FPCA Homeowners Division: North Carolina’s Passage of HB 1313 Adopts NAIC Public Adjuster Model Limiting Licensure to First-Party Claims

Through the recent passage of House Bill 1313, the State of North Carolina adopted the National Association of Insurance  Commissioners’ (“NAIC”) Public Adjuster Licensing Model Act, which regulates public adjusters and specifically limits their licensure to assisting policyholders in first-party claims. 

HB 1313 becomes effective on July 1, 2010.  To view the bill text, click here.

A North Carolina Department of Insurance memorandum highlighting points of the new law is reprinted below.

Should you have any questions or comments, please contact Colodny Fass.

TO: All Public Adjusters, All Public Adjusting Companies
FROM: Etta Maynard
DATE: December 10, 2009
RE: Public Adjuster Licensing Requirements

The NAIC Public Adjuster Licensing Model Act was adopted by North Carolina effective July 1, 2010. The full text of House Bill 1313 (SESSION LAW 2009-565) is available online on the North Carolina General Assembly website through the following link: http://www.ncga.state.nc.us/Sessions/2009/Bills/House/PDF/H1313v5.pdf.

One of the provisions of the new law requires both resident and non-resident public adjusters to show proof of financial responsibility by providing a $20,000 bond or an irrevocable letter of credit issued by a qualified financial institution in the amount of $20,000. Some points of emphasis:

Existing Public Adjuster Licensees

• Effective July 1, 2010, existing public adjusters must have on file with the Agent Services Division the evidence of financial responsibility in order to maintain their authority to act as a public adjuster in North Carolina.
• Agent Services Division will send a 2010-2011 license renewal bill in February 2010 to public adjusters requiring payment of the license renewal fee by April 1, 2010.
• The renewal bill will include a request for the licensee to send the required proof of financial responsibility to the Agent Services Division by May 15, 2010.
• Public adjusters must comply with the financial responsibility requirement or the authority to act as a public adjuster in North Carolina will lapse.

New Public Adjuster Licenses Issued July 1, 2010 and After

• Individuals applying for a public adjuster license effective July 1, 2010 and after must provide proof of financial responsibility at time of application.

If you have any questions, please contact the Agent Services Division at (919) 807-6800.