BILL REQ. #:  S-4221.1 

READ FIRST TIME 01/28/10.   

     AN ACT Relating to crop adjusters; amending RCW 48.17.010, 48.17.060, 48.17.110, 48.17.150, 48.17.390, and 48.17.420; reenacting and amending RCW 48.14.010; and providing an effective date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1   RCW 48.14.010 and 2009 c 162 s 2 and 2009 c 119 s 10 are each reenacted and amended to read as follows:
     (1) The commissioner shall collect in advance the following fees:

Sec. 2   RCW 48.17.010 and 2009 c 162 s 13 are each amended to read as follows:
     The definitions in this section apply throughout this title unless the context clearly requires otherwise.
     (1) "Adjuster" means any person who, for compensation as an independent contractor or as an employee of an independent contractor, or for fee or commission, investigates or reports to the adjuster's principal relative to claims arising under insurance contracts, on behalf solely of either the insurer or the insured. An attorney-at-law who adjusts insurance losses from time to time incidental to the practice of his or her profession((,)) or an adjuster of marine losses((, or a salaried employee of an insurer or of a managing general agent,)) is not deemed to be an "adjuster" for the purpose of this chapter. A salaried employee of an insurer or of a managing general agent is not deemed to be an "adjuster" for the purpose of this chapter, except when acting as a crop adjuster.
     (a) "Independent adjuster" means an adjuster representing the interests of the insurer.
     (b) "Public adjuster" means an adjuster employed by and representing solely the financial interests of the insured named in the policy.
     (c) "Crop adjuster" means an adjuster, including (i) an independent adjuster, (ii) a public adjuster, and (iii) an employee of an insurer or managing general agent, who acts as an adjuster for claims arising under crop insurance.
     (2) "Business entity" means a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity.
     (3) "Crop insurance" means insurance coverage for damage to crops from unfavorable weather conditions, fire or lightning, flood, hail, insect infestation, disease, or other yield-reducing conditions or perils provided by the private insurance market, or multiple peril crop insurance reinsured by the federal crop insurance corporation, including but not limited to revenue insurance.
     (4) "Home state" means the District of Columbia and any state or territory of the United States or province of Canada in which an insurance producer maintains the insurance producer's principal place of residence or principal place of business, and is licensed to act as an insurance producer.
     (((4))) (5) "Insurance education provider" means any insurer, health care service contractor, health maintenance organization, professional association, educational institution created by Washington statutes, or vocational school licensed under Title 28C RCW, or independent contractor to which the commissioner has granted authority to conduct and certify completion of a course satisfying the insurance education requirements of RCW 48.17.150.
     (((5))) (6) "Insurance producer" means a person required to be licensed under the laws of this state to sell, solicit, or negotiate insurance. "Insurance producer" does not include title insurance agents as defined in subsection (((15))) (16) of this section or surplus line brokers licensed under chapter 48.15 RCW.
     (((6))) (7) "Insurer" has the same meaning as in RCW 48.01.050, and includes a health care service contractor as defined in RCW 48.44.010 and a health maintenance organization as defined in RCW 48.46.020.
     (((7))) (8) "License" means a document issued by the commissioner authorizing a person to act as an insurance producer or title insurance agent for the lines of authority specified in the document. The license itself does not create any authority, actual, apparent, or inherent, in the holder to represent or commit to an insurer.
     (((8))) (9) "Limited line credit insurance" includes credit life, credit disability, credit property, credit unemployment, involuntary unemployment, mortgage life, mortgage guaranty, mortgage disability, automobile dealer gap insurance, and any other form of insurance offered in connection with an extension of credit that is limited to partially or wholly extinguishing the credit obligation that the commissioner determines should be designated a form of limited line credit insurance.
     (((9))) (10) "NAIC" means national association of insurance commissioners.
     (((10))) (11) "Negotiate" means the act of conferring directly with, or offering advice directly to, a purchaser or prospective purchaser of a particular contract of insurance concerning any of the substantive benefits, terms, or conditions of the contract, provided that the person engaged in that act either sells insurance or obtains insurance from insurers for purchasers.
     (((11))) (12) "Person" means an individual or a business entity.
     (((12))) (13) "Sell" means to exchange a contract of insurance by any means, for money or its equivalent, on behalf of an insurer.
     (((13))) (14) "Solicit" means attempting to sell insurance or asking or urging a person to apply for a particular kind of insurance from a particular insurer.
     (((14))) (15) "Terminate" means the cancellation of the relationship between an insurance producer and the insurer or the termination of an insurance producer's authority to transact insurance.
     (((15))) (16) "Title insurance agent" means a business entity licensed under the laws of this state and appointed by an authorized title insurance company to sell, solicit, or negotiate insurance on behalf of the title insurance company.
     (((16))) (17) "Uniform application" means the current version of the NAIC uniform application for individual insurance producers for resident and nonresident insurance producer licensing.
     (((17))) (18) "Uniform business entity application" means the current version of the NAIC uniform application for business entity insurance license or registration for resident and nonresident business entities.

Sec. 3   RCW 48.17.060 and 2009 c 162 s 14 are each amended to read as follows:
     (1) A person shall not sell, solicit, or negotiate insurance in this state for any line or lines of insurance unless the person is licensed for that line of authority in accordance with this chapter.
     (2) A person may not act as or hold himself or herself out to be an adjuster in this state unless licensed by the commissioner or otherwise authorized to act as an adjuster under this chapter.
     (3) A person may not act as or hold himself or herself out to be a crop adjuster in this state unless licensed by the commissioner or otherwise authorized to act as a crop adjuster under this chapter.

Sec. 4   RCW 48.17.110 and 2009 c 162 s 16 are each amended to read as follows:
     (1) A resident individual applying for an insurance producer license or an individual applying for an adjuster, including crop adjuster, license shall pass a written examination unless exempt under this section or RCW 48.17.175. The examination shall test the knowledge of the individual concerning the lines of authority for which application is made, the duties and responsibilities of an insurance producer or adjuster, and the insurance laws and rules of this state. Examinations required by this section shall be developed and conducted under the rules prescribed by the commissioner. ((The commissioner shall prepare, or approve, and make available a manual specifying in general terms the subjects which may be covered in any examination for a particular license.))
     (2) The following are exempt from the examination requirement:
     (a) Applicants for licenses under RCW 48.17.170(1) (g), (h), and (i), at the discretion of the commissioner;
     (b) With the exception of crop adjusters, applicants for an adjuster's license who for a period of one year, a portion of which was in the year next preceding the date of application, have been a full-time salaried employee of an insurer or of a managing general agent to adjust, investigate, or report claims arising under insurance contracts;
     (c) With the exception of crop adjusters, applicants for a license as a nonresident adjuster who are duly licensed in another state and who are deemed by the commissioner to be fully qualified and competent for a similar license in this state; and
     (d) Applicants for a license as a nonresident crop adjuster, who must:
     (i) Be duly licensed as a crop adjuster, or hold a valid substantially similar license in another state; and
     (ii) Have completed prelicensing education and passed an examination substantially similar to the prelicensing education and examination required for licensure as a resident crop adjuster in this state; or
     (iii) If their state of residence does not license crop adjusters, complete prelicensing education and pass an examination that are substantially similar to the prelicensing education and examination required to be licensed as a resident crop adjuster in this state.
     (3) The commissioner may make arrangements, including contracting with an outside testing service, for administering examinations.
     (4) The commissioner may, at any time, require any licensed insurance producer, adjuster or crop adjuster to take and successfully pass an examination testing the licensee's competence and qualifications as a condition to the continuance or renewal of a license, if the licensee has been guilty of violating this title, or has so conducted affairs under an insurance license as to cause the commissioner to reasonably desire further evidence of the licensee's qualifications.
     (5) The commissioner may by rule establish requirements for crop adjusters to:
     (a) Successfully complete prelicensing education;
     (b) Pass a written examination to obtain a license; and
     (c) Renew their license.

Sec. 5   RCW 48.17.150 and 2009 c 162 s 17 are each amended to read as follows:
     (1) The commissioner shall by rule establish minimum continuing education requirements for the renewal or reissuance of a license to an insurance producer.
     (2) The commissioner may by rule establish minimum continuing education requirements for the renewal or reissuance of a license to a crop adjuster.
     (3) The commissioner shall require that continuing education courses will be made available on a statewide basis in order to ensure that persons residing in all geographical areas of this state will have a reasonable opportunity to attend such courses.
     (((3))) (4) The continuing education requirements must be appropriate to the license for the lines of authority specified in RCW 48.17.170 or by rule.

Sec. 6   RCW 48.17.390 and 2007 c 117 s 19 are each amended to read as follows:
     (1)(a) The commissioner may license:
     (i) An individual or business entity as an independent adjuster or as a public adjuster((, and));
     (ii) An individual as a crop adjuster; and
     (b) Separate licenses shall be required for each type of adjuster.
     (2) An individual or business entity may be concurrently licensed under separate licenses as an independent adjuster and as a public adjuster.
     (3) An individual may be concurrently licensed under separate licenses as an independent adjuster, a public adjuster, or a crop adjuster.     
     (4) The full license fee shall be paid for each such license.

Sec. 7   RCW 48.17.420 and 2007 c 117 s 21 are each amended to read as follows:
     (1) ((On behalf of and as authorized by an insurer for which an insurance producer or title insurance agent has been appointed as an agent,)) An insurance producer or title insurance agent may from time to time act as an adjuster on behalf of and as authorized by an insurer for which an insurance producer or title insurance agent has been appointed as an agent and investigate and report upon claims without being required to be licensed as an adjuster. An insurance producer or title insurance agent must not act as a crop adjuster or investigate or report upon claims arising under crop insurance without first obtaining a crop adjuster license.
     (2) ((No)) Except for losses arising under crop insurance, a license by this state ((shall be)) is not required of a nonresident independent adjuster, for the adjustment in this state of a single loss, or of losses arising out of a catastrophe common to all such losses.
     (3) For losses arising under crop insurance, a license by this state is not required of a nonresident crop adjuster, for the adjustment in this state of a single loss, or of losses arising out of a catastrophe common to all such losses, if the nonresident crop adjuster is duly licensed:
     (a) As a crop adjuster in another state; or
     (b) By the risk management agency of the United States department of agriculture.

NEW SECTION.  Sec. 8   This act takes effect June 27, 2011.