H. B. 2762
(By Delegates Miley and Manchin)
[Introduced February 28, 2013; referred to the
Committee on Banking and Insurance then the Judiciary.]
A BILL to amend and reenact §33-12B-1 and §33-12B-9 of the Code of
West Virginia, 1931, as amended; and to amend said code by
adding thereto a new section, designated §33-12B-4a, all
relating to insurance; licensure of insurance adjusters;
definitions, including a definition of "automated claims
adjudication system"; and exemptions for certain individuals
from adjuster licensure in this state and licensing of
residents of Canada in this state.
Be it enacted by the Legislature of West Virginia:
That §33-12B-1 and §33-12B-9 of the Code of West Virginia,
1931, as amended, be amended and reenacted; and that said code be
amended by adding thereto a new section, designated §33-12B-4a, all
to read as follows:
ARTICLE 12B. ADJUSTERS.
(a) An "adjuster" is any individual who, for compensation, fee
or commission, investigates and settles claims arising under
property, casualty or surety insurance contracts, on behalf solely
of either the insurer or insured. A licensed attorney who is
qualified to practice law in this state is deemed not to be an
adjuster for the purposes of this article.
(b) "Automated claims adjudication system" means a
preprogrammed computer system designed for the collection, data
entry, calculation and final resolution of portable electronics
insurance claims which:
_____(1) May only be used by a licensed adjuster, licensed producer
or supervised individuals operating pursuant to section four-a of
_____(2) Must comply with all claims payments requirements of the
insurance code; and
_____(3) Must be certified as compliant with this section by a
licensed adjuster that is an officer of the entity which employs
the individuals operating pursuant to section four-a of this
(b) (c) "Company adjuster" means an adjuster representing the
interests of the insurer, including an independent contractor and
a salaried employee of the insurer.
(c) (d) "Home state" means the District of Columbia or any
state or territory of the United States in which an adjuster maintains his or her principal place of residence or business and
in which he or she is licensed to act as a resident adjuster. If
a person's principal place of residence or business does not
license adjusters for the type of adjuster license sought in this
state, he or she shall designate as his or her home state any state
in which he or she has such a license.
(d) (e) "Public adjuster" means an independent contractor
representing solely the financial interests of the insured named in
(e) (f) "Crop adjuster" means a person who adjusts crop
insurance claims under the federal crop insurance program
administered by the United States Department of Agriculture.
§33-12B-4a. Exemptions from license.
_____Individuals who collect claim information from, or furnish
claim information to, insureds or claimants and who conduct data
entry including entering data into an automated claims adjudication
system are exempt from licensure under this article: Provided, That
the individuals are under the supervision of a licensed adjuster or
licensed producer: Provided however, That no more than twenty-five
persons are under the supervision of one licensed adjuster or
§33-12B-9. Licensing of nonresident adjusters.
(a) A nonresident applicant for an adjuster license who holds
a similar license in his or her home state may be licensed as a nonresident adjuster in this state if the applicant's home state
has established, by law or regulation like requirements for the
licensing of a resident of this state as a nonresident adjuster.
(b) As a condition of continuing a nonresident adjuster
license, the licensee must maintain a license in his or her home
(c) If a nonresident adjuster desires to become a resident
adjuster he or she must apply to become one within ninety days of
establishing legal residency in this state.
(d) If a nonresident adjuster has his or her license
suspended, terminated or revoked by his or her home state, the
adjuster must immediately notify the commissioner of that action.
(e) A resident of Canada may not be licensed as a nonresident
adjuster under this section unless that person has obtained a
resident or home state adjuster license in another state.
NOTE: The purpose of this bill is to create an exemption from
licensure as an adjuster for certain individuals who conduct data
entry into an automated claims adjudication system for portable
electronics insurance claims.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
§33-12B-4a is new; therefore, it has been completely