CA| California’s Insurance Commissioner issues Declaration of Emergency Situation on January 13, 2025. The declaration addresses the aftermath of the Palisades fire and other wildfires in Los Angeles and Ventura Counties, which have caused widespread destruction and evacuation.
Key points include:
- Due to the expected shortage of qualified insurance adjusters, insurers are authorized to use nonlicensed adjusters under specific conditions, including supervision by licensed professionals and registration with the Insurance Commissioner within 15 days.
- All adjusters, licensed or not, must be properly trained on California’s Unfair Practices Act, Fair Claims Settlement Practices Regulations, and relevant property and casualty insurance claims handling laws.
- The declaration emphasizes that qualified licensed adjusters, managers, or insurers overseeing nonlicensed adjusters may be held liable for any violations committed by the nonlicensed adjusters during this emergency situation.
Any qualified licensed adjuster, qualified manager, or insurer authorized to do business in California who actively directs, controls, charges, and/or manages a nonlicensed adjuster may be held liable and may be subject to civil penalties for any actions associated with this emergency situation by a nonlicensed adjuster deemed in violation of the California Unfair Practices Act, the Fair Claims Settlement Practices Regulations, and any laws relating to property and casualty insurance claims handling.