Legislative Testimony LB743, Public Adjusters Licensing

Legislative Testimony LB743, Public Adjusters Licensing

Good afternoon, members of the Banking, Commerce and Insurance Committee.   My name is Nicole Fox, and I am the Director of Government Relations for the Platte Institute.  Thank you for the opportunity to discuss occupational licensing of public adjusters in our state.

Currently, individuals wanting to work in Nebraska solely as a public adjuster must complete forty hours of approved education, pass a licensing exam, obtain an insurance producer license and work for three years before they can pursue work in their desired area of specialty in the insurance field.

Per conversations with the Department of Insurance, the Platte Institute understands that LB743 makes changes to current statute to lessen these onerous licensing requirements.  Public adjusters will have their own specific license.  LB 743 adopts the National Association of Insurance Commissioners (NAIC) model legislation on public adjusters.  Professionals will no longer have to obtain approved pre-licensure education, nor will they have to work for three years before they can work specifically as a public adjuster. 

Current Nebraska law allows reciprocity with other states, and LB743 will allow continued reciprocity.  Also under current Nebraska law, there is no board or commission granting licenses.  Instead, licenses are granted by the Director of Insurance, and LB743 will not change this.

While the Platte Institute prefers not to see the creation of additional occupational licenses in the state of Nebraska, we understand that in this case, regulating public adjusters through licensing is needed to protect consumers, and LB743 provides for additional consumer protections.  The requirements established for this new license are far less onerous than the requirements currently in statute, so the Platte Institute views LB743 as a win for individuals wanting to work solely as public adjusters. 

On behalf of the Platte Institute, I ask that committee members advance LB743 out of committee.

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