Insurance bill needs to provide more protection

Commissioner Dave Jones doesn't deny that Senate Bill 1291 would relieve out-of-state insurance adjusters of the existing statutory obligation to work under the close supervision of someone who knows and understands California insurance law, and he doesn't deny that the bill lacks any requirement that out-of-state adjusters be trained or educated in California insurance law. Nor does he deny that he has accepted $112,100 in campaign contributions from insurance industry lawyers.

Instead, Jones says that SB 1291 "ensures that independent claims adjusters are familiar with California's consumer protections ... by requiring each independent insurance adjuster to certify that they have read, and understand, California law." This is like saying a bill that would require Hollywood movie producers to certify that they have read and understood the laws against sexual assault and harassment would protect women from Harvey Weinstein.

Jones and Sen. Bill Dodd added this self-certification requirement to SB 1291 only after I challenged the bill in the Senate Committee on Insurance. Something more is needed. I have proposed to the committee that SB 1291 be amended to require out-of-state adjusters to complete a short training course in California insurance law, such as an interactive video, and to disclose applicable California legal protections to policyholders. So far, Jones and Sen. Dodd have inexplicably rejected that proposal. If they were to relent and agree to it, I would support SB 1291.