APPENDIX 5 AMENDMENT TO THE CALIFORNIA INSURANCE CODE

• Jurisdiction: United States

Insurance Code re: Public Adjusters

Note: Author's comments are in italics.

Amendment to the California Insurance Code

LEGISLATIVE COUNSEL'S DIGEST

AB 2578, Cardenas. Insurance: public insurance adjusters.

Existing law provides for the regulation of public insurance adjusters. Existing law prohibits any person from engaging in the business of public insurance adjusting, or from acting as or representing himself or herself to be, a public insurance adjuster without a license.

This bill would provide for certain civil penalties for violating this prohibition. This bill would also provide that any contract for relevant services entered into by an insured with any unlicensed person may be voided at the option of the insured and would provide that the insured is not liable for payment of any past services rendered or future services to be rendered by that unlicensed person under that contract or otherwise.

This bill would also authorize the Insurance Commissioner to issue a cease and desist order to any person engaging in the business of public insurance adjusting, or acting as or representing himself or herself to be, a public insurance adjuster without a license. It would also provide for certain civil penalties for failure to comply with any such order and would authorize the commissioner to bring an action in a court of competent jurisdiction to enforce the collection of those penalties.

Text of statute:

THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

SECTION 1. § 15006 of the Insurance Code is amended to read:

15006.

(a) No person shall engage in a business regulated by this chapter, or act or assume to act as, or represent himself or herself to be, a licensee unless he or she is licensed under this chapter.

(b) Any contract for services regulated by this chapter that is entered into by an insured with any person who is in violation of subdivision (a) may be voided at the option of the insured, and the insured shall not be liable for the payment of any past services rendered, or future services to be rendered, by that person under that contract or otherwise.

(c) Whenever

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