Article 3 - Regulation, Licensing, and Registration

California Insurance Code — §§ 15006-15032

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Sections (32)

Amended by Stats. 2004, Ch. 600, Sec. 1. Effective January 1, 2005.

(a)No person shall 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 under this chapter. Any person who violates this subdivision shall, in addition to any other penalties provided by law, be liable to the state for a civil penalty in an amount not exceeding ten thousand dollars ($10,000), or if that violation is willful, in an amount not exceeding twenty-five thousand dollars ($25,000). The penalty shall be assessed and recovered in a civil action brought by the commissioner in a court of competent jurisdiction in the name of the people of the State of California.

(b)Any contract for services regulated by this chapter that is entered into by an insured with any person who is in violation of subdivision (a) may be voided at the option of the insured, and the insured shall not be liable for the payment of any past services rendered, or future services to be rendered, by that person under that contract or otherwise.

(c)Whenever it appears to the commissioner that any person is engaging in acts or practices in violation of subdivision (a), the commissioner may, without any requirement of notice or hearing, issue and cause to be served upon that person an order requiring that person to cease and desist immediately from engaging further in those acts or practices.

(d)Any person who fails to comply fully with an order of the commissioner issued under subdivision (c) shall be liable to the state for a civil penalty in an amount not exceeding one hundred dollars ($100) per day for each and every day that the violation or failure to comply continues, but in no event to exceed a maximum amount of five thousand dollars ($5,000). The commissioner shall collect the amount so payable and may bring an action in a court of competent jurisdiction in the name of the people of the State of California to enforce collection. This penalty is in addition to any other penalties provided by law.

(e)The powers vested in the commissioner by this section are in addition to any and all other powers and remedies vested in the commissioner by law, and nothing herein shall be construed as requiring the commissioner to employ the powers conferred in this section instead of or as a condition precedent to the exercise of any other power or remedy vested in the commissioner.

§ 15007

Added by Stats. 1985, Ch. 1202, Sec. 1.

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.

§ 15008

Amended by Stats. 2016, Ch. 833, Sec. 5. (SB 488) Effective January 1, 2017.

This chapter does not apply to any of the following:

(a)An attorney at law admitted to practice in this state, when performing his or her duties as an attorney at law.

(b)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.

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

(d)A person who settles subrogation claims between

insurers.

§ 15009

Added by Stats. 1985, Ch. 1202, Sec. 1.

An application for a license under this chapter shall be on a form prescribed by the commissioner and accompanied by the application fee provided by this chapter. Every applicant for a license under this chapter shall comply with the provisions of Section 1703.

§ 15009.1

Added by Stats. 2016, Ch. 833, Sec. 6. (SB 488) Effective January 1, 2017.

(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.

§ 15010

Amended by Stats. 2016, Ch. 833, Sec. 7. (SB 488) Effective January 1, 2017.

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

(e)Two photographs, not older than six months, 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.

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

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

§ 15011

Amended by Stats. 2016, Ch. 833, Sec. 8. (SB 488) Effective January 1, 2017.

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

(a)Be at least 18 years of age.

(b)Shall not have committed acts or crimes constituting grounds for denial of licensure under Section 1668 or 1669.

(c)Shall have at least two years’ experience in the handling of loss claims under insurance contracts as determined by regulations adopted by the commissioner, and be competent to transact business and discharge the responsibilities of a public insurance adjuster in a manner as to safeguard the interests of the public. A person who has been licensed as an apprentice

public insurance adjuster, as set forth in Section 15016, for 12 full months, shall be considered to have met the two-year experience requirement.

(d)Maintain an office in the State of California with public access during regular business hours.

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

(f)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).

(g)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.

(h)For an

organization applicant, authorize only licensed individual public insurance adjusters to exercise authority under the organization’s license.

(i)Comply with any requirement to file supplementary documents, affidavits, and statements as may be necessary to obtain a full disclosure of the information that will aid the commissioner in determining whether the prerequisites for the license have been met.

§ 15012

Added by Stats. 1985, Ch. 1202, Sec. 1.

The license issued by the commissioner shall include, but not be limited to, adjusting claims for fire and allied coverages, burglary, flood, and all property claims both real and personal, and loss of income.

§ 15013

Amended by Stats. 2016, Ch. 833, Sec. 9. (SB 488) Effective January 1, 2017.

Each applicant for a license as a public insurance adjuster 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 to reasonably test the applicant’s knowledge, 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 Practices Act, and the duties and responsibilities of public insurance adjusters under the law.

(b)The

examination shall be given to applicants under the supervision of the department or the department’s examination contractor 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 applicant who is otherwise qualified fails the examination, the commissioner may administer a reexamination.

(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.

§ 15016

Repealed and added by Stats. 2016, Ch. 833, Sec. 12. (SB 488) Effective January 1, 2017.

(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 subdivisions (a) and (b) 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 requirement to file supplementary documents, affidavits, and statements as may be necessary to obtain a full disclosure of the information that will aid the commissioner in determining whether the prerequisites for the license have been met.

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

(11)The applicant shall submit two photographs, not older than six months, 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.

(12)The apprentice public insurance adjuster shall complete the 20-hour prelicensing education course of study as defined in Section 15009.1 during the license period.

§ 15017

Amended by Stats. 2016, Ch. 833, Sec. 13. (SB 488) Effective January 1, 2017.

(a)A nonresident license shall be issued by the commissioner to qualified persons who meet the requirements set forth in Section 15011, and who have appointed the commissioner as an agent for service of process in this state.

(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:

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

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

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

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

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

§ 15018

Added by Stats. 1985, Ch. 1202, Sec. 1.

After a hearing, the commissioner may deny a license unless the applicant makes a showing satisfactory to the commissioner that the applicant has not:

(a)Committed any acts or crimes constituting grounds for denial of license under Section 1668.

(b)Been refused a license under this chapter or had a license revoked.

(c)While unlicensed, committed, aided or abetted the commission of any acts for which a license is required in this chapter.

(d)Been convicted of any crime or wrongdoings in connection with this license.

§ 15018.5

Added by Stats. 2005, Ch. 448, Sec. 13. Effective January 1, 2006.

The commissioner may, without hearing, deny an application if the applicant has committed any act or been convicted of a crime constituting grounds for denial of license under Section 1669.

§ 15019

Added by Stats. 1985, Ch. 1202, Sec. 1.

Whenever a hearing is held under this chapter to determine whether an applicant for a license should be granted or to determine the qualifications of a licensee, the proceeding 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 the powers granted therein.

§ 15020

Amended by Stats. 2016, Ch. 833, Sec. 14. (SB 488) Effective January 1, 2017.

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

§ 15021

Added by Stats. 1985, Ch. 1202, Sec. 1.

The license shall at all times be posted in a conspicuous place in the principal place of business of the licensee.

§ 15022

Added by Stats. 1985, Ch. 1202, Sec. 1.

Upon the issuance of a license, a pocket card of that size, design, and content as may be determined by the commissioner shall be issued without charge to each licensee.

§ 15023

Added by Stats. 1985, Ch. 1202, Sec. 1.

A license issued under this chapter is not assignable.

§ 15024

Added by Stats. 1985, Ch. 1202, Sec. 1.

Each licensee shall file with the commissioner the complete address of his or her principal place of business including the name and number of the street, or if the street where the business is located is not numbered, the number of the post office box. The commissioner may require the filing of other information for the purposes of indentifying that principal place of business.

§ 15025

Added by Stats. 1985, Ch. 1202, Sec. 1.

A licensee shall within 30 days of the change notify the department of any change of his or her address. The principal place of business may be at home or at a business address but it shall be the place at which the licensee maintains a permanent office.

§ 15026

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§ 15027

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§ 15027.1

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§ 15027.5

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§ 15028

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§ 15028.5

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