[Congressional Record Volume 158, Number 124 (Friday, September 14, 2012)]
[Extensions of Remarks]
[Pages E1543-E1544]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




THE CLAIMS LICENSING ADVANCEMENT FOR INTERSTATE MATTERS ACT (CLAIM) ACT

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                        HON. STEPHEN LEE FINCHER

                              of tennessee

                    in the house of representatives

                       Friday, September 14, 2012

  Mr. FINCHER. Mr. Speaker, I rise today to introduce a bill I believe 
will help consumers save millions of dollars in insurance costs and 
create more jobs. I am proud to introduce the Claims Licensing 
Advancement for Interstate Matters Act, known as the CLAIM Act.

[[Page E1544]]

  Under current law, independent claims adjusters face a hodgepodge of 
inconsistent state regulations that only serve to delay the prompt 
adjustment of claims for natural disasters, car accident victims, and 
other tragedies in life. The CLAIM Act would provide specific relief 
during a natural disaster. In areas designated by the President of the 
United States as a ``Disaster Area,'' independent claims adjusters who 
meet certain criteria would be eligible to adjust claims for losses 
notwithstanding the state the adjuster is licensed.
  Every independent claims adjuster must take a license examination in 
each state in which they work. This requires adjusters to take time off 
from their job and travel to each state in which they seek a license. 
This is a costly burden on the claims adjusters, the companies that 
employ them, and ultimately, the consumer. Sadly, it is the consumer 
who currently pays for these costs in higher premiums.
  Today, it is my pleasure to introduce a bill that would end this 
costly burden. The CLAIM Act would lead to a process that would provide 
independent claims adjusters licensing reciprocity so their home-state 
license is valid in any other state. To be clear the CLAIM Act does not 
create a new federal law and does not ``federalize'' the insurance 
industry. The CLAIM Act respects states' rights to continue to regulate 
their individual insurance industries. Rather, the CLAIM Act would urge 
the National Association of Insurance Commissioners to adopt a model 
licensing standard for state regulation for independent claims 
adjusters that each individual State would adopt. The CLAIM Act would 
make sure that each state keeps its independence to adopt rules as they 
see fit and recognizes that State insurance regulators are best 
situated to address insurance licensing standards.
  The goal of this bill is to streamline the claims adjustment process 
so that individual claims adjusters can respond in the fastest possible 
and most cost-effective manner possible. I look forward to further 
discussing the issues of reciprocity and the CLAIM Act as we move 
forward in the Committee process.

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