Amended in Senate August 19, 2016

Amended in Senate August 15, 2016

Amended in Senate August 1, 2016

Amended in Senate June 13, 2016

Amended in Assembly May 31, 2016

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 amend Sections 1722, 1751.5, 14000, 14001, 14020, 14022, 14022.5, 14024, 14025, 14028, 14031, 14032, 14039, 14042, 14050, 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, 14079, and 14090.3 to, to add and repeal Section 14097.5 of, to repeal Section 14027 of, and to repeal and add Sections 14010, 14021, 14026, and 14078 of, the Insurance Code, relating to insurance.

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, continuing education and reporting 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.

This bill would revise and recast the above provisions by, among other things, changing the name of the act to the Independent Insurance Adjuster Act and redefining an “independent insurance adjuster” to mean an individual, a business entity, an independent contractor, or an employee of a contractor who contracts for compensation with insurers, a person whose tax treatment by the insurers is consistent with that of an independent contractor rather than as an employee, and a person who investigates, negotiates, or settles property and casualty claims for insurers. The bill would expand the categories of persons exempt from the act to include, among others, an individual who is employed to investigate suspected fraudulent insurance claims but who does not adjust losses or determine claims payments, and a person who solely performs 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 additional administrative and code of conduct requirements on licensees. The bill would require a person who fails to meet continuing education and reporting requirements, and who has not been granted an extension of time by the commissioner to comply, to have his or her license placed on inactive status, as specified, and would prohibit a licensee on inactive status from performing specified activities. 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 $80. 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 impose a 3-year reporting requirement on the Department of Insurance. 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.

begin insert

This bill also would incorporate additional changes in Sections 1722 and 1751.5 of the Insurance Code proposed by SB 488, to be operative if SB 488 and this bill are both enacted and become effective on or before January 1, 2017, and this bill is enacted last.

end insert

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

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    1

SECTION 1.  

Section 1722 of the Insurance Code is amended
2to read:

3

1722.  

If a natural person while licensed pursuant to the
4provisions of this chapter or Chapter 6 (commencing with Section
51760), Chapter 7 (commencing with Section 1800), or Chapter 8
6(commencing with Section 1831) of this part, Part 5 (commencing
7with Section 12140) of Division 2, or Chapter 1 (commencing
8with Section 14000) of Division 5 enters the military service of
9the United States and is in that service at a time prescribed for the
10filing of a renewal application, the filing of that application is
P4    1waived, and the license held by that licensee at the time of his or
2her entry into military service shall remain in force during the
3period of that military service and until the end of the license year
4in which he or she is released from that service but not for less
5than six months after that release. During that period, that person
6may secure a license of the type held by him or her on his or her
7entry into military service upon the filing of an application and
8paying the fee therefor without the necessity of taking any
9examination or paying any penalty.

10begin insert

begin insertSEC. 1.5.end insert  

end insert

begin insertSection 1722 of the end insertbegin insertInsurance Codeend insertbegin insert is amended to
11read:end insert

12

1722.  

If a natural person while licensed pursuant to the
13provisions of this chapter orbegin delete Chaptersend deletebegin insert Chapterend insert 6 (commencing
14with Section 1760),begin insert Chapterend insert 7 (commencing with Section 1800),
15orbegin insert Chapterend insert 8 (commencing with Section 1831) of this part,begin delete orend delete Part
165 (commencing with Section 12140) of Divisionbegin delete 2end deletebegin insert 2, or Chapter
171 (commencing with Section 14000) or Chapter 2 (commencing
18with Section 15000) of Division 5end insert
enters the military service of the
19United States and is inbegin delete suchend deletebegin insert thatend insert service at a time prescribed for
20the filing of a renewal application, the filing ofbegin delete suchend deletebegin insert thatend insert
21 application is waived, and the license held bybegin delete suchend deletebegin insert thatend insert licensee
22at the time of hisbegin insert or herend insert entry into military service shall remain in
23force during the period ofbegin delete suchend deletebegin insert thatend insert military service and until the
24end of the license year in which hebegin insert or sheend insert is released frombegin delete suchend delete
25begin insert thatend insert service but not for less than six months afterbegin delete suchend deletebegin insert thatend insert release.
26Duringbegin delete such period suchend deletebegin insert that period, thatend insert person may secure a
27license of the type held by himbegin insert or herend insert on hisbegin insert or herend insert entry into
28military service upon the filing of an application and paying the
29fee therefor without the necessity of takingbegin delete anyend deletebegin insert anend insert examination or
30payingbegin delete anyend deletebegin insert aend insert penalty.

31

SEC. 2.  

Section 1751.5 of the Insurance Code is amended to
32read:

33

1751.5.  

The fees required by this chapter and by Chapter 6
34(commencing with Section 1760), Chapter 7 (commencing with
35Section 1800), and Chapter 8 (commencing with Section 1831) of
36this part and by Chapter 1 (commencing with Section 14000) of
37Division 5 are filing fees, no portion of which shall be refunded
38whether or not the application is acted upon or the examination is
39taken.

P5    1begin insert

begin insertSEC. 2.5.end insert  

end insert

begin insertSection 1751.5 of the end insertbegin insertInsurance Codeend insertbegin insert is amended to
2read:end insert

3

1751.5.  

The fees required by this chapter and by Chapter 6
4(commencing with Section 1760), Chapter 7 (commencing with
5Section 1800), and Chapter 8 (commencing with Section 1831) of
6this partbegin insert end insertbegin insertand by Chapter 1 (commencing with Section 14000) and
7Chapter 2 (commencing with Section 15000) of Division 5end insert
are
8filing fees, no portion of which shall be refunded whether or not
9the application is acted upon or the examination is taken.

10

SEC. 3.  

Section 14000 of the Insurance Code is amended to
11read:

12

14000.  

This chapter may be cited as the Independent Insurance
13Adjuster Act.

14

SEC. 4.  

Section 14001 of the Insurance Code is amended to
15read:

16

14001.  

As used in this chapter, the following terms have the
17following meanings:

18(a) “Catastrophe” means an event that results in a large number
19of deaths or injuries, causes extensive damage or destruction of
20facilities that provide and sustain human needs, produces an
21overwhelming demand on state and local response resources and
22mechanisms, causes a severe long-term effect on general economic
23activity, or severely affects state, local, and private sector
24capabilities to begin and sustain response activities.

25(b) “Commissioner” means the Insurance Commissioner.

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

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

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 insurance
34adjusters for the line of authority sought, the independent insurance
35adjuster shall designate as his, her, or its home state either
36California or any state in which the independent insurance adjuster
37is licensed following an examination, provided that the independent
38insurance adjuster is licensed and in good standing in that state.

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

40(g) “Licensee” means a person licensed under this chapter.

P6    1(h) “Manager” means the individual under whose direction,
2control, charge, or management the business of a licensee is
3operated.

4(i) “Nonresident” means a person who is not a resident of
5California at the time of the performance of the act referred to in
6Section 14071.

7(j) “Person” includes any individual, firm, company, association,
8organization, partnership, limited liability company, and
9corporation.

10

SEC. 5.  

Section 14010 of the Insurance Code is repealed.

11

SEC. 6.  

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

12

14010.  

The commissioner shall administer and enforce the
13provisions of this chapter.

14

SEC. 7.  

Section 14020 of the Insurance Code is amended to
15read:

16

14020.  

(a) A person shall not engage in a business regulated
17by this chapter, or act or assume to act as, or represent himself or
18herself to be, a licensee unless he or she is licensed as an
19independent insurance adjuster in accordance with this chapter.

20(b) A person shall not falsely represent that he or she is
21employed by a licensee.

22

SEC. 8.  

Section 14021 of the Insurance Code is repealed.

23

SEC. 9.  

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

24

14021.  

An independent insurance adjuster, for purposes of this
25chapter, is to meet all of the following requirements:

26(a) He or she is an individual, a business entity, an independent
27contractor, or an employee of a contractor, who contracts for
28compensation with insurers.

29(b) He or she is a person whose tax treatment by the insurers is
30consistent with that of an independent contractor rather than an
31employee, as defined in Section 3121 of Title 26 of the United
32States Code.

33(c) He or she is a person who investigates, negotiates, or settles
34property and casualty claims for insurers.

35

SEC. 10.  

Section 14022 of the Insurance Code is amended to
36read:

37

14022.  

This chapter does not apply to any of the following:

38(a) A person employed exclusively and regularly by one
39employer in connection with the affairs of that employer only and
P7    1where there exists an employer-employee relationship. This
2subdivision shall become inoperative on January 1, 2018.

3(b) An officer or employee of the United States of America, or
4of this state or a political subdivision thereof, while that officer or
5employee is engaged in the performance of his or her official
6duties.

7(c) A person engaged exclusively in the business of obtaining
8and furnishing information as to the financial rating of persons.

9(d) A charitable philanthropic society or association duly
10incorporated under the laws of this state, which is organized and
11maintained for the public good and not for private profit.

12(e) An attorney at law admitted to practice in California, when
13acting in his or her professional capacity as an attorney.

14(f) A licensed collection agency or an employee thereof while
15acting within the scope of his or her employment, while making
16an investigation incidental to the business of the agency, including
17an investigation of the location of a debtor or his or her property
18where the contract with an assignor creditor is for the collection
19of claims owed or due or asserted to be owed or due or the
20equivalent thereof.

21(g) An officer, director, manager, or employee of an authorized
22insurer, surplus line insurer, a risk retention group, or an
23attorney-in-fact of a reciprocal insurer.

24(h) A licensed insurance agent or broker or managing general
25agent of the insurer to whom claim authority has been granted by
26the insurer.

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

30(j) Any bank subject to the jurisdiction of the Commissioner of
31Business Oversight under Division 1 (commencing with Section
3299) of the Financial Code or the Comptroller of the Currency of
33the United States.

34(k) A person employed solely to obtain facts surrounding a
35claim or to furnish technical assistance to a licensed independent
36insurance adjuster.

37(l) Any building contractor, engineer, technical expert, or other
38person who is engaged by an insurer or licensed independent
39insurance adjuster to provide an expert or professional evaluation
40of the extent, cause, or origin of damage to the insured property,
P8    1but who does not otherwise participate in the process of adjusting
2claims.

3(m) An individual who is employed to investigate suspected
4fraudulent insurance claims but who does not adjust losses or
5determine claims payments.

6(n) A person who solely performs administrative or clerical
7duties, or any combination thereof, and who does not investigate,
8negotiate, or settle claims with policyholders, claimants, or their
9legal representative.

10(o) A licensed health care provider or its employees who provide
11 managed care if the services do not include the determination of
12compensability.

13(p) A managed care organization or any of its employees who
14provide managed care services if the services do not include the
15determination of compensability.

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

17(r) A United States manager of the United States branch of an
18alien insurer.

19(s) An individual employee, under a self-insured arrangement,
20who adjusts claims on behalf of his or her employer.

21(t) An individual or business entity that investigates, negotiates,
22or settles workers’ compensation claims.

23(u) An individual who, in regards to portable electronics
24insurance claims, collects claims information from, or furnishes
25claims information to, insureds or claimants, and who conducts
26data entry, including entering data into an automated claims
27adjudication system, provided that the individual is an employee
28of a licensed independent insurance adjuster or its affiliate where
29no more than 25 of those persons are under the supervision of one
30licensed independent insurance adjuster or licensed producer.

31

SEC. 11.  

Section 14022.5 of the Insurance Code is amended
32to read:

33

14022.5.  

(a) In the event of an emergency situation as declared
34by the commissioner, claims arising out of the emergency,
35catastrophe, disaster, or other similar occurrence may be adjusted
36by a nonlicensed independent insurance adjuster upon registration
37with the commissioner if all of the following requirements are met:

38(1) The work performed by the nonlicensed independent
39insurance adjuster is under the active direction, control, charge,
P9    1or management of a licensed independent insurance adjuster or an
2insurer authorized to do business in this state.

3(2) Registration with the commissioner is accomplished within
4five working days from the date on which the nonlicensed
5 independent insurance adjuster commences the claims adjusting
6activity in connection with the emergency situation.

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

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

19

SEC. 12.  

Section 14024 of the Insurance Code is amended to
20read:

21

14024.  

(a) An individual application shall be verified and shall
22include all of the following:

23(1) The full legal name and business, residence, and mailing
24addresses of the applicant.

25(2) The name under which the applicant intends to do business.

26(3) The applicant’s birth date and social security number.

27(4) The application fees set forth in Section 14097.

begin delete

28(5) A statement as to the classifications under which the
29applicant desires to be qualified.

end delete
begin insert

30
(5) Identify whether the application is for an independent
31insurance adjuster license or a crop insurance adjuster license,
32as set forth in Section 14085.

end insert

33(6) Two photographs, no more than six months old, of the
34applicant, of a type prescribed by the commissioner, and one
35classifiable set of his or her fingerprints submitted with a live scan
36fingerprinting service provider certified by the Department of
37Justice.

38(7) A verified statement of his or her experience qualifications,
39unless applying for an apprentice independent insurance adjuster
40license.

P10   1(8) Other information, evidence, statements, or documents as
2may be required by the commissioner.

3(b) A business entity application shall be verified and shall
4include all of the following:

5(1) The full legal name and residence address of each of its
6partners, officers, and directors, and its manager.

7(2) The name under which the applicant intends to do business.

8(3) That the applicant paid the fees set forth in Section 14097.

9(4) A statement as to the classifications under which the
10applicant desires to be qualified.

11(5) Other information, evidence, statements, or documents as
12may be required by the commissioner.

13

SEC. 13.  

Section 14025 of the Insurance Code is amended to
14read:

15

14025.  

Before a license is granted, the applicant shall meet all
16of the following requirements:

17(a) Be at least 18 years of age.

18(b) Not have committed acts or crimes constituting grounds for
19denial of licensure under Sections 1668 and 1669.

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

21(1) At least two years of experience in adjusting insurance claims
22in any state or the equivalent thereof as determined by the
23commissioner, unless applying for an apprentice independent
24insurance adjuster license.

25(2) One year as a licensed apprentice independent insurance
26adjuster, which is considered the equivalent of two years of
27experience in adjusting claims.

begin delete

28(d) (1) Completed a 20-hour prelicensing education course of
29study.

end delete
begin insert

30
(d) Any of the following:

end insert
begin insert

31
(1) Having completed a 20-hour prelicensing education course
32of study.

end insert

33(2) A nonresident applicant currently licensed as a home state
34independent insurance adjuster in another state who has met that
35state’s prelicensing education requirements is exempt from
36completing the prelicensing education requirement.

37(3) A resident applicant currently listed under a licensed
38independent insurance adjuster’s license as an unlicensed employee
39is exempt from completing the prelicensing education requirement.
40This exemption shall be in effect only until January 1, 2019.

P11   1(e) Successfully passed the examination for the independent
2insurance adjuster license, unless he or she qualifies for an
3exemption in Section 14026.

4(f) Comply with those other qualifications that the commissioner
5may require by regulation.

6

SEC. 14.  

Section 14025.1 is added to the Insurance Code, to
7read:

8

14025.1.  

(a) The apprentice independent insurance adjuster
9license is a license to facilitate the experience, education, and
10training necessary to ensure reasonable competency in the
11responsibilities and duties of an independent insurance adjuster.

12(b) An individual applying for an apprentice independent
13insurance adjuster license shall submit an application in a format
14prescribed by the commissioner and shall declare under penalty
15of suspension, revocation, or refusal of the license that the
16statements made in the application are true, correct, and complete
17to the best of the individual’s knowledge and belief. Before
18approving the application, the commissioner shall determine that
19the individual meets all of the following:

20(1) Is at least 18 years of age.

21(2) Is a resident of California or is a resident of another state
22and has designated California as his or her home state.

23(3) Has a business or mailing address in California for the
24acceptance of service of process.

25(4) Has not committed any act that is a ground for suspension,
26revocation, or denial of licensure as set forth in Sections 1668,
271668.1, and 1669.

28(5) Has paid the fees set forth in subdivision (h) of Section
2914097.

30(c) The apprentice independent insurance adjuster license shall
31be subject to the following terms and conditions:

32(1) The applicant shall submit, with the apprentice independent
33insurance adjuster application, an attestation from a licensed
34independent insurance adjuster certifying that the apprentice will
35be subject to training, direction, and control by the licensed
36independent insurance adjuster and further certifying that the
37licensed independent insurance adjuster assumes responsibility
38for the actions of the apprentice in the apprentice’s capacity as an
39apprentice independent insurance adjuster.

P12   1(2) The apprentice independent insurance adjuster is only
2authorized to adjust claims in California.

3(3) The apprentice independent insurance adjuster is restricted
4to participation in the investigation, settlement, and negotiation of
5claims subject to the review and final determination of the claim
6by a supervising licensed independent insurance adjuster.

7(4) The apprentice independent insurance adjuster shall not be
8required to take and successfully complete the independent
9insurance adjuster examination to adjust claims as an apprentice
10independent insurance adjuster. At any time during the
11apprenticeship, the apprentice independent insurance adjuster may
12choose to take the examination. If the individual takes and
13successfully completes the independent insurance adjuster exam,
14the apprentice independent insurance adjuster license shall
15automatically terminate and an independent insurance adjuster
16license shall be issued to that individual in its place.

17(5) The apprentice independent insurance adjuster license is
18valid for a period not to exceed 12 months and is nonrenewable.

19(6) The licensee shall be subject to suspension, revocation, or
20denial pursuant to Sections 1668, 1668.1, and 1669.

21(7) The applicant shall submit two photographs, no more than
22six months old, of the applicant, of a type prescribed by the
23commissioner, and one classifiable set of his or her fingerprints
24submitted with a live scan fingerprinting service provider certified
25by the Department of Justice.

26

SEC. 15.  

Section 14026 of the Insurance Code is repealed.

27

SEC. 16.  

Section 14026 is added to the Insurance Code, to
28read:

29

14026.  

(a) An applicant for an independent insurance adjuster
30license, unless applying for an apprentice independent insurance
31adjuster license or crop insurance adjuster license, shall pass a
32written examination.

33(1) The examination shall test the knowledge of the applicant
34concerning the duties and responsibilities of an independent
35insurance adjuster and this code.

36(2) An applicant applying for an examination shall remit a
37nonrefundable fee as prescribed by the commissioner in Section
3814097.

39(b) An individual who applies for an independent insurance
40adjuster license in California who holds a home state license in
P13   1another state as an independent insurance adjuster shall not be
2required to complete the examination if he or she successfully
3passed an examination as a condition of receiving an independent
4insurance adjuster license in his or her home state. This exemption
5applies to individuals who are currently licensed in their home
6state or if the home state license expired and the application is
7received by the commissioner within 90 days of expiration.

8(c) An individual who applies for an apprentice independent
9insurance adjuster license pursuant to Section 14025.1, and who
10adjusts claims in that capacity, shall not be required to take and
11successfully complete the independent insurance adjuster
12examination.

13

SEC. 17.  

Section 14027 of the Insurance Code is repealed.

14

SEC. 18.  

Section 14028 of the Insurance Code is amended to
15read:

16

14028.  

After a hearing, the commissioner may deny a license
17unless 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(a) Been refused a license under this chapter or had a license
22revoked.

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

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

31

SEC. 19.  

Section 14029 of the Insurance Code is amended to
32read:

33

14029.  

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

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

P14   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. 20.  

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. 21.  

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.

P15   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. 22.  

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

6

14031.  

A hearing held under this chapter to determine whether
7an application for a license should be granted shall be conducted
8in accordance with Chapter 5 (commencing with Section 11501)
9of Part 1 of Division 3 of Title 2 of the Government Code, and the
10commissioner shall have all of the powers granted therein.

11

SEC. 23.  

Section 14032 of the Insurance Code is amended to
12read:

13

14032.  

The form and content of the license shall be determined
14by the commissioner.

15

SEC. 24.  

Section 14037 of the Insurance Code is amended to
16read:

17

14037.  

(a) A licensee shall at all times be legally responsible
18for the good conduct in the business of each of his or her employees
19or agents, including his or her manager.

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

23

SEC. 25.  

Section 14038 of the Insurance Code is amended to
24read:

25

14038.  

(a) Any licensee or officer, director, partner, or manager
26of a licensee may divulge to any law enforcement officer or district
27attorney, or to his or her representative, any information he or she
28may acquire as to any criminal offense. However, he or she shall
29not divulge to any other person any information acquired by him
30or her, except as he or she may be required by law to do so or as
31is necessary to effectuate or enforce a transaction, except at the
32direction of the employer or client for whom the information was
33obtained and only if authorized by the insured.

34(b) A licensee or officer, director, partner, manager, or employee
35of a licensee shall not knowingly make any false report to his or
36her employer or client for whom information was being obtained.

37(c) A written report shall not be submitted to a client except by
38the licensee, qualifying manager, or a person authorized by one
39or either of them, and the person submitting the report shall
P16   1exercise diligence in ascertaining whether or not the facts and
2information in that report are true and correct.

3(d) A licensee or officer, director, partner, manager, or employee
4of a licensee shall not use a badge in connection with the official
5activities of the licensee’s business.

6(e) A licensee or officer, director, partner, manager, or employee
7of a licensee, shall not use a title, wear a uniform, use an insignia,
8or use an identification card, or make any statement with the intent
9to give an impression that he or she is connected in any way with
10the federal government, a state government, or any political
11subdivision of a state government.

12(f) A licensee or officer, director, partner, manager, or employee
13of a licensee, shall not enter any private building or portion thereof
14without the consent of the owner or of the person in legal
15possession thereof.

16(g) A licensee shall not appear as an assignee party in any
17proceeding involving claim and delivery, replevin, or other
18possessory action, action to foreclose a chattel mortgage,
19mechanic’s lien, materialman’s lien, or any other lien.

20(h) A licensee shall not permit an employee or agent in his or
21her own name to advertise, engage clients, furnish reports, or
22present bills to clients, or in any manner whatever to conduct
23business for which a license is required under this chapter. All
24business of the licensee shall be conducted in either the name of
25and under the control of the licensee or the licensee’s employer,
26who is a licensed independent insurance adjuster who meets the
27bond requirement described in Section 14050.

28(i) A licensee acting as an independent automobile damage
29appraiser or adjuster or as an automobile insurance claims adjuster,
30appraiser, or representative shall not receive any financial benefit
31from an automobile repair facility. “Financial benefit” means the
32receiving of any commission or gratuity, discount on repair costs,
33free repairs, employment by a repair facility, or possession of more
34than 3 percent direct ownership in an automobile repair facility
35located in this state.

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

39

SEC. 26.  

Section 14038 is added to the Insurance Code, to
40read:

P17   1

14038.  

(a) Any licensee or officer, director, or partner of a
2licensee may divulge to any law enforcement officer or district
3attorney, or to his or her representative, any information he or she
4may acquire as to any criminal offense. However, he or she shall
5not divulge to any other person any information acquired by him
6or her, except as he or she may be required by law to do so or as
7is necessary to effectuate or enforce a transaction, except at the
8direction of the employer or client for whom the information was
9obtained and only if authorized by the insured.

10(b) A licensee or officer, director, or partner of a licensee shall
11not knowingly make any false report to his or her employer or
12client for whom information was being obtained.

13(c) A written report shall not be submitted to a client except by
14the licensee or his or her designee. The licensee shall exercise
15diligence in ascertaining whether or not the facts and information
16in that report are true and correct.

17(d) A licensee or officer, director, or partner of a licensee shall
18not use a badge in connection with the official activities of the
19licensee’s business.

20(e) A licensee or officer, director, or partner of a licensee shall
21not use a title, wear a uniform, use an insignia, use an identification
22card, or make any statement with the intent to give an impression
23that he or she is connected in any way with the federal government,
24a state government, or any political subdivision of a state
25government.

26(f) A licensee or officer, director, or partner of a licensee shall
27not enter any private building or portion thereof without the consent
28of the owner or of the person in legal possession thereof.

29(g) A licensee shall not appear as an assignee party in any
30proceeding involving claim and delivery, replevin, or other
31possessory action, action to foreclose a chattel mortgage,
32mechanic’s lien, materialman’s lien, or any other lien.

33(h) A licensee shall not permit an agent inbegin delete his or her ownend deletebegin insert the
34agent’send insert
name to advertise, engage clients, furnish reports, or present
35bills to clients, or in any manner whatever to conduct business for
36which a license is required under this chapter. All business of the
37licensee shall be conducted in either the name of and under the
38control of the licensee or the licensee’s employer, who is a licensed
39independent insurance adjuster who meets the bond requirement
40described in Section 14050.

P18   1(i) A licensee acting as an independent automobile damage
2appraiser or adjuster or as an automobile insurance claims adjuster,
3appraiser, or representative shall not receive any financial benefit
4from an automobile repair facility. “Financial benefit” means the
5receiving of any commission or gratuity, discount on repair costs,
6free repairs, employment by a repair facility, or possession of more
7than 3 percent direct ownership in an automobile repair facility
8located in this state.

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

10

SEC. 27.  

Section 14039 of the Insurance Code is amended to
11read:

12

14039.  

A person licensed as an independent insurance adjuster
13shall not do any of the following:

14(a) Fail to disclose his or her full financial interest in a contract
15or agreement executed by him or her for the adjustment of a claim
16prior to the execution thereof.

17(b) Use any misrepresentation to solicit a contract or agreement
18to adjust a claim.

19(c) Solicit or accept remuneration from, or have a financial
20interest exceeding 3 percent in, any salvage, repair, or other firm
21that obtains business in connection with any claim that he or she
22has a contract or agreement to adjust.

23

SEC. 28.  

Section 14040 of the Insurance Code is amended to
24read:

25

14040.  

(a) Any badge or cap insignia worn by a person who
26is a licensee, officer, director, partner, manager, or employee of a
27licensee shall be of a design approved by the commissioner, and
28shall bear on its face a distinctive word indicating the name of the
29licensee and an employee number by which the person may be
30identified by the licensee.

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. 29.  

Section 14040 is added to the Insurance Code, to
35read:

36

14040.  

(a) Any badge or cap insignia worn by a person who
37is a licensee, officer, director, or partner of a licensee shall be of
38a design approved by the commissioner, and shall bear on its face
39a distinctive word indicating the name of either the licensee or the
40adjusting firm the licensee represents.

P19   1(b) This section shall become operative on January 1, 2018.

2

SEC. 30.  

Section 14042 of the Insurance Code is amended to
3read:

4

14042.  

(a) A licensee shall not conduct a business under a
5fictitious or other business name unless and until he or she has
6obtained the written authorization of the commissioner to do so.

7(b) The commissioner shall not authorize the use of a fictitious
8or other business name that is so similar to that of a public officer
9or agency or of that used by another licensee that the public may
10be confused or misled thereby.

11(c) The authorization shall require, as a condition precedent to
12the use of any fictitious name, that the licensee comply with Section
131724.5.

14(d) A licensee desiring to conduct his or her business under
15more than one fictitious business name shall obtain the
16authorization of the commissioner in the manner prescribed in this
17section for the use of that name.

18(e) The licensee shall pay a fee of ten dollars ($10) for each
19authorization to use an additional fictitious business name and for
20each change in the use of a fictitious business name. If the original
21license is issued in a nonfictitious name and authorization is
22requested to have the license reissued in a fictitious business name,
23the licensee shall pay a fee of twelve dollars ($12) for that
24authorization.

25

SEC. 31.  

Section 14050 of the Insurance Code is amended to
26read:

27

14050.  

(a) A license shall not be issued under this chapter
28unless the applicant files with the commissioner a surety bond
29executed by a surety company authorized to do business in the
30state in the sum of two thousand dollars ($2,000) conditioned for
31the faithful and honest conduct of business by that applicant. The
32bond as to its form, execution, and sufficiency of the sureties shall
33be approved by the commissioner.

34(b) A surety bond is not required for an individual licensed as
35an independent insurance adjuster who adjusts only begin delete on behalf of
36his or her employer, provided that the employer is another licensed
37independent insurance adjuster who meets the bond requirement.end delete

38
begin insert in the capacity of an employee of a licensed independent insurance
39adjuster, provided that the employer meets the bond requirement.end insert

P20   1

SEC. 32.  

Section 14061 of the Insurance Code is amended to
2read:

3

14061.  

(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 he or she determines that the
6licensee, or his or her manager, if an individual, or if the licensee
7is a person other than an individual, that any of its officers,
8directors, partners, or its manager has done any of the following:

9(1) Made any false statement or given any false information in
10connection with an application for a license or a renewal or
11 reinstatement of a license.

12(2) Violated any provisions of this chapter.

13(3) Violated any rule of the commissioner adopted pursuant to
14the authority contained in this chapter.

15(4) Been convicted of any crime substantially related to the
16qualifications, functions, and duties of the holder of the registration
17or license in question.

18(5) Impersonated, or permitted or aided and abetted an employee
19to impersonate, a law enforcement officer or employee of the
20United States, or of any state or political subdivision thereof.

21(6) Committed or permitted any employee to commit any act,
22while the license was expired that would be cause for the
23suspension or revocation of a license, or grounds for the denial of
24an application for a license.

25(7) Willfully failed or refused to render to a client services or
26a report as agreed between the parties and for which compensation
27has been paid or tendered in accordance with the agreement of the
28parties.

29(8) Committed assault, battery, or kidnapping, or used force or
30violence on any person, without proper justification.

31(9) Knowingly violated or advised, encouraged, or assisted the
32violation of any court order or injunction in the course of business
33as a licensee.

34(10) Acted as a runner or capper for any attorney.

35(11) Committed any act that is a ground for denial of an
36application for license under this chapter.

37(12) Purchased, possessed, or transported any tear gas weapon
38except as authorized by law. A violation of this paragraph may be
39punished by the suspension of a license for a period to be
40 determined by the commissioner.

P21   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. 33.  

Section 14061 is added to the Insurance Code, to
5read:

6

14061.  

(a) The commissioner may suspend or revoke a license
7issued under this chapter or may issue a restricted license in
8accordance with Section 14026.5 if he or she determines that the
9licensee or if the licensee is a person other than an individual, that
10any of its officers, directors, partners, or its designated responsible
11person has done any of the following:

12(1) Made any false statement or given any false information in
13connection with an application for a license or a renewal or
14reinstatement of a license.

15(2) Violated any provisions of this chapter.

16(3) Violated any rule of the commissioner adopted pursuant to
17the authority contained in this chapter.

18(4) Been convicted of any crime substantially related to the
19qualifications, functions, and duties of the holder of the registration
20or license in question.

21(5) Impersonated, or permitted or aided and abetted an employee
22to impersonate, a law enforcement officer or employee of the
23United States, or of any state or political subdivision thereof.

24(6) Committed or permitted any employee to commit any act,
25while the license was expired that would be cause for the
26suspension or revocation of a license, or grounds for the denial of
27an application for a license.

28(7) Willfully failed or refused to render to a client services or
29a report as agreed between the parties and for which compensation
30has been paid or tendered in accordance with the agreement of the
31parties.

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

34(9) Knowingly violated or advised, encouraged, or assisted the
35violation of any court order or injunction in the course of business
36as a licensee.

37(10) Acted as a runner or capper for any attorney.

38(11) Committed any act that is a ground for denial of an
39application for license under this chapter.

P22   1(12) Purchased, possessed, or transported any tear gas weapon
2except as authorized by law. A violation of this paragraph may be
3punished by the suspension of a license for a period to be
4determined by the commissioner.

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

6

SEC. 34.  

Section 14063 of the Insurance Code is amended to
7read:

8

14063.  

(a) The commissioner may suspend or revoke a license
9issued under this chapter or may issue a restricted license in
10accordance with Section 14026.5 if the commissioner determines
11that the licensee, or his or her manager, if an individual, or if the
12licensee is a person other than an individual, that any of its officers,
13directors, partners, or its manager has done any of the following:

14(1) Used any letterhead, advertisement, or other printed matter,
15or in any matter whatever represented that he or she is an
16instrumentality of the federal government, or of a state or any
17political subdivision thereof.

18(2) Used a name different from that under which he or she is
19 currently licensed in any advertisement, solicitation, or contract
20for business.

21(b) 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. 35.  

Section 14063 is added to the Insurance Code, to
25read:

26

14063.  

(a) The commissioner may suspend or revoke a license
27issued under this chapter or may issue a restricted license in
28accordance with Section 14026.5 if the commissioner determines
29that the licensee, if an individual, or if the licensee is a person other
30than an individual, that any of its officers, directors, or partners
31has done any of the following:

32(1) Used any letterhead, advertisement, or other printed matter,
33or in any matter whatever represented that he or she is an
34instrumentality of the federal government, or of a state or any
35political subdivision thereof.

36(2) Used a name different from that under which he or she is
37currently licensed in any advertisement, solicitation, or contract
38for business.

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

P23   1

SEC. 36.  

Section 14064 of the Insurance Code is amended 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, or his or her manager, if an individual, or if the
7licensee is a person other than an individual, that any of its officers,
8directors, partners, or its manager, 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
14 information 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, or of any state or political subdivision thereof.

26(c) 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. 37.  

Section 14064 is added to the Insurance Code, to
30read:

31

14064.  

(a) The commissioner may suspend or revoke a license
32issued under this chapter or may issue a restricted license in
33accordance with Section 14026.5 if the commissioner determines
34that the licensee, if an individual, or if the licensee is a person other
35than an individual, that any of its officers, directors, partners, or
36its designated responsible person has committed any act in the
37course of the licensee’s business constituting dishonesty or fraud.

38(b) “Dishonesty or fraud” as used in this section includes, in
39addition to other acts not specifically enumerated herein, all of the
40following:

P24   1(1) Knowingly making a false statement relating to evidence or
2information obtained in the course of employment, or knowingly
3publishing a slander or a libel in the course of business.

4(2) Using illegal means in the collection or attempted collection
5of a debt or obligation.

6(3) Manufacture of evidence.

7(4) Acceptance of employment adverse to a client or former
8client relating to a matter with respect to which the licensee has
9obtained confidential information by reason of, or in the course
10of, his or her employment by that client or former client.

11(5) Impersonating, or permitting or aiding and abetting an
12employee to impersonate, a law enforcement officer or employee
13of the United States, or of any state or political subdivision thereof.

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

15

SEC. 38.  

Section 14078 of the Insurance Code is repealed.

16

SEC. 39.  

Section 14078 is added to the Insurance Code, to
17read:

18

14078.  

(a) Unless refused licensure pursuant to Sections 14060
19to 14065, inclusive, a nonresident person shall receive a
20nonresident independent insurance adjuster license if all of the
21following apply:

22(1) The applicant is currently licensed in good standing as an
23independent insurance adjuster in his, her, or its resident or home
24state.

25(2) The applicant paid the fees required by Section 14097.

26(3) The applicant submitted to the commissioner the completed
27application for licensure.

28(4) The applicant’s home state issues nonresident independent
29insurance adjuster licenses to residents of California on the same
30basis.

31(b) The commissioner may verify the independent insurance
32adjuster’s licensing status through any appropriate database,
33including the Producer Database maintained by the National
34Association of Insurance Commissioners, its affiliates or
35subsidiaries, or may request certification of good standing.

36(c) As a condition to the continuation of a nonresident
37independent insurance adjuster license, the licensee shall maintain
38a resident independent insurance adjuster license in his, her, or its
39home state.

P25   1(1) The nonresident independent insurance adjuster license
2issued under this chapter shall terminate and be surrendered
3immediately to the commissioner if the resident independent
4insurance adjuster license terminates for any reason, unless the
5termination is due to the independent insurance adjuster being
6issued a new resident independent insurance adjuster license in
7his, her, or its new home state.

8(2) The nonresident independent insurance adjuster license shall
9terminate if the person’s home state does not issue nonresident
10independent insurance adjuster licenses to residents of California
11on the same basis.

12(3) (A) The licensee is required to give notice of resident
13independent insurance adjuster license termination to any state
14that issued a nonresident independent insurance adjuster license.

15(B) The notice is required to be given within 30 days of the
16termination date. If the resident independent insurance adjuster
17license was terminated for change in resident home state, then the
18notice is required to include both the previous and current
19 addresses.

20(4) Maintaining a resident independent insurance adjuster license
21is required for the nonresident independent insurance adjuster
22license to remain valid.

23

SEC. 40.  

Section 14079 is added to the Insurance Code, to
24read:

25

14079.  

(a) An independent insurance adjuster shall be honest
26and fair in all communications with the insured, the insurer, and
27the public.

28(b) An independent insurance adjuster shall provide
29policyholders and claimants with prompt and knowledgeable
30service and courteous, fair, and objective treatment at all times.

31(c) An independent insurance adjuster shall not give legal advice
32and shall not deal directly with any policyholder or claimant who
33is represented by legal counsel without the consent of the legal
34counsel involved.

35(d) An independent insurance adjuster shall comply with all
36local, state, and federal privacy and information security laws.

37(e) An independent insurance adjuster shall identify himself or
38herself as an independent insurance adjuster and, if applicable,
39shall identify his or her employer when dealing with any
40policyholder or claimant.

P26   1(f) An independent insurance adjuster shall not have any
2financial interest in any adjustment or shall not acquire for himself,
3herself, or any person any interest or title in salvage, without first
4receiving written authority from the principal.

5

SEC. 41.  

Section 14080 of the Insurance Code is amended to
6read:

7

14080.  

Any person who knowingly falsifies the fingerprints
8or photographs submitted under paragraph (6) of subdivision (a)
9of Section 14024 or paragraph (7) of subdivision (c) of Section
1014025.1 is guilty of a felony. Any person who violates any of the
11other provisions of this chapter is guilty of a misdemeanor
12punishable by fine not to exceed five hundred dollars ($500), or
13by imprisonment in the county jail not to exceed one year, or by
14both the fine and imprisonment.

15

SEC. 42.  

Section 14090.1 of the Insurance Code is amended
16to read:

17

14090.1.  

(a) An individual who holds an independent insurance
18adjuster license and who is not exempt under subdivision (b) shall
19satisfactorily complete a minimum of 24 hours, of which three
20hours are to be in ethics, of continuing education courses pertinent
21to the duties and responsibilities of an independent insurance
22adjuster license and shall report the completion of this coursework
23to the insurance commissioner on a biennial basis in conjunction
24with his or her license renewal cycle.

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

26(1) A licensee not licensed for one full year prior to the end of
27the applicable continuing education biennium.

28(2) A licensee holding a nonresident independent insurance
29adjuster license who has met the continuing education requirements
30of his or her designated home state.

31(3) An individual licensed as an independent insurance adjuster
32and as a property or casualty broker-agent, pursuant to Section
331625, who has met the continuing education requirements specified
34in Section 1749.3.

35(4) An individual licensed as an apprentice independent
36insurance adjuster pursuant to Section 14025.1.

37

SEC. 43.  

Section 14090.3 is added to the Insurance Code, to
38read:

39

14090.3.  

A person who fails to meet the requirements imposed
40by Section 14090.1, and who has not been granted an extension
P27   1of time by the commissioner within which to comply, shall have
2his or her license placed on inactive status until he or she
3demonstrates to the satisfaction of the commissioner that he or she
4has complied with all of the requirements of this article and all
5other applicable laws. A licensee placed on inactive status may
6not perform the activities described in Section 1631. If a person
7cannot perform the requirements of this article due to a disability
8or inactivity due to special circumstances, the commissioner shall
9provide a procedure for the person to place his or her license on
10inactive status until the person demonstrates to the satisfaction of
11the commissioner that he or she has complied with all of the
12 requirements of this article for the period of disability or inactivity.

13

SEC. 44.  

Section 14097 of the Insurance Code is amended to
14read:

15

14097.  

The amount of fees prescribed by this chapter, unless
16otherwise fixed, is that fixed in the following schedule:

17(a) The application fee for the qualifying examination for an
18original license is fifty dollars ($50).

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

21(c) The fee for an original license application is up to eighty
22dollars ($80). If the license will expire less than one year after its
23issuance, then the fee is an amount equal to 50 percent of the
24renewal fee in effect on the last regular renewal date before the
25date on which the license is issued. The commissioner may, by
26appropriate regulation, provide for the waiver or refund of the
27initial license fee where the license is issued less than 45 days
28before the date on which it will expire.

29(d) The renewal fee shall be fixed by the commissioner as
30follows:

31(1) For a license as an independent insurance adjuster, not more
32than eighty dollars ($80).

33(2) For a branch office certificate, not more than fifty-six dollars
34($56).

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

P28   1(f) The delinquency fee shall be 50 percent of the renewal fee
2in effect on the date of expiration.

3(g) The fee for reexamination of an applicant is fifty dollars
4($50).

5(h) The application fee for an apprentice independent insurance
6adjuster license shall be up to eighty dollars ($80).

7

SEC. 45.  

Section 14097.5 is added to the Insurance Code, to
8read:

9

14097.5.  

(a) On or before March 1, 2019, and for a total of
10three years thereafter, the department shall report annually to the
11Legislature all of the following:

12(1) The number of individuals licensed pursuant to this chapter.

13(2) The implementation costs incurred and the revenues received
14by the department for licensure of independent insurance adjusters.

15(3) The annual projected costs and revenues associated with
16ongoing licensure and enforcement activities pursuant to this
17chapter.

18(b) (1) A report submitted pursuant to subdivision (a) shall be
19submitted in compliance with Section 9795 of the Government
20Code.

21(2) Pursuant to Section 10231.5 of the Government Code, this
22section is repealed on March 1, 2023.

23

SEC. 46.  

Section 14099 of the Insurance Code is amended to
24read:

25

14099.  

Application or license fees shall not be refunded
26pursuant to Section 1751.5.

27begin insert

begin insertSEC. 47.end insert  

end insert
begin insert

(a) Section 1.5 of this bill incorporates amendments
28to Section 1722 of the Insurance Code proposed by both this bill
29and Senate Bill 488. It shall only become operative if (1) both bills
30are enacted and become effective on or before January 1, 2017,
31(2) each bill amends Section 1722 of the Insurance Code, and (3)
32this bill is enacted after Senate Bill 488, in which case Section 1
33of this bill shall not become operative.

end insert
begin insert

34
(b) Section 2.5 of this bill incorporates amendments to Section
351751.5 of the Insurance Code proposed by both this bill and Senate
36Bill 488. It shall only become operative if (1) both bills are enacted
37and become effective on or before January 1, 2017, (2) each bill
38amends Section 1751.5 of the Insurance Code, and (3) this bill is
39enacted after Senate Bill 488, in which case Section 2 of this bill
40shall not become operative.

end insert
P29   1

begin deleteSEC. 47.end delete
2
begin insertSEC. 48.end insert  

No reimbursement is required by this act pursuant to
3Section 6 of Article XIII B of the California Constitution because
4the only costs that may be incurred by a local agency or school
5district will be incurred because this act creates a new crime or
6infraction, eliminates a crime or infraction, or changes the penalty
7for a crime or infraction, within the meaning of Section 17556 of
8the Government Code, or changes the definition of a crime within
9the meaning of Section 6 of Article XIII B of the California
10Constitution.



O

    91