Committee advances bill allowing certain salaried adjusters to be licensed without Arizona exam

The House Commerce Committee voted unanimously to return Senate Bill 14 15 with a due-pass recommendation after staff summarized the bill's eligibility rules and an industry witness described potential workforce impacts.

Committee staff said the bill prescribes specified qualifications for salaried employees of insurers or managing general agents to be eligible for an adjuster license without taking the Arizona adjuster examination. The exemption is limited: the license would be valid and renewable only while the licensee is a salaried employee of an insurer or managing general agent.

Don Isaacson, testifying on behalf of State Farm Insurance, said other states recently stopped recognizing out-of-state adjuster testing and licensing reciprocity, forcing companies to seek in-state licensing for staff. Isaacson said roughly 5,000 State Farm employees in Tempe could be affected and that the bill—drafted with the Department of Financial Institutions—would allow adjusters who already passed an exam and are licensed in another state to obtain an Arizona license without an additional exam; applicants seeking licensure after Jan. 1 would have to take the Arizona exam.

A committee member moved that the bill be returned with a due-pass recommendation; the roll-call vote was recorded as 10 ayes, 0 nays and 1 absent. The committee adjourned after the vote.