HF 1947

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 02/22/2018 05:47pm

A bill for an act
relating to commerce; regulating insurance adjusters; modifying the definition of
adjuster; amending Minnesota Statutes 2016, section 72B.03, subdivision 1.

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

Section 1.

Minnesota Statutes 2016, section 72B.03, subdivision 1, is amended to read:

Subdivision 1.

Requirement; exceptions.

(a) A person shall not act or hold out as an
independent adjuster or public adjuster unless the person is licensed as an independent
adjuster or public adjuster in accordance with this chapter, or is exempt from licensure as
an independent adjuster or public adjuster under this chapter.

(b) The definition of adjuster does not include, and a license as an adjuster is not required
of, the following:

(1) attorneys-at-law admitted to practice in this state, when acting in the attorney's
professional capacity as an attorney;

(2) a person employed solely to obtain facts surrounding a claim new text begin , such as recording a
policyholder's first notice of loss, new text end or to furnish technical assistance to a licensed adjuster;

(3) an individual who is employed to investigate suspected fraudulent insurance claims
but who does not adjust losses or determine claims payments;

(4) a person who solely performs executive, administrative, managerial, or clerical duties
or any combination of these duties and who does not investigate, negotiate, or settle claims
with policyholders, claimants, or their legal representative;

(5) a licensed health care provider or its employee who provides managed care services
so long as the services do not include the determination of compensability;

(6) a managed care organization or any of its employees or an employee of any
organization providing managed care services so long as the services do not include the
determination of compensability;

(7) a person who settles only reinsurance or subrogation claims;

(8) an officer, director, manager, or employee of an authorized insurer, a surplus lines
insurer, a risk retention group, or an attorney-in-fact of a reciprocal insurer;

(9) a United States manager of the United States branch of an alien insurer;

(10) a person who investigates, negotiates, or settles life, accident and health, annuity,
or disability insurance claims;

(11) an individual employee, under a self-insured arrangement, who adjusts claims on
behalf of the employee's employer;

(12) a licensed insurance producer, attorney-in-fact of a reciprocal insurer, or managing
general agent of the insurer to whom claim authority has been granted by the insurer;

(13) a person authorized to adjust workers' compensation or disability claims under the
authority of a third-party administrator license pursuant to section 60A.23, subdivision 8;
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(14) an individual who:

(i) collects claim information from, or furnishes claim information to, insureds or
claimants; and

(ii) conducts data entry including entering data into an automated claims adjudication
system, provided that the individual is an employee of a licensed independent adjuster or
its affiliate where no more than 25 such persons are under the supervision of one licensed
independent adjuster or licensed insurance producer who is exempt from licensure under
clause (12) deleted text begin . deleted text end new text begin ; or
new text end

new text begin (15) a person who:
new text end

new text begin (i) reports claims information to a policyholder on behalf of and at the direction of an
insurer;
new text end

new text begin (ii) disburses claims payments on behalf of an insurer to a policyholder or a policyholder's
vendor; or
new text end

new text begin (iii) provides claims or market data to insurers.
new text end