The latest draft version of the NAIC’s Public Adjuster Licensing Model Act contains new language that is onerous for independent insurance agencies. Specifically, the latest version of the model contains new subsection C of Section 3, which states:

“A business entity acting as an insurance producer
is required to obtain a public adjuster license (italics added).”

To combat this newly proposed language, PIA attended the NAIC’s Producer Licensing Working Group meeting on Sunday, November 7th in Kansas City. While this issue was not part of the agenda for the meeting, PIA was able to discuss this troubling section with Jack Chaskey and Gene Reed, the Co-Chairs of the Working Group from New York and Delaware, respectively. PIA was assured that the intent of the section was to require business entities acting as public adjusters, not insurance producers, to obtain a public adjuster license.

What It Means to Agents:  This change is imperative to avoid mandatory public adjuster licensing for PIA members who sometimes perform claims services for their carriers at the carriers’ direction. PIA will submit a language proposal to the Working Group that will clarify the Working Group’s intent and remove all reference to insurance producers being required to obtain public adjuster licenses.

November 9, 2004