Chapter 404

2007 -- S 0387

Enacted 07/07/07





     Introduced By: Senator Leo R. Blais

     Date Introduced: February 13, 2007


It is enacted by the General Assembly as follows:


     SECTION 1. Sections 27-10-1, 27-10-3, 27-10-5 and 27-10-6 of the General Laws in

Chapter 27-10 entitled "Claim Adjusters" are hereby amended to read as follows:


     27-10-1. Applicability. -- The provisions of this chapter shall apply to insurance claim

adjusters. For the purposes of this chapter "insurance claim adjusters" means any person,

partnership, association, or corporation, including any employee or agent, who or which:

      (1) Engages for compensation in negotiating adjustments of insurance claims on behalf

of an insurance company, other than life and accident and health insurance claims, under any

policies of insurance or who advertises or holds himself or herself out as engaging in that activity

or who solicits that activity;

      (2) Is known or holds himself, herself, or itself out as a "public adjuster";. A public

adjuster is any person who, for compensation or any other thing of value on behalf of the insured:

     (a) Acts or aids, solely in relation to first party claims arising under insurance contracts,

other than automobile, life, accident and health, 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 covered 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 adjuster of first party insurance

claims for losses or damages arising out of policies of insurance that insure real or personal


     (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; or

      (3) Practices as a business the adjusting of loss or damages by fire or other hazard under

any policy of insurance on behalf of the insured under those policies; or

      (4) (3) Advertises or solicits business as an adjuster, or holds himself or herself out to the

public as engaging in adjusting as a business.


     27-10-3. Issuance of license. -- The insurance commissioner may, upon the payment of a

fee of fifty dollars ($50.00), established by the commissioner, issue to any suitable person who is

a resident of this state, or a resident of any state, a license to act as an insurance claims adjuster,

other than for life and accident and health insurance, to negotiate for claim adjustments with any

qualified domestic insurance company or its agents and with the authorized agents in the state of

any foreign insurance company duly admitted to do business in this state once that person

satisfies the reasonable requirements for the issuance of the license, as established by the



     27-10-5. Application for license -- Accompanying papers. -- An application by a

person applying for the first time for a license to act as an insurance claim adjuster, other than a

life and accident and health insurance claim adjuster, shall be on a form furnished by the

insurance commissioner and must be approved in writing by three (3) reputable citizens engaged

in the insurance business and shall be accompanied by a statement under oath by the applicant

which shall give his or her name, age, residence, place of business, present occupation, and

occupation for the past five (5) years, and shall state whether or not that person has been refused a

license by the state of Rhode Island or any other state of the United States to act as an insurance

claim adjuster, or had a license as an insurance claim adjuster suspended or revoked provide all

of the information required by the insurance commissioner for licensing.


     27-10-6. Minimum percentage of licensed adjusters -- Examination of applicants. --

Any person who desires to act as an insurance claim adjuster or who is employed by an insurance

company doing business in the state of Rhode Island and desires to act within the state as an

insurance adjuster shall make a written application to the insurance commissioner for a license to

engage in this type of business. All insurance claims adjusters and those presently employed by

insurance companies in the state of Rhode Island as of January 1, 1976, who hold current and

valid licenses including all persons currently engaged in the business of public adjusting as of

June 12, 1985 shall automatically qualify for a license to handle the various lines of business for

which they are qualified. Insurance claim adjusters who have less than one year's experience

adjusting claims shall be classified as trainees and it will be necessary for them to obtain a license

to adjust claims in the state of Rhode Island in accordance with the provisions of this section. No

insurance company shall have more than twenty-five percent (25%) of its insurance claim

adjusters in a trainee classification where that adjusting force consists of at least ten (10) people;

this shall not apply to company training programs to qualify personnel in other jurisdictions. A

minimum of seventy-five percent (75%) of the insurance claim adjusters in any claims office

shall be licensed insurance claim adjusters in the state of Rhode Island. All applications shall be

accompanied by an application fee of fifty dollars ($50.00) and the license shall be both initially

issued and renewed upon the payment by the applicant or the insurance claim adjuster's employer

of a fee assessed at an annual rate of fifty dollars ($50.00) for each insurance claim adjuster's

license. The fee for the total time of licensure or renewal shall be paid at the time of initial

application or of renewal, respectively. Each insurance claim adjuster who is an applicant for a

license shall furnish satisfactory evidence to the insurance commissioner that he or she is a person

of good moral character and that he or she is trustworthy and competent as an applicant. The

commissioner shall subject the applicant to a written examination as to his or her competency to

act as an insurance claim adjuster. These examinations shall be conducted at the discretion of the

commissioner, but in no event less than quarterly.


     SECTION 2. This act shall take effect upon passage.