AAICP STATE PRIORITIES

In addition to AAICP’s federal advocacy initiatives, the Association actively is involved in numerous adjuster and third-party administrator issues at the state level.  The Association often engages in important regulatory educational efforts which inform state insurance commissioners and other regulators about the value and business practices of independent adjusters, and their positive impacts on the claims system.  AAICP also advocates at the states to seek reform and implementation of licensing uniformity and reciprocity.

AAICP’s advocacy to date has resulted in significant changes to state adjuster laws and regulations.  A few of AAICP’s state accomplishments are outlined below:

Recent AAICP State Involvement

• In August of 2010, AAICP provided comments to the Tennessee Department of Labor and Workforce Development related to claims adjuster licensing and training.
• In July of 2010, AAICP provided comments to Florida proposed rule changes at 69B – 220.201 F.A.C. related to adjuster ethics.
• The AAICP worked on legislation for the Texas Third Party Administrator statutes in HB 472 in 2007 and was successful in garnering proposed changes to the Bill.  The AAICP continued the work with the Texas Department of Insurance in rulemaking subsequent HB 472.
• In 2009, the AAICP provided comments to the Indiana Department of Insurance’s efforts to introduce legislation for the licensing of adjusters in SB 357.
• In 2009, the AAICP provided comments to Colorado House Bill 1012 related restrictions on surveillance used to detect fraudulent activities.

Past AAICP State Involvement

California and 5814 Reform
Over 2003 and 2004, the AAICP was highly engaged in SB 899 -- the key workers compensation reform legislation that was enacted by the California legislature on April 17, 2004, and signed into law by Governor Schwarzenegger on April 21, 2004.  AAICP’s efforts directly resulted in an important change to the former "Labor Code 5814" penalty regime for late payments, which previously had imposed a penalty of "10 % of the entire claim," not just of the late payment, for delayed reimbursements.  

Ohio Insurer Liquidation Efforts
In 2004, the Ohio Insurance Commissioner sued several Association members seeking recoupment of over $12 million representing not only fees but also the claims payments that members had passed through to claimants of an insurer in liquidation.  AAICP's members had already expended significant sums in defending the claims, and were facing ongoing protracted and expensive litigation with the Liquidator. 

The AAICP was able to intercede in the process recommending a legislative amendment to an insurance bill making its way through the legislature that resulted in the Liquidator settling the claims.  Within two weeks the Association members were successful in having their litigation settled.

AAICP Member Collaboration

The state advocacy efforts undertaken on behalf of AAICP are tangible examples of how the Association works collaboratively to resolve challenges in the adjuster claims community that any single company, on its own, might not be able or have the resources to achieve.