A CONCURRENT RESOLUTION
To create an advisory committee to study the feasibility of authorizing public adjusters to
charge consumers on a contingency fee basis for loss adjustment services.
WHEREAS, public adjusters are professional authorities on loss adjustments who
assist policyholders by analyzing damages, assembling claims support data, and reviewing
the policyholder's coverage for a full analysis and adjustment of a claim; and
The entire resolution appears attached to this posting.
The Senate has passed the Dodd-Frank financial services reform package that will have some impact on the insurance industry and add involvement by the federal government in the state-based insurance regulatory system.
The 2,300-page bill, which passed the Senate by a 60 to 39 margin yesterday, aims to address regulatory weaknesses blamed for the 2008 financial crisis. It gives regulators broad authority to rein in banks, limit risk-taking by financial firms and supervise previously unregulated trading. It also makes it easier to liquidate large, financially interconnected institutions, and it creates a new consumer protection bureau to guard against lending abuses.
The National Association of Surplus Lines Offices (NAPSLO) hailed the passage of the bill as a "big win," after several provisions were included to modernize the surplus lines industry.
Those changes would speed up and ease access to the surplus lines markets by consumers, and reduce administrative compliance issues by establishing that only the home state of the insurer can regulate multi-state transactions.
"These surplus lines reforms represent a nearly decade-long industry effort spearheaded by NAPSLO to modernize and reform surplus lines regulation. With the legislation now approved by Congress, we look to the states to implement its provisions in the way Congress intends and bring about, on a nationwide basis, the anticipated efficiencies in surplus lines regulation and tax payment mechanisms the legislation promises," NAPSLO President Marshall Kath said.
Ken A. Crerar, president of The Council of Insurance Agents & Brokers, echoed those statements, adding "passage of this bill is important not only for (agents) but also for their commercial clients… Now that multi-state surplus lines placements will be subject to regulatory oversight by a single state, a substantively streamlined process will be created for commercial consumers, regulators, insurers and brokers. This change will provide for a uniform approach to regulating the surplus lines market and once signed into law, will go a long way to addressing long-time marketplace problems."
The bill also establishes a federal office of insurance (FIO), which will increase the federal government's role in addressing insurance-related issues.
David A. Sampson, president and CEO of the Property Casualty Insurers Association of America (PCIAA), said that the final version of the bill contained a number of changes that would lessen the impact of federal oversight of the state-regulated insurance system, but also said "deep concern(s)" remained over the impact of the legislation.
"It is important to note that this is still only the midpoint for financial services reform. We have a long road ahead of us as we move into the rule development phase," Sampson said. "We look forward to working with regulators to preserve a strong and stable insurance marketplace to protect home, auto and business owners."
Leigh Ann Pusey, president and CEO of the American Insurance Association (AIA), said the completed bill "largely recognizes that property and casualty insurers do not pose systemic risk," which she called "a meaningful acknowledgment for the many policyholders that rely upon our low-risk business model to provide them security in times of uncertainty."
Pusey also said the bill "takes necessary steps to prevent insurers from being lumped into many of the new 'bank-focused' provisions. This, too, is a substantial recognition of the insurance business model."
President Obama is expected to sign the bill.
Allied Insurance, based in Des Moines, Iowa, announced new changes to its commercial quoting process that it says will allow independent agents to write business insurance quicker and easier. Among the new features:
* 25 percent - 45 percent of previously asked commercial application questions have been eliminated (depending on the specific business-owners-product program);
* Elimination of up to six supplemental applications;
* Addition of clearer questions to improve underwriting efficiency and turnaround times.
Allied Insurance President W. Kim Austen said the "changes reflect direct feedback from our agents, so we felt compelled to take steps that make Allied easier to do business with."
Allied Insurance has also recently announced significant product changes with expanded coverage options and is now offering coverage enhancement endorsements for a wide range of industries and products.
With a new application process for premier business owners and business auto, independent agents will be better equipped to meet their clients' needs with superior service and coverage from Allied, the company said.
Allied operates in 34 states through a network of independent agents with regional offices in Denver, Colo.; Des Moines, Iowa; Lincoln, Neb.; Gainesville, Fla; and Sacramento, Calif. Allied has been a member of the Nationwide family of companies since 1998, and is responsible for Nationwide's independent agency system.
Regardless of the state you are licensed to work, you need to know that many new laws are being "proposed" all across the nation where the Public Insurance Adjuster is licensed. We mention this to our members so that they can be made aware of what is happening and what you can do to get involved with your profession. AAPIA is your advocate on a national level - we monitor all state legislatures and regulations as they appear and immediately review and comment on the efficacy and impact it may have on your profession.
The Louisiana State Assembly recently passed a concurrent resolution calling for the creation of an Advisory Committee to study the Public Insurance Act. AAPIA President Gene G. Veno was appointed to serve on this advisory committee that must complete its report no later than February 1, 2011
2010 Bill Text LA H.B. 1475
VERSION-DATE: May 7, 2010
SYNOPSIS: AN ACT
To amend and reenact R.S. 22:1703(A), relative to public adjuster fees; to require public adjuster contracts to be in writing and signed by the parties; to authorize a public adjuster to charge a certain percentage fee for their services; and to provide for related matters.
The digest printed below was prepared by House Legislative Services. It
constitutes no part of the legislative instrument. The keyword, one-liner,
abstract, and digest do not constitute part of the law or proof or indicia of
legislative intent. [R.S. 1:13(B) and 24:177(E)]
Schroder
HB No. 1475
Abstract: Allows a public adjuster to charge a specific percentage fee.
Present law provides that a public adjuster may charge the insured a reasonable fee. Further, provides that a public adjuster cannot solicit for or enter into any contract or arrangement between an insured and a public adjuster that provides for payment of a fee to the public adjuster which is contingent upon, or calculated as a percentage of, the amount
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