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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
AMENDED
insurance adjuster license; eligibility
Purpose
Prescribes adjuster licensure requirements for a salaried employee of an insurer or managing general agent who held an active designated home state license in another state before January 1, 2026.
Background
The Department of Insurance and Financial Institutions (DIFI) is responsible for regulating the insurance industry, financial institutions, financial service professionals and business entities. The duties of DIFI include licensing, investigating and resolving consumer complaints against regulated entities and professionals (Ariz. Const. art. 15 § 5; A.R.S. Title 6 and Title 20).
Current statute outlines qualification requirements for a person to be licensed as an insurance adjuster in Arizona. Adjusters are any person, who works for compensation, fee or commission, that adjusts, investigates, or negotiates settlements of claims arising under property and casualty insurance contracts on behalf of either an insurer or the insured. To obtain a license as an adjuster in Arizona, an applicant must apply to DIFI and meet the following qualifications: 1) be at least 18 years of age; 2) be a resident of Arizona or of another state that allows residents of Arizona to act as an adjuster in the other state; and 3) take and pass an examination given by or under the supervision of the Director of DIFI that tests an applicant's knowledge of insurance and legal responsibilities of an adjuster. An out-of-state adjuster who is sent to Arizona on behalf of an insurer for the purpose of investigating or making adjustment of a particular loss under an insurance policy, or a series of losses resulting from a catastrophe common to all those losses, is exempt from the adjuster licensure requirements (A.R.S. §§ 20-321 and 20-321.01).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Deems a salaried employee of an insurer or a managing general agent to be a licensed adjuster without taking Arizona's adjuster examination if the person;
a) is a resident of Arizona and before January 1, 2026, held an active designated home state adjuster license in another state;
b) is currently in good standing in the other state;
c) submits an application for licensure by virtue of holding an active designated home state adjuster license on a form prescribed by DIFI and the fee and fingerprints as required by statute; and
d) had qualified for a designated home state adjuster license in the other state by passing a state-approved examination.
2. Requires a person who is licensed as a salaried employee adjuster to only adjust for an insurer or a managing general agent.
3. Prohibits a salaried employee adjuster from adjusting claims on behalf of:
a) an insured; or
b) an insurer in a capacity other than as a salaried employee of an insurer or a managing general agent.
4. States that the issued adjuster license is valid and renewable until the person no longer adjusts claims as a salaried employee of an insurer or a managing general agent.
5. Requires a person who wishes to act as or claim to be an adjuster to apply for and obtain a license as an adjuster.
6. Defines salaried employee as an employee whose compensation is not contingent on the outcome of a claim determination.
7. Becomes effective on the general effective date.
Amendments Adopted by Committee
1. Specifies that a salaried employee must pass a state-approved examination, rather than a state-administered examination, to meet the licensure requirements.
2. Requires a person who is licensed as a salaried employee adjuster to only adjust for an insurer or a managing general agent.
3. Prohibits a salaried employee from adjusting claims on behalf of:
a) an insured; or
b) an insurer in a capacity other than as a salaried employee of an insurer or a managing general agent.
4. Specifies that the issued adjuster license is both valid and renewable, rather than only renewable, until the person no longer adjusts claims as a salaried employee of an insurer or a managing general agent.
5. Makes technical and conforming changes.
Senate Action
RAGE 2/4/26 DPA 7-0-0
Prepared by Senate Research
February 6, 2026
JT/HD/ci