Senate Bill No. 488

Introduced by Senator Block

February 26, 2015

An act to amend Sections 1722, 1751.5, 14000, 14001, 14020, 14022, 14022.5, 14024, 14025, 14028, 14031, 14032, 14038, 14039, 14040, 14042, 14061, 14063, 14064, 14080, 14090.1, 14097, 14099, 15001, 15008, 15010, 15011, 15013, 15017, 15020, 15027, 15027.1, 15031, 15036, 15053, 15056, 15060, and 15062 of, to add Sections 14025.1, 14079, and 15009.1 to, to repeal Sections 14027, 14030, 14037, and 15015 of, and to repeal and add Sections 14010, 14021, 14026, 14029, 14078, 15007, and 15016 of, the Insurance Code, relating to insurance.

LEGISLATIVE COUNSEL’S DIGEST

SB 488, as introduced, Block. Independent insurance adjusters: public insurance adjusters.

(1) 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.

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

(2) Existing law, the Public Insurance Adjusters Act, sets forth various requirements with respect to operation as a public insurance adjuster in this state, including, but not limited to, that the person be licensed and licensing qualifications and application requirements for public insurance adjusters, nonresident public insurance adjusters, and interim public insurance adjusters. The act defines the term “public insurance adjuster” to mean a person who, for compensation, acts on behalf of, or aids in any manner, an insured in negotiating for or effecting the settlement of a claim or claims for loss or damage under any policy of insurance covering real or personal property or any person who advertises, solicits business, or holds himself or herself out to the public as an adjuster of those claims and any person who, for compensation, investigates, settles, adjusts, advises, or assists an insured with reference to claims for those losses on behalf of any public insurance adjuster. 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 public 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.

This bill would revise and recast the above provisions by, among other things, redefining a “public insurance adjuster” to include any person who, for compensation or any other thing of value on behalf of an insured, acts or aids, solely in relation to first party claims arising under insurance contracts that insure the real or personal property of the insured, on behalf of an insured in negotiating for, or effecting the settlement of, a claim for loss or damage coverage by an insurance contract, or advertises for employment as a public adjuster of insurance claims or solicits business or represents himself or herself to the public as a public adjuster of first party insurance claims for losses or damages arising out of policies of insurance that insure real or personal property. The bill would expand the categories of persons exempt from the act to include, among others, a person who negotiates or settles claims arising under a life or health insurance policy or an annuity contract and a person who settles subrogation claims between insurers. The bill would place additional eligibility requirements on applicants for a nonresident license. The bill would also repeal the provisions relating to an interim license, and would instead create an apprentice public insurance adjuster license to facilitate the training necessary to ensure reasonable competency in the responsibilities and duties of a public insurance adjuster, and would set forth the various terms and conditions of the license. The bill would make an apprentice public 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. Because the bill would create a new crime, it would impose a state-mandated local program.

(3) 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:

SECTION 1.  

Section 1722 of the Insurance Code is amended
to read:

1722.  

If a natural person while licensed pursuant to the
provisions of this chapter or begin delete Chapters end delete begin insert Chapter end insert 6 (commencing
with Section 1760), 7 (commencing with Section 1800), or 8
(commencing with Section 1831) of this part, begin delete or end delete Part 5
(commencing with Section 12140) of Division 2 begin insert , or Chapter 1
(commencing with Section 14000) or 2 (commencing with Section
15000) of Division 5 end insert enters the military service of the United States
and is in begin delete such end delete begin insert that end insert service at a time prescribed for the filing of a
renewal application, the filing of begin delete such end delete begin insert that end insert application is waived,
and the license held by begin delete such end delete begin insert that end insert licensee at the time of his begin insert or her end insert
entry into military service shall remain in force during the period
of begin delete such end delete begin insert that end insert military service and until the end of the license year
in which he begin insert or she end insert is released from begin delete such end delete begin insert that end insert service but not for
less than six months after begin delete such end delete begin insert that end insert release. During begin delete such end delete begin insert that end insert period
begin delete such end delete begin insert , that end insert person may secure a license of the type held by him begin insert or
her end insert on his begin insert or her end insert entry into military service upon the filing of an
application and paying the fee therefor without the necessity of
taking any examination or paying any penalty.

SEC. 2.  

Section 1751.5 of the Insurance Code is amended to
read:

1751.5.  

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

SEC. 3.  

Section 14000 of the Insurance Code is amended to
read:

14000.  

This chapter may be cited as the begin insert Independent end insert Insurance
Adjuster Act.

SEC. 4.  

Section 14001 of the Insurance Code is amended to
read:

14001.  

As used in this chapter begin insert , the following terms have the
following meanings end insert :

begin insert

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

end insert begin delete

(a)

end delete

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

begin delete

(b)

end delete

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

begin insert

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

end insert begin insert

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

end insert begin insert

(f) “Individual” means a natural person.

end insert begin delete

(c)

end delete

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

begin delete

(d)

end delete

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

begin insert

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

end insert begin delete

(e)

end delete

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

SEC. 5.  

Section 14010 of the Insurance Code is repealed.

begin delete

14010.  

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

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

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

end delete

SEC. 6.  

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

14010.  

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

SEC. 7.  

Section 14020 of the Insurance Code is amended to
read:

14020.  

begin delete No person shall end delete begin insert (a) end insert begin insert   end insert begin insert A person shall not end insert engage in a
business regulated by this chapter, or act or assume to act as, or
represent himself or herself to be, a licensee unless he or she is
licensed begin delete under end delete begin insert as an independent insurance adjuster in accordance
with end insert this chapter.

begin delete

No

end delete

begin insert (b) end insert begin insert   end insert begin insert A end insert person shall begin insert not end insert falsely represent that he or she is employed
by a licensee.

SEC. 8.  

Section 14021 of the Insurance Code is repealed.

begin delete

14021.  

An insurance adjuster within the meaning of this chapter
is a person other than a private investigator as defined in Section
7521 of the Business and Professions Code 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 or
aids an insurer in any manner with reference to:

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

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

end delete

SEC. 9.  

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

14021.  

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

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

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

(c) A person who investigates, negotiates, or settles property,
casualty, or workers’ compensation claims for insurers or for
self-insurers.

SEC. 10.  

Section 14022 of the Insurance Code is amended to
read:

14022.  

This chapter does not apply to begin insert any of the following end insert :

begin delete

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

end delete begin delete

(b)

end delete

begin insert (a) end insert  An officer or employee of the United States of America, or
of this state or a political subdivision thereof, while begin delete such end delete begin insert that end insert
officer or employee is engaged in the performance of his or her
official duties.

begin delete

(c)

end delete

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

begin delete

(d)

end delete

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

begin delete

(e)

end delete

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

begin delete

(f)

end delete

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

begin delete

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

end delete begin insert

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

end insert begin insert

(g) A licensed insurance agent or broker, attorney-in-fact of a
reciprocal insurer, or managing general agent of the insurer to
whom claim authority has been granted by the insurer.

end insert

(h) The legal owner of personal property begin delete which end delete begin insert that end insert has been
sold under a conditional sales agreement or a mortgagee under the
terms of a chattel mortgage.

(i) Any bank subject to the jurisdiction of the Commissioner begin delete of
Financial Institutions of the State of California end delete begin insert of Business
Oversight end insert under Division 1 (commencing with Section 99) of the
Financial Code or the Comptroller of the Currency of the United
States.

(j) A person begin delete engaged solely in the business of securing
information about persons or property from public records. end delete
begin insert employed solely to obtain facts surrounding a claim or to furnish
technical assistance to a licensed independent insurance adjuster. end insert

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

begin insert

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

end insert begin insert

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

end insert begin insert

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

end insert begin insert

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

end insert begin insert

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

end insert begin insert

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

end insert begin insert

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

end insert begin insert

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

end insert

SEC. 11.  

Section 14022.5 of the Insurance Code is amended
to read:

14022.5.  

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

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

(2) Registration with the commissioner is accomplished within
begin delete 15 end delete begin insert five end insert working days from the date on which the nonlicensed
begin insert independent insurance end insert adjuster commences the claims adjusting
activity in connection with the emergency situation.

(b) “Registration,” within the meaning of this section, begin delete shall
mean end delete begin insert means end insert a written letter to the commissioner, submitted by the
supervising licensed begin insert independent insurance end insert adjuster or admitted
insurer, naming the nonlicensed begin insert independent insurance end insert adjusters,
identifying their begin insert independent insurance end insert adjuster licenses held in
other jurisdictions, and stating when their claims adjusting activity
commenced.

(c) Registration under this section is valid for a period of begin delete 180 end delete
begin insert 90 end insert days from the date of the registration letter. Before the lapse of
that period, the commissioner may grant further begin delete 180-day end delete begin insert 90-day end insert
extensions as he or she deems appropriate upon written request
from the supervising licensed begin insert independent insurance end insert adjuster or
the admitted insurer.

SEC. 12.  

Section 14024 of the Insurance Code is amended to
read:

14024.  

begin delete An end delete begin insert (a) end insert begin insert   end insert begin insert An individual end insert application shall be verified and
shall include begin insert all of the following end insert :

begin delete

(a)

end delete

begin insert (1) end insert  The full begin insert legal end insert name and begin delete business address end delete begin insert business, resident,
and mailing addresses end insert of the applicant.

begin delete

(b)

end delete

begin insert (2) end insert  The name under which begin insert the end insert applicant intends to do business.

begin insert

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

end insert begin insert

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

end insert begin delete

(c)

end delete

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

begin delete

(d)

end delete

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

begin delete

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

end delete begin delete

(f)

end delete

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

begin delete

(g)

end delete

begin insert (8) end insert  A verified statement of his or her experience begin delete qualifications. end delete
begin insert qualifications, unless applying for an apprentice independent
insurance adjuster license. end insert

begin delete

(h) Such other information, evidence, statements, or documents
as may be required by the commissioner.

end delete begin insert

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

end insert begin insert

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

end insert begin insert

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

end insert begin insert

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

end insert begin insert

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

end insert begin insert

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

end insert begin insert

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

end insert begin insert

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

end insert begin insert

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

end insert

SEC. 13.  

Section 14025 of the Insurance Code is amended to
read:

14025.  

Before begin delete an application for end delete a license is granted, the
applicant begin delete , or his or her manager, end delete shall meet all of the following
begin insert requirements end insert :

(a) Be at least 18 years of age.

(b) Not have committed acts or crimes constituting grounds for
denial of licensure under begin delete Section 480 of the Business and
Professions Code. end delete begin insert Sections 1668 and 1669. end insert

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

begin insert

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

end insert begin insert

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

end insert begin insert

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

end insert begin insert

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

end insert begin delete

(d)

end delete

begin insert (g) end insert  Comply with begin delete such end delete begin insert those end insert other qualifications begin delete as end delete begin insert that end insert the
commissioner may begin delete fix by rule. end delete begin insert require by regulation. end insert

SEC. 14.  

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

14025.1.  

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

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

(1) Is at least 18 years of age.

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

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

(4) Has not committed any act that is a ground for suspension,
revocation, or denial of licensure as set forth in Sections 1668,
1668.1, and 1669.

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

(6) Has paid the fees set forth in subdivision (h) of Section
14097.

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

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

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

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

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

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

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

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

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

SEC. 15.  

Section 14026 of the Insurance Code is repealed.

begin delete

14026.  

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

end delete

SEC. 16.  

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

14026.  

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

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

(2) An applicant applying for an examination shall remit a
nonrefundable fee as prescribed by the commissioner in Section
14097.

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

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

SEC. 17.  

Section 14027 of the Insurance Code is repealed.

begin delete

14027.  

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

end delete

SEC. 18.  

Section 14028 of the Insurance Code is amended to
read:

14028.  

After a begin delete hearing end delete begin insert hearing, end insert the commissioner may deny
a license unless the application makes a showing satisfactory to
the commissioner that the applicant, if an individual, has not, or
if the applicant is a person other than an individual, that its manager
and each of its officers and partners have not begin insert done any of the
following end insert :

begin delete

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

end delete begin delete

(b)

end delete

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

begin delete

(c)

end delete

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

begin delete

(d)

end delete

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

begin delete

(e)

end delete

begin insert (d) end insert  Committed any act or crime constituting grounds for denial
of begin delete license end delete begin insert licensure end insert under Section 1668.

SEC. 19.  

Section 14029 of the Insurance Code is repealed.

begin delete

14029.  

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

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

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

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

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

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

end delete

SEC. 20.  

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

14029.  

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

SEC. 21.  

Section 14030 of the Insurance Code is repealed.

begin delete

14030.  

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

end delete

SEC. 22.  

Section 14031 of the Insurance Code is amended to
read:

14031.  

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

SEC. 23.  

Section 14032 of the Insurance Code is amended to
read:

14032.  

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

SEC. 24.  

Section 14037 of the Insurance Code is repealed.

begin delete

14037.  

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

end delete

SEC. 25.  

Section 14038 of the Insurance Code is amended to
read:

14038.  

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

(b)  begin delete No licensee end delete begin insert A licensee end insert or officer, director, begin delete partner, manager,
or employee end delete begin insert or partner end insert of a licensee shall begin insert not end insert knowingly make
any false report to his or her employer or client for whom
information was being obtained.

(c)  begin delete No written end delete begin insert A written end insert report shall begin insert not end insert be submitted to a client
except by the begin delete licensee, qualifying manager, or a person authorized
by one or either of them, and such person submitting the report end delete
begin insert licensee who end insert shall exercise diligence in ascertaining whether or
not the facts and information in begin delete such a end delete begin insert that end insert report are true and
correct.

(d)  begin delete No licensee, end delete begin insert A licensee end insert or officer, director, begin delete partner, manager,
or employee end delete begin insert or partner end insert of a licensee shall begin insert not end insert use a badge in
connection with the official activities of the licensee’s business.

(e)  begin delete No licensee, end delete begin insert A licensee end insert or officer, director, begin delete partner, manager,
or employee of a licensee, shall use a title, or wear a uniform, or
use an insignia, or use an identification card, end delete begin insert or partner of a
licensee shall not use a title, wear a uniform, use an insignia, use
an identification card, end insert or make any statement with the intent to
give an impression that he or she is connected in any way with the
federal government, a state government, or any political subdivision
of a state government.

(f)  begin delete No licensee, end delete begin insert A licensee end insert or officer, director, begin delete partner, manager,
or employee end delete begin insert or partner end insert of a licensee, shall begin insert not end insert enter any private
building or portion thereof without the consent of the owner or of
the person in legal possession thereof.

(g)  begin delete No licensee shall end delete begin insert A licensee shall not end insert appear as an assignee
party in any proceeding involving claim and delivery, replevin, or
other possessory action, action to foreclose a chattel mortgage,
mechanic’s lien, materialman’s lien, or any other lien.

(h)  begin delete No licensee shall permit an employee or end delete begin insert A licensee shall
not permit an end insert agent in his or her own name to advertise, engage
clients, furnish reports, or present bills to clients, or in any manner
whatever to conduct business for which a license is required under
this chapter. All business of the licensee shall be conducted in the
name of and under the control of the licensee.

(i)  begin delete No licensee end delete begin insert A licensee end insert acting as an independent automobile
damage appraiser or adjuster or as an automobile insurance claims
adjuster, begin delete appraiser end delete begin insert appraiser, end insert or representative shall begin insert not end insert receive
any financial benefit from an automobile repair facility. “Financial
benefit” means the receiving of any commission or gratuity,
discount on repair costs, free repairs, employment by a repair
facility, or possession of more than 3 percent direct ownership in
an automobile repair facility located in this state.

SEC. 26.  

Section 14039 of the Insurance Code is amended to
read:

14039.  

begin delete No end delete begin insert A end insert person licensed as an begin insert independent end insert insurance
adjuster shall begin insert not end insert do any of the following:

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

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

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

SEC. 27.  

Section 14040 of the Insurance Code is amended to
read:

14040.  

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

SEC. 28.  

Section 14042 of the Insurance Code is amended to
read:

14042.  

begin delete No licensee shall end delete begin insert (a) end insert begin insert   end insert begin insert A licensee shall not end insert conduct a
business under a fictitious or other business name unless and until
he or she has obtained the written authorization of the
commissioner to do so.

begin delete

The

end delete

begin insert (b) end insert begin insert   end insert begin insert The end insert commissioner shall not authorize the use of a fictitious
or other business name begin delete which end delete begin insert that end insert is so similar to that of a public
officer or agency or of that used by another licensee that the public
may be confused or misled thereby.

begin delete

The

end delete

begin insert (c) end insert begin insert   end insert begin insert The end insert authorization shall require, as a condition precedent to
the use of any fictitious name, that the licensee comply with Section
begin delete 1724.5 of this code and Chapter 5 (commencing with Section
17900) of Part 3 of Division 7 of the Business and Professions
Code. end delete begin insert 1724.5. end insert

begin delete

A

end delete

begin insert (d) end insert begin insert   end insert begin insert A end insert licensee desiring to conduct his or her business under more
than one fictitious business name shall obtain the authorization of
the commissioner in the manner prescribed in this section for the
use of begin delete each such end delete begin insert that end insert name.

begin delete

The

end delete

begin insert (e) end insert begin insert   end insert begin insert The end insert licensee shall pay a fee of ten dollars ($10) for each
authorization to use an additional fictitious business name and for
each change in the use of a fictitious business name. If the original
license is issued in a nonfictitious name and authorization is
requested to have the license reissued in a fictitious business name,
the licensee shall pay a fee of twelve dollars ($12) for begin delete such end delete begin insert that end insert
authorization.

SEC. 29.  

Section 14061 of the Insurance Code is amended to
read:

14061.  

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

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

(b) Violated any provisions of this chapter.

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

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

(e) Impersonated, or permitted or aided and abetted an employee
to begin delete impersonate end delete begin insert impersonate, end insert a law enforcement officer or employee
of the United States of America, or of any state or political
subdivision thereof.

(f) Committed or permitted any employee to commit any act,
while the license was expired begin delete which end delete begin insert that end insert would be cause for the
suspension or revocation of a license, or grounds for the denial of
an application for a license.

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

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

(i) Knowingly begin delete violated, end delete begin insert violated end insert or advised, encouraged, or
assisted the violation of any court order or injunction in the course
of business as a licensee.

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

(k) Committed any act begin delete which end delete begin insert that end insert is a ground for denial of an
application for license under this chapter.

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

SEC. 30.  

Section 14063 of the Insurance Code is amended to
read:

14063.  

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

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

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

SEC. 31.  

Section 14064 of the Insurance Code is amended to
read:

14064.  

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

begin delete

“Dishonesty

end delete

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

begin delete

(a)

end delete

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

begin delete

(b)

end delete

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

begin delete

(c)

end delete

begin insert (3) end insert  Manufacture of evidence.

begin delete

(d)

end delete

begin insert (4) end insert  Acceptance of employment adverse to a client or former
client relating to a matter with respect to which the licensee has
obtained confidential information by reason of or in the course of
his or her employment by begin delete such end delete begin insert that end insert client or former client.

begin delete

(e)

end delete

begin insert (5) end insert  Impersonating, or permitting or aiding and abetting an
employee to begin delete impersonate end delete begin insert impersonate, end insert a law enforcement officer
or employee of the United States of America, or of any state or
political subdivision thereof.

SEC. 32.  

Section 14078 of the Insurance Code is repealed.

begin delete

14078.  

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

end delete

SEC. 33.  

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

14078.  

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

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

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

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

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

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

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

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

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

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

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

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

SEC. 34.  

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

14079.  

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

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

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

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

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

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

SEC. 35.  

Section 14080 of the Insurance Code is amended to
read:

14080.  

Any person who knowingly falsifies the fingerprints
or photographs submitted under begin insert paragraph (7) of end insert subdivision begin delete (f) end delete
begin insert (a) end insert of Section 14024 begin insert or paragraph (8) of subdivision (c) of Section
14025.1 end insert is guilty of a felony. Any person who violates any of the
other provisions of this chapter is guilty of a misdemeanor
punishable by fine not to exceed five hundred dollars ($500), or
by imprisonment in the county jail not to exceed one year, or by
both begin delete such end delete begin insert the end insert fine and imprisonment.

SEC. 36.  

Section 14090.1 of the Insurance Code is amended
to read:

14090.1.  

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

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

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

(2) A licensee holding a nonresident begin insert independent end insert insurance
adjuster license who has met the continuing education requirements
of his or her designated begin delete resident end delete begin insert home end insert state.

(3) An individual licensed as an begin insert independent end insert insurance adjuster
and as a property or casualty broker-agent, pursuant to Section
1625, who has met the continuing education requirements specified
in Section 1749.3.

begin insert

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

end insert

SEC. 37.  

Section 14097 of the Insurance Code is amended to
read:

14097.  

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

(a) The application fee begin insert for the qualifying examination end insert for an
original license is twenty-nine dollars ($29).

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

(c) The fee for an original license begin insert application end insert is an amount equal
to the renewal fee in effect on the last regular renewal date before
the date on which the license is issued, except that, if the license
will expire less than one year after its issuance, then the fee is an
amount equal to 50 percent of the renewal fee in effect on the last
regular renewal date before the date on which the license is issued.
The commissioner may, by appropriate regulation, provide for the
waiver or refund of the initial license fee where the license is issued
less than 45 days before the date on which it will expire.

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

(1) For a license as an begin insert independent end insert insurance adjuster, not more
than one hundred eighteen dollars ($118).

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

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

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

(g) The fee for reexamination of an applicant begin delete or his manager end delete is
twelve dollars ($12).

begin insert

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

end insert

SEC. 38.  

Section 14099 of the Insurance Code is amended to
read:

14099.  

Application or license begin delete fee end delete begin insert fees end insert shall not be refunded
begin delete except in accordance with Section 158 of the Business and
Professions Code. end delete begin insert pursuant to Section 1751.5. end insert

SEC. 39.  

Section 15001 of the Insurance Code is amended to
read:

15001.  

As used in this chapter begin insert the following terms have the
following meanings end insert :

(a) “Commissioner” means the Insurance Commissioner.

(b) “Department” means the Department of Insurance.

begin insert

(c) “Fingerprints” means an impression of the lines on the
finger taken for the purposes of identification

end insert begin insert

(d) “Home state” means the District of Columbia and any state
or territory of the United States in which the public insurance
adjuster’s principal place of residence or principal place of
business is located. If neither the state in which the public
insurance adjuster maintains the principal place of residence nor
the state in which the public insurance adjuster maintains the
principal place of business has a substantially similar law
governing public insurance adjusters, the public insurance adjuster
may declare another state in which it becomes licensed and acts
as a public insurance adjuster to be the “home state.”

end insert begin delete

(c)

end delete

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

begin delete

(d)

end delete

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

SEC. 40.  

Section 15007 of the Insurance Code is repealed.

begin delete

15007.  

A public insurance adjuster within the meaning of this
chapter is a person who, for compensation, acts on behalf of or
aids in any manner, an insured in negotiating for or effecting the
settlement of a claim or claims for loss or damage under any policy
of insurance covering real or personal property or any person who
advertises, solicits business, or holds himself or herself out to the
public as an adjuster of those claims and any person who, for
compensation, investigates, settles, adjusts, advises, or assists an
insured with reference to claims for those losses on behalf of any
public insurance adjuster.

end delete

SEC. 41.  

Section 15007 is added to the Insurance Code, to
read:

15007.  

“Public insurance adjuster,” for purposes of this chapter,
means any person who, for compensation or any other thing of
value on behalf of an insured, does any of the following:

(a) Acts or aids, solely in relation to first party claims arising
under insurance contracts that insure the real or personal property
of the insured, on behalf of an insured in negotiating for, or
effecting the settlement of, a claim for loss or damage coverage
by an insurance contract.

(b) Advertises for employment as a public adjuster of insurance
claims or solicits business or represents himself or herself to the
public as a public insurance adjuster of first party insurance claims
for losses or damages arising out of policies of insurance that insure
real or personal property.

(c) Directly or indirectly solicits business, investigates, or adjusts
losses, or advises an insured about first party claims for losses or
damages arising out of policies of insurance that insure real or
personal property for another person engaged in the business of
adjusting losses or damages covered by an insurance policy, for
the insured.

SEC. 42.  

Section 15008 of the Insurance Code is amended to
read:

15008.  

This chapter does not apply to begin insert any of the following end insert :

(a) An officer or employee of the United States of begin delete America end delete
begin insert America, end insert or of the state or of a political subdivision thereof while
the officer or employee is engaged in the performance of his or
her official duties.

(b) A charitable philanthropic society duly incorporated under
the laws of this state begin delete which end delete begin insert that end insert is organized and maintained for
the public good and not for private profit.

(c) An attorney at law in performing his or her duties as an
attorney at law.

(d) Admitted insurers, agents, and insurance brokers licensed
by the state performing duties in connection with insurance
transactions by them.

(e) The legal owner of personal property begin delete which end delete begin insert that end insert has been
sold under a conditional sales agreement or a mortgagee under the
terms of a chattel mortgage.

(f) Any salaried office employee who performs exclusively
clerical and administrative duties attendant to the disposition of
the business regulated by this chapter.

(g) Photographers, estimators, appraisers, engineers, and
arbitrators, who are employed exclusively by a public insurance
adjuster for the purpose of furnishing technical assistance to a
licensed public insurance adjuster.

(h) A private investigator licensed pursuant to Chapter begin delete 11.5 end delete
begin insert 11.3 end insert (commencing with Section 7512) of Division 3 of the Business
and Professions Code while acting within the scope of that license.

begin insert

(i) A person who negotiates or settles claims arising under a
life or health insurance policy or an annuity contract.

end insert begin insert

(j) A licensed health care provider, or employee of a licensed
health care provider, who prepares or files a health claim form
on behalf of a patient.

end insert begin insert

(k) A person who settles subrogation claims between insurers.

end insert

SEC. 43.  

Section 15009.1 is added to the Insurance Code, to
read:

15009.1.  

(a) The applicant shall complete a 20-hour
prelicensing course of study for the lines of authority for a public
insurance adjuster license.

(b) An applicant who resides in another state that does not
license public insurance adjusters is eligible to designate California
as his or her home state. He or she is required to complete the
prelicensing education, pass the public insurance adjuster
examination, and meet the license application requirements before
a license can be issued.

(c) An applicant licensed as a public insurance adjuster in
another state is exempt from completing a prelicensing education
course to apply for a California public insurance adjuster license
if, at the time of application, the applicant’s out-of-state license is
current or was canceled within 90 calendar days. The applicant is
required to be a licensee in good standing in his or her home state.

SEC. 44.  

Section 15010 of the Insurance Code is amended to
read:

15010.  

An application shall be verified and shall include all
of the following:

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

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

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

(d) A statement as to the begin delete classification or end delete classifications under
which the applicant desires to be qualified.

(e) If the applicant is a person other than an individual, the full
name and resident address of each of its partners, officers, and
directors.

(f) Two recent photographs of the applicant, of begin delete the end delete begin insert a end insert type
prescribed by the commissioner, and begin delete two end delete begin insert one end insert classifiable begin delete sets end delete begin insert set end insert
of his or her begin delete fingerprints. end delete begin insert fingerprints, to be sent to a live scan
fingerprint provider as directed by the department, if fingerprints
are not submitted in person with a live scan fingerprinting service
provider certified by the Department of Justice. end insert

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

(h)  begin delete Such other end delete begin insert Other end insert information, evidence, begin delete statements end delete
begin insert statements, end insert or documents as may be required by the commissioner.

SEC. 45.  

Section 15011 of the Insurance Code is amended to
read:

15011.  

Before an application for a license is granted, the
applicant shall meet all of the following begin insert requirements end insert :

(a) Be at least 18 years of age.

(b) Be a bona fide resident of the State of California.

(c)  begin delete Must be end delete begin insert Be end insert of good character and shall not have committed
acts or crimes constituting grounds for denial of licensure under
Section 1668 or 1669.

(d) Shall have had sufficient experience, or special education
or training, or both, in the handling of loss claims under insurance
contracts as determined by regulations adopted by the
commissioner, and begin delete is end delete begin insert be end insert competent to transact business and
discharge the responsibilities of a public insurance adjuster in begin delete such end delete
a manner as to safeguard the interests of the public.

(e)  begin delete Must maintain end delete begin insert Maintain end insert an office in the State of California
with public access during regular business hours.

(f) Pass an exam given by the commissioner in regard to
property loss adjusting.

(g) Post a surety bond executed by a surety company authorized
to do business in this state in the sum of twenty thousand dollars
($20,000).

begin insert

(h) For an organization applicant, designate a licensed
individual public insurance adjuster to be responsible for the
organization’s compliance with the insurance laws, rules, and
regulations of this state.

end insert begin insert

(i) For an organization applicant, authorize only licensed
individual public insurance adjusters to exercise authority under
the organization’s license.

end insert begin delete

(h)

end delete

begin insert (j) end insert  Comply with any other qualifications as required by the
commissioner.

SEC. 46.  

Section 15013 of the Insurance Code is amended to
read:

15013.  

Each applicant for a license as a public insurance
begin delete adjuster, except as provided in Section 15014, end delete begin insert adjuster end insert shall, prior
to issuance of the license, personally take and pass, to the
satisfaction of the commissioner, an examination given by the
department as follows:

(a) The examination shall be prescribed by the commissioner
and shall be of sufficient scope begin insert to end insert reasonably begin delete to end delete test the applicant’s
begin delete knowlege end delete begin insert knowledge end insert , among other things, of basic insurance
theory, essential elements of contracts, technical competence in
the handling of the various lines for which the applicant is being
tested, claims ethics and knowledge of the Unfair begin delete Claims end delete Practices
Act, and the duties and responsibilities of public insurance adjusters
under the law.

(b)  begin delete Such end delete begin insert The end insert examination shall be given to applicants under the
supervision of the begin delete department of this state, end delete begin insert department or the
department’s examination contractor end insert and shall be in written form.

(c) The commissioner shall, within a reasonable period of time,
not to exceed 30 days, transmit the results of the examination and
action taken on the application to the applicant.

(d) In the event an begin delete applicant, end delete begin insert applicant end insert who is otherwise
begin delete qualified, end delete begin insert qualified end insert fails the examination, the commissioner may
administer a begin delete reexamination, end delete begin insert reexamination end insert after a waiting period
not to exceed six months.

(e) The examination shall be given at those times and places
within the state as the commissioner deems reasonably necessary
to serve the convenience of the department and applicants.

SEC. 47.  

Section 15015 of the Insurance Code is repealed.

begin delete

15015.  

Payment of the application fee prescribed by this chapter
entitles the applicant to one examination without further charge.
If the person fails to pass the examination, he or she shall not be
eligible for any subsequent examination except upon payment of
the reexamination fee prescribed by this chapter for each
subsequent examination.

end delete

SEC. 48.  

Section 15016 of the Insurance Code is repealed.

begin delete

15016.  

(a) The commissioner shall issue an interim license to
all qualified individuals for the purpose of training so long as the
persons meet all of the following requirements:

(1) Are employed and under the direct supervision of a person
licensed under the provisions of this chapter.

(2) Qualify under the applicable provisions of Section 15011.

(3) Pay a license fee of one hundred dollars ($100).

(4) Comply with any other qualifications required by the
commissioner.

(b) An interim license may be issued for a period not to exceed
one year and may not be renewed.

end delete

SEC. 49.  

Section 15016 is added to the Insurance Code, to
read:

15016.  

(a) The apprentice public insurance adjuster license is
a license to facilitate the training necessary to ensure reasonable
competency to fulfill the responsibilities of a public insurance
adjuster as defined in Section 15007.

(b) The apprentice public insurance adjuster license is subject
to the following terms and conditions:

(1) The applicant shall submit, with an application for an initial
apprentice public insurance adjuster license, an attestation or
certification from a licensed public insurance adjuster assuming
responsibility for all actions of that applicant.

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

(3) The applicant is required to qualify under the applicable
provisions of Section 15011.

(4) The applicant is required to pay a license fee of one hundred
dollars ($100).

(5) The applicant is required to comply with any other
qualifications required by the commissioner.

(6) The apprentice public insurance adjuster shall not be required
to take and successfully complete the prescribed public insurance
adjuster examination.

(7) The licensee shall at all times be an employee of a public
insurance adjuster and be subject to training, direction, and control
by a licensed public insurance adjuster.

(8) The apprentice public insurance adjuster license is for a
period not to exceed 12 months, and the license shall not be
renewed.

(9) The licensee is restricted to participation in factual
investigation, tentative closing, and solicitation of losses subject
to the review and final determination of a licensed public insurance
adjuster.

(10) Compensation of an apprentice public insurance adjuster
shall only be on a salaried or hourly basis.

(11) The licensee shall be subject to suspension, revocation, or
conditions in accordance with Section 1668.

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

SEC. 50.  

Section 15017 of the Insurance Code is amended to
read:

15017.  

begin insert (a) end insert begin insert   end insert A nonresident license shall be issued by the
commissioner to qualified persons who meet the requirements of
this chapter as set forth in subdivisions (a), (c), (d), (e), (f), (g),
and begin delete (h) end delete begin insert (j) end insert of Section begin delete 15011 end delete begin insert 15011, end insert and who have appointed the
commissioner as an agent for service of process in this state.

begin insert

(b) Unless denied licensure pursuant to Sections 15018, 15018.5,
and 15019, a nonresident person shall receive a nonresident public
insurance adjuster license if all of the following apply:

end insert begin insert

(1) The person is currently licensed in good standing as a public
insurance adjuster in his or her home state.

end insert begin insert

(2) The person has paid the fees required by Section 15060.

end insert begin insert

(3) The person has provided proof of financial responsibility
as required by Section 15033.

end insert begin insert

(4) The individual has submitted to the commissioner the
completed application for licensure.

end insert begin insert

(5) The person’s home state awards nonresident public
insurance adjuster licenses to residents of California on the same
basis.

end insert

SEC. 51.  

Section 15020 of the Insurance Code is amended to
read:

15020.  

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

SEC. 52.  

Section 15027 of the Insurance Code is amended to
read:

15027.  

(a)  begin delete No end delete begin insert A end insert licensee shall begin insert not end insert , directly or indirectly, act
within this state as a public insurance adjuster without having first
entered into a contract, in writing, on a form approved by the
insurance commissioner and executed in duplicate by the public
adjuster and the insured or a duly authorized representative. One
original contract shall be kept on file by the licensee, available at
all times for inspection, without notice, by the commissioner or
his or her duly authorized representative, and one original contract
shall be given to the insured.

(b) The written contract between the licensee and the insured
shall contain each of the following:

(1) Title of “Public Adjuster Contract.”

(2) The name, business name, license number, telephone
number, and address of the licensee.

(3) The name and address of the insured.

(4) A description of the loss and its location, if applicable.

(5) The name of the insurer and the policy number, if known.

(6) The full salary, fee, commission, or other consideration the
licensee is to receive for services under the contract.

begin insert

(7) The following statement: “No public adjuster shall charge
a fee, commission, or other valuable consideration based, in whole
or in part, on any amount paid to the insured by the insurer prior
to the date of the written contract between the insured and the
public adjuster.”

end insert begin delete

(7)

end delete

begin insert (8) end insert  A description of the services to be provided to the insured.

begin delete

(8)

end delete

begin insert (9) end insert  Signatures of the licensee and the insured.

begin delete

(9)

end delete

begin insert (10) end insert  The date the contract was signed by the licensee and the
date the contract was signed by the insured.

begin delete

(10)

end delete

begin insert (11) end insert  The following statement: “As a public adjuster, I am
required by the California Insurance Code to post a surety bond
in the sum of $20,000 to cover certain kinds of claims made by
you, the insured. If you have any questions concerning the surety
bond, you may contact the California Department of Insurance
Producer Licensing Call Center at 1-800-967-9331 or
www.insurance.ca.gov.”

begin delete

(11)

end delete

begin insert (12) end insert  A statement of the compensation to the licensee, including
the percentage and base to which the percentage applies.

begin delete

(12)

end delete

begin insert (13) end insert  A statement that the insured has the right to rescind the
contract within begin delete three business end delete begin insert seven calendar end insert days of signing it.

(c) A contract covered by this section shall not contain a contract
term that does any of the following:

(1) Allows the licensee’s fee to be collected when money is due
from an insurer, but not paid, or allows a licensee to collect the
entire fee from the first payment issued by an insurer, rather than
as a percentage of each payment issued by an insurer.

(2) Requires the insured to authorize an insurer to issue a
payment only in the name of the licensee.

(3) Imposes late fees or collection costs on the insured.

(d)  begin delete No end delete begin insert A end insert licensee shall begin insert not end insert solicit or attempt to solicit a client
for employment during begin delete the progress of end delete a loss-producing occurrence.
begin insert A loss-producing occurrence continues to exist under any of the
following conditions: end insert

begin insert

(1) Any of the circumstances that caused the loss are present.

end insert begin insert

(2) Emergency responders are present.

end insert begin insert

(3) An evacuation order is still in effect.

end insert

(e)  begin delete No end delete begin insert A end insert licensee or any other person or entity offering, for a
fee, service regulated by this chapter shall begin insert not end insert solicit a begin delete client end delete
begin insert policyholder end insert for employment or initiate any contact with a
policyholder between the hours of 6 p.m. and 8 a.m.

(f)  begin delete No end delete begin insert A end insert licensee shall begin insert not end insert use any form of contract other than
that approved by the commissioner and begin delete which end delete begin insert that end insert contains each
of the following:

(1) A provision allowing the client to rescind the contract by
written notice sent or delivered by certified mail, return receipt
requested, or other form of mailing begin delete which end delete begin insert that end insert provides proof of
mailing, to the licensee by midnight of the begin delete third business end delete begin insert seventh
calendar end insert day after the day on which the client signs a contract
begin delete which end delete begin insert that end insert complies with this section. Each copy of the contract
shall contain a completed form, captioned “Notice of Cancellation,”
begin delete which end delete begin insert that end insert shall be placed at the end of the contract and be
separated from the remainder of the contract by a printed line.
Nothing shall be printed on the reverse side of the notice form.
The notice form shall be completed by the licensee, and shall
contain in type of at least 10-point the following statement written
in the same language, e.g., Spanish, as used in the contract:

Notice of Cancellation

 

	(Date of Contract)

 

You may cancel this contract within begin delete three business end delete begin insert seven
calendar end insert days from the above date without any penalty or
obligation to pay your public adjuster, other than for reimbursement
of moneys paid by your public adjuster for out-of-pocket
emergency expenses for you or on your behalf. If your public
adjuster seeks reimbursement from you for out-of-pocket
emergency expenses, your public adjuster shall provide you with
an itemized statement of those emergency expenses advanced to
you or on your behalf if the cancellation is made within the first
begin delete three business end delete begin insert seven calendar end insert days after the contract was initiated.
Nothing in this contract permits your public adjuster to recover
any costs, except for out-of-pocket emergency expenses advanced
to you.

If you cancel, any money or other consideration paid by you will
be returned within five business days following the receipt of your
cancellation notice, and any security interest arising out of the
transaction will be canceled.

To cancel this contract, mail or deliver by certified mail, return
receipt requested, or other form of mailing begin delete which end delete begin insert that end insert provides
proof of mailing, a signed and dated copy of this cancellation
notice, or any other written notice, or send a telegram to:

 

(name of public adjuster)
at
(address of public adjuster’s place of business)
not later than midnight of
	(Date)
I hereby cancel this contract
	(Date)
(Client’s signature)

 

(2) The statement “WE REPRESENT THE INSURED ONLY”
prominently displayed in at least 10-point type.

(3) A provision disclosing the percentage of the insured’s claim,
or other fee, that the licensee will charge for his or her services.
The licensee shall obtain the initials of the insured next to this
provision.

(4) A conspicuous statement in at least 10-point type in
immediate proximity to the space reserved for the client’s signature,
as follows: “You may cancel this contract at any time before
midnight of the begin delete third business end delete begin insert seventh calendar end insert day after the date
of this contract. See the notice of cancellation form at the end of
this contract for an explanation of this right.”

(g)  begin delete No end delete begin insert A end insert licensee shall begin insert not end insert knowingly make any false report to
his or her employer or divulge to any other person, except as he
or she may be required by law to do so, any information acquired
by him or her except at the direction of the employer or a client
for whom the information is obtained.

(h)  begin delete No end delete begin insert A end insert licensee shall begin insert not end insert use a badge in connection with the
official activities of the licensee’s business.

(i)  begin delete No end delete begin insert A end insert licensee shall begin insert not end insert permit an employee or agent in his
or her own name to advertise, engage clients, furnish reports, or
present bills to clients, or in any manner whatever to conduct
business for which a license is required under this chapter.

(j) Pursuant to subdivisions (a) and (c) of Section 15006, the
commissioner shall have the authority to enforce the provisions
of this chapter and prosecute violations thereunder committed by
unlicensed persons or entities that hold themselves out or act as
public insurance adjusters.

(k) For purposes of this section, “business day” shall have the
same meaning given to that term in subdivision (e) of Section
1689.5 of the Civil Code, as in effect on the operative date of this
statute.

(l) The contract and the notice of cancellation set forth in
paragraph (1) of subdivision (f) shall be written in the same
language, e.g., Spanish, as principally used in the negotiation of
the contract.

(m) Within five business days after a contract has been canceled,
the licensee shall tender to the client any payments made by the
client and any note or other evidence of indebtedness, including
an itemized statement of all amounts tendered to the client.

(n) The licensee is not entitled to compensation for services
performed prior to cancellation, other than for reimbursement of
moneys paid by the licensee for out-of-pocket emergency expenses
for the client or on behalf of the client. If the licensee seeks
reimbursement from the client for out-of-pocket emergency
expenses, and if the cancellation is made within the first begin delete three
business end delete begin insert seven calendar end insert days after the contract was initiated, the
licensee shall provide the client with an itemized statement of those
emergency expenses advanced to the client or on behalf of the
client by the licensee. Nothing in this subdivision shall permit the
licensee to recover any costs, except for out-of-pocket emergency
expenses advanced to the client. Any security interest shall be
canceled upon cancellation of the contract.

(o) Notice of cancellation given by the client need not take the
particular form specified in paragraph (1) of subdivision (f). Notice
of cancellation, however expressed, is effective if it indicates the
intention of the client not to be bound by the contract.

(p) Cancellation occurs when the client gives written notice of
cancellation by certified mail, return receipt requested, or other
form of mailing begin delete which end delete begin insert that end insert provides proof of mailing, to the
licensee at the address specified in the contract.

(q) Notice of cancellation, if given by mail, is effective when
sent by certified mail, return receipt requested, or other form of
mailing begin delete which end delete begin insert that end insert provides proof of mailing, properly addressed
with postage prepaid.

(r) Until the licensee has complied with this section, the client
may cancel the contract.

(s) The contracts shall be executed in duplicate. The licensee
shall retain one original contract, and shall provide the insured
with an original contract.

(t) The licensee shall provide the client with an original contract
and notice of cancellation at the time the client signs the contract.

(u) Any confession of judgment or waiver of the provisions of
this chapter shall be deemed contrary to public policy and shall be
void and unenforceable.

(v) Prior to the signing of the contract, the licensee shall provide
the insured with a separate printed disclosure document in the
following form that bears the name and license number of the
licensee:

“DISCLOSURE

There are three types of insurance adjusters that could be
involved in the processing of your insurance claim. The definitions
of the three types are as follows:

(1) Public adjusters means the insurance adjusters who do not
work for your insurance company. They work for you, the insured,
to assist in the preparation, presentation, and settlement of your
claim. You hire them by signing a contract and agreeing to pay
them a fee or commission based on a percentage of the settlement,
or other method of compensation. Public adjusters are required to
be licensed, bonded, and tested by the State of California to
represent your interest only.

(2) Company adjusters means the insurance adjusters who are
employees of your insurance company. They represent your
insurance company and are paid by your insurance company. They
will not charge you a fee and are not individually licensed or tested
by the State of California.

(3) Independent adjusters means the insurance adjusters who
are hired on a contract basis by your insurance company to
represent the company in the settlement of the claim. They are
paid by your insurance company. They will not charge you a fee.

You have the right, but are not required, to use the services of
a public adjuster in the preparation and handling of your insurance
claim.

Public adjusters cannot solicit your business while the loss is
underway, or between the hours of 6 p.m. and 8 a.m.

Your “Public Adjuster Contract,” with a public adjuster
representing you, should clearly indicate the amount of the fee you
will be paying to your public adjuster. Your contract, with this fee
percentage, should be acknowledged by your initials on the “Public
Adjuster Contract.” The salary, fee, commission, or other
consideration is to be paid by you (the insured), not the insurance
company (insurer).

You have the right to cancel the contract with your public
adjuster, without any penalty or obligation, within begin delete three business end delete
begin insert seven calendar end insert days from the date the contract is signed.

If you cancel the contract with your public adjuster, any money
or other consideration paid by you will be returned within five
business days following the receipt of your cancellation notice,
and any security interest arising out of the transaction will be
canceled.

To cancel the contract with your public adjuster, mail or deliver
by certified mail, return receipt requested, or other form of mailing
begin delete which end delete begin insert that end insert provides proof of mailing, a signed and dated copy of
the cancellation notice, or any other written notice, or send a
telegram to the public adjuster at the address in the contract.

You have the right to, and may, communicate with your
insurance company at any time if you feel the need during the
claims process.

If you have any concerns or questions, the officers at the
California Department of Insurance Consumer Hotline are there
to help you. Please call them at 1-800-927-HELP (4357), or
www.insurance.ca.gov.”

(w) No later than begin delete three business end delete begin insert seven calendar end insert days after the
cancellation has expired, the public adjuster shall notify the insurer,
its adjuster, or its attorney, that he or she has entered into a written
contract with the insured.

(x) If the licensee misrepresents or conceals a material fact from
the insured prior to execution of the contract, the insured is entitled
to rescind the contract without time limit.

SEC. 53.  

Section 15027.1 of the Insurance Code is amended
to read:

15027.1.  

(a)  begin delete Notwithstanding end delete begin insert In addition to the restrictions
in end insert subdivision (e) of Section 15027, a licensee shall not solicit a
contract of engagement for residential properties under this chapter
until seven calendar days have elapsed begin delete after the occurrence of a
disaster. end delete begin insert from the conclusion of a loss-producing occurrence as
defined in subdivision (d) of Section 15027. end insert

(b) Subdivision (a) shall not apply if the licensee is contacted
directly by the insured or the insured’s representative.

begin delete

(c) For the purposes of this section, “disaster” means a
loss-producing event that damages or destroys more than 25
dwellings, or a “disaster” as that term is defined in subdivision (b)
of Section 1689.14 of the Civil Code.

end delete

SEC. 54.  

Section 15031 of the Insurance Code is amended to
read:

15031.  

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

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

(c) The authorization shall require, as a condition precedent to
the use of a fictitious name, that the licensee comply with Section
begin delete 1724.5 of this code and Chapter 5 (commencing with Section
17900) of Part 3 of Division 7 of the Business and Professions
Code. end delete begin insert 1724.5. end insert

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

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

SEC. 55.  

Section 15036 of the Insurance Code is amended to
read:

15036.  

In lieu of the surety bond required by this chapter there
may be deposited with the State of California the sum of twenty
thousand dollars ($20,000) in cash, or evidence of deposit of the
sum of twenty thousand dollars ($20,000) in banks authorized to
do business in this state and insured by the Federal Deposit
Insurance Corporation, or investment certificates or share accounts
in the amount of twenty thousand dollars ($20,000) issued by a
savings association doing business in this state and insured by the
Federal Deposit Insurance Corporation, or evidence of a certificate
of funds or share account of the sum of twenty thousand dollars
($20,000) in a credit union as defined in Section begin delete 14000 end delete begin insert 14002 end insert of
the Financial Code whose share deposits are guaranteed by the
National Credit Union Administration or guaranteed by any other
agency approved by the Department of begin delete Financial Institutions. end delete
begin insert Business Oversight. end insert

SEC. 56.  

Section 15053 of the Insurance Code is amended to
read:

15053.  

Any person who knowingly falsifies the fingerprints
or photographs submitted under subdivision (f) of Section 15010
begin insert or paragraph (12) of subdivision (b) of Section 15016 end insert is guilty of
a felony. Any person who violates any of the other provisions of
this chapter is guilty of a misdemeanor punishable by fine not to
exceed five hundred dollars ($500) or by imprisonment in the
county jail not to exceed one year, or by both that fine and
imprisonment.

SEC. 57.  

Section 15056 of the Insurance Code is amended to
read:

15056.  

begin insert (a) end insert begin insert   end insert Except as otherwise provided in this article, an
expired license or branch office certificate may be renewed at any
time within one year after its expiration on the filing of an
application for renewal on a form prescribed by the commissioner,
and the payment of a renewal fee in effect on the begin delete last preceding
regular end delete begin insert actual end insert renewal date. If the license or certificate is renewed
begin delete more than 30 days end delete after its expiration, the licensee, as a condition
precedent to renewal, shall also pay the delinquency fee prescribed
by this chapter. Renewal under this section shall be effective on
the date on which the application is filed, on the date on which the
renewal fee is paid, or on the date on which the delinquency fee,
if any, is paid, whichever begin delete last end delete occurs begin insert last end insert . If so renewed, the license
or certificate shall continue in effect through the date provided in
Section begin delete 15044 which end delete begin insert 15054 that end insert next occurs after the effective
date of the renewal, when it shall expire if it is not again renewed.

begin delete

Renewal

end delete

begin insert (b) end insert begin insert   end insert begin insert Renewal end insert of a license or certificate begin delete shall end delete begin insert does end insert not prohibit
the bringing of disciplinary proceedings for an act committed
before the effective date of the renewal.

SEC. 58.  

Section 15060 of the Insurance Code is amended to
read:

15060.  

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

(a) The application fee begin insert for the qualifying examination end insert for an
original license is twenty-five dollars ($25).

(b) The application fee for an original branch office certificate
is fifteen dollars ($15).

(c) The fee for an original license begin insert application end insert in the amount
equal to the renewal fee in effect on the last regular renewal date
before the date on which the license is issued, except that, if the
license will expire less than one year after its issuance, then the
fee is an amount equal to 50 percent of the renewal fee in effect
on the last regular renewal date before the date on which the license
is issued. begin delete The commissioner may, by appropriate regulation,
provide for the waiver or refund of the original licensee fee where
the license is issued less than 45 days before the date on which it
will expire. end delete

(d) The renewal fee shall be fixed by the commissioner as
follows: begin delete (1) for a license as a public insurance adjuster, not more
than one hundred dollars ($100) (2) for a branch office certificate,
not more than twenty dollars ($20). end delete

begin insert

(1) For a license as a public insurance adjuster, not more than
one hundred dollars ($100).

end insert begin insert

(2) For a branch office certificate, not more than twenty dollars
($20).

end insert

(e) The application and license fee for applications prescribed
by the commissioner, in addition to those in this chapter, and the
application and license fee for a change in the type of business
organization of the licensee, shall be in the amount prescribed by
rule and regulation of the commissioner.

(f) The delinquency fee shall be 50 percent of the renewal fee
in effect on the date of begin delete expiration, but not more than twenty-five
dollars ($25). end delete begin insert expiration. end insert

(g) The fee for reexamination of an applicant is ten dollars ($10).

SEC. 59.  

Section 15062 of the Insurance Code is amended to
read:

15062.  

Application or license begin delete fee end delete begin insert fees end insert shall not be refunded
begin delete except in accordance with Section 158 of the Business and
Professions Code. end delete begin insert pursuant to Section 1751.5. end insert

SEC. 60.  

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