Protection of the Arizona Insurance Consumer.

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Protection of the Arizona Insurance Consumer.
We are Arizona Public Adjusters American Family
Insurance operating in Arizona has been under
attack for using the title of adjuster when
their employees are not actually licensed. It is
appropriate for employees of insurance companies
to adjust claims without a license but it is a
violation of the law for anyone to claim the
title of adjuster when they have not passed an
examination for a license and met certain
criteria to quality for the title.
No other major insurance company calls its
employees adjuster but instead use such titles
as claim representative or a similar title to
designate employees who can adjust
claims. Several years ago it was alleged that
American Family was committing consumer fraud by
using adjuster titles and American Family was
able to convince the ADOI (Arizona Department of
Insurance) to change the definition of adjuster
on the ADOI website to include the employees of
insurance companies. The lawsuit that included
this allegation was settled several years ago.
Subsequently the Department of Insurance has
been criticized for this action. With the
election of Governor Doug Ducey the ADOI has
undertaken changes that
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include addressing nagging insurance consumer
issues one of which is the fact that a major
insurance company has been able to call the
shots in telling the ADOI how to handle this
issue. A nurse can work in the medical field but
when the nurse has not earned the title of
attorney A paralegal can do legal work but has
not earned the title of attorney. An employee
of an insurer can adjust claims but has not
earned the title of adjuster. In order to
bring American Family into compliance with the
law, American Family needs to cease calling its
claim representatives adjuster or the law has
to be changed. A law has now been introduced
into the Arizona Legislature to address this
issue. However, the bill, Known as House Bill
2342 would remove the requirement of ANY
insurance adjuster to be licensed and would alolw
anyone except an adjuster who represents the
insured (a public adjuster) to enter the
insurance adjusting field with absolutely no
experience or educational requirement having ever
been met. Introduced by Republicans Karen Fann
and David Livingston, the bill will deeply
impact insurance adjusters who are currently
licensed and have earned their license through
experience and education. It will, in fact,
render that licensing meaningless. While
insurance agents must participate in continuing
education in Arizona, there is no continuing
education requirement for insurance adjusters.
Arizona also has no experience requirement
before someone can take an examination to become
an insurance adjuster. To allow public insurance
adjusters to enter the field of adjusting
without any educational requirements and with no
evidence of passing an examination as is now
required, goes against what we know is
logical. This law as proposed is anathema to a
society concerned with protection of the public.
Hair dressers and cosmetologists have to be
licensed. Private investigators have to be
licensed. Property managers have to be licensed.
It goes against every ounce of consumer
protection concern in our society to allow
insurance adjusters to enter the field of
adjusting with no experience or education. Please
join me and members of our association in
protesting this proposed law. American Family
should work to get its claim representatives
licensed or drop the practice of awarding them
the title adjuster. The law does not need to
be changed.