SECTIONS 14020-14045 - California Statutes

INSURANCE CODE

SECTION 14020-14045

14020. 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.
No person shall falsely represent that he or she is employed by a
licensee.

14021. An insurance adjuster within the meaning of this chapter is
a person other than a private investigator as defined in Section 7521
of the Business and Professions Code who, for any consideration
whatsoever, engages in business or accepts employment to furnish, or
agrees to make, or makes, any investigation for the purpose of
obtaining, information in the course of adjusting or otherwise
participating in the disposal of, any claim under or in connection
with a policy of insurance on behalf of an insurer or engages in
soliciting insurance adjustment business or aids an insurer in any
manner with reference to:
Crime or wrongs done or threatened against the United States of
America or any state or territory of the United States of America;
the identity, habits, conduct, business, occupation, honesty,
integrity, credibility, knowledge, trustworthiness, efficiency,
loyalty, activity, movement, whereabouts, affiliations, associations,
transactions, acts, reputation, or character of any person; the
location, disposition, or recovery of lost or stolen property; the
cause or responsibility for fires, libels, losses, accidents, or
damage or injury to persons or to property; or securing evidence to
be used before any court, board, officer, or investigating committee.
Notwithstanding any other provision of law, this section is in no
way intended to limit the ability of a duly licensed independent
insurance adjuster to perform the duties of an independent insurance
adjuster for any other entity.

14022. This chapter does not apply to:
(a) A person employed exclusively and regularly by one employer in
connection with the affairs of such employer only and where there
exists an employer- employee relationship.
(b) An officer or employee of the United States of America, or of
this state or a political subdivision thereof, while such officer or
employee is engaged in the performance of his or her official duties.
(c) A person engaged exclusively in the business of obtaining and
furnishing information as to the financial rating of persons.
(d) A charitable philanthropic society or association duly
incorporated under the laws of this state, which is organized and
maintained for the public good and not for private profit.
(e) An attorney at law in performing his or her duties as such
attorney at law.
(f) A licensed collection agency or an employee thereof while
acting within the scope of his or her employment, while making an
investigation incidental to the business of the agency, including an
investigation of the location of a debtor or his or her property
where the contract with an assignor creditor is for the collection of
claims owed or due or asserted to be owed or due or the equivalent
thereof.
(g) Admitted insurers and agents and insurance brokers licensed by
the state, performing duties in connection with insurance transacted
by them.
(h) The legal owner of personal property which has been sold under
a conditional sales agreement or a mortgagee under the terms of a
chattel mortgage.
(i) Any bank subject to the jurisdiction of the Commissioner of
Financial Institutions of the State of California under Division 1
(commencing with Section 99) of the Financial Code or the Comptroller
of the Currency of the United States.
(j) A person engaged solely in the business of securing
information about persons or property from public records.
(k) Any building contractor, engineer, technical expert, or other
person who is engaged by an insurer or licensed adjuster to provide
an expert or professional evaluation of the extent, cause, or origin
of damage to the insured property, but who does not otherwise
participate in the process of adjusting claims.

14022.5. (a) In the event of an emergency situation as declared by
the commissioner, claims arising out of the emergency, catastrophe,
disaster, or other similar occurrence may be adjusted by a
nonlicensed adjuster upon registration with the commissioner if all
of the following requirements are met:
(1) The work performed by the nonlicensed adjuster is under the
active direction, control, charge, or management of a licensed
adjuster or an insurer authorized to do business in this state.
(2) Registration with the commissioner is accomplished within 15
working days from the date on which the nonlicensed adjuster
commences the claims adjusting activity in connection with the
emergency situation.
(b) "Registration," within the meaning of this section, shall mean
a written letter to the commissioner, submitted by the supervising
licensed adjuster or admitted insurer, naming the nonlicensed
adjusters, identifying their adjuster licenses held in other
jurisdictions, and stating when their claims adjusting activity
commenced.
(c) Registration under this section is valid for a period of 180
days from the date of the registration letter. Before the lapse of
that period, the commissioner may grant further 180-day extensions as
he or she deems appropriate upon written request from the
supervising licensed adjuster or the admitted insurer.

14023. An application for a license under this chapter shall be on
a form prescribed by the commissoner and accompanied by the
application fee provided by this chapter.

14024. An application shall be verified and shall include:
(a) The full name and business address of the applicant.
(b) The name under which applicant intends to do business.
(c) A statement as to the general nature of the business in which
the applicant intends to engage.
(d) A statement as to the classification or classifications under
which the applicant desires to be qualified.
(e) If the applicant is a person other than an individual, the
full name and residence address of each of its partners, officers,
and directors, and its manager.
(f) Two recent photographs of the applicant, of a type prescribed
by the commissioner, and two classifiable sets of his or her
fingerprints.
(g) A verified statement of his or her experience qualifications.
(h) Such other information, evidence, statements, or documents as
may be required by the commissioner.

14025. Before an application for a license is granted, the
applicant, or his or her manager, shall meet all of the following:
(a) Be at least 18 years of age.
(b) Not have committed acts or crimes constituting grounds for
denial of licensure under Section 480 of the Business and Professions
Code.
(c) Shall have had at least two years of experience in adjusting
insurance claims or the equivalent thereof as determined by the
commissioner.
(d) Comply with such other qualifications as the commissioner may
fix by rule.

14026. The commissioner may require an applicant, or his or her
manager, to demonstrate his or her qualifications by a written or
oral examination, or a combination of both.

14026.5. Where a person who is or has been licensed under this
chapter has been found by the commissioner to have violated any
provision of this code that would justify the suspension or
revocation of a license held by the person, or where a person is
applying for a license under this chapter and there exists grounds
for the denial of the application by the commissioner, the
commissioner may, after hearing, revoke the license held or deny the
application for an unrestricted license, and in lieu thereof issue to
the person a restricted license. The commissioner may impose any
reasonable conditions upon the acquisition of the restricted license
or conduct of the holder of the license. The holder of the restricted
license has no property right in it and the commissioner may, with
or without either hearing or cause, suspend or revoke a restricted
license. If a hearing is held under this section, it shall be
conducted in accordance with Chapter 5 (commencing with Section
11500) of Part 1 of Division 3 of Title 2 of the Government Code. The
holder of a restricted license is subject to all the provisions of
this code and the license shall be kept in force and renewed in the
same manner, at the same time, and subject to the same conditions and
fees as are applicable to an unrestricted license to act in the same
capacity.

14027. Payment of the application fee prescribed by this chapter
entitles an applicant, or his or her manager, to one examination
without further charge. If the person fails to pass the examination,
he or she shall not be eligible for any subsequent examination except
upon payment of the reexamination fee prescribed by this chapter for
each such subsequent examination.

14028. After a hearing the commissioner may deny a license unless
the application makes a showing satisfactory to the commissioner that
the applicant, if an individual, has not, or if the applicant is a
person other than an individual, that its manager and each of its
officers and partners have not:
(a) Committed any acts or crimes constituting grounds for denial
of licensure under Section 480 of the Business and Professions Code.
(b) Been refused a license under this chapter or had a license
revoked.
(c) Been an officer, partner, or manager of any person who has
been refused a license under this chapter or whose license has been
revoked.
(d) While unlicensed committed, or aided and abetted the
commission of, any act for which a license is required by this
chapter.
(e) Committed any act or crime constituting grounds for denial of
license under Section 1668.

14028.5. The commissioner may, without hearing, deny a license if
the applicant has committed any act or crime constituting grounds for
denial of license under Section 1669.

14029. (a) The business of each licensee shall be operated under
the active direction, control, charge, or management of the licensee,
if the licensee is qualified, or the person who has qualified to act
as the licensee's manager, if the licensee is not qualified.
(b) No person shall act as a manager of a licensee until he or she
has complied with each of the following:
(1) Demonstrated his or her qualifications by a written or oral
examination, or a combination of both, if required by the
commissioner.
(2) Made a satisfactory showing to the commissioner that he or she
has the qualifications prescribed by Section 14025 and that none of
the facts stated in Section 14028 or 14028.5 exist as to him or her.
(c) If the manager, who has qualified as provided in this section,
ceases for any reason whatsoever to be connected with the licensee
to whom the license is issued, the licensee shall notify the
commissioner in writing 30 days from the cessation. If notice is
given, the license shall remain in force for a reasonable length of
time to be determined by the rules of the commissioner pending the
qualifications, as provided in this chapter, of another manager. If
the licensee fails to notify the commissioner within the 30-day
period, his or her license shall be subject to suspension or
revocation and may be reinstated only upon the filing of an
application for reinstatement, payment of the reinstatement fee, if
any is due, and the qualification of a manager as provided herein.
(d) Every manager shall renew his or her authority by satisfying
the requirements of Article 8 (commencing with Section 14090).

14030. Whenever the individual on the basis of whose qualifications
a license under this chapter has been obtained ceases to be
connected with the licensee for any reason whatever, the business may
be carried on for such temporary period and under such terms and
conditions as the commissioner shall provide by regulation.

14031. Whenever a hearing is held under this chapter to determine
whether an application for a license should be granted or to
determine the qualifications of a licensee's manager, the proceedings
shall be conducted in accordance with Chapter 5 (commencing with
Section 11501) of Part 1 of Division 3 of Title 2 of the Government
Code, and the commissioner shall have all of the powers granted
therein.

14032. The form and content of the license shall be determined by
the commissioner in accordance with Section 164 of the Business and
Professions Code.

14033. The license shall at all times be posted in a conspicuous
place in the principal place of business of the licenses.

14034. Upon the issuance of a license, a pocket card of such size,
design, and content as may be determined by the commissioner shall be
issued without charge to each licensee, if an individual, or if the
licensee is a person other than an individual, to its manager and to
each of its officers and partners, which card shall be evidence that
the licensee is duly licensed pursuant to this chapter. When any
person to whom a card is issued terminates his or her position,
office, or association with the licensee, the card shall be
surrendered to the licensee and within five days thereafter shall be
mailed or delivered by the licensee to the department for
cancellation.

14035. A licensee shall, within 30 days after such change, notify
the department of any change of his or her address and of any change
in the officers or partners of such licensee. The principal place of
business may be at a home or at a business address, but it shall be
the place at which the licensee maintains a permanent office.
Applications, on forms prescribed by the commissioner, shall be
submitted by all new officers or partners. The commissioner may
suspend or revoke a license issued under this chapter if he or she
determines that at the time the person became an officer or partner
of a licensee, any of the facts stated in Section 14028 or 14028.5
existed as to such person.

14036. A license issued under this chapter is not assignable.

14037. A licensee shall at all times be legally responsible for the
good conduct in the business of each of his or her employees or
agents, including his or her manager.

14038. (a) Any licensee or officer, director, partner, or manager
of a licensee may divulge to any law enforcement officer or district
attorney, or to his or her representative, any information he or she
may acquire as to any criminal offense, but he or she shall not
divulge to any other person, except as he or she may be required by
law to do so, any information acquired by him or her except at the
direction of the employer or client for whom the information was
obtained.
(b) No licensee or officer, director, partner, manager, or
employee of a licensee shall knowingly make any false report to his
or her employer or client for whom information was being obtained.
(c) No written report shall be submitted to a client except by the
licensee, qualifying manager, or a person authorized by one or
either of them, and such person submitting the report shall exercise
diligence in ascertaining whether or not the facts and information in
such a report are true and correct.
(d) No licensee, or officer, director, partner, manager, or
employee of a licensee shall use a badge in connection with the
official activities of the licensee's business.
(e) No licensee, or officer, director, partner, manager, or
employee of a licensee, shall use a title, or wear a uniform, or use
an insignia, or use an identification card, or make any statement
with the intent to give an impression that he or she is connected in
any way with the federal government, a state government, or any
political subdivision of a state government.
(f) No licensee, or officer, director, partner, manager, or
employee of a licensee, shall enter any private building or portion
thereof without the consent of the owner or of the person in legal
possession thereof.
(g) No licensee shall appear as an assignee party in any
proceeding involving claim and delivery, replevin, or other
possessory action, action to foreclose a chattel mortgage, mechanic's
lien, materialman's lien, or any other lien.
(h) No licensee shall permit an employee or agent in his or her
own name to advertise, engage clients, furnish reports, or present
bills to clients, or in any manner whatever to conduct business for
which a license is required under this chapter. All business of the
licensee shall be conducted in the name of and under the control of
the licensee.
(i) No licensee acting as an independent automobile damage
appraiser or adjuster or as an automobile insurance claims adjuster,
appraiser or representative shall receive any financial benefit from
an automobile repair facility. "Financial benefit" means the
receiving of any commission or gratuity, discount on repair costs,
free repairs, employment by a repair facility, or possession of more
than 3 percent direct ownership in an automobile repair facility
located in this state.

14039. No person licensed as an insurance adjuster shall do any of
the following:
(a) Fail to disclose his or her full financial interest in a
contract or agreement executed by him or her for the adjustment of a
claim prior to the execution thereof.
(b) Use any misrepresentation to solicit a contract or agreement
to adjust a claim.
(c) Solicit or accept remuneration from, or have a financial
interest exceeding 3 percent in, any salvage, repair, or other firm,
which obtains business in connection with any claim which he or she
has a contract or agreement to adjust.

14040. Any badge or cap insignia worn by a person who is a
licensee, officer, director, partner, manager, or employee of a
licensee shall be of a design approved by the commissioner, and shall
bear on its face a distinctive word indicating the name of the
licensee and an employee number by which such person may be
identified by the licensee.

14041. Each licensee shall maintain a record containing such
information relative to his or her employees as may be prescribed by
the commissioner.

14042. No licensee shall conduct a business under a fictitious or
other business name unless and until he or she has obtained the
written authorization of the commissioner to do so.
The commissioner shall not authorize the use of a fictitious or
other business name which is so similar to that of a public officer
or agency or of that used by another licensee that the public may be
confused or misled thereby.
The authorization shall require, as a condition precedent to the
use of any fictitious name, that the licensee comply with Section
1724.5 of this code and Chapter 5 (commencing with Section 17900) of
Part 3 of Division 7 of the Business and Professions Code.
A licensee desiring to conduct his or her business under more than
one fictitious business name shall obtain the authorization of the
commissioner in the manner prescribed in this section for the use of
each such name.
The licensee shall pay a fee of ten dollars ($10) for each
authorization to use an additional fictitious business name and for
each change in the use of a fictitious business name. If the original
license is issued in a nonfictitious name and authorization is
requested to have the license reissued in a fictitious business name,
the licensee shall pay a fee of twelve dollars ($12) for such
authorization.

14043. Each licensee shall file with the commissioner the complete
address of his or her principal place of business, including the name
and number of the street or, if the street where the business is
located is not numbered, the number of the post office box. The
commissioner may require the filing of other information for the
purpose of identifying such principal place of business.

14044. Every advertisement by a licensee soliciting or advertising
business shall contain his or her name, address, and license number
as they appear in the records of the commissioner. The commissioner
may adopt regulations defining the term "advertisement" as used in
this section.

14045. A licensee shall not advertise or conduct business from any
location other than that shown on the records of the commissioner as
his or her principal place of business unless he or she has received
a branch office certificate for such location after compliance with
the provisions of this chapter and such additional requirements
necessary for the protection of the public as the commissioner may by
regulation prescribe. A licensee shall notify the commissioner in
writing within 10 days after closing or changing the location of a
branch office.