Bill Summary – FastDemocracy

The Florida Senate
                   BILL ANALYSIS AND FISCAL IMPACT STATEMENT
               (This document is based on the provisions contained in the legislation as of the latest date listed below.)
                              Prepared By: The Professional Staff of the Committee on Rules
BILL:            SB 534
INTRODUCER:      Senators Gibson and Thurston
SUBJECT:         Insurance Representative Examination Requirements
DATE:            March 29, 2021                  REVISED:
           ANALYST                     STAFF DIRECTOR                 REFERENCE                                 ACTION
1. Schrader                          Knudson                                BI             Favorable
2. Davis                             Cibula                                 JU             Favorable
3. Schrader                          Phelps                                 RC             Favorable
        Summary:
        SB 534 amends s. 626.221, F.S., to add a category of persons to the list of individuals who are
        not required to take the examination to become an all-lines insurance adjuster—namely a person
        certified as an Accredited Insurance Claims Specialist (AICS) from Encore Claim Services
        (Encore).
        Present Situation:
        An adjuster is “an individual employed by a property/casualty insurer to evaluate losses and
        settle policyholder claims.”1 An adjuster may be licensed as either an “all-lines adjuster” or a
        “public adjuster.”2 An all-lines adjuster “is a person who, for money, commission, or any other
        thing of value, directly or indirectly undertakes on behalf of a public adjuster or an insurer to
        ascertain and determine the amount of any claim, loss, or damage payable under an insurance
        contract or undertakes to effect settlement of such claim, loss, or damage.”3 Subject to certain
        exceptions, a public adjuster is someone who is paid by an insured to prepare and file a claim for
        the insured against his or her insurer.4
        Among other requirements, an applicant must pass an examination to obtain an adjuster’s
        license; however, the examination requirement is waived if the applicant has attained certain
        professional designations that document his or her successful completion of professional
        education coursework.5
1
  INSURANCE INFORMATION INSTITUTE, GLOSSARY (defining “adjuster”), https://www.iii.org/resource-center/iii-glossary/A
(last visited March 16, 2021).
2
  Section 626.864, F.S.
3
  Sections 626.015(2) and 626.8548, F.S.
4
  Section 626.854, F.S.
5
  Section 626.221, F.S.
BILL:   SB 534                                                                                                Page 2
         An examination is not required for all-lines adjuster applicants having one of the following
         professional designations:
          Accredited Claims Adjuster (ACA) from a regionally accredited postsecondary institution in
             this state.
          Associate in Claims (AIC) from the Insurance Institute of America.
          Professional Claims Adjuster (PCA) from the Professional Career Institute.
          Professional Property Insurance Adjuster (PPIA) from the HurriClaim Training Academy.
          Certified Adjuster (CA) from ALL LINES Training.
          Certified Claims Adjuster (CCA) from AE21 Incorporated.
          Claims Adjuster Certified Professional (CACP) from WebCE, Inc.
          Universal Claims Certification (UCC) from Claims and Litigation Management Alliance
             (CLM).6
         The DFS must approve the curriculum, which must include comprehensive analysis of basic
         property and casualty lines of insurance and testing at least equal to that of standard department
         testing for the all-lines adjuster license.7 The DFS rules state that the curriculum must include at
         least 40 hours of instruction covering all of the topics in the all-lines adjuster Examination
         Content Outline adopted by the DFS.8
         Encore Claims Services provides training for individuals in the insurance industry9 and offers a
         40-hour online course to assist individuals applying for all-lines adjuster licenses.10 Encore is a
         subsidiary of JYM Associates Group Inc., a Florida for-profit corporation based in
         Jacksonville.11
         Effect of Proposed Changes:
         Section 1 of the bill amends s. 626.221, F.S., to exempt an applicant who receives an Accredited
         Insurance Claims Specialist (AICS) designation from Encore Claim Services, from the all-lines
         adjuster licensing exam requirement. However, Encore’s curriculum still must be approved by
         the DFS, pursuant to s. 626.221(2)(j), F.S., and Rule 69B-227.320, F.A.C., before the exemption
         would apply.
         Section 2 of the bill reenacts s. 626.8734, F.S., to incorporate the amendment made to
         s. 626.221, F.S.
         Section 3 of the bill provides an effective date of July 1, 2021.
6
  Section 626.221(2)(j), F.S.
7
  Id.
8
  Rule 69B-227.320, F.A.C.
9
  About us, Encore Claim Services, https://encoreclaimservices.com/aboutus/# (last visited March 16, 2021).
10
   Encore Claim Services 40-hour Online Claim Adjuster Training, Encore Claim Services,
https://encoreclaimservices.teachable.com/p/florida-all-lines-adjuster-final-exam (last visited March 16, 2021).
11
   Supra note 9; Detail by Entity Name: JYM Associates Group Inc., Division of Corporations: Sunbiz.org,
http://search.sunbiz.org/Inquiry/CorporationSearch/SearchResultDetail?inquirytype=EntityName&directionType=Initial&sea
rchNameOrder=JYMASSOCIATESGROUP%20P190000278530&aggregateId=domp-p19000027853-2eb71327-7ed7-4dea-
9b5c-
0c37bbe3e227&searchTerm=JYM%20ASSOCIATES%20GROUP%20INC.&listNameOrder=JYMASSOCIATESGROUP%
20P190000278530 (last visited March 16, 2021).
BILL:   SB 534                                                                                  Page 3
         Constitutional Issues:
         A.      Municipality/County Mandates Restrictions:
                 None.
         B.      Public Records/Open Meetings Issues:
                 None.
         C.      Trust Funds Restrictions:
                 None.
         D.      State Tax or Fee Increases:
                 None.
         E.      Other Constitutional Issues:
                 None.
         Fiscal Impact Statement:
         A.      Tax/Fee Issues:
                 None.
         B.      Private Sector Impact:
                 SB 534 may reduce licensure fees for some applicants who have the AICS designation by
                 eliminating their need to pay the examination fee.
         C.      Government Sector Impact:
                 The bill may cause the DFS to incur some cost in reviewing and approving the AICS
                 curriculum offered by Encore to confirm that said curriculum comports with the
                 requirements of Section 626.221(2)(j), F.S., and Rule 69B-227.320, F.A.C.
         Technical Deficiencies:
         None.
         Related Issues:
         None.
         Statutes Affected:
         This bill substantially amends s. 626.221 of the Florida Statutes.
BILL:   SB 534                                                                                                                         Page 4
         This bill reenacts s. 626.8734 of the Florida Statutes.
         Additional Information:
         A.       Committee Substitute – Statement of Changes:
                  (Summarizing differences between the Committee Substitute and the prior version of the bill.)
                  None.
         B.       Amendments:
                  None.
          This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.
Statutes affected: 
S 534 Filed: 626.221