who is engaged by an insurer or licensedbegin insert independent
6insuranceend insert
adjuster to provide an expert or professional evaluation
7of the extent, cause, or origin of damage to the insured property,
8but who does not otherwise participate in the process of adjusting
9claims.

begin insert

10
(m) An individual who is employed to investigate suspected
11fraudulent insurance claims but who does not adjust losses or
12determine claims payments.

end insert
begin insert

13
(n) A person who solely performs administrative or clerical
14duties, or any combination thereof, and who does not investigate,
15 negotiate, or settle claims with policyholders, claimants, or their
16legal representative.

end insert
begin insert

17
(o) A licensed health care provider or its employees who provide
18managed care if the services do not include the determination of
19compensability.

end insert
begin insert

20
(p) A managed care organization or any of its employees who
21provide managed care services if the services do not include the
22determination of compensability.

end insert
begin insert

23
(q) A person who settles only reinsurance or subrogation claims.

end insert
begin insert

24
(r) A United States manager of the United States branch of an
25alien insurer.

end insert
begin insert

26
(s) An individual employee, under a self-insured arrangement,
27who adjusts claims on behalf of his or her employer.

end insert
begin insert

28
(t) An individual or business entity that investigates, negotiates,
29or settles workers’ compensation claims.

end insert
begin insert

30
(u) An individual who, in regards to portable electronics
31insurance claims, collects claims information from, or furnishes
32claims information to, insureds or claimants, and who conducts
33data entry, including entering data into an automated claims
34adjudication system, provided that the individual is an employee
35of a licensed independent insurance adjuster or its affiliate where
36no more than 25 of those persons are under the supervision of one
37licensed independent insurance adjuster or licensed producer.

end insert
38begin insert

begin insertSEC. 11.end insert  

end insert

begin insertSection 14022.5 of the end insertbegin insertInsurance Codeend insertbegin insert is amended
39to read:end insert

P9    1

14022.5.  

(a) In the event of an emergency situation as declared
2by the commissioner, claims arising out of the emergency,
3catastrophe, disaster, or other similar occurrence may be adjusted
4by a nonlicensedbegin insert independent insuranceend insert adjuster upon registration
5with the commissioner if all of the following requirements are met:

6(1) The work performed by the nonlicensedbegin insert independent
7insuranceend insert
adjuster is under the active direction, control, charge,
8or management of a licensedbegin insert independent insuranceend insert adjuster or
9an insurer authorized to do business in this state.

10(2) Registration with the commissioner is accomplished within
11begin delete 15end deletebegin insert fiveend insert working days from the date on which the nonlicensed
12begin insert independent insuranceend insert adjuster commences the claims adjusting
13activity in connection with the emergency situation.

14(b) “Registration,” within the meaning of this section,begin delete shall
15meanend delete
begin insert meansend insert a written letter to the commissioner, submitted by the
16supervising licensedbegin insert independent insuranceend insert adjuster or admitted
17insurer, naming the nonlicensedbegin insert independent insuranceend insert adjusters,
18identifying theirbegin insert independent insuranceend insert adjuster licenses held in
19other jurisdictions, and stating when their claims adjusting activity
20commenced.

21(c) Registration under this section is valid for a period of 180
22days from the date of the registration letter. Before the lapse of
23that period, the commissioner may grant further 180-day extensions
24as he or she deems appropriate upon written request from the
25supervising licensedbegin insert independent insuranceend insert adjuster or the admitted
26insurer.

27begin insert

begin insertSEC. 12.end insert  

end insert

begin insertSection 14024 of the end insertbegin insertInsurance Codeend insertbegin insert is amended to
28read:end insert

29

14024.  

begin insert(a)end insertbegin insertend insert Anbegin insert individualend insert application shall be verified and
30shallbegin delete include:end deletebegin insert include all of the following:end insert

begin delete

31(a)

end delete

32begin insert(1)end insert The fullbegin insert legalend insert name andbegin delete business addressend deletebegin insert business, residence,
33and mailing addressesend insert
of the applicant.

begin delete

34(b)

end delete

35begin insert(2)end insert The name under whichbegin insert theend insert applicant intends to do business.

begin insert

36
(3) The applicant’s birth date and social security number.

end insert
begin insert

37
(4) The application fees set forth in Section 14097.

end insert
begin delete

38(c)

end delete

39begin insert(5)end insert A statement as to the general nature of the business in which
40the applicant intends to engage.

begin delete

P10   1(d)

end delete

2begin insert(6)end insert A statement as to thebegin delete classification orend delete classifications under
3which the applicant desires to be qualified.

begin delete

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

end delete
begin insert

5
(7) Two photographs, no more than six months old, of the
6applicant, of a type prescribed by the commissioner, and one
7classifiable set of his or her fingerprints, to be sent to a live scan
8fingerprint provider as directed by the department, if fingerprints
9are not submitted in person with a live scan fingerprinting service
10provider certified by the Department of Justice.

end insert
begin insert

11
(8) A verified statement of his or her experience qualifications,
12unless applying for an apprentice independent insurance adjuster
13license.

end insert
begin insert

14
(9) Other information, evidence, statement, or document as may
15be required by the commissioner.

end insert
begin insert

16
(b) A business entity application shall be verified and shall
17include all of the following:

end insert

18begin insert(1)end insertbegin insertend insertbegin insertTheend insert fullbegin insert legalend insert name and residence address of each of its
19partners, officers, and directors, and its manager.

begin delete

20(f) Two recent photographs of the applicant, of a type prescribed
21by the commissioner, and two classifiable sets of his or her
22fingerprints.

end delete
begin insert

23
(2) The name under which the applicant intends to do business.

end insert
begin insert

24
(3) That the applicant paid the fees set forth in Section 14097.

end insert
begin insert

25
(4) A statement as to the general nature of the business in which
26the applicant intends to engage.

end insert
begin delete

27(g)

end delete

28begin insert(5)end insert Abegin delete verifiedend deletebegin delete statementend deletebegin delete of his or her experience qualifications.end delete
29
begin insert statement as to the classifications under which the applicant desires
30to be qualified.end insert

begin delete

31(h) Such other

end delete

32begin insert(6)end insertbegin insertend insertbegin insertOtherend insert information, evidence, statements, or documents as
33may be required by the commissioner.

34begin insert

begin insertSEC. 13.end insert  

end insert

begin insertSection 14025 of the end insertbegin insertInsurance Codeend insertbegin insert is amended to
35read:end insert

36

14025.  

Beforebegin delete an application forend delete a license is granted, the
37
begin delete applicant, or his or her manager,end deletebegin delete shall meet all of theend deletebegin delete following:end delete
38
begin insert applicant shall meet all of the following requirements:end insert

39(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 delete andend delete
3
begin delete Professions Code.end deletebegin insert Sections 1668 and 1669.end insert

begin delete

4(c) Shall have had at least two years of experience in adjusting
5insurance claims or the equivalent thereof as determined by the
6commissioner.

end delete
begin insert

7
(c) Shall have had either of the following:

end insert
begin insert

8
(1) At least two years of experience in adjusting insurance
9claims or the equivalent thereof as determined by the
10commissioner, unless applying for an apprentice independent
11 insurance adjuster license.

end insert
begin insert

12
(2) One year as a licensed apprentice independent insurance
13adjuster, which is considered the equivalent of two years of
14experience in adjusting claims.

end insert
begin insert

15
(d) (1) Completed a 20-hour prelicensing education course of
16study.

end insert
begin insert

17
(2) A nonresident applicant currently licensed as a home state
18independent insurance adjuster in another state who has met that
19state’s prelicensing education requirements is exempt from
20completing the prelicensing education requirement.

end insert
begin insert

21
(3) A resident applicant currently listed under a licensed
22independent insurance adjuster’s license as an unlicensed
23employee is exempt from completing the prelicensing education
24requirement. This exemption shall be in effect only until January
251, 2019.

end insert
begin insert

26
(e) Successfully passed the examination for the independent
27insurance adjuster license, unless he or she qualifies for an
28exemption in Section 14026.

end insert
begin delete

29(d)

end delete

30begin insert(f)end insert Comply withbegin delete suchend deletebegin insert thoseend insert other qualificationsbegin delete asend deletebegin insert thatend insert the
31commissioner maybegin delete fixend deletebegin delete byend deletebegin delete rule.end deletebegin insert require by regulation.end insert

32begin insert

begin insertSEC. 14.end insert  

end insert

begin insertSection 14025.1 is added to the end insertbegin insertInsurance Codeend insertbegin insert, to
33read:end insert

begin insert
34

begin insert14025.1.end insert  

(a) The apprentice independent insurance adjuster
35license is a license to facilitate the experience, education, and
36training necessary to ensure reasonable competency in the
37responsibilities and duties of an independent insurance adjuster.

38
(b) An individual applying for an apprentice independent
39insurance adjuster license shall submit an application in a format
40prescribed by the commissioner and shall declare under penalty
P12   1of suspension, revocation, or refusal of the license that the
2statements made in the application are true, correct, and complete
3to the best of the individual’s knowledge and belief. Before
4approving the application, the commissioner shall determine that
5the individual meets all of the following:

6
(1) Is at least 18 years of age.

7
(2) Is a resident of California or is a resident of another state
8and has designated California as his or her home state.

9
(3) Has a business or mailing address in California for the
10acceptance of service of process.

11
(4) Has not committed any act that is a ground for suspension,
12revocation, or denial of licensure as set forth in Sections 1668,
131668.1, and 1669.

14
(5) Has paid the fees set forth in subdivision (h) of Section
1514097.

16
(c) The apprentice independent insurance adjuster license shall
17be subject to the following terms and conditions:

18
(1) The applicant shall submit, with the apprentice independent
19insurance adjuster application, an attestation from a licensed
20independent insurance adjuster certifying that the apprentice will
21be subject to training, direction, and control by the licensed
22independent insurance adjuster and further certifying that the
23licensed independent insurance adjuster assumes responsibility
24for the actions of the apprentice in the apprentice’s capacity as
25an apprentice independent insurance adjuster.

26
(2) The apprentice independent insurance adjuster is only
27authorized to adjust claims in California.

28
(3) The apprentice independent insurance adjuster is restricted
29to participation in the investigation, settlement, and negotiation
30of claims subject to the review and final determination of the claim
31by a supervising licensed independent insurance adjuster.

32
(4) The apprentice independent insurance adjuster shall not be
33required to take and successfully complete the independent
34insurance adjuster examination to adjust claims as an apprentice
35independent insurance adjuster. At any time during the
36apprenticeship, the apprentice independent insurance adjuster
37may choose to take the examination. If the individual takes and
38successfully completes the independent insurance adjuster exam,
39the apprentice independent insurance adjuster license shall
P13   1automatically terminate and an independent insurance adjuster
2license shall be issued to that individual in its place.

3
(5) The apprentice independent insurance adjuster license is
4valid for a period not to exceed 12 months and is nonrenewable.

5
(6) The licensee shall be subject to suspension, revocation, or
6denial pursuant to Sections 1668, 1668.1, and 1669.

7
(7) The applicant shall submit two photographs, no more than
8six months old, of the applicant, of a type prescribed by the
9commissioner, and one classifiable set of his or her fingerprints,
10to be sent to a live scan fingerprint provider as directed by the
11department, if fingerprints are not submitted in person with a live
12scan fingerprinting service provider certified by the Department
13of Justice.

end insert
14begin 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
15

14026.  

The commissioner may require an applicant, or his or
16her manager, to demonstrate his or her qualifications by a written
17or oral examination, or a combination of both.

end delete
18begin insert

begin insertSEC. 16.end insert  

end insert

begin insertSection 14026 is added to the end insertbegin insertInsurance Codeend insertbegin insert, to
19read:end insert

begin insert
20

begin insert14026.end insert  

(a) An applicant for an independent insurance adjuster
21license, unless applying for an apprentice independent insurance
22adjuster license or crop insurance adjuster license, shall pass a
23written examination.

24
(1) The examination shall test the knowledge of the applicant
25concerning the duties and responsibilities of an independent
26insurance adjuster and this code.

27
(2) An applicant applying for an examination shall remit a
28nonrefundable fee as prescribed by the commissioner in Section
2914097.

30
(b) An individual who applies for an independent insurance
31adjuster license in California who holds a home state license in
32 another state as an independent insurance adjuster shall not be
33required to complete the examination if he or she successfully
34passed an examination as a condition of receiving an independent
35insurance adjuster license in his or her home state. This exemption
36applies to individuals who are currently licensed in their home
37state or if the home state license expired and the application is
38received by the commissioner within 90 days of expiration.

39
(c) An individual who applies for an apprentice independent
40insurance adjuster license pursuant to Section 14025.1, and who
P14   1adjusts claims in that capacity, shall not be required to take and
2successfully complete the independent insurance adjuster
3examination.

end insert
4begin 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
5

14027.  

Payment of the application fee prescribed by this chapter
6entitles an applicant, or his or her manager, to one examination
7without further charge. If the person fails to pass the examination,
8he or she shall not be eligible for any subsequent examination
9except upon payment of the reexamination fee prescribed by this
10chapter for each such subsequent examination.

end delete
11begin insert

begin insertSEC. 18.end insert  

end insert

begin insertSection 14028 of the end insertbegin insertInsurance Codeend insertbegin insert is amended to
12read:end insert

13

14028.  

After abegin delete hearingend deletebegin insert hearing,end insert the commissioner may deny
14a license unless the application makes a showing satisfactory to
15the commissioner that the applicant, if an individual, has not, or
16if the applicant is a person other than an individual, that its manager
17and each of its officers and partners havebegin delete not:end deletebegin insert not done any of the
18following:end insert

begin delete

19(a) Committed any acts or crimes constituting grounds for denial
20of licensure under Section 480 of the Business and Professions
21Code.

end delete
begin delete

22(b)

end delete

23begin insert(a)end insert Been refused a license under this chapter or had a license
24revoked.

begin delete

25(c)

end delete

26begin insert(b)end insert Been an officer, partner, or manager of any person who has
27been refused a license under this chapter or whose license has been
28revoked.

begin delete

29(d)

end delete

30begin insert(c)end insert While unlicensed committed, or aided and abetted the
31commission of, any act for which a license is required by this
32chapter.

begin delete

33(e)

end delete

34begin insert(d)end insert Committed any act or crime constituting grounds for denial
35ofbegin delete licenseend deletebegin insert licensureend insert under Section 1668.

36begin insert

begin insertSEC. 19.end insert  

end insert

begin insertSection 14029 of the end insertbegin insertInsurance Codeend insertbegin insert is amended to
37read:end insert

38

14029.  

(a) The business of each licensee shall be operated
39under the active direction, control, charge, or management of the
P15   1licensee, if the licensee is qualified, or the person who has qualified
2to act as the licensee’s manager, if the licensee is not qualified.

3(b) No person shall act as a manager of a licensee until he or
4she has complied with each of the following:

5(1) Demonstrated his or her qualifications by a written or oral
6examination, or a combination of both, if required by the
7commissioner.

8(2) Made a satisfactory showing to the commissioner that he or
9she has the qualifications prescribed by Section 14025 and that
10none of the facts stated in Section 14028 or 14028.5 exist as to
11him or her.

12(c) If the manager, who has qualified as provided in this section,
13ceases for any reason whatsoever to be connected with the licensee
14to whom the license is issued, the licensee shall notify the
15commissioner in writing 30 days from the cessation. If notice is
16given, the license shall remain in force for a reasonable length of
17time to be determined by the rules of the commissioner pending
18the qualifications, as provided in this chapter, of another manager.
19If the licensee fails to notify the commissioner within the 30-day
20period, his or her license shall be subject to suspension or
21revocation and may be reinstated only upon the filing of an
22application for reinstatement, payment of the reinstatement fee, if
23any is due, and the qualification of a manager as provided herein.

24(d) Every manager shall renew his or her authority by satisfying
25the requirements of Article 8 (commencing with Section 14090).

begin insert

26
(e) This section shall remain in effect only until January 1, 2018,
27and as of that date is repealed, unless a later enacted statute, that
28is enacted before January 1, 2018, deletes or extends that date.

end insert
29begin insert

begin insertSEC. 20.end insert  

end insert

begin insertSection 14029 is added to the end insertbegin insertInsurance Codeend insertbegin insert, to
30read:end insert

begin insert
31

begin insert14029.end insert  

(a) Each organization licensed under this chapter shall
32designate an individual also licensed as an independent insurance
33adjuster to be responsible for the organization’s compliance with
34state law.

35
(b) This section shall become operative on January 1, 2018.

end insert
36begin insert

begin insertSEC. 21.end insert  

end insert

begin insertSection 14030 of the end insertbegin insertInsurance Codeend insertbegin insert is amended to
37read:end insert

38

14030.  

begin insert(a)end insertbegin insertend insert Whenever the individual on the basis of whose
39qualifications a license under this chapter has been obtained ceases
40to be connected with the licensee for any reason whatever, the
P16   1business may be carried on forbegin delete suchend deletebegin insert aend insert temporary period and under
2begin delete suchend deletebegin insert theend insert terms and conditions as the commissioner shall provide
3by regulation.

begin insert

4
(b) This section shall remain in effect only until January 1, 2018,
5and as of that date is repealed, unless a later enacted statute, that
6is enacted before January 1, 2018, deletes or extends that date.

end insert
7begin insert

begin insertSEC. 22.end insert  

end insert

begin insertSection 14031 of the end insertbegin insertInsurance Codeend insertbegin insert is amended to
8read:end insert

9

14031.  

begin deleteWhenever a hearing is end deletebegin insertA hearingend insertbegin insert end insertheld under this chapter
10to determine whether an application for a license should be granted
11begin delete or to determine the qualifications of a licensee’s manager, the
12proceedingsend delete
shall be conducted in accordance with Chapter 5
13(commencing with Section 11501) of Part 1 of Division 3 of Title
142 of the Government Code, and the commissioner shall have all
15of the powers granted therein.

16begin insert

begin insertSEC. 23.end insert  

end insert

begin insertSection 14032 of the end insertbegin insertInsurance Codeend insertbegin insert is amended to
17read:end insert

18

14032.  

The form and content of the license shall be determined
19by thebegin delete commissioner in accordance with Section 164 of the
20Business and Professions Code.end delete
begin insert commissioner.end insert

21begin insert

begin insertSEC. 24.end insert  

end insert

begin insertSection 14037 of the end insertbegin insertInsurance Codeend insertbegin insert is amended to
22read:end insert

23

14037.  

begin insert(a)end insertbegin insertend insert A licensee shall at all times be legally responsible
24for the good conduct in the business of each of his or her employees
25or agents, including his or her manager.

begin insert

26
(b) This section shall remain in effect only until January 1, 2018,
27and as of that date is repealed, unless a later enacted statute, that
28is enacted before January 1, 2018, deletes or extends that date.

end insert
29begin insert

begin insertSEC. 25.end insert  

end insert

begin insertSection 14038 of the end insertbegin insertInsurance Codeend insertbegin insert is amended to
30read:end insert

31

14038.  

(a) Any licensee or officer, director, partner, or manager
32of a licensee may divulge to any law enforcement officer or district
33attorney, or to his or her representative, any information he or she
34may acquire as to any criminal offense, but he or she shall not
35divulge to any other person, except as he or she may be required
36by law to do so, any information acquired by him or her except at
37the direction of the employer or client for whom the information
38was obtained.

39(b) begin deleteNo end deletebegin insertA end insertlicensee or officer, director, partner, manager, or
40 employee of a licensee shallbegin insert notend insert knowingly make any false report
P17   1to his or her employer or client for whom information was being
2obtained.

3(c) begin deleteNo end deletebegin insertA end insertwritten report shallbegin insert notend insert be submitted to a client except
4by the licensee, qualifying manager, or a person authorized by one
5or either of them, andbegin delete suchend deletebegin insert theend insert person submitting the report shall
6exercise diligence in ascertaining whether or not the facts and
7information inbegin delete such aend deletebegin insert thatend insert report are true and correct.

8(d) begin deleteNo licensee, end deletebegin insertA licensee end insertor officer, director, partner, manager,
9or employee of a licensee shallbegin insert notend insert use a badge in connection with
10the official activities of the licensee’s business.

11(e) begin deleteNo licensee, end deletebegin insertA licensee end insertor officer, director, partner, manager,
12or employee of a licensee, shallbegin insert notend insert use a title,begin delete orend delete wear a uniform,
13begin delete orend delete use an insignia, or use an identification card, or make any
14statement with the intent to give an impression that he or she is
15connected in any way with the federal government, a state
16government, or any political subdivision of a state government.

17(f) begin deleteNo licensee, end deletebegin insertA licensee end insertor officer, director, partner, manager,
18or employee of a licensee, shallbegin insert notend insert enter any private building or
19portion thereof without the consent of the owner or of the person
20in legal possession thereof.

21(g) begin deleteNo end deletebegin insertA end insertlicensee shallbegin insert notend insert appear as an assignee party in any
22proceeding involving claim and delivery, replevin, or other
23possessory action, action to foreclose a chattel mortgage,
24mechanic’s lien, materialman’s lien, or any other lien.

25(h) begin deleteNo end deletebegin insertA end insertlicensee shallbegin insert notend insert permit an employee or agent in his
26or her own name to advertise, engage clients, furnish reports, or
27present bills to clients, or in any manner whatever to conduct
28business for which a license is required under this chapter. All
29business of the licensee shall be conducted in the name of and
30under the control of the licensee.

31(i) begin deleteNo end deletebegin insertA end insertlicensee acting as an independent automobile damage
32appraiser or adjuster or as an automobile insurance claims adjuster,
33begin delete appraiserend deletebegin insert appraiser,end insert or representative shallbegin insert notend insert receive any financial
34benefit from an automobile repair facility. “Financial benefit”
35means the receiving of any commission or gratuity, discount on
36repair costs, free repairs, employment by a repair facility, or
37possession of more than 3 percent direct ownership in an
38automobile repair facility located in this state.

begin insert

P18   1
(j) This section shall remain in effect only until January 1, 2018,
2and as of that date is repealed, unless a later enacted statute, that
3is enacted before January 1, 2018, deletes or extends that date.

end insert
4begin insert

begin insertSEC. 26.end insert  

end insert

begin insertSection 14038 is added to the end insertbegin insertInsurance Codeend insertbegin insert, to
5read:end insert

begin insert
6

begin insert14038.end insert  

(a) Any licensee or officer, director, or partner of a
7licensee may divulge to any law enforcement officer or district
8attorney, or to his or her representative, any information he or
9she may acquire as to any criminal offense, but he or she shall not
10divulge to any other person, except as he or she may be required
11by law to do so, any information acquired by him or her except at
12the direction of the employer or client for whom the information
13was obtained.

14
(b) A licensee or officer, director, or partner of a licensee shall
15not knowingly make any false report to his or her employer or
16client for whom information was being obtained.

17
(c) A written report shall not be submitted to a client except by
18the licensee who shall exercise diligence in ascertaining whether
19or not the facts and information in that report are true and correct.

20
(d) A licensee or officer, director, or partner of a licensee shall
21not use a badge in connection with the official activities of the
22licensee’s business.

23
(e) A licensee or officer, director, or partner of a licensee shall
24not use a title, wear a uniform, use an insignia, use an
25identification card, or make any statement with the intent to give
26an impression that he or she is connected in any way with the
27federal government, a state government, or any political
28subdivision of a state government.

29
(f) A licensee or officer, director, or partner of a licensee shall
30not enter any private building or portion thereof without the
31consent of the owner or of the person in legal possession thereof.

32
(g) A licensee shall not appear as an assignee party in any
33proceeding involving claim and delivery, replevin, or other
34possessory action, action to foreclose a chattel mortgage,
35mechanic’s lien, materialman’s lien, or any other lien.

36
(h) A licensee shall not permit an agent in his or her own name
37to advertise, engage clients, furnish reports, or present bills to
38clients, or in any manner whatever to conduct business for which
39a license is required under this chapter. All business of the licensee
P19   1shall be conducted in the name of and under the control of the
2licensee.

3
(i) A licensee acting as an independent automobile damage
4appraiser or adjuster or as an automobile insurance claims
5adjuster, appraiser, or representative shall not receive any
6financial benefit from an automobile repair facility. “Financial
7benefit” means the receiving of any commission or gratuity,
8discount on repair costs, free repairs, employment by a repair
9facility, or possession of more than 3 percent direct ownership in
10an automobile repair facility located in this state.

11
(j) This section shall become operative on January 1, 2018.

end insert
12begin insert

begin insertSEC. 27.end insert  

end insert

begin insertSection 14039 of the end insertbegin insertInsurance Codeend insertbegin insert is amended to
13read:end insert

14

14039.  

begin deleteNo end deletebegin insertA end insertperson licensed as anbegin insert independentend insert insurance
15adjuster shallbegin insert notend insert do any of the following:

16(a) Fail to disclose his or her full financial interest in a contract
17or agreement executed by him or her for the adjustment of a claim
18prior to the execution thereof.

19(b) Use any misrepresentation to solicit a contract or agreement
20to adjust a claim.

21(c) Solicit or accept remuneration from, or have a financial
22interest exceeding 3 percent in, any salvage, repair, or otherbegin delete firm,
23whichend delete
begin insert firm thatend insert obtains business in connection with any claim
24begin delete whichend deletebegin insert thatend insert he or she has a contract or agreement to adjust.

25begin insert

begin insertSEC. 28.end insert  

end insert

begin insertSection 14040 of the end insertbegin insertInsurance Codeend insertbegin insert is amended to
26read:end insert

27

14040.  

begin insert(a)end insertbegin insertend insert Any badge or cap insignia worn by a person who
28is a licensee, officer, director, partner, manager, or employee of a
29licensee shall be of a design approved by the commissioner, and
30shall bear on its face a distinctive word indicating the name of the
31licensee and an employee number by whichbegin delete suchend deletebegin insert theend insert person may
32be identified by the licensee.

begin insert

33
(b) This section shall remain in effect only until January 1, 2018,
34and as of that date is repealed, unless a later enacted statute, that
35is enacted before January 1, 2018, deletes or extends that date.

end insert
36begin insert

begin insertSEC. 29.end insert  

end insert

begin insertSection 14040 is added to the end insertbegin insertInsurance Codeend insertbegin insert, to
37read:end insert

begin insert
38

begin insert14040.end insert  

(a) Any badge or cap insignia worn by a person who
39is a licensee, officer, director, or partner of a licensee shall be of
40a design approved by the commissioner, and shall bear on its face
P20   1a distinctive word indicating the name of either the licensee or the
2adjusting firm the licensee represents.

3
(b) This section shall become operative on January 1, 2018.

end insert
4begin insert

begin insertSEC. 30.end insert  

end insert

begin insertSection 14042 of the end insertbegin insertInsurance Codeend insertbegin insert is amended to
5read:end insert

6

14042.  

begin deleteNo end deletebegin insert(a)end insertbegin insertend insertbegin insertAend insertbegin insert end insertlicensee shallbegin insert notend insert conduct a business under
7a fictitious or other business name unless and until he or she has
8obtained the written authorization of the commissioner to do so.

begin delete

9 The

end delete

10begin insert(b)end insertbegin insertend insertbegin insertTheend insert commissioner shall not authorize the use of a fictitious
11or other business namebegin delete whichend deletebegin insert thatend insert is so similar to that of a public
12officer or agency or of that used by another licensee that the public
13may be confused or misled thereby.

begin delete

14The

end delete

15begin insert(c)end insertbegin insertend insertbegin insertTheend insert authorization shall require, as a condition precedent to
16the use of any fictitious name, that the licensee comply with Section
17
begin delete 1724.5 of this code and Chapter 5 (commencing with Section
1817900) of Part 3 of Division 7 of the Business and Professions
19Code.end delete
begin insert 1724.5.end insert

begin delete

20A

end delete

21begin insert(d)end insertbegin insertend insertbegin insertAend insert licensee desiring to conduct his or her business under
22more than one fictitious business name shall obtain the
23authorization of the commissioner in the manner prescribed in this
24section for the use ofbegin delete each suchend deletebegin insert thatend insert name.

begin delete

25The

end delete

26begin insert(e)end insertbegin insertend insertbegin insertTheend insert 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. 31.end insert  

end insert

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

35

14061.  

begin insert(a)end insertbegin insertend insert 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
38licensee, or his or her manager, if an individual, or if the licensee
39is a person other than an individual, that any of its officers,
P21   1directors, partners, or itsbegin delete manager, has:end deletebegin insert manager has done any of
2the following:end insert

begin delete

3(a)

end delete

4begin insert(1)end insert Made any false statement or given any false information in
5connection with an application for a license or a renewal or
6reinstatement of a license.

begin delete

7(b)

end delete

8begin insert(2)end insert Violated any provisions of this chapter.

begin delete

9(c)

end delete

10begin insert(3)end insert Violated any rule of the commissioner adopted pursuant to
11the authority contained in this chapter.

begin delete

12(d)

end delete

13begin insert(4)end insert Been convicted of any crime substantially related to the
14qualifications,begin delete functionsend deletebegin insert functions,end insert and duties of the holder of the
15registration or license in question.

begin delete

16(e)

end delete

17begin insert(5)end insert Impersonated, or permitted or aided and abetted an employee
18tobegin delete impersonateend deletebegin insert impersonate,end insert a law enforcement officer or employee
19of the Unitedbegin delete States of America,end deletebegin insert States,end insert or of any state or political
20subdivision thereof.

begin delete

21(f)

end delete

22begin insert(6)end insert Committed or permitted any employee to commit any act,
23while the license was expiredbegin delete whichend deletebegin insert thatend insert would be cause for the
24suspension or revocation of a license, or grounds for the denial of
25an application for a license.

begin delete

26(g)

end delete

27begin insert(7)end insert Willfully failed or refused to render to a client services or
28a report as agreed between the parties and for which compensation
29has been paid or tendered in accordance with the agreement of the
30parties.

begin delete

31(h)

end delete

32begin insert(8)end insert Committed assault, battery, or kidnapping, or used force or
33violence on any person, without proper justification.

begin delete

34(i)

end delete

35begin insert(9)end insert Knowinglybegin delete violated,end deletebegin insert violatedend insert or advised, encouraged, or
36assisted the violation of any court order or injunction in the course
37of business as a licensee.

begin delete

38(j)

end delete

39begin insert(10)end insert Acted as a runner or capper for any attorney.

begin delete

40(k)

end delete

P22   1begin insert(11)end insert Committed any actbegin delete whichend deletebegin insert thatend insert is a ground for denial of an
2application for license under this chapter.

begin delete

3(l) Purchased, possessed, or transported any tear gas weapon
4except as authorized by law. A violation of this subdivision may
5be punished by the suspension of a license for a period to be
6determined by the commissioner.

end delete
begin insert

7
(12) Purchased, possessed, or transported any tear gas weapon
8except as authorized by law. A violation of this paragraph may be
9punished by the suspension of a license for a period to be
10determined by the commissioner.

end insert
begin insert

11
(b) This section shall remain in effect only until January 1, 2018,
12and as of that date is repealed, unless a later enacted statute, that
13is enacted before January 1, 2018, deletes or extends that date.

end insert
14begin insert

begin insertSEC. 32.end insert  

end insert

begin insertSection 14061 is added to the end insertbegin insertInsurance Codeend insertbegin insert, to
15read:end insert

begin insert
16

begin insert14061.end insert  

(a) The commissioner may suspend or revoke a license
17issued under this chapter or may issue a restricted license in
18accordance with Section 14026.5 if he or she determines that the
19licensee or if the licensee is a person other than an individual, that
20any of its officers, directors, partners, or its designated responsible
21person has done any of the following:

22
(1) Made any false statement or given any false information in
23connection with an application for a license or a renewal or
24reinstatement of a license.

25
(2) Violated any provisions of this chapter.

26
(3) Violated any rule of the commissioner adopted pursuant to
27 the authority contained in this chapter.

28
(4) Been convicted of any crime substantially related to the
29qualifications, functions, and duties of the holder of the registration
30or license in question.

31
(5) Impersonated, or permitted or aided and abetted an
32employee to impersonate, a law enforcement officer or employee
33of the United States, or of any state or political subdivision thereof.

34
(6) Committed or permitted any employee to commit any act,
35while the license was expired that would be cause for the
36suspension or revocation of a license, or grounds for the denial
37of an application for a license.

38
(7) Willfully failed or refused to render to a client services or
39a report as agreed between the parties and for which compensation
P23   1has been paid or tendered in accordance with the agreement of
2the parties.

3
(8) Committed assault, battery, or kidnapping, or used force or
4violence on any person, without proper justification.

5
(9) Knowingly violated or advised, encouraged, or assisted the
6violation of any court order or injunction in the course of business
7as a licensee.

8
(10) Acted as a runner or capper for any attorney.

9
(11) Committed any act that is a ground for denial of an
10application for license under this chapter.

11
(12) Purchased, possessed, or transported any tear gas weapon
12except as authorized by law. A violation of this paragraph may be
13punished by the suspension of a license for a period to be
14determined by the commissioner.

15
(b) This section shall become operative on January 1, 2018.

end insert
16begin insert

begin insertSEC. 33.end insert  

end insert

begin insertSection 14063 of the end insertbegin insertInsurance Codeend insertbegin insert is amended to
17read:end insert

18

14063.  

begin insert(a)end insertbegin insertend insert The commissioner may suspend or revoke a license
19issued under this chapter or may issue a restricted license in
20accordance with Section 14026.5 if the commissioner determines
21that the licensee, or his or her manager, if an individual, or if the
22licensee is a person other than an individual, that any of its officers,
23directors, partners, or itsbegin delete manager, has:end deletebegin insert manager has done any of
24the following:end insert

begin delete

25(a)

end delete

26begin insert(1)end insert Used any letterhead, advertisement, or other printed matter,
27or in any matter whatever represented that he or she is an
28instrumentality of the federal government,begin insert or ofend insert a state or any
29political subdivision thereof.

begin delete

30(b)

end delete

31begin insert(2)end insert Used a name different from that under which he or she is
32currently licensed in any advertisement, solicitation, or contract
33for business.

begin insert

34
(b) This section shall remain in effect only until January 1, 2018,
35and as of that date is repealed, unless a later enacted statute, that
36is enacted before January 1, 2018, deletes or extends that date.

end insert
37begin insert

begin insertSEC. 34.end insert  

end insert

begin insertSection 14063 is added to the end insertbegin insertInsurance Codeend insertbegin insert, to
38read:end insert

begin insert
39

begin insert14063.end insert  

(a) The commissioner may suspend or revoke a license
40issued under this chapter or may issue a restricted license in
P24   1accordance with Section 14026.5 if the commissioner determines
2that the licensee, if an individual, or if the licensee is a person
3other than an individual, that any of its officers, directors, or
4partners has done any of the following:

5
(1) 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, or of a state or any
8political subdivision thereof.

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

12
(b) The section shall become operative on January 1, 2018.

end insert
13begin insert

begin insertSEC. 35.end insert  

end insert

begin insertSection 14064 of the end insertbegin insertInsurance Codeend insertbegin insert is amended to
14read:end insert

15

14064.  

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

begin delete

22 “Dishonesty

end delete

23begin insert(b)end insertbegin insertend insertbegin insert“Dishonestyend insert or fraud” as used in this section includes, in
24addition to other acts not specifically enumerated herein, all of the
25following:

begin delete

26(a)

end delete

27begin insert(1)end insert Knowingly making a false statement relating to evidence or
28information obtained in the course of employment, or knowingly
29publishing a slander or a libel in the course of business.

begin delete

30(b)

end delete

31begin insert(2)end insert Using illegal means in the collection or attempted collection
32of a debt or obligation.

begin delete

33(c)

end delete

34begin insert(3)end insert Manufacture of evidence.

begin delete

35(d)

end delete

36begin insert(4)end insert Acceptance of employment adverse to a client or former
37client relating to a matter with respect to which the licensee has
38obtained confidential information by reason of or in the course of
39his or her employment bybegin delete suchend deletebegin insert thatend insert client or former client.

begin delete

40(e)

end delete

P25   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 Unitedbegin delete States of America,end deletebegin insert States,end insert or of any
4state or political subdivision thereof.

begin insert

5
(c) This section shall remain in effect only until January 1, 2018,
6and as of that date is repealed, unless a later enacted statute, that
7is enacted before January 1, 2018, deletes or extends that date.

end insert
8begin insert

begin insertSEC. 36.end insert  

end insert

begin insertSection 14064 is added to the end insertbegin insertInsurance Codeend insertbegin insert, to
9read:end insert

begin insert
10

begin insert14064.end insert  

(a) The commissioner may suspend or revoke a license
11issued under this chapter or may issue a restricted license in
12accordance with Section 14026.5 if the commissioner determines
13that the licensee, if an individual, or if the licensee is a person
14other than an individual, that any of its officers, directors, partners,
15or its designated responsible person has committed any act in the
16course of the licensee’s business constituting dishonesty or fraud.

17
(b) “Dishonesty or fraud” as used in this section includes, in
18addition to other acts not specifically enumerated herein, all of
19the following:

20
(1) Knowingly making a false statement relating to evidence or
21information obtained in the course of employment, or knowingly
22publishing a slander or a libel in the course of business.

23
(2) Using illegal means in the collection or attempted collection
24of a debt or obligation.

25
(3) Manufacture of evidence.

26
(4) Acceptance of employment adverse to a client or former
27client relating to a matter with respect to which the licensee has
28obtained confidential information by reason of or in the course of
29his or her employment by that client or former client.

30
(5) Impersonating, or permitting or aiding and abetting an
31employee to impersonate, a law enforcement officer or employee
32of the United States, or of any state or political subdivision thereof.

33
(c) This section shall become operative on January 1, 2018.

end insert
34begin insert

begin insertSEC. 37.end insert  

end insert

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

begin delete
35

14078.  

As used in this article, “nonresident” means a person
36who is not a resident of this state at the time of the performance
37of the act referred to in Section 14071.

end delete
38begin insert

begin insertSEC. 38.end insert  

end insert

begin insertSection 14078 is added to the end insertbegin insertInsurance Codeend insertbegin insert, to
39read:end insert

begin insert
P26   1

begin insert14078.end insert  

(a) Unless refused licensure pursuant to Sections 14060
2to 14065, inclusive, a nonresident person shall receive a
3nonresident independent insurance adjuster license if all of the
4following apply:

5
(1) The applicant is currently licensed in good standing as an
6independent insurance adjuster in his, her, or its resident or home
7state.

8
(2) The applicant paid the fees required by Section 14097.

9
(3) The applicant submitted to the commissioner the completed
10application for licensure.

11
(4) The applicant’s home state issues nonresident independent
12insurance adjuster licenses to residents of California on the same
13basis.

14
(b) The commissioner may verify the independent insurance
15adjuster’s licensing status through any appropriate database,
16including the Producer Database maintained by the National
17Association of Insurance Commissioners, its affiliates or
18subsidiaries, or may request certification of good standing.

19
(c) As a condition to the continuation of a nonresident
20independent insurance adjuster license, the licensee shall maintain
21a resident independent insurance adjuster license in his, her, or
22its home state.

23
(1) The nonresident independent insurance adjuster license
24issued under this chapter shall terminate and be surrendered
25immediately to the commissioner if the resident independent
26insurance adjuster license terminates for any reason, unless the
27termination is due to the independent insurance adjuster being
28issued a new resident independent insurance adjuster license in
29his, her, or its new home state.

30
(2) The nonresident independent insurance adjuster license
31shall terminate if the person’s home state does not issue
32nonresident independent insurance adjuster licenses to residents
33of California on the same basis.

34
(3) (A) The licensee is required to give notice of resident
35independent insurance adjuster license termination to any state
36that issued a nonresident independent insurance adjuster license.

37
(B) The notice is required to be given within 30 days of the
38termination date. If the resident independent insurance adjuster
39license was terminated for change in resident home state, then the
P27   1notice is required to include both the previous and current
2 addresses.

3
(4) Maintaining a resident independent insurance adjuster
4license is required for the nonresident independent insurance
5adjuster license to remain valid.

end insert
6begin insert

begin insertSEC. 39.end insert  

end insert

begin insertSection 14079 is added to the end insertbegin insertInsurance Codeend insertbegin insert, to
7read:end insert

begin insert
8

begin insert14079.end insert  

(a) An independent insurance adjuster shall be honest
9and fair in all communications with the insured, the insurer, and
10the public.

11
(b) An independent insurance adjuster shall provide
12policyholders and claimants with prompt and knowledgeable
13service and courteous, fair, and objective treatment at all times.

14
(c) An independent insurance adjuster shall not give legal advice
15and shall not deal directly with any policyholder or claimant who
16is represented by legal counsel without the consent of the legal
17counsel involved.

18
(d) An independent insurance adjuster shall comply with all
19local, state, and federal privacy and information security laws.

20
(e) An independent insurance adjuster shall identify himself or
21herself as an independent insurance adjuster and, if applicable,
22shall identify his or her employer when dealing with any
23policyholder or claimant.

24
(f) An independent insurance adjuster shall not have any
25financial interest in any adjustment or shall not acquire for himself,
26herself, or any person any interest or title in salvage, without first
27receiving written authority from the principal.

end insert
28begin insert

begin insertSEC. 40.end insert  

end insert

begin insertSection 14080 of the end insertbegin insertInsurance Codeend insertbegin insert is amended to
29read:end insert

30

14080.  

Any person who knowingly falsifies the fingerprints
31or photographs submitted underbegin insert paragraph (7) ofend insert subdivisionbegin delete (f)end delete
32begin insert (a)end insert of Section 14024begin insert or paragraph (7) of subdivision (c) of Section
3314025.1end insert
is guilty of a felony. Any person who violates any of the
34other provisions of this chapter is guilty of a misdemeanor
35punishable by fine not to exceed five hundred dollars ($500), or
36by imprisonment in the county jail not to exceed one year, or by
37bothbegin delete suchend deletebegin insert theend insert fine and imprisonment.

38begin insert

begin insertSEC. 41.end insert  

end insert

begin insertSection 14090.1 of the end insertbegin insertInsurance Codeend insertbegin insert is amended
39to read:end insert

P28   1

14090.1.  

(a) An individual who holds anbegin insert independentend insert insurance
2adjuster license and who is not exempt under subdivision (b) shall
3satisfactorily complete a minimum of 24 hours, of which three
4hours are to be in ethics, of continuing education courses pertinent
5to the duties and responsibilities of anbegin insert independentend insert insurance
6adjuster licensebegin delete reportedend deletebegin insert and shall report the completion of this
7courseworkend insert
to the insurance commissioner on a biennial basis in
8conjunction with his or her license renewal cycle.

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

10(1) A licensee not licensed for one full year prior to the end of
11the applicable continuing education biennium.

12(2) A licensee holding a nonresidentbegin insert independentend insert insurance
13adjuster license who has met the continuing education requirements
14of his or her designatedbegin delete residentend deletebegin insert homeend insert state.

15(3) An individual licensed as anbegin insert independentend insert insurance adjuster
16and as a property or casualty broker-agent, pursuant to Section
171625, who has met the continuing education requirements specified
18in Section 1749.3.

begin insert

19
(4) An individual licensed as an apprentice independent
20insurance adjuster pursuant to Section 14025.1.

end insert
21begin insert

begin insertSEC. 42.end insert  

end insert

begin insertSection 14097 of the end insertbegin insertInsurance Codeend insertbegin insert is amended to
22read:end insert

23

14097.  

The amount of fees prescribed by this chapter, unless
24otherwise fixed, is that fixed in the following schedule:

25(a) The application fee forbegin insert the qualifying examination forend insert an
26original license isbegin delete twenty-nine dollars ($29).end deletebegin insert seventy-two dollars
27($72).end insert

28(b) The application fee for an original branch office certificate
29isbegin delete eighteen dollars ($18).end deletebegin insert forty-seven dollars ($47).end insert

30(c) The fee for an original licensebegin delete is an amount equal to the
31renewal fee in effect on the last regular renewal date before the
32date on which the license is issued, except that, ifend delete
begin insert. application is
33up to one hundred seventy dollars ($170). Ifend insert
the license will expire
34less than one year after its issuance, then the fee is an amount equal
35to 50 percent of the renewal fee in effect on the last regular renewal
36date before the date on which the license is issued. The
37commissioner may, by appropriate regulation, provide for the
38waiver or refund of the initial license fee where the license is issued
39less than 45 days before the date on which it will expire.

P29   1(d) The renewal fee shall be fixed by the commissioner as
2follows:

3(1) For a license as anbegin insert independentend insert insurance adjuster, not more
4thanbegin delete one hundred eighteen dollars ($118).end deletebegin insert one hundred seventy
5dollars ($170).end insert

6(2) For a branch office certificate, not more thanbegin delete twenty-four
7dollars ($24).end delete
begin insert fifty-six dollars ($56).end insert

8(e) The application and license fee for classifications prescribed
9by the commissioner, in addition to those provided for in this
10chapter, and the application and license fees for a change in the
11type of business organization of a licensee, shall be in the amount
12prescribed by rule and regulation of the commissioner.

13(f) The delinquency fee shall be 50 percent of the renewal fee
14in effect on the date ofbegin delete expiration, but not more than twenty-nine
15dollars ($29).end delete
begin insert expiration.end insert

16(g) The fee for reexamination of an applicantbegin delete or his manager is
17twelve dollars ($12).end delete
begin insert is twenty-nine dollars ($29).end insert

begin insert

18
(h) The application fee for an apprentice independent insurance
19adjuster license shall be up to one hundred seventy dollars ($170).

end insert
20begin insert

begin insertSEC. 43.end insert  

end insert

begin insertSection 14099 of the end insertbegin insertInsurance Codeend insertbegin insert is amended to
21read:end insert

22

14099.  

Application or licensebegin delete feeend deletebegin insert feesend insert shall not be refunded
23
begin delete Sectionend deletebegin delete 158 of the Business and Professions Code.end deletebegin insert pursuant to
24Section 1751.5.end insert

25begin insert

begin insertSEC. 44.end insert  

end insert
begin insert

No reimbursement is required by this act pursuant
26to Section 6 of Article XIII B of the California Constitution because
27the only costs that may be incurred by a local agency or school
28district will be incurred because this act creates a new crime or
29infraction, eliminates a crime or infraction, or changes the penalty
30for a crime or infraction, within the meaning of Section 17556 of
31the Government Code, or changes the definition of a crime within
32the meaning of Section 6 of Article XIII B of the California
33Constitution.

end insert
begin delete
34

SECTION 1.  

Section 1722 of the Insurance Code is amended
35to read:

36

1722.  

(a) If a natural person while licensed pursuant to the
37provisions of this chapter or Chapter 6 (commencing with Section
381760), Chapter 7 (commencing with Section 1800), or Chapter 8
39(commencing with Section 1831) of this part, or Part 5
40(commencing with Section 12140) of Division 2 enters the military
P30   1service of the United States and is in that service at a time
2prescribed for the filing of a renewal application, the filing of that
3application is waived, and the license held by that licensee at the
4time of his or her entry into military service shall remain in force
5during the period of that military service and until the end of the
6license year in which he or she is released from that service but
7not for less than six months after that release. During that period,
8that person may secure a license of the type held by him or her on
9his or her entry into military service upon the filing of an
10application and paying the fee therefor without the necessity of
11taking any examination or paying any penalty.

12(b)  This section shall remain in effect only until January 1,
132018, and as of that date is repealed, unless a later enacted statute,
14that is enacted before January 1, 2018, deletes or extends that date.

15

SEC. 2.  

Section 1722 is added to the Insurance Code, to read:

16

1722.  

(a) If a natural person while licensed pursuant to the
17provisions of this chapter or Chapter 6 (commencing with Section
181760), Chapter 7 (commencing with Section 1800), or Chapter 8
19(commencing with Section 1831) of this part, Part 5 (commencing
20with Section 12140) of Division 2, or Chapter 1 (commencing
21with Section 14000) of Division 5 enters the military service of
22the United States and is in that service at a time prescribed for the
23filing of a renewal application, the filing of that application is
24waived, and the license held by that licensee at the time of his or
25her entry into military service shall remain in force during the
26period of that military service and until the end of the license year
27in which he or she is released from that service but not for less
28than six months after that release. During that period, that person
29may secure a license of the type held by him or her on his or her
30entry into military service upon the filing of an application and
31paying the fee therefor without the necessity of taking any
32examination or paying any penalty.

33(b) This section shall become operative on January 1, 2018.

34

SEC. 3.  

Section 1751.5 of the Insurance Code is amended to
35read:

36

1751.5.  

(a) The fees required by this chapter and by Chapter
376 (commencing with Section 1760), Chapter 7 (commencing with
38Section 1800), and Chapter 8 (commencing with Section 1831) of
39this part are filing fees, no portion of which shall be refunded
P31   1whether or not the application is acted upon or the examination is
2taken.

3(b) This section shall remain in effect only until January 1, 2018,
4and as of that date is repealed, unless a later enacted statute, that
5is enacted before January 1, 2018, deletes or extends that date.

6

SEC. 4.  

Section 1751.5 is added to the Insurance Code, to read:

7

1751.5.  

(a) The fees required by this chapter and by Chapter
86 (commencing with Section 1760), Chapter 7 (commencing with
9Section 1800), and Chapter 8 (commencing with Section 1831) of
10this part and by Chapter 1 (commencing with Section 14000) of
11Division 5 are filing fees, no portion of which shall be refunded
12whether or not the application is acted upon or the examination is
13taken.

14(b) This section shall become operative on January 1, 2018.

15

SEC. 5.  

Section 14000 of the Insurance Code is amended to
16read:

17

14000.  

(a) This chapter may be cited as the Insurance Adjuster
18Act.

19(b) This section shall remain in effect only until January 1, 2018,
20and as of that date is repealed, unless a later enacted statute, that
21is enacted before January 1, 2018, deletes or extends that date.

22

SEC. 6.  

Section 14000 is added to the Insurance Code, to read:

23

14000.  

(a) This chapter may be cited as the Independent
24Insurance Adjuster Act.

25(b) This section shall become operative on January 1, 2018.

26

SEC. 7.  

Section 14001 of the Insurance Code is amended to
27read:

28

14001.  

(a) As used in this chapter, the following terms have
29the following meanings:

30(1) “Commissioner” means the Insurance Commissioner.

31(2) “Department” means the Department of Insurance.

32(3) “Licensee” means a person licensed under this chapter.

33(4) “Manager” means the individual under whose direction,
34control, charge, or management the business of a licensee is
35operated.

36(5) “Person” includes any individual, firm, company,
37association, organization, partnership, limited liability company,
38and corporation.

P32   1(b) This section shall remain in effect only until January 1, 2018,
2and as of that date is repealed, unless a later enacted statute, that
3is enacted before January 1, 2018, deletes or extends that date.

4

SEC. 8.  

Section 14001 is added to the Insurance Code, to read:

5

14001.  

(a) As used in this chapter, the following terms have
6the following meanings:

7(1) “Catastrophe” means an event that results in a large number
8of deaths or injuries, causes extensive damage or destruction of
9facilities that provide and sustain human needs, produces an
10overwhelming demand on state and local response resources and
11mechanisms, causes a severe long-term effect on general economic
12activity, or severely affects state, local, and private sector
13capabilities to begin and sustain response activities.

14(2) “Commissioner” means the Insurance Commissioner.

15(3) “Department” means the Department of Insurance.

16(4) “Fingerprints” means an impression of the lines on the finger
17taken for the purposes of identification.

18(5) “Home state” means the District of Columbia and any state
19or territory of the United States in which an independent insurance
20adjuster maintains his, her, or its principal place of residence or
21business and is licensed to act as a resident independent insurance
22adjuster. If the resident state does not license independent insurance
23adjusters for the line of authority sought, the independent insurance
24adjuster shall designate as his, her, or its home state either
25California or any state in which the independent insurance adjuster
26is licensed following an examination, provided that the independent
27insurance adjuster is licensed and in good standing in that state.

28(6) “Individual” means a natural person.

29(7) “Licensee” means a person licensed under this chapter.

30(8) “Manager” means the individual under whose direction,
31control, charge, or management the business of a licensee is
32operated.

33(9) “Nonresident” means a person who is not a resident of
34California at the time of the performance of the act referred to in
35Section 14071.

36(10) “Person” includes any individual, firm, company,
37association, organization, partnership, limited liability company,
38and corporation.

39(b) This section shall become operative on January 1, 2018.

P33   1

SEC. 9.  

Section 14010 of the Insurance Code is amended to
2read:

3

14010.  

(a) The department succeeds to and is vested with all
4the duties, powers, purposes, responsibilities, and jurisdiction
5previously vested in the Bureau of Collection and Investigative
6Services with respect to the licensing of insurance adjusters.

7Any reference to prior licensing shall be deemed to licensing
8under the Private Investigator and Adjuster Act.

9The commissioner shall administer and enforce the provisions
10of this chapter.

11(b) This section shall remain in effect only until January 1, 2018,
12and as of that date is repealed, unless a later enacted statute, that
13is enacted before January 1, 2018, deletes or extends that date.

14

SEC. 10.  

Section 14010 is added to the Insurance Code, to
15read:

16

14010.  

(a) The commissioner shall administer and enforce the
17provisions of this chapter.

18(b) This section shall become operative on January 1, 2018.

19

SEC. 11.  

Section 14020 of the Insurance Code is amended to
20read:

21

14020.  

(a) A person shall not engage in a business regulated
22by this chapter, or act or assume to act as, or represent himself or
23herself to be, a licensee unless he or she is licensed under this
24chapter.

25(b) A person shall not falsely represent that he or she is
26employed by a licensee.

27(c) This section shall remain in effect only until January 1, 2018,
28and as of that date is repealed, unless a later enacted statute, that
29is enacted before January 1, 2018, deletes or extends that date.

30

SEC. 12.  

Section 14020 is added to the Insurance Code, to
31read:

32

14020.  

(a) A person shall not engage in a business regulated
33by this chapter, or act or assume to act as, or represent himself or
34herself to be, a licensee unless he or she is licensed as an
35independent insurance adjuster in accordance with this chapter.

36(b) A person shall not falsely represent that he or she is
37employed by a licensee.

38(c) This section shall become operative on January 1, 2018.

39

SEC. 13.  

Section 14021 of the Insurance Code is amended to
40read:

P34   1

14021.  

(a) An insurance adjuster within the meaning of this
2chapter is a person other than a private investigator as defined in
3Section 7521 of the Business and Professions Code who, for any
4consideration whatsoever, engages in business or accepts
5employment to furnish, or agrees to make, or makes, any
6investigation for the purpose of obtaining, information in the course
7of adjusting or otherwise participating in the disposal of, any claim
8under or in connection with a policy of insurance on behalf of an
9insurer or engages in soliciting insurance adjustment business or
10aids an insurer in any manner with reference to:

11Crime or wrongs done or threatened against the United States
12of America or any state or territory of the United States of America;
13the identity, habits, conduct, business, occupation, honesty,
14integrity, credibility, knowledge, trustworthiness, efficiency,
15loyalty, activity, movement, whereabouts, affiliations, associations,
16transactions, acts, reputation, or character of any person; the
17location, disposition, or recovery of lost or stolen property; the
18cause or responsibility for fires, libels, losses, accidents, or damage
19or injury to persons or to property; or securing evidence to be used
20before any court, board, officer, or investigating committee.

21(b) Notwithstanding any other law, this section is in no way
22intended to limit the ability of a duly licensed independent
23insurance adjuster to perform the duties of an independent
24insurance adjuster for any other entity.

25(c) This section shall remain in effect only until January 1, 2018,
26and as of that date is repealed, unless a later enacted statute, that
27is enacted before January 1, 2018, deletes or extends that date.

28

SEC. 14.  

Section 14021 is added to the Insurance Code, to
29read:

30

14021.  

(a) An independent insurance adjuster, for purposes
31of this chapter, is all of the following:

32(1) An individual, a business entity, an independent contractor,
33or an employee of a contractor, who contracts for compensation
34with insurers.

35(2) A person whose tax treatment by the insurers is consistent
36with that of an independent contractor rather than an employee,
37as defined in Section 3121 of Title 26 of the United States Code.

38(3) A person who investigates, negotiates, or settles property
39and casualty claims for insurers.

40(b) This section shall become operative on January 1, 2018.

P35   1

SEC. 15.  

Section 14022 of the Insurance Code is amended to
2read:

3

14022.  

(a) This chapter does not apply to any of the following:

4(1) A person employed exclusively and regularly by one
5employer in connection with the affairs of that employer only and
6where there exists an employer- employee relationship.

7(2) An officer or employee of the United States of America, or
8of this state or a political subdivision thereof, while that officer or
9employee is engaged in the performance of his or her official
10duties.

11(3) A person engaged exclusively in the business of obtaining
12and furnishing information as to the financial rating of persons.

13(4) A charitable philanthropic society or association duly
14incorporated under the laws of this state, which is organized and
15maintained for the public good and not for private profit.

16(5) An attorney at law in performing his or her duties as an
17attorney.

18(6) A licensed collection agency or an employee thereof while
19acting within the scope of his or her employment, while making
20an investigation incidental to the business of the agency, including
21an investigation of the location of a debtor or his or her property
22where the contract with an assignor creditor is for the collection
23of claims owed or due or asserted to be owed or due or the
24equivalent thereof.

25(7) Admitted insurers and agents and insurance brokers licensed
26by the state, performing duties in connection with insurance
27transacted by them.

28(8) The legal owner of personal property that has been sold
29under a conditional sales agreement or a mortgagee under the terms
30of a chattel mortgage.

31(9) Any bank subject to the jurisdiction of the Commissioner
32of Business Oversight under Division 1 (commencing with Section
3399) of the Financial Code or the Comptroller of the Currency of
34the United States.

35(10) A person engaged solely in the business of securing
36information about persons or property from public records.

37(11) Any building contractor, engineer, technical expert, or
38other person who is engaged by an insurer or licensed adjuster to
39provide an expert or professional evaluation of the extent, cause,
P36   1or origin of damage to the insured property, but who does not
2otherwise participate in the process of adjusting claims.

3(b) This section shall remain in effect only until January 1, 2018,
4and as of that date is repealed, unless a later enacted statute, that
5is enacted before January 1, 2018, deletes or extends that date.

6

SEC. 16.  

Section 14022 is added to the Insurance Code, to
7read:

8

14022.  

(a) This chapter does not apply to any of the following:

9(1) An officer or employee of the United States of America, or
10of this state or a political subdivision thereof, while that officer or
11employee is engaged in the performance of his or her official
12duties.

13(2) A person engaged exclusively in the business of obtaining
14and furnishing information as to the financial rating of persons.

15(3) A charitable philanthropic society or association duly
16incorporated under the laws of this state, which is organized and
17maintained for the public good and not for private profit.

18(4) An attorney at law admitted to practice in California, when
19acting in his or her professional capacity as an attorney.

20(5) A licensed collection agency or an employee thereof while
21acting within the scope of his or her employment, while making
22an investigation incidental to the business of the agency, including
23an investigation of the location of a debtor or his or her property
24where the contract with an assignor creditor is for the collection
25of claims owed or due or asserted to be owed or due or the
26equivalent thereof.

27(6) An officer, director, manager, or employee of an authorized
28insurer, surplus line insurer, a risk retention group, or an
29attorney-in-fact of a reciprocal insurer.

30(7) A licensed insurance agent or broker or managing general
31agent of the insurer to whom claim authority has been granted by
32the insurer.

33(8) The legal owner of personal property that has been sold
34under a conditional sales agreement or a mortgagee under the terms
35of a chattel mortgage.

36(9) Any bank subject to the jurisdiction of the Commissioner
37of Business Oversight under Division 1 (commencing with Section
3899) of the Financial Code or the Comptroller of the Currency of
39the United States.

P37   1(10) A person employed solely to obtain facts surrounding a
2claim or to furnish technical assistance to a licensed independent
3insurance adjuster.

4(11) Any building contractor, engineer, technical expert, or
5other person who is engaged by an insurer or licensed independent
6insurance adjuster to provide an expert or professional evaluation
7of the extent, cause, or origin of damage to the insured property,
8but who does not otherwise participate in the process of adjusting
9claims.

10(12) An individual who is employed to investigate suspected
11fraudulent insurance claims but who does not adjust losses or
12determine claims payments.

13(13) A person who solely performs administrative or clerical
14duties, or any combination thereof, and who does not investigate,
15negotiate, or settle claims with policyholders, claimants, or their
16legal representative.

17(14) A licensed health care provider or its employees who
18provides managed care if the services do not include the
19determination of compensability.

20(15) A managed care organization or any of its employees who
21provide managed care services if the services do not include the
22determination of compensability.

23(16) A person who settles only reinsurance or subrogation
24claims.

25(17) A United States manager of the United States branch of an
26alien insurer.

27(18) An individual employee, under a self-insured arrangement,
28who adjusts claims on behalf of his or her employer.

29(19) An individual or business entity that investigates,
30negotiates, or settles workers’ compensation claims.

31(b) This section shall become operative on January 1, 2018.

32

SEC. 17.  

Section 14022.5 of the Insurance Code is amended
33to read:

34

14022.5.  

(a) In the event of an emergency situation as declared
35by the commissioner, claims arising out of the emergency,
36catastrophe, disaster, or other similar occurrence may be adjusted
37by a nonlicensed adjuster upon registration with the commissioner
38if all of the following requirements are met:

P38   1(1) The work performed by the nonlicensed adjuster is under
2the active direction, control, charge, or management of a licensed
3adjuster or an insurer authorized to do business in this state.

4(2) Registration with the commissioner is accomplished within
515 working days from the date on which the nonlicensed adjuster
6commences the claims adjusting activity in connection with the
7emergency situation.

8(b) “Registration,” within the meaning of this section, means a
9written letter to the commissioner, submitted by the supervising
10licensed adjuster or admitted insurer, naming the nonlicensed
11adjusters, identifying their adjuster licenses held in other
12jurisdictions, and stating when their claims adjusting activity
13commenced.

14(c) Registration under this section is valid for a period of 180
15days from the date of the registration letter. Before the lapse of
16that period, the commissioner may grant further 180-day extensions
17as he or she deems appropriate upon written request from the
18supervising licensed adjuster or the admitted insurer.

19(d) This section shall remain in effect only until January 1, 2018,
20and as of that date is repealed, unless a later enacted statute, that
21is enacted before January 1, 2018, deletes or extends that date.

22

SEC. 18.  

Section 14022.5 is added to the Insurance Code, to
23read:

24

14022.5.  

(a) In the event of an emergency situation as declared
25by the commissioner, claims arising out of the emergency,
26catastrophe, disaster, or other similar occurrence may be adjusted
27by a nonlicensed independent insurance adjuster upon registration
28with the commissioner if all of the following requirements are met:

29(1) The work performed by the nonlicensed independent
30insurance adjuster is under the active direction, control, charge,
31or management of a licensed independent insurance adjuster or an
32insurer authorized to do business in this state.

33(2) Registration with the commissioner is accomplished within
34five working days from the date on which the nonlicensed
35independent insurance adjuster commences the claims adjusting
36activity in connection with the emergency situation.

37(b) “Registration,” within the meaning of this section, means a
38written letter to the commissioner, submitted by the supervising
39licensed independent insurance adjuster or admitted insurer, naming
40the nonlicensed independent insurance adjusters, identifying their
P39   1independent insurance adjuster licenses held in other jurisdictions,
2and stating when their claims adjusting activity commenced.

3(c) Registration under this section is valid for a period of 180
4days from the date of the registration letter. Before the lapse of
5that period, the commissioner may grant further 180-day extensions
6as he or she deems appropriate upon written request from the
7supervising licensed independent insurance adjuster or the admitted
8insurer.

9(d) This section shall become operative on January 1, 2018.

10

SEC. 19.  

Section 14024 of the Insurance Code is amended to
11read:

12

14024.  

(a) An application shall be verified and shall include
13all of the following:

14(1) The full name and business address of the applicant.

15(2) The name under which the applicant intends to do business.

16(3) A statement as to the general nature of the business in which
17the applicant intends to engage.

18(4) A statement as to the classifications under which the
19applicant desires to be qualified.

20(5) If the applicant is a person other than an individual, the full
21name and residence address of each of its partners, officers, and
22directors, and its manager.

23(6) Two recent photographs of the applicant, of a type prescribed
24by the commissioner, and two classifiable sets of his or her
25fingerprints.

26(7) A verified statement of his or her experience qualifications.

27(8) Other information, evidence, statements, or documents as
28may be required by the commissioner.

29(b) This section shall remain in effect only until January 1, 2018,
30and as of that date is repealed, unless a later enacted statute, that
31is enacted before January 1, 2018, deletes or extends that date.

32

SEC. 20.  

Section 14024 is added to the Insurance Code, to
33read:

34

14024.  

(a) An individual application shall be verified and shall
35include all of the following:

36(1) The full legal name and business, residence, and mailing
37addresses of the applicant.

38(2) The name under which the applicant intends to do business.

39(3) The applicant’s birth date and social security number.

40(4) The application fees set forth in Section 14097.

P40   1(5) A statement as to the general nature of the business in which
2the applicant intends to engage.

3(6) A statement as to the classifications under which the
4applicant desires to be qualified.

5(7) Two photographs, no more than six months old, of the
6applicant, of a type prescribed by the commissioner, and one
7classifiable set of his or her fingerprints, to be sent to a live scan
8fingerprint provider as directed by the department, if fingerprints
9are not submitted in person with a live scan fingerprinting service
10provider certified by the Department of Justice.

11(8) A verified statement of his or her experience qualifications,
12unless applying for an apprentice independent insurance adjuster
13license.

14(9) Other information, evidence, statements, or documents as
15may be required by the commissioner.

16(b) A business entity application shall be verified and shall
17include all of the following:

18(1) The full legal name and residence address of each of its
19partners, officers, and directors, and its manager.

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

21(3) That the applicant paid the fees set forth in Section 14097.

22(4) A statement as to the general nature of the business in which
23the applicant intends to engage.

24(5) A statement as to the classifications under which the
25applicant desires to be qualified.

26(6) Other information, evidence, statements, or documents as
27may be required by the commissioner.

28(c) This section shall become operative on January 1, 2018.

29

SEC. 21.  

Section 14025 of the Insurance Code is amended to
30read:

31

14025.  

(a) Before an application for a license is granted, the
32applicant, or his or her manager, shall meet all of the following:

33(1) Be at least 18 years of age.

34(2) Not have committed acts or crimes constituting grounds for
35denial of licensure under Section 480 of the Business and
36Professions Code.

37(3) Shall have had at least two years of experience in adjusting
38insurance claims or the equivalent thereof as determined by the
39commissioner.

P41   1(4) Comply with those other qualifications as the commissioner
2may fix by regulation.

3(b) This section shall remain in effect only until January 1, 2018,
4and as of that date is repealed, unless a later enacted statute, that
5is enacted before January 1, 2018, deletes or extends that date.

6

SEC. 22.  

Section 14025 is added to the Insurance Code, to
7read:

8

14025.  

(a) Before a license is granted, the applicant shall meet
9all of the following requirements:

10(1) Be at least 18 years of age.

11(2) Not have committed acts or crimes constituting grounds for
12denial of licensure under Sections 1668 and 1669.

13(3) Have had either of the following:

14(A) At least two years of experience in adjusting insurance
15claims or the equivalent thereof as determined by the
16commissioner, unless applying for an apprentice independent
17insurance adjuster license.

18(B) One year as a licensed apprentice independent insurance
19adjuster, which is considered the equivalent of two years of
20experience in adjusting claims.

21(4) If the applicant resides in a state that does not license
22independent insurance adjusters, he or she is required to be licensed
23in good standing to designate California as his or her home state.

24(5) (A) Completed a 20-hour prelicensing education course of
25study.

26(B) A nonresident applicant currently licensed as a home state
27independent insurance adjuster in another state who has met that
28state’s prelicensing education requirements is exempt from
29completing the prelicensing education requirement.

30(C) A resident applicant currently listed under a licensed
31independent insurance adjuster’s license as an unlicensed employee
32is exempt from completing the prelicensing education requirement.
33This exemption shall be in effect only until January 1, 2019.

34(6) Successfully passed the examination for the independent
35insurance adjuster license, unless he or she qualifies for an
36exemption in Section 14026.

37(7) Comply with those other qualifications that the commissioner
38may require by regulation.

39(b) This section shall become operative on January 1, 2018.

P42   1

SEC. 23.  

Section 14025.1 is added to the Insurance Code, to
2read:

3

14025.1.  

(a) The apprentice independent insurance adjuster
4license is a license to facilitate the experience, education, and
5training necessary to ensure reasonable competency in the
6responsibilities and duties of an independent insurance adjuster.

7(b) An individual applying for an apprentice independent
8insurance adjuster license shall submit an application in a format
9prescribed by the commissioner and shall declare under penalty
10of suspension, revocation, or refusal of the license that the
11statements made in the application are true, correct, and complete
12to the best of the individual’s knowledge and belief. Before
13approving the application, the commissioner shall determine that
14the individual meets all of the following:

15(1) Is at least 18 years of age.

16(2) Is a resident of California or is a resident of another state
17and has designated California as his or her home state.

18(3) Has a business or mailing address in California for the
19acceptance of service of process.

20(4) Has not committed any act that is a ground for suspension,
21revocation, or denial of licensure as set forth in Sections 1668,
221668.1, and 1669.

23(5) Has paid the fees set forth in paragraph (8) of subdivision
24(a) of Section 14097.

25(c) The apprentice independent insurance adjuster license shall
26be subject to the following terms and conditions:

27(1) The applicant shall submit, with the apprentice independent
28insurance adjuster application, an attestation from a licensed
29independent insurance adjuster certifying that the apprentice will
30be subject to training, direction, and control by the licensed
31independent insurance adjuster and further certifying that the
32licensed independent insurance adjuster assumes responsibility
33for the actions of the apprentice in the apprentice’s capacity as an
34apprentice independent insurance adjuster.

35(2) The apprentice independent insurance adjuster is only
36authorized to adjust claims in California.

37(3) The apprentice independent insurance adjuster is restricted
38to participation in the investigation, settlement, and negotiation of
39claims subject to the review and final determination of the claim
40by a supervising licensed independent insurance adjuster.

P43   1(4) The apprentice independent insurance adjuster shall not be
2required to take and successfully complete the independent
3insurance adjuster examination to adjust claims as an apprentice
4independent insurance adjuster. At any time during the
5apprenticeship, the apprentice independent insurance adjuster may
6choose to take the examination. If the individual takes and
7successfully completes the independent insurance adjuster exam,
8the apprentice independent insurance adjuster license shall
9automatically terminate and an independent insurance adjuster
10license shall be issued to that individual in its place.

11(5) The apprentice independent insurance adjuster license is
12valid for a period not to exceed 12 months and is nonrenewable.

13(6) The licensee shall be subject to suspension, revocation, or
14denial pursuant to Sections 1668, 1668.1, and 1669.

15(7) The applicant shall submit two photographs, no more than
16six months old, of the applicant, of a type prescribed by the
17commissioner, and one classifiable set of his or her fingerprints,
18to be sent to a live scan fingerprint provider as directed by the
19department, if fingerprints are not submitted in person with a live
20scan fingerprinting service provider certified by the Department
21of Justice.

22(d) This section shall become operative on January 1, 2018.

23

SEC. 24.  

Section 14026 of the Insurance Code is amended to
24read:

25

14026.  

(a) The commissioner may require an applicant, or his
26or her manager, to demonstrate his or her qualifications by a written
27or oral examination, or a combination of both.

28(b) This section shall remain in effect only until January 1, 2018,
29and as of that date is repealed, unless a later enacted statute, that
30is enacted before January 1, 2018, deletes or extends that date.

31

SEC. 25.  

Section 14026 is added to the Insurance Code, to
32read:

33

14026.  

(a) An applicant for an independent insurance adjuster
34license, unless applying for an apprentice independent insurance
35adjuster license or crop insurance adjuster license, shall pass a
36written examination.

37(1) The examination shall test the knowledge of the applicant
38concerning the duties and responsibilities of an independent
39insurance adjuster and this code.

P44   1(2) An applicant applying for an examination shall remit a
2nonrefundable fee as prescribed by the commissioner in Section
314097.

4(b) An individual who applies for an independent insurance
5adjuster license in California who holds a home state license in
6another state as an independent insurance adjuster shall not be
7required to complete the examination if he or she successfully
8passed an examination as a condition of receiving an independent
9insurance adjuster license in his or her home state. This exemption
10applies to individuals who are currently licensed in their home
11state or if the home state license expired and the application is
12received by the commissioner within 90 days of expiration.

13(c) An individual who applies for an apprentice independent
14insurance adjuster license pursuant to Section 14025.1, and who
15adjusts claims in that capacity, shall not be required to take and
16successfully complete the independent insurance adjuster
17examination.

18(d) This section shall become operative on January 1, 2018.

19

SEC. 26.  

Section 14027 of the Insurance Code is amended to
20read:

21

14027.  

(a) Payment of the application fee prescribed by this
22chapter entitles an applicant, or his or her manager, to one
23examination without further charge. If the person fails to pass the
24examination, he or she shall not be eligible for any subsequent
25examination except upon payment of the reexamination fee
26prescribed by this chapter for each subsequent examination.

27(b) This section shall remain in effect only until January 1, 2018,
28and as of that date is repealed, unless a later enacted statute, that
29is enacted before January 1, 2018, deletes or extends that date.

30

SEC. 27.  

Section 14028 of the Insurance Code is amended to
31read:

32

14028.  

(a) After a hearing, the commissioner may deny a
33license unless the application makes a showing satisfactory to the
34commissioner that the applicant, if an individual, has not, or if the
35applicant is a person other than an individual, that its manager and
36each of its officers and partners have not done any of the following:

37(1) Committed any acts or crimes constituting grounds for denial
38of licensure under Section 480 of the Business and Professions
39Code.

P45   1(2) Been refused a license under this chapter or had a license
2revoked.

3(3) Been an officer, partner, or manager of any person who has
4been refused a license under this chapter or whose license has been
5revoked.

6(4) While unlicensed committed, or aided and abetted the
7commission of, any act for which a license is required by this
8chapter.

9(5) Committed any act or crime constituting grounds for denial
10of licensure under Section 1668.

11(b) This section shall remain in effect only until January 1, 2018,
12and as of that date is repealed, unless a later enacted statute, that
13is enacted before January 1, 2018, deletes or extends that date.

14

SEC. 28.  

Section 14028 is added to the Insurance Code, to
15read:

16

14028.  

(a) After a hearing, the commissioner may deny a
17license unless the application makes a showing satisfactory to the
18commissioner that the applicant, if an individual, has not, or if the
19applicant is a person other than an individual, that its manager and
20each of its officers and partners have not done any of the following:

21(1) Been refused a license under this chapter or had a license
22revoked.

23(2) Been an officer, partner, or manager of any person who has
24been refused a license under this chapter or whose license has been
25revoked.

26(3) While unlicensed committed, or aided and abetted the
27commission of, any act for which a license is required by this
28chapter.

29(4) Committed any act or crime constituting grounds for denial
30of licensure under Section 1668.

31(b) This section shall become operative on January 1, 2018.

32

SEC. 29.  

Section 14029 of the Insurance Code is amended to
33read:

34

14029.  

(a) The business of each licensee shall be operated
35under the active direction, control, charge, or management of the
36licensee, if the licensee is qualified, or the person who has qualified
37to act as the licensee’s manager, if the licensee is not qualified.

38(b) No person shall act as a manager of a licensee until he or
39she has complied with each of the following:

P46   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).

22(e) This section shall remain in effect only until January 1, 2018,
23and as of that date is repealed, unless a later enacted statute, that
24is enacted before January 1, 2018, deletes or extends that date.

25

SEC. 30.  

Section 14029 is added to the Insurance Code, to
26read:

27

14029.  

(a) Each organization licensed under this chapter shall
28designate an individual also licensed as an independent insurance
29adjuster to be responsible for the organization’s compliance with
30state law.

31(b) This section shall become operative on January 1, 2018.

32

SEC. 31.  

Section 14030 of the Insurance Code is amended to
33read:

34

14030.  

(a) Whenever the individual on the basis of whose
35qualifications a license under this chapter has been obtained ceases
36to be connected with the licensee for any reason whatever, the
37business may be carried on for a temporary period and under the
38terms and conditions as the commissioner shall provide by
39regulation.

P47   1(b) This section shall remain in effect only until January 1, 2018,
2and as of that date is repealed, unless a later enacted statute, that
3is enacted before January 1, 2018, deletes or extends that date.

4

SEC. 32.  

Section 14031 of the Insurance Code is amended to
5read:

6

14031.  

(a) Whenever a hearing is held under this chapter to
7determine whether an application for a license should be granted
8or to determine the qualifications of a licensee’s manager, the
9proceedings shall be conducted in accordance with Chapter 5
10(commencing with Section 11501) of Part 1 of Division 3 of Title
112 of the Government Code, and the commissioner shall have all
12of the powers granted therein.

13(b) This section shall remain in effect only until January 1, 2018,
14and as of that date is repealed, unless a later enacted statute, that
15is enacted before January 1, 2018, deletes or extends that date.

16

SEC. 33.  

Section 14031 is added to the Insurance Code, to
17read:

18

14031.  

(a) A hearing held under this chapter to determine
19whether an application for a license should be granted shall be
20conducted in accordance with Chapter 5 (commencing with Section
2111501) of Part 1 of Division 3 of Title 2 of the Government Code,
22and the commissioner shall have all of the powers granted therein.

23(b) This section shall be operative on January 1, 2018.

24

SEC. 34.  

Section 14032 of the Insurance Code is amended to
25read:

26

14032.  

(a) The form and content of the license shall be
27determined by the commissioner in accordance with Section 164
28of the Business and Professions Code.

29(b) This section shall remain in effect only until January 1, 2018,
30and as of that date is repealed, unless a later enacted statute, that
31is enacted before January 1, 2018, deletes or extends that date.

32

SEC. 35.  

Section 14032 is added to the Insurance Code, to
33read:

34

14032.  

(a) The form and content of the license shall be
35determined by the commissioner.

36(b) This section shall become operative on January 1, 2018.

37

SEC. 36.  

Section 14037 of the Insurance Code is amended to
38read:

P48   1

14037.  

(a) A licensee shall at all times be legally responsible
2for the good conduct in the business of each of his or her employees
3or agents, including his or her manager.

4(b) This section shall remain in effect only until January 1, 2018,
5and as of that date is repealed, unless a later enacted statute, that
6is enacted before January 1, 2018, deletes or extends that date.

7

SEC. 37.  

Section 14038 of the Insurance Code is amended to
8read:

9

14038.  

(a) Any licensee or officer, director, partner, or manager
10of a licensee may divulge to any law enforcement officer or district
11attorney, or to his or her representative, any information he or she
12may acquire as to any criminal offense, but he or she shall not
13divulge to any other person, except as he or she may be required
14by law to do so, any information acquired by him or her except at
15the direction of the employer or client for whom the information
16was obtained.

17(b) A licensee or officer, director, partner, manager, or employee
18of a licensee shall not knowingly make any false report to his or
19her employer or client for whom information was being obtained.

20(c) A written report shall not be submitted to a client except by
21the licensee, qualifying manager, or a person authorized by one
22or either of them, and the person submitting the report shall
23exercise diligence in ascertaining whether or not the facts and
24information in that report are true and correct.

25(d) A licensee or officer, director, partner, manager, or employee
26of a licensee shall not use a badge in connection with the official
27activities of the licensee’s business.

28(e) A licensee or officer, director, partner, manager, or employee
29of a licensee, shall not use a title, wear a uniform, use an insignia,
30or use an identification card, or make any statement with the intent
31to give an impression that he or she is connected in any way with
32the federal government, a state government, or any political
33subdivision of a state government.

34(f) A licensee or officer, director, partner, manager, or employee
35of a licensee, shall not enter any private building or portion thereof
36without the consent of the owner or of the person in legal
37possession thereof.

38(g) A licensee shall not appear as an assignee party in any
39 proceeding involving claim and delivery, replevin, or other
P49   1possessory action, action to foreclose a chattel mortgage,
2mechanic’s lien, materialman’s lien, or any other lien.

3(h) A licensee shall not permit an employee or agent in his or
4her own name to advertise, engage clients, furnish reports, or
5present bills to clients, or in any manner whatever to conduct
6business for which a license is required under this chapter. All
7business of the licensee shall be conducted in the name of and
8under the control of the licensee.

9(i) A licensee acting as an independent automobile damage
10appraiser or adjuster or as an automobile insurance claims adjuster,
11appraiser, or representative shall not receive any financial benefit
12from an automobile repair facility. “Financial benefit” means the
13receiving of any commission or gratuity, discount on repair costs,
14free repairs, employment by a repair facility, or possession of more
15than 3 percent direct ownership in an automobile repair facility
16located in this state.

17(j) This section shall remain in effect only until January 1, 2018,
18and as of that date is repealed, unless a later enacted statute, that
19is enacted before January 1, 2018, deletes or extends that date.

20

SEC. 38.  

Section 14038 is added to the Insurance Code, to
21read:

22

14038.  

(a) Any licensee or officer, director, or partner of a
23licensee may divulge to any law enforcement officer or district
24attorney, or to his or her representative, any information he or she
25may acquire as to any criminal offense, but he or she shall not
26divulge to any other person, except as he or she may be required
27by law to do so, any information acquired by him or her except at
28the direction of the employer or client for whom the information
29was obtained.

30(b) A licensee or officer, director, or partner of a licensee shall
31not knowingly make any false report to his or her employer or
32client for whom information was being obtained.

33(c) A written report shall not be submitted to a client except by
34the licensee who shall exercise diligence in ascertaining whether
35or not the facts and information in that report are true and correct.

36(d) A licensee or officer, director, or partner of a licensee shall
37not use a badge in connection with the official activities of the
38licensee’s business.

39(e) A licensee or officer, director, or partner of a licensee shall
40not use a title, wear a uniform, use an insignia, use an identification
P50   1card, or make any statement with the intent to give an impression
2that he or she is connected in any way with the federal government,
3a state government, or any political subdivision of a state
4government.

5(f) A licensee or officer, director, or partner of a licensee, shall
6not enter any private building or portion thereof without the consent
7of the owner or of the person in legal possession thereof.

8(g) A licensee shall not appear as an assignee party in any
9proceeding involving claim and delivery, replevin, or other
10possessory action, action to foreclose a chattel mortgage,
11mechanic’s lien, materialman’s lien, or any other lien.

12(h) A licensee shall not permit an agent in his or her own name
13to advertise, engage clients, furnish reports, or present bills to
14clients, or in any manner whatever to conduct business for which
15a license is required under this chapter. All business of the licensee
16shall be conducted in the name of and under the control of the
17licensee.

18(i) A licensee acting as an independent automobile damage
19appraiser or adjuster or as an automobile insurance claims adjuster,
20appraiser, or representative shall not receive any financial benefit
21from an automobile repair facility. “Financial benefit” means the
22receiving of any commission or gratuity, discount on repair costs,
23free repairs, employment by a repair facility, or possession of more
24than 3 percent direct ownership in an automobile repair facility
25located in this state.

26(j) This section shall become operative on January 1, 2018.

27

SEC. 39.  

Section 14039 of the Insurance Code is amended to
28read:

29

14039.  

(a) A person licensed as an insurance adjuster shall
30not do any of the following:

31(1) Fail to disclose his or her full financial interest in a contract
32 or agreement executed by him or her for the adjustment of a claim
33prior to the execution thereof.

34(2) Use any misrepresentation to solicit a contract or agreement
35to adjust a claim.

36(3) Solicit or accept remuneration from, or have a financial
37interest exceeding 3 percent in, any salvage, repair, or other firm
38that obtains business in connection with any claim that he or she
39has a contract or agreement to adjust.

P51   1(b) This section shall remain in effect only until January 1, 2018,
2and as of that date is repealed, unless a later enacted statute, that
3is enacted before January 1, 2018, deletes or extends that date.

4

SEC. 40.  

Section 14039 is added to the Insurance Code, to
5read:

6

14039.  

(a) A person licensed as an independent insurance
7adjuster shall not do any of the following:

8(1) Fail to disclose his or her full financial interest in a contract
9or agreement executed by him or her for the adjustment of a claim
10prior to the execution thereof.

11(2) Use any misrepresentation to solicit a contract or agreement
12to adjust a claim.

13(3) Solicit or accept remuneration from, or have a financial
14interest exceeding 3 percent in, any salvage, repair, or other firm
15that obtains business in connection with any claim that he or she
16has a contract or agreement to adjust.

17(b) This section shall become operative on January 1, 2018.

18

SEC. 41.  

Section 14040 of the Insurance Code is amended to
19read:

20

14040.  

(a) Any badge or cap insignia worn by a person who
21is a licensee, officer, director, partner, manager, or employee of a
22licensee shall be of a design approved by the commissioner, and
23shall bear on its face a distinctive word indicating the name of the
24licensee and an employee number by which the person may be
25identified by the licensee.

26(b) This section shall remain in effect only until January 1, 2018,
27and as of that date is repealed, unless a later enacted statute, that
28is enacted before January 1, 2018, deletes or extends that date.

29

SEC. 42.  

Section 14040 is added to the Insurance Code, to
30read:

31

14040.  

(a) Any badge or cap insignia worn by a person who
32is a licensee, officer, director, or partner of a licensee shall be of
33a design approved by the commissioner, and shall bear on its face
34a distinctive word indicating the name of the licensee.

35(b) This section shall become operative on January 1, 2018.

36

SEC. 43.  

Section 14042 of the Insurance Code is amended to
37read:

38

14042.  

(a) A licensee shall not conduct a business under a
39fictitious or other business name unless and until he or she has
40obtained the written authorization of the commissioner to do so.

P52   1(b) The commissioner shall not authorize the use of a fictitious
2or other business name that is so similar to that of a public officer
3or agency or of that used by another licensee that the public may
4be confused or misled thereby.

5(c) The authorization shall require, as a condition precedent to
6the use of any fictitious name, that the licensee comply with Section
71724.5 of this code and Chapter 5 (commencing with Section
817900) of Part 3 of Division 7 of the Business and Professions
9Code.

10(d) A licensee desiring to conduct his or her business under
11more than one fictitious business name shall obtain the
12authorization of the commissioner in the manner prescribed in this
13section for the use of that name.

14(e) The licensee shall pay a fee of ten dollars ($10) for each
15authorization to use an additional fictitious business name and for
16each change in the use of a fictitious business name. If the original
17license is issued in a nonfictitious name and authorization is
18requested to have the license reissued in a fictitious business name,
19the licensee shall pay a fee of twelve dollars ($12) for that
20authorization.

21(f) This section shall remain in effect only until January 1, 2018,
22and as of that date is repealed, unless a later enacted statute, that
23is enacted before January 1, 2018, deletes or extends that date.

24

SEC. 44.  

Section 14042 is added to the Insurance Code, to
25read:

26

14042.  

(a) A licensee shall not conduct a business under a
27fictitious or other business name unless and until he or she has
28obtained the written authorization of the commissioner to do so.

29(b) The commissioner shall not authorize the use of a fictitious
30or other business name that is so similar to that of a public officer
31or agency or of that used by another licensee that the public may
32be confused or misled thereby.

33(c) The authorization shall require, as a condition precedent to
34the use of any fictitious name, that the licensee comply with Section
351724.5.

36(d) A licensee desiring to conduct his or her business under
37more than one fictitious business name shall obtain the
38authorization of the commissioner in the manner prescribed in this
39section for the use of that name.

P53   1(e) The licensee shall pay a fee of ten dollars ($10) for each
2authorization to use an additional fictitious business name and for
3each change in the use of a fictitious business name. If the original
4license is issued in a nonfictitious name and authorization is
5requested to have the license reissued in a fictitious business name,
6the licensee shall pay a fee of twelve dollars ($12) for that
7authorization.

8(f) This section shall become operative on January 1, 2018.

9

SEC. 45.  

Section 14061 of the Insurance Code is amended to
10read:

11

14061.  

(a) The commissioner may suspend or revoke a license
12issued under this chapter or may issue a restricted license in
13accordance with Section 14026.5 if he or she determines that the
14licensee, or his or her manager, if an individual, or if the licensee
15is a person other than an individual, that any of its officers,
16directors, partners, or its manager has done any of the following:

17(1) Made any false statement or given any false information in
18connection with an application for a license or a renewal or
19reinstatement of a license.

20(2) Violated any provisions of this chapter.

21(3) Violated any rule of the commissioner adopted pursuant to
22the authority contained in this chapter.

23(4) Been convicted of any crime substantially related to the
24qualifications, functions, and duties of the holder of the registration
25or license in question.

26(5) Impersonated, or permitted or aided and abetted an employee
27to impersonate, a law enforcement officer or employee of the
28United States of America, or of any state or political subdivision
29thereof.

30(6) Committed or permitted any employee to commit any act,
31while the license was expired that would be cause for the
32suspension or revocation of a license, or grounds for the denial of
33an application for a license.

34(7) Willfully failed or refused to render to a client services or
35a report as agreed between the parties and for which compensation
36has been paid or tendered in accordance with the agreement of the
37parties.

38(8) Committed assault, battery, or kidnapping, or used force or
39violence on any person, without proper justification.

P54   1(9) Knowingly violated or advised, encouraged, or assisted the
2violation of any court order or injunction in the course of business
3as a licensee.

4(10) Acted as a runner or capper for any attorney.

5(11) Committed any act that is a ground for denial of an
6application for license under this chapter.

7(12) Purchased, possessed, or transported any tear gas weapon
8except as authorized by law. A violation of this paragraph may be
9punished by the suspension of a license for a period to be
10determined by the commissioner.

11(b) This section shall remain in effect only until January 1, 2018,
12and as of that date is repealed, unless a later enacted statute, that
13is enacted before January 1, 2018, deletes or extends that date.

14

SEC. 46.  

Section 14061 is added to the Insurance Code, to
15read:

16

14061.  

(a) The commissioner may suspend or revoke a license
17issued under this chapter or may issue a restricted license in
18accordance with Section 14026.5 if he or she determines that the
19licensee or if the licensee is a person other than an individual, that
20any of its officers, directors, partners, or its designated responsible
21person has done any of the following:

22(1) Made any false statement or given any false information in
23connection with an application for a license or a renewal or
24reinstatement of a license.

25(2) Violated any provisions of this chapter.

26(3) Violated any rule of the commissioner adopted pursuant to
27the authority contained in this chapter.

28(4) Been convicted of any crime substantially related to the
29qualifications, functions, and duties of the holder of the registration
30or license in question.

31(5) Impersonated, or permitted or aided and abetted an employee
32to impersonate, a law enforcement officer or employee of the
33United States of America, or of any state or political subdivision
34thereof.

35(6) Committed or permitted any employee to commit any act,
36while the license was expired that would be cause for the
37suspension or revocation of a license, or grounds for the denial of
38an application for a license.

39(7) Willfully failed or refused to render to a client services or
40a report as agreed between the parties and for which compensation
P55   1has been paid or tendered in accordance with the agreement of the
2parties.

3(8) Committed assault, battery, or kidnapping, or used force or
4violence on any person, without proper justification.

5(9) Knowingly violated or advised, encouraged, or assisted the
6violation of any court order or injunction in the course of business
7as a licensee.

8(10) Acted as a runner or capper for any attorney.

9(11) Committed any act that is a ground for denial of an
10application for license under this chapter.

11(12) Purchased, possessed, or transported any tear gas weapon
12except as authorized by law. A violation of this paragraph may be
13punished by the suspension of a license for a period to be
14determined by the commissioner.

15(b) This section shall become operative on January 1, 2018.

16

SEC. 47.  

Section 14063 of the Insurance Code is amended to
17read:

18

14063.  

(a) The commissioner may suspend or revoke a license
19issued under this chapter or may issue a restricted license in
20accordance with Section 14026.5 if the commissioner determines
21that the licensee, or his or her manager, if an individual, or if the
22licensee is a person other than an individual, that any of its officers,
23directors, partners, or its manager has done any of the following:

24(1) Used any letterhead, advertisement, or other printed matter,
25or in any matter whatever represented that he or she is an
26instrumentality of the federal government, or of a state or any
27political subdivision thereof.

28(2) Used a name different from that under which he or she is
29currently licensed in any advertisement, solicitation, or contract
30for business.

31(b) This section shall remain in effect only until January 1, 2018,
32and as of that date is repealed, unless a later enacted statute, that
33is enacted before January 1, 2018, deletes or extends that date.

34

SEC. 48.  

Section 14063 is added to the Insurance Code, to
35read:

36

14063.  

(a) The commissioner may suspend or revoke a license
37issued under this chapter or may issue a restricted license in
38accordance with Section 14026.5 if the commissioner determines
39that the licensee, if an individual, or if the licensee is a person other
P56   1than an individual, that any of its officers, directors, or partners
2has done any of the following:

3(1) Used any letterhead, advertisement, or other printed matter,
4or in any matter whatever represented that he or she is an
5instrumentality of the federal government, or of a state or any
6political subdivision thereof.

7(2) Used a name different from that under which he or she is
8currently licensed in any advertisement, solicitation, or contract
9for business.

10(b) The section shall become operative on January 1, 2018.

11

SEC. 49.  

Section 14064 of the Insurance Code is amended to
12read:

13

14064.  

(a) The commissioner may suspend or revoke a license
14issued under this chapter or may issue a restricted license in
15accordance with Section 14026.5 if the commissioner determines
16that the licensee, or his or her manager, if an individual, or if the
17licensee is a person other than an individual, that any of its officers,
18directors, partners, or its manager, has committed any act in the
19course of the licensee’s business constituting dishonesty or fraud.

20(b) “Dishonesty or fraud” as used in this section includes, in
21addition to other acts not specifically enumerated herein, all of the
22following:

23(1) Knowingly making a false statement relating to evidence or
24information obtained in the course of employment, or knowingly
25publishing a slander or a libel in the course of business.

26(2) Using illegal means in the collection or attempted collection
27of a debt or obligation.

28(3) Manufacture of evidence.

29(4) Acceptance of employment adverse to a client or former
30client relating to a matter with respect to which the licensee has
31obtained confidential information by reason of or in the course of
32his or her employment by that client or former client.

33(5) Impersonating, or permitting or aiding and abetting an
34employee to impersonate, a law enforcement officer or employee
35of the United States of America, or of any state or political
36subdivision thereof.

37(c) This section shall remain in effect only until January 1, 2018,
38and as of that date is repealed, unless a later enacted statute, that
39is enacted before January 1, 2018, deletes or extends that date.

P57   1

SEC. 50.  

Section 14064 is added to the Insurance Code, to
2read:

3

14064.  

(a) The commissioner may suspend or revoke a license
4issued under this chapter or may issue a restricted license in
5accordance with Section 14026.5 if the commissioner determines
6that the licensee, if an individual, or if the licensee is a person other
7than an individual, that any of its officers, directors, partners, or
8its designated responsible person has committed any act in the
9course of the licensee’s business constituting dishonesty or fraud.

10(b) “Dishonesty or fraud” as used in this section includes, in
11addition to other acts not specifically enumerated herein, all of the
12following:

13(1) Knowingly making a false statement relating to evidence or
14information obtained in the course of employment, or knowingly
15publishing a slander or a libel in the course of business.

16(2) Using illegal means in the collection or attempted collection
17of a debt or obligation.

18(3) Manufacture of evidence.

19(4) Acceptance of employment adverse to a client or former
20client relating to a matter with respect to which the licensee has
21obtained confidential information by reason of or in the course of
22his or her employment by that client or former client.

23(5) Impersonating, or permitting or aiding and abetting an
24employee to impersonate, a law enforcement officer or employee
25of the United States of America, or of any state or political
26subdivision thereof.

27(c) This section shall become operative on January 1, 2018.

28

SEC. 51.  

Section 14078 of the Insurance Code is amended to
29read:

30

14078.  

(a) As used in this article, “nonresident” means a person
31who is not a resident of this state at the time of the performance
32of the act referred to in Section 14071.

33(b) This section shall remain in effect only until January 1, 2018,
34and as of that date is repealed, unless a later enacted statute, that
35is enacted before January 1, 2018, deletes or extends that date.

36

SEC. 52.  

Section 14078 is added to the Insurance Code, to
37read:

38

14078.  

(a) Unless refused licensure pursuant to Sections 14060
39to 14065, inclusive, a nonresident person shall receive a
P58   1nonresident independent insurance adjuster license if all of the
2following apply:

3(1) The applicant is currently licensed in good standing as an
4independent insurance adjuster in his, her, or its resident or home
5state.

6(2) The applicant paid the fees required by Section 14097.

7(3) The applicant submitted to the commissioner the completed
8application for licensure.

9(4) The applicant’s home state issues nonresident independent
10insurance adjuster licenses to residents of California on the same
11basis.

12(b) The commissioner may verify the independent insurance
13adjuster’s licensing status through any appropriate database,
14including the Producer Database maintained by the National
15Association of Insurance Commissioners, its affiliates or
16subsidiaries, or may request certification of good standing.

17(c) As a condition to the continuation of a nonresident
18independent insurance adjuster license, the licensee shall maintain
19a resident independent insurance adjuster license in his, her, or its
20home state.

21(1) The nonresident independent insurance adjuster license
22issued under this chapter shall terminate and be surrendered
23immediately to the commissioner if the resident independent
24insurance adjuster license terminates for any reason, unless the
25termination is due to the independent insurance adjuster being
26issued a new resident independent insurance adjuster license in
27his, her, or its new home state.

28(2) The nonresident independent insurance adjuster license shall
29terminate if the person’s home state does not issue nonresident
30independent insurance adjuster licenses to residents of California
31on the same basis.

32(3) (A) The licensee is required to give notice of resident
33independent insurance adjuster license termination to any state
34that issued a nonresident independent insurance adjuster license.

35(B) The notice is required to be given within 30 days of the
36termination date. If the resident independent insurance adjuster
37license was terminated for change in resident home state, then the
38notice is required to include both the previous and current address.

P59   1(4) Maintaining a resident independent insurance adjuster license
2is required for the nonresident independent insurance adjuster
3license to remain valid.

4(d) This section shall become operative on January 1, 2018.

5

SEC. 53.  

Section 14079 is added to the Insurance Code, to
6read:

7

14079.  

(a) An independent insurance adjuster shall be honest
8and fair in all communications with the insured, the insurer, and
9the public.

10(b) An independent insurance adjuster shall provide
11policyholders and claimants with prompt and knowledgeable
12service and courteous, fair, and objective treatment at all times.

13(c) An independent insurance adjuster shall not give legal advice
14and shall not deal directly with any policyholder or claimant who
15is represented by legal counsel without the consent of the legal
16counsel involved.

17(d) An independent insurance adjuster shall comply with all
18local, state, and federal privacy and information security laws.

19(e) An independent insurance adjuster shall identify himself or
20herself as an independent insurance adjuster and, if applicable,
21shall identify his or her employer when dealing with any
22policyholder or claimant.

23(f) An independent insurance adjuster shall not have any
24financial interest in any adjustment or shall not acquire for himself,
25herself, or any person any interest or title in salvage, without first
26receiving written authority from the principal.

27(g) This section shall become operative on January 1, 2018.

28

SEC. 54.  

Section 14080 of the Insurance Code is amended to
29read:

30

14080.  

(a) Any person who knowingly falsifies the fingerprints
31or photographs submitted under paragraph (6) of subdivision (a)
32of Section 14024 is guilty of a felony. Any person who violates
33any of the other provisions of this chapter is guilty of a
34misdemeanor punishable by fine not to exceed five hundred dollars
35($500), or by imprisonment in the county jail not to exceed one
36year, or by both the fine and imprisonment.

37(b) This section shall remain in effect only until January 1, 2018,
38and as of that date is repealed, unless a later enacted statute, that
39is enacted before January 1, 2018, deletes or extends that date.

P60   1

SEC. 55.  

Section 14080 is added to the Insurance Code, to
2read:

3

14080.  

(a) Any person who knowingly falsifies the fingerprints
4or photographs submitted under paragraph (7) of subdivision (a)
5of Section 14024 or paragraph (7) of subdivision (c) of Section
614025.1 is guilty of a felony. Any person who violates any of the
7other provisions of this chapter is guilty of a misdemeanor
8punishable by fine not to exceed five hundred dollars ($500), or
9by imprisonment in the county jail not to exceed one year, or by
10both the fine and imprisonment.

11(b) This section shall become operative on January 1, 2018.

12

SEC. 56.  

Section 14090.1 of the Insurance Code is amended
13to read:

14

14090.1.  

(a) An individual who holds an insurance adjuster
15license and who is not exempt under subdivision (b) shall
16satisfactorily complete a minimum of 24 hours, of which three
17hours are to be in ethics, of continuing education courses pertinent
18to the duties and responsibilities of an insurance adjuster license
19reported to the insurance commissioner on a biennial basis in
20conjunction with his or her license renewal cycle.

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

22(1) A licensee not licensed for one full year prior to the end of
23the applicable continuing education biennium.

24(2) A licensee holding a nonresident insurance adjuster license
25who has met the continuing education requirements of his or her
26designated resident state.

27(3) An individual licensed as an insurance adjuster and as a
28property or casualty broker-agent, pursuant to Section 1625, who
29has met the continuing education requirements specified in Section
301749.3.

31(c) This section shall remain in effect only until January 1, 2018,
32and as of that date is repealed, unless a later enacted statute, that
33is enacted before January 1, 2018, deletes or extends that date.

34

SEC. 57.  

Section 14090.1 is added to the Insurance Code, to
35read:

36

14090.1.  

(a) An individual who holds an independent insurance
37adjuster license and who is not exempt under subdivision (b) shall
38satisfactorily complete a minimum of 24 hours, of which three
39hours are to be in ethics, of continuing education courses pertinent
40to the duties and responsibilities of an independent insurance
P61   1adjuster license and shall report the completion of this coursework
2to the insurance commissioner on a biennial basis in conjunction
3with his or her license renewal cycle.

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

5(1) A licensee not licensed for one full year prior to the end of
6the applicable continuing education biennium.

7(2) A licensee holding a nonresident independent insurance
8adjuster license who has met the continuing education requirements
9of his or her designated home state.

10(3) An individual licensed as an independent insurance adjuster
11and as a property or casualty broker-agent, pursuant to Section
121625, who has met the continuing education requirements specified
13in Section 1749.3.

14(4) An individual licensed as an apprentice independent
15insurance adjuster pursuant to Section 14025.1.

16(c) This section shall become operative on January 1, 2018.

17

SEC. 58.  

Section 14097 of the Insurance Code is amended to
18read:

19

14097.  

(a) The amount of fees prescribed by this chapter,
20unless otherwise fixed, is that fixed in the following schedule:

21(1) The application fee for an original license is twenty-nine
22dollars ($29).

23(2) The application fee for an original branch office certificate
24is eighteen dollars ($18).

25(3) The fee for an original license is an amount equal to the
26renewal fee in effect on the last regular renewal date before the
27date on which the license is issued, except that, if the license will
28expire less than one year after its issuance, then the fee is an
29amount equal to 50 percent of the renewal fee in effect on the last
30regular renewal date before the date on which the license is issued.
31The commissioner may, by appropriate regulation, provide for the
32waiver or refund of the initial license fee where the license is issued
33less than 45 days before the date on which it will expire.

34(4) The renewal fee shall be fixed by the commissioner as
35follows:

36(A) For a license as an insurance adjuster, not more than one
37hundred eighteen dollars ($118).

38(B) For a branch office certificate, not more than twenty-four
39dollars ($24).

P62   1(5) The application and license fee for classifications prescribed
2by the commissioner, in addition to those provided for in this
3chapter, and the application and license fees for a change in the
4type of business organization of a licensee, shall be in the amount
5prescribed by rule and regulation of the commissioner.

6(6) The delinquency fee shall be 50 percent of the renewal fee
7in effect on the date of expiration, but not more than twenty-nine
8dollars ($29).

9(7) The fee for reexamination of an applicant or his manager is
10twelve dollars ($12).

11(b) This section shall remain in effect only until January 1, 2018,
12and as of that date is repealed, unless a later enacted statute, that
13is enacted before January 1, 2018, deletes or extends that date.

14

SEC. 59.  

Section 14097 is added to the Insurance Code, to
15read:

16

14097.  

(a) The amount of fees prescribed by this chapter,
17unless otherwise fixed, is that fixed in the following schedule:

18(1) The application fee for the qualifying examination for an
19original license is seventy-two dollars ($72).

20(2) The application fee for an original branch office certificate
21is forty-seven dollars ($47).

22(3) The fee for an original license application is up to one
23hundred seventy dollars ($170). If the license will expire less than
24one year after its issuance, then the fee is an amount equal to 50
25percent of the renewal fee in effect on the last regular renewal date
26before the date on which the license is issued. The commissioner
27may, by appropriate regulation, provide for the waiver or refund
28of the initial license fee where the license is issued less than 45
29days before the date on which it will expire.

30(4) The renewal fee shall be fixed by the commissioner as
31follows:

32(A) For a license as an independent insurance adjuster, not more
33than one hundred seventy dollars ($170).

34(B) For a branch office certificate, not more than fifty-six dollars
35($56).

36(5) The application and license fee for classifications prescribed
37by the commissioner, in addition to those provided for in this
38chapter, and the application and license fees for a change in the
39type of business organization of a licensee, shall be in the amount
40prescribed by rule and regulation of the commissioner.

P63   1(6) The delinquency fee shall be 50 percent of the renewal fee
2in effect on the date of expiration.

3(7) The fee for reexamination of an applicant is twenty-nine
4dollars ($29).

5(8) The application fee for an apprentice independent insurance
6adjuster license shall be fixed at up to one hundred seventy dollars
7($170).

8(b) This section shall become operative on January 1, 2018.

9

SEC. 60.  

Section 14099 of the Insurance Code is amended to
10read:

11

14099.  

(a) Application or license fees shall not be refunded
12except in accordance with Section 158 of the Business and
13Professions Code.

14(b) This section shall remain in effect only until January 1, 2018,
15and as of that date is repealed, unless a later enacted statute, that
16is enacted before January 1, 2018, deletes or extends that date.

17

SEC. 61.  

Section 14099 is added to the Insurance Code, to
18read:

19

14099.  

(a) Application or license fees shall not be refunded
20pursuant to Section 1751.5.

21(b) This section shall become operative on January 1, 2018.

22

SEC. 62.  

No reimbursement is required by this act pursuant to
23Section 6 of Article XIII B of the California Constitution because
24the only costs that may be incurred by a local agency or school
25district will be incurred because this act creates a new crime or
26infraction, eliminates a crime or infraction, or changes the penalty
27for a crime or infraction, within the meaning of Section 17556 of
28the Government Code, or changes the definition of a crime within
29the meaning of Section 6 of Article XIII B of the California
30Constitution.

end delete


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