Proposed RepealAmended Regulation 1-2-12

Concerning Public Insurance Adjusters

Section 1.Authority
Section 2.Basis And Purpose
Section 3.Rules
Section 4.Enforcement
Section 5.Severability
Section 6.Effective Date
Section 7.History

Section 1.Authority

This regulation is promulgated under the authority of §10-2-417, C.R.S. and 10-3-1110, C.R.S.

Section 2.Basis And Purpose

This regulation sets forth the terms and conditions for licensing public insurance adjusters, and defines public insurance adjuster.

Section 3.Rules

A.Definition of Public Insurance Adjuster

A Public Insurance Adjuster is defined as: An adjuster who works as an independent contractor and represents an insured on a fee basis in settlement of claims.

B.General Requirements

To be licensed as a public insurance adjuster, an applicant must meet the following requirements:

be at least 18 years of age,

be trustworthy,

file a completed application on a form prescribed by the Commissioner,

file all service contracts that will be used by the public insurance adjuster.

C.License Examination

An applicant must personally pass a written examination.

The examination shall reasonably test the individual’s minimum level of competence in the field of public insurance adjusting, and shall reasonably test the applicant’s knowledge relative to fire and allied lines of insurance and the duties and responsibilities under the license. A portion of the examination shall deal with pertinent Colorado Laws, Rules and Regulations. The Commissioner shall give, conduct and grade all examinations, or the Commissioner may arrange to have examinations administered and graded by an independent testing service, as specified by contract, in a fair and impartial manner and without discrimination as to individuals examined. The Commissioner may arrange for such testing service to recover the cost of the examination fee from the applicant. An individual who fails to pass the examination may remit the required fee and any forms required to retake the failed examination.

The examination shall not apply to the following:

an applicant who, during the three-year period preceding date of application, has engaged in the investigation or adjustment of losses arising under insurance contracts;

an applicant for reinstatement of a license that has been inactive for one year or less;

individuals licensed as public insurance adjusters on December 31, 1994. Such individuals will be “grandfathered” in for a new license under this regulation; however, the public insurance adjuster must file with the Commissioner an application for the license, meet the requirements in Section III of this regulation, and pay the appropriate fee; or

a nonresident applicant who furnishes a current letter of certification from the home state stating that the applicant is currently licensed as a public insurance adjuster and that there are no complaints pending.

D.Public Insurance Adjuster License

1.Term of License

The producer license shall be a perpetual license with a Public Insurance Adjuster authority that is subject to payment of a continuation fee by the last day of the Public Insurance Adjuster’s birth month during the second year after issuance of the license, and then by the last day of the Public Insurance Adjuster’s birth month every other year thereafter. Ninety days prior to the month the license is due to be continued, the Commissioner shall notify the Public Insurance Adjuster at the last address on file with the Commissioner , of the requirements necessary to continue the license. This notification shall include an invoice for payment of the continuation fee specified in section 11 of regulation 1-2-10. The Invoice and payment of fee must be postmarked or hand delivered on or before the last day of the Public Insurance Adjuster’s birth month.

2.Continuation of License

Invoices postmarked or hand delivered after the last day of the Public Insurance Adjuster’s Birth Month will be returned to the Public Insurance Adjuster unprocessed. When the invoice has bee returned to the Public Insurance Adjuster unprocessed, the license will be considered to have expired as of the first day of the month following the Public Insurance Adjuster’s birth month. The Public Insurance Adjuster must then reapply for reinstatement of the license using the forms prescribed by the commissioner and payment of the initial insurance producer license fee specified in section 11 of regulation 1-2-10.

3.Penalties for Late Continuation

For licenses due to continue 1/1/2003, payments and invoices must be postmarked or hand delivered during the month of December. Invoices postmarked or hand delivered after December 31 will be returned to the public insurance adjuster unprocessed. When the invoice has been returned unprocessed, the license will be considered to have expired as of December 31. The public insurance adjuster must then apply for reinstatement of the license using the forms prescribed by the Commissioner and payment of the initial public insurance adjuster license fee specified in Regulation 1-2-10. For licenses due to continue 1/1/2004 and subsequent years, payments and invoices must be postmarked or hand-delivered during the producer’s birth month. Invoices postmarked or hand-delivered after the producer’s birth month will be returned unprocessed, and the license will be considered to have expired as of the first day following the producer’s birth month.

4.Duplicate License

Upon submission of an affidavit by the public insurance adjuster that a license has been lost or destroyed, a duplicate license shall be issued to a licensed public insurance adjuster upon receipt of a written request specified in §10-2-411, C.R.S.

5.Changes to Producer Licenses

Requests for name changes, address changes, or for any changes to the producer license must be submitted in writing to the Commissioner or designee.

6.Letter of Certification

A public insurance adjuster may request a letter of certification by submission of a written request to the Commissioner or designee.

A letter of certification, from another state for a nonresident license in Colorado, must be dated no more than 90 days prior to date of receipt by the Division of Insurance.

7.Letter of Clearance

A public insurance adjuster may request a letter of clearance by submission of a written request to the Commissioner or designee. Prior to issuance of the letter of clearance, the public insurance adjuster must surrender the license for cancellation. In the event that the public insurance adjuster does not have the license, the public insurance adjuster shall certify in writing that it has been lost or destroyed.

E.Non-Resident Licensure

In the event of a catastrophe or emergency, the Commissioner may issue a certificate of registration to a foreign licensed public insurance adjuster for the period of the emergency as the Commissioner may determine, but not to exceed six months. This certificate shall be issued upon completion of an application as prescribed by the Commissioner and accompanied by a current letter of certification from the home jurisdiction of the public insurance adjuster.

F.Fees

Please refer to fee schedule in regulation 1-2-10.

Section 4.Enforcement

Noncompliance with this regulation may result, after proper notice and hearing, in the impostion of the sanctions made available in the Colorado Statutes pertaining to the business of insurance or other laws which include the imposition of fines and/or suspension or revocation of license. Noncompliance with this regulation constitutes the unfair business of insurance as defined by 10-3-1104, C.R.S.

Section 5.Severability

If any provision of this regulation or the application thereof to any person or circumstances is for any reason held to be invalid the remainder of this regulation shall not be affected thereby.

Section 6.Effective Date

This regulation shall become effective May 1, 2003.

Section 7.History

New, effective December 1, 1995.

Amended, effective November 1, 1997.

Amended, effective January 1, 2001.

Amended, effective May 1, 2003.

Repeal in full effective January 15, 2014

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