The commissioner may adopt and enforce rules:

-in order to fix qualifications

- carry out regulations/conduct of licenses

- change the classifications of a license

Definition of a PA.

- A person who acts on behalf of an insured in negotiating or effecting the settlement of a claim for compensation.

Requirements to apply for a license:

1. 18 y/o
2. CA resident
3. Good character
4. Sufficient experience in the handling of loss competent to a PA
5. Maintain an office in CA w/public access and regular business hours
6. Pass an exam
7. Post a surety bond
8. Comply with qualifications as req'd by the commissioner.

Each applicant must personally take and pass an exam as follows:

- Tests the applican't knowledge of basic insurance theory, elements of a contract, knowledge of the Unfair Claims Practices Act, and duties/responsibilities of PAs

- In written form

- The commissioner transmit the results of the exam to the applicant within 30 days

- If applicant fails, commissioner offers re-examination (not to pass 6 months)

- Exam times/locations shall be reasonably set by commissioner to fit convenience

Commissioner will issue an interim license to all qualified individuals for the purpose of training as long as the individual:

- is employed/under the supervision of a licensed person

- Meets requirements of 15011 (age, CA resident, etc)

- Pay a license fee of $100

- Comply with any other qualifications set by the commissioner.

AND: Interim license may not be renewed after it expires after 1 year

No licensee shall solicit a client for employment or initiate contact with a policyholder b/w 6pm - 8am.

- A licensee shall not contact an insured until 7 days after a disaster

- A PA who has a contract with an insured is the agent of the insured

No person licensed as a PA shall:

- Misrepresent to solicit a contract to adjust a claim

- Solict or accept money from any salvage, repair, or other firm which obtains business in connection with with said claim

- Advance $ to a potential client in order to obtain business (bribe)

A PA shall maintain a complete record of each transcation as a PA. Records shall include:

- Name of the insured

- DOL, location, amount of loss

- Copy of contract b/w PA and the insured

- Itemized statement of recoveries

-Total compensation

Itemized statement of disbursement made by the PA from recoveries rcvd on behalf of the insured

A licensee shall not conduct business under a ficticious business name.

The commisionner will not authorize the use of a similar business name that may confuse/mislead.