2014 Indiana Code TITLE 27. INSURANCE ARTICLE 1. DEPARTMENT OF INSURANCE CHAPTER 28. INDEPENDENT ADJUSTER LICENSING
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IC 27-1-28
Chapter 28. Independent Adjuster Licensing
IC 27-1-28-1
Governance
Sec. 1. This chapter governs the qualifications and procedure for
the licensing of independent adjusters.
As added by P.L.11-2011, SEC.22.
IC 27-1-28-2
Administrative rules
Sec. 2. The commissioner may adopt rules under IC 4-22-2 to
implement this chapter.
As added by P.L.11-2011, SEC.22.
IC 27-1-28-3
Automated claims adjudication system
Sec. 3. As used in this chapter, "automated claims adjudication
system" means a preprogrammed computer system that:
(1) is designed for the collection, data entry, calculation, and
system generated final resolution of property insurance claims;
(2) is used only by a licensee or a person described in section
6(b)(2) or 6(b)(3) of this chapter;
(3) complies with all claim payment requirements under Indiana
insurance law; and
(4) is certified as compliant with the claims adjudication
requirements of this chapter by an individual who is an:
(A) independent adjuster who is licensed under this chapter;
and
(B) officer of a business entity that is licensed under this
chapter.
As added by P.L.11-2011, SEC.22.
IC 27-1-28-4
Catastrophe
Sec. 4. As used in this chapter, "catastrophe" means an event that
is the subject of a declaration by the commissioner and that:
(1) results in a large number of deaths or injuries;
(2) causes extensive damage or destruction of facilities used to
provide and sustain human needs;
(3) produces an overwhelming demand on state and local
response resources and mechanisms;
(4) causes a severe long term effect on general economic
activity; or
(5) severely affects state, local, and private sector capabilities to
begin and sustain response activities.
As added by P.L.11-2011, SEC.22.
IC 27-1-28-5
Home state
Sec. 5. As used in this chapter, "home state" means:
(1) a state, district, or territory of the United States in which an
independent adjuster:
(A) maintains the independent adjuster's principal place of
residence or business; and
(B) is licensed to act as a resident independent adjuster; or
(2) if the principal place of residence described in subdivision
(1) does not license independent adjusters for the line of
authority in which the independent adjuster seeks licensing
under this chapter, the state, district, or territory of the United
States:
(A) that is designated by the independent adjuster as the
independent adjuster's home state; and
(B) in which the independent adjuster is licensed and in good
standing.
As added by P.L.11-2011, SEC.22.
IC 27-1-28-6
Independent adjuster
Sec. 6. (a) As used in this chapter, "independent adjuster" means
a person, or an independent contractor or employee of a person, that:
(1) contracts for compensation with insurers or self-insurers to
investigate, negotiate, or settle property, casualty, or worker's
compensation claims; and
(2) for tax purposes is treated by the insurers or self-insurers in
a manner consistent with treatment of an independent contractor
rather than an employee under Title 26, Subtitle C of the
Internal Revenue Code.
(b) The term does not include the following:
(1) An attorney who:
(A) is admitted to practice in Indiana; and
(B) acts in a professional capacity as an attorney.
(2) A person employed solely to do any of the following:
(A) Obtain facts surrounding a claim.
(B) Furnish technical assistance to a licensed independent
adjuster.
(3) An individual:
(A) who is an employee of:
(i) an independent adjuster who is licensed under this
chapter; or
(ii) an affiliate of an independent adjuster who is licensed
under this chapter;
(B) who is supervised by:
(i) an independent adjuster licensed under this chapter; or
(ii) an insurance producer licensed under IC 27-1-15.6;
who supervises not more than twenty-five (25) persons
described in this subdivision; and
(C) who is employed solely to:
(i) collect claim information from insureds or claimants;
(ii) furnish claim information to insureds or claimants; or
(iii) perform data entry into an automated claims
adjudication system.
(4) An individual who is employed to investigate suspected
fraudulent insurance claims, but who does not adjust losses or
determine claim payments.
(5) A person that:
(A) performs only executive, administrative, managerial, or
clerical duties; and
(B) does not investigate, negotiate, or settle claims with
policyholders, claimants, or legal representatives of
policyholders or claimants.
(6) A person that settles only reinsurance or subrogation claims.
(7) An officer, director, manager, or employee of an authorized
insurer, a managing general agent, a surplus lines insurer, a risk
retention group, or an attorney in fact of a reciprocal insurer.
(8) A manager of the United States branch of an alien insurer.
(9) A person that investigates, negotiates, or settles life, accident
and health, annuity, or disability insurance claims.
(10) Under a self-insured arrangement, an individual who
adjusts claims on behalf of the individual's employer.
(11) A licensed insurance producer, an attorney in fact of a
reciprocal insurer, or a managing general agent of an insurer to
whom claim authority has been granted by the insurer.
(12) A person that is authorized to adjust worker's compensation
or disability claims under the authority of a third party
administrator.
(13) A person that investigates, negotiates, or settles crop
insurance claims.
(14) An individual who:
(A) does not adjust losses or determine claim payments; and
(B) is employed to use a specialized skill possessed by the
individual to make a determination:
(i) concerning an element of a claim; and
(ii) that is used by an independent adjuster, or an adjuster
who is directly employed by an insurer, in adjusting a loss
or determining a claim payment.
As added by P.L.11-2011, SEC.22.
IC 27-1-28-7
NAIC
Sec. 7. As used in this chapter, "NAIC" refers to the National
Association of Insurance Commissioners.
As added by P.L.11-2011, SEC.22.
IC 27-1-28-8
Uniform individual application
Sec. 8. As used in this chapter, "uniform individual application"
means the NAIC uniform individual application for resident and
nonresident individuals.
As added by P.L.11-2011, SEC.22.
IC 27-1-28-9
Uniform business entity application
Sec. 9. As used in this chapter, "uniform business entity
application" means the NAIC uniform business entity application for
resident and nonresident business entities.
As added by P.L.11-2011, SEC.22.
IC 27-1-28-10
Independent adjuster licensure and exemption
Sec. 10. A person shall not:
(1) act as an independent adjuster in Indiana; or
(2) hold the person's self out as an independent adjuster in
Indiana;
unless the person is licensed or exempt from licensure under this
chapter.
As added by P.L.11-2011, SEC.22.
IC 27-1-28-11
Temporary emergency independent adjuster licensure
Sec. 11. (a) If a catastrophe is declared, an insurer may contract
with an individual who:
(1) is not licensed under this chapter; but
(2) is otherwise qualified to adjust claims;
to act as a temporary emergency independent adjuster on behalf of
the insurer if the insurer obtains for the individual a temporary
emergency independent adjuster license under this section.
(b) An insurer described in subsection (a) must, not more than five
(5) days after the individual begins to adjust claims arising from the
declared catastrophe, submit to the commissioner an application for
temporary emergency licensure of the individual under this section.
(c) An application submitted under subsection (b) must include the
following information in a format prescribed by the commissioner:
(1) The name of the individual.
(2) The Social Security number of the individual.
(3) The name of the insurer.
(4) The effective date of the contract between the insurer and the
individual.
(5) The catastrophe or loss number.
(6) The catastrophe event name.
(7) Other information the commissioner considers necessary.
(d) The commissioner shall establish standards and procedures for
temporary emergency independent adjuster licensure under this
section.
(e) A temporary emergency independent adjuster license issued
under this section is effective for not more than ninety (90) days,
unless extended by the commissioner. In the event of multiple
catastrophes, an individual who holds a temporary emergency
independent adjuster license issued under this section with respect to
one (1) declared catastrophe may adjust claims arising from any other
catastrophe that occurs within the ninety (90) day period during
which the license is effective under this subsection without the
insurer applying for an additional temporary emergency independent
adjuster license.
(f) The rules adopted by the commissioner under section 2 of this
chapter may establish a fee for an application submitted under this
section.
As added by P.L.11-2011, SEC.22.
IC 27-1-28-12
Resident individual independent adjuster licensure
Sec. 12. (a) An individual may apply for a resident independent
adjuster license by submitting:
(1) a uniform individual application to the commissioner with
a declaration, under penalty of suspension, revocation, or refusal
of licensure, that the statements made in the application are true
and complete to the best of the individual's knowledge; and
(2) an application fee of forty dollars ($40).
(b) The commissioner shall approve an application submitted
under subsection (a) upon finding all of the following:
(1) The individual is at least eighteen (18) years of age.
(2) The individual is eligible to designate Indiana as the
individual's home state.
(3) The individual is determined by the commissioner to be
trustworthy, reliable, and of good reputation.
(4) The individual has not committed an act that is grounds for
probation, suspension, revocation, or refusal of licensure under
section 18 of this chapter.
(5) The individual has completed a prelicensing course of study
for the line of authority in which the individual has applied for
licensing under this section.
(6) The individual has successfully passed the written
examination administered under section 15 of this chapter for
the line of authority in which the individual has applied for
licensing under this section.
(c) The commissioner may require any documents reasonably
necessary to verify the information contained in the application.
As added by P.L.11-2011, SEC.22.
IC 27-1-28-13
Resident business entity independent adjuster licensure
Sec. 13. (a) A business entity may apply for a resident
independent adjuster license by submitting:
(1) a uniform business entity application to the commissioner
with a declaration, under penalty of suspension, revocation, or
refusal of licensure, that the statements made in the application
are true and complete to the best knowledge of the individual
submitting the application on behalf of the business entity;
(2) an application fee of forty dollars ($40); and
(3) the name, address, Social Security number, and criminal and
administrative history of each of the following:
(A) An owner that has at least ten percent (10%) interest or
voting interest in the business entity.
(B) A partner of the business entity.
(C) An executive officer of the business entity.
(D) A director of the business entity.
(b) The commissioner shall approve an application submitted by
a business entity under subsection (a) upon finding all of the
following:
(1) The business entity is eligible to designate Indiana as the
business entity's home state.
(2) The business entity has designated an individual independent
adjuster licensed under this chapter to be responsible for the
business entity's compliance with Indiana insurance law.
(3) The business entity has not committed any act that is
grounds for probation, suspension, revocation, or refusal of an
independent adjuster license under section 18 of this chapter.
(c) The commissioner may require a business entity applying
under this section to produce any documents reasonably necessary to
verify the information contained in the application.
As added by P.L.11-2011, SEC.22.
IC 27-1-28-14
Qualifications; renewal; fees; expiration; content of license; change
of information; contract for administration
Sec. 14. (a) An independent adjuster may qualify for an
independent adjuster license under this chapter in one (1) or more of
the following lines of authority:
(1) Property and casualty insurance.
(2) Worker's compensation insurance.
(b) An independent adjuster licensed under this chapter is not
required to hold another independent adjuster, insurance producer, or
insurance administrator license in Indiana.
(c) An independent adjuster license:
(1) is effective for two (2) years after the date of issuance unless
probated, suspended, revoked, or refused; and
(2) may be renewed if all requirements for renewal, including
submission to the commissioner of a renewal fee of forty dollars
($40), are met on or before the renewal date.
(d) If an independent adjuster license expires, the independent
adjuster may, within twelve (12) months after the date of expiration,
be reissued an independent adjuster license upon receipt by the
commissioner of:
(1) a request for reissuance, as prescribed by the commissioner;
and
(2) a reissuance fee of eighty dollars ($80).
(e) An independent adjuster who is unable to comply with the
license renewal requirements of this section due to:
(1) military service;
(2) long term medical disability; or
(3) another extenuating circumstance determined by the
commissioner;
may request a waiver of the renewal requirements or applicable
sanction.
(f) A license issued under this chapter must contain the following:
(1) The licensee's name, address, and personal identification
number.
(2) The date of issuance.
(3) The date of expiration.
(4) Other information considered necessary by the
commissioner.
(g) An independent adjuster is subject to IC 27-4-1-4.5.
(h) An independent adjuster shall, not more than thirty (30) days
after the occurrence of a change of the independent adjuster's:
(1) legal name; or
(2) home state address;
provide written notice to the commissioner of the change.
(i) The commissioner may contract with a nongovernmental entity
to perform ministerial functions required by this section, including
the collection of data and fees related to licensing.
As added by P.L.11-2011, SEC.22.
IC 27-1-28-15
Written examination
Sec. 15. (a) Except as provided in section 16 of this chapter, an
individual who applies for an independent adjuster license under this
chapter must pass a written examination that is:
(1) developed and conducted according to rules adopted by the
commissioner under IC 4-22-2; and
(2) intended to test the knowledge of the individual concerning:
(A) the lines of authority in which the individual has applied
for licensing under this chapter;
(B) the duties and responsibilities of an independent adjuster;
and
(C) Indiana insurance law.
(b) The commissioner may contract with a nongovernmental entity
to administer the written examination required by this section.
(c) An individual described in subsection (a) shall remit, with the
application to take the written examination required by this section,
a nonrefundable examination fee in an amount set by the
commissioner or the organization administering the examination.
(d) If an individual:
(1) fails to appear for or to pass an examination; and
(2) desires to reschedule the examination;
the individual shall reapply for the written examination and remit all
fees and forms before scheduling an examination date.
As added by P.L.11-2011, SEC.22.
IC 27-1-28-16
Nonresident licensure
Sec. 16. (a) An individual who applies for an independent adjuster
license under this chapter and who:
(1) possesses an independent adjuster license for the same line
of authority in which the individual has applied for licensing
under this chapter in a state in which a prelicensing independent
adjuster licensure examination is required;
(2) possessed an independent adjuster license that:
(A) was for the same line of authority in which the individual
has applied for licensing under this chapter in a state in
which a prelicensing independent adjuster licensure
examination is required; and
(B) expired less than ninety (90) days before the date the
commissioner receives the application; or
(3) provides proof from contracting insurers that the individual
has participated in claims adjudication in the same line of
authority during the five (5) years immediately preceding the
date of application;
is not required to complete a prelicensing course as described in
section 12(b)(5) of this chapter or pass a written examination under
section 15 of this chapter before being licensed under this chapter.
(b) An applicant who meets the criteria set forth in subsection
(a)(1) or (a)(2) must provide certification from the other state that the
applicant's independent adjuster license:
(1) is currently in good standing; or
(2) was in good standing at the time of expiration.
(c) A person that:
(1) is licensed as an independent adjuster in another state where
a prelicensing independent adjuster licensure examination is
required;
(2) establishes legal residency in Indiana; and
(3) applies for a resident independent adjuster license under this
chapter less than ninety (90) days after the person establishes
legal residency in Indiana;
is not required to complete a prelicensing course as described in
section 12(b)(5) of this chapter or pass a written examination under
section 15 of this chapter before being licensed under this chapter.
As added by P.L.11-2011, SEC.22.
IC 27-1-28-17
Issuance of nonresident license
Sec. 17. (a) Except as provided in section 18 of this chapter, the
commissioner shall issue a nonresident independent adjuster license
to a person if:
(1) the person is currently licensed in good standing as an
independent adjuster in the person's home state;
(2) the person has submitted:
(A) the proper application for licensure;
(B) a nonresident application fee of ninety dollars ($90); and
(C) in the case of a business entity, the information described
in section 13(a)(3) of this chapter; and
(3) the person's designated home state awards nonresident
independent adjuster licenses to residents of Indiana on the same
basis as nonresident independent adjuster licenses are awarded
under this chapter to residents of other states.
(b) Except as provided in section 18 of this chapter, if a person
that:
(1) is not a resident of Indiana; and
(2) is not licensed as an independent adjuster in another state;
desires to obtain an independent adjuster license under this chapter,
the person must comply with the requirements of section 12 or 13 of
this chapter, and sections 14 and 15 of this chapter, and must remit
the nonresident application fee of ninety dollars ($90).
(c) The commissioner may:
(1) verify an independent adjuster's licensure status in another
state through an appropriate data base, including the insurance
producer data base maintained by the NAIC or an affiliate or a
subsidiary of the NAIC; or
(2) request certification of good standing as described in section
16(b) of this chapter.
(d) To maintain a valid nonresident independent adjuster license
issued under this chapter:
(1) the independent adjuster must maintain a valid resident
independent adjuster license in the independent adjuster's home
state; and
(2) the independent adjuster's home state must award
nonresident independent adjuster licenses to residents of Indiana
on the same basis as nonresident independent adjuster licenses
are awarded under this chapter to residents of other states.
(e) For a nonresident independent adjuster license issued under
this chapter to be renewed:
(1) the independent adjuster must:
(A) maintain a valid resident independent adjuster license in
the independent adjuster's home state; and
(B) remit to the commissioner a nonresident independent
adjuster license renewal fee of ninety dollars ($90); and
(2) the independent adjuster's home state must award
nonresident independent adjuster licenses to residents of Indiana
on the same basis as nonresident independent adjuster licenses
are awarded under this chapter to residents of other states.
(f) If a nonresident independent adjuster's home state license
terminates for any reason other than issuance of a new resident
independent adjuster license in a new home state:
(1) the person's nonresident independent adjuster license issued
under this chapter also terminates immediately; and
(2) the person shall immediately surrender the nonresident
independent adjuster license to the commissioner.
(g) If a nonresident independent adjuster's home state license
terminates due to the issuance of a new resident independent adjuster
license in a new home state, the independent adjuster shall, not more
than thirty (30) days after the nonresident independent adjuster's
home state license termination date, provide notice of the termination
to the commissioner and the insurance commissioner of any state that
has issued a nonresident independent adjuster license to the
independent adjuster. The notice must specify the independent
adjuster's previous home state address and new home state address.
(h) If a resident independent adjuster's license issued under this
chapter terminates for any reason, the resident independent adjuster
shall, not more than thirty (30) days after the resident adjuster license
termination date, provide notice of the termination to the insurance
commissioner of any state that has issued a nonresident independent
adjuster license to the resident independent adjuster. If the
termination results from a change of the resident independent
adjuster's home state, the notice must specify the independent
adjuster's previous home state address and new home state address.
As added by P.L.11-2011, SEC.22.
IC 27-1-28-18
Penalties; refusal of license renewal
Sec. 18. (a) The commissioner may suspend, revoke, or refuse to
issue or renew an independent adjuster license, or place an
independent adjuster on probation, for a cause set forth in subsection
(b).
(b) An independent adjuster is subject to the penalties set forth in
subsection (a) for any of the following:
(1) Providing incorrect, misleading, incomplete, or materially
untrue information in a license application.
(2) Violating an insurance law, a subpoena, or an order of the
commissioner or another state's insurance commissioner.
(3) Obtaining or attempting to obtain a license through
misrepresentation or fraud.
(4) Improperly withholding, misappropriating, or converting
money or property received in the course of doing insurance
business.
(5) Intentionally misrepresenting the terms of an actual or
proposed insurance contract or application for insurance.
(6) Having been convicted of a felony.
(7) Having admitted or been found to have committed any
unfair trade practice or fraud in the business of insurance.
(8) Using fraudulent, coercive, or dishonest practices, or
demonstrating incompetence, untrustworthiness, or financial
irresponsibility, in the conduct of insurance business.
(9) Having an insurance license, or its equivalent, probated,
suspended, revoked, or refused in another state, province,
district, or territory.
(10) Forging another person's name to a document related to an
insurance transaction.
(11) Cheating, including improperly using notes or any other
reference material, to complete an examination for an insurance
license.
(12) Failing to comply with an administrative or court order
imposing a child support obligation.
(13) Failing to pay state income tax or failing to comply with an
administrative or court order directing payment of state income
tax.
(c) If the commissioner refuses an application for licensure or for
the renewal of an existing license under this chapter, the
commissioner shall notify the applicant or licensee in writing,
advising of the reason for the refusal. The applicant or licensee may,
not more than thirty (30) days after receiving the commissioner's
notice of refusal, make written demand upon the commissioner for a
hearing to determine the reasonableness of the refusal. The hearing
must be held under IC 4-21.5 not more than twenty (20) days after
the commissioner receives the applicant's or licensee's written
demand.
(d) The commissioner may suspend, revoke, or refuse a business
entity's independent adjuster license under this chapter or place a
business entity licensed under this chapter on probation if, after a
hearing under IC 4-21.5, the commissioner finds that:
(1) the individual licensed independent adjuster designated by
the business entity under section 13(b)(2) of this chapter as
being responsible for the business entity's compliance with
Indiana insurance law committed a violation described in
subsection (b) while acting on behalf of or representing the
business entity;
(2) the violation was known or should have been known by at
least one (1) of the business entity's partners, officers, or
managers;
(3) the violation was not reported to the commissioner; and
(4) the business entity did not take corrective action.
(e) In addition to or instead of a penalty imposed under subsection
(a), the commissioner may, after a hearing under IC 4-21.5, impose
a civil penalty of at least fifty dollars ($50) and not more than ten
thousand dollars ($10,000), regardless of whether the person on
whom the penalty is imposed holds an independent adjuster license
issued under this chapter that is in effect. A penalty imposed under
this subsection may be enforced in the same manner as a civil
judgment.
As added by P.L.11-2011, SEC.22.
IC 27-1-28-19
Continuing education
Sec. 19. (a) Except as provided in subsection (b), an individual
who holds a license under this chapter shall, every two (2) years,
satisfactorily complete a minimum of twenty-four (24) hours of
continuing education courses and report the completion of the
courses to the commissioner.
(b) This section does not apply to the following:
(1) An individual who is licensed for less than twelve (12)
months before the end of the applicable continuing education
biennium.
(2) A licensed nonresident independent adjuster who has met the
continuing education requirements of the licensed nonresident
independent adjuster's designated home state.
As added by P.L.11-2011, SEC.22.
IC 27-1-28-20
Contracts
Sec. 20. An independent adjuster shall:
(1) maintain a copy of each contract between the independent
adjuster and an insurer or a self-insurer; and
(2) comply with the record retention policy agreed to in the
contract described in subdivision (1).
As added by P.L.11-2011, SEC.22.
IC 27-1-28-21
Duties
Sec. 21. An independent adjuster shall do all of the following:
(1) Be honest and fair in all communications with an insured, an
insurer, a self-insurer, and the public.
(2) Give policyholders and claimants prompt and
knowledgeable service and courteous, fair, and objective
treatment.
(3) Refrain from:
(A) giving legal advice; or
(B) dealing directly with a policyholder or claimant who is
represented by legal counsel unless the legal counsel
consents to the direct contact.
(4) Comply with all local, state, and federal privacy and
information security laws.
(5) Identify:
(A) the independent adjuster's self as an independent
adjuster; and
(B) if applicable, the independent adjuster's employer;
when dealing with a policyholder or claimant.
(6) Refrain from:
(A) having any financial interest in an adjustment; or
(B) acquiring, for the independent adjuster or any person, an
interest or a title in salvage without first receiving written
authority from the principal.
As added by P.L.11-2011, SEC.22.
IC 27-1-28-22
Reports to commissioner of administrative and criminal actions
Sec. 22. (a) An independent adjuster shall report to the
commissioner an administrative action taken against the independent
adjuster:
(1) in another jurisdiction; or
(2) by another governmental agency in Indiana;
not more than thirty (30) days after the final disposition of the matter.
The report must include a copy of the order or consent order, and any
other relevant documentation.
(b) An independent adjuster shall report to the commissioner any
criminal action taken against the independent adjuster:
(1) in another jurisdiction; or
(2) by another governmental agency in Indiana;
not more than thirty (30) days after the final disposition of the
criminal matter. The report must include a copy of the initial
complaint filed, the final order issued by the court, and any other
relevant documentation.
As added by P.L.11-2011, SEC.22.
IC 27-1-28-23
Certification of automated claims adjudication system
Sec. 23. If an independent adjuster uses an automated claims
adjudication system, the independent adjuster shall maintain proof of
the certification described in section 3(4) of this chapter and provide
the proof of certification to the commissioner upon request.
As added by P.L.11-2011, SEC.22.
IC 27-1-28-24
Deposit of fees
Sec. 24. The commissioner shall deposit a fee received under this
chapter into the department of insurance fund established by
IC 27-1-3-28.
As added by P.L.11-2011, SEC.22.
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