Rhode Island law allows experienced adjusters to adjust losses on an emergency basis in Rhode Island without a Rhode Island insurance adjuster license.
In order to qualify for this exemption, emergency adjusters must be employed by an adjusting entity or an insurer licensed in Rhode Island and must either be licensed in their home state or regularly adjust in a state that does not require an adjuster license.
Emergency adjusters may only perform work for the designated employer. The following procedure must be followed by insurers and adjusting entities with regard to emergency insurance adjustment work.
The ability to have claims adjusted by experienced persons who are not licensed is limited to:
1. Losses related to an event designated by the Department as a “catastrophic” event. The Department will post notice on its website when it designates an event a “catastrophic” event for purposes of triggering the statute.
2. Adjustment of losses in any area declared to be a state of disaster by the governor of the State of Rhode Island or by the President of the United States.
An entity that intends to utilize this provision may do so when either of the above triggering events occurs. Any entity that utilizes this procedure must file the following information electronically in Word format to emergencyadj@dbr.state.ri.us
1. The name, business address and other contact information of the employer of the experienced individual whom the entity is engaging for emergency adjusting services.
2. a. The name of each experienced individual whom the entity has used for emergency adjusting services; b. The state(s) in which the individual is licensed as an adjuster; OR A statement that the individual regularly adjusts in another state where such licensing is not required and works for an adjusting entity or an insurance company authorized to do business in Rhode Island.
The information must be filed with the Department within two (2) business days after beginning the use of experienced but unlicensed adjusters. “A business day is a day in which the Department is open for business and is capable of accepting electronic filings.” Confirmation of receipt will not be issued. Entities should check the RI website to assure the information has been received.
Emergency authority to adjust claims will terminate 120 days after declaration of the disaster. Any entity requesting an extension of this authority must submit such request to emergencyadj@dbr.state.ri.us during the 120 days with an explanation of the need for the extension. The need for such extension must be directly attributable to the emergency for which the adjusters were initially utilized. Insurers and adjusting entities are responsible for the conduct of persons admitted under this emergency procedure and the insurer and/or adjusting entity is liable for any violation(s) of the insurance laws or regulations which occur by any adjuster working for the insurer and/or adjusting entity.
Physical licenses will NOT be issued, however, a list of those individuals authorized to adjust claims can be found at www.dbr.state.ri.us.
Any questions should be directed to ldesilets@dbr.state.ri.us or by telephone at (401) 462-9611.
The insurance licensing information provided on this blog is not legal advice and the reader is advised to consult an attorney regarding application of this information in any particular situation.
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