Processing of Calif. Fire Claims Being Expedited

California Insurance Commissioner Steve Poizner has declared an insurance emergency to cut red tape and allow insurance companies to use out of state adjusters to more quickly work through the spate of fire claims.

The Commissioner's declaration will allow Department of Insurance (CDI) licensed insurance adjusters and insurers to use the services of non-CDI licensed adjusters, such as adjusters from other states, to assist with the processing of the high number of anticipated insurance claims arising from the fires. The work performed by the non-CDI licensed adjusters must be under the active direction, control, charge or management of a CDI-licensed insurer or adjuster.

The California Department of Insurance has issued licenses to approximately 1,500 resident independent adjusters who are well versed in the California Fair Claims settlement practices regulations. The Commissioner encourages carriers to utilize these resident independent adjusters first. In the event that insurance carriers become overwhelmed with the quantity of claims and require additional claims-handling support, today's declaration enables them to handle the influx expediently, to get victims paid and their damages fixed as quickly as possible.

Poizner issued the declaration in accordance with the requirements of Section 14022.5 of the California Insurance Code, which provides that such use is reasonably necessary in order to adequately respond to the emergency situation. The text of the declaration is below.

Similar insurance emergencies were declared in January, during the aftermath of severe winter storms and in October 2007, for firestorms which inflicted more than $2 billion in damages.