The National Association of Insurance Commissioners (NAIC)’s Producer Licensing Task Force (PLTF) will accept public comments on a proposed Public Adjusters Licensing Model Act through Aug. 30.

The changes initially would’ve prohibited repair facilities from acting as public adjusters for their customers in negotiating claims with insurers.

In summary, the PLTF said the model was amended to strengthen regulatory standards governing the conduct of public adjusters four issues: individuals acting as unlicensed public adjusters, contractors who are also acting as public adjusters on the same claim, inappropriate assignment of benefit rights, and excessive fees charged by public adjusters.

The working group circulated draft revisions, solicited two rounds of comments, and held two open conference calls.

Amendments were approved by the NAIC Public Adjuster Licensing (D) Working Group in July to exclude collision repairers after concerns were shared by NAIC consumer liaison and Automotive Education & Policy Institute founder Erica Eversman and Society of Collision Repair Specialists (SCRS) Executive Director Aaron Schulenburg.

They said the changes would’ve kept shops from advocating for following OEM repair procedures to complete safe and proper repairs and seek appropriate payment when the need to fight for fair payment arises.

The model act defines a fraudulent insurance act as representation or advertisement as a public adjuster without meeting the requirements of licensure under applicable state law (this would vary by state), and conducts business for which a license is required under the act without a license.

Added language to the purpose and scope section of the act states “excluding claims for personal or commercial auto lines of insurance.” A drafting note is also included in the revisions that states, “This Act is not intended to apply to the settlement of claims for personal or commercial auto lines of insurance.”

The model act now has to be approved by the PLTF. Working Group Chair Trinidad Navarro said he aims to have the model act approved by the end of the year.

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