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Kustoff Introduces Bill to Expand Options for Insurance Claims in Times of Disaster

July 24, 2017
Press Release
Bipartisan bill streamlines the claims adjustment process so that individual claims adjusters can respond in the fastest and most cost-effective manner possible

Washington, D.C. – U.S. Representative David Kustoff (TN-08), a member of the House Financial Services Committee, today introduced H.R. 3363, the Claims Licensing Advancement for Interstate Matters Act (CLAIM Act). This legislation will help independent insurance adjusters file insurance claims more efficiently, ensuring consumers expeditiously receive the funds needed to repair and rebuild communities – particularly in times of disaster. This bipartisan bill is co-sponsored by U.S. Representatives Bill Foster (D-IL), Ed Royce (R-CA), Steve Stivers (R-OH), Rod Blum (R-IA) and Phil Roe (R-TN).

“When disaster strikes, it is critical that consumers are able to reach their home insurance provider immediately and receive their insurance claim as quickly as possible,” said Kustoff. “Unfortunately, when catastrophes occur, often thousands are affected at one time, overwhelming the select insurance adjusters in the area.

“The CLAIM Act would open doors for consumers to utilize independent claims adjusters in nearby states. It will also encourage the states to adopt uniform and reciprocal licensing procedures, allowing adjusters to use their home state for licensure. Most importantly, this bill respects states’ rights and would ensure that each state keeps its independence to adopt rules as it sees fit.”

Additionally, consumers are often forced to wait as independent claims adjusters face a myriad of inconsistent state licensing regulations that slow the process of approving funds. As a result, companies are forced to spend money on duplicative licensing rather than investing in new jobs and boosting the economy in the region. This overcomplicated system for filing insurance claims hurts consumers, as they are the ones paying for these costs in higher premiums.

The CLAIM Act will also simplify the process of obtaining an independent license for claims adjusting. Virtually all independent claims adjusters must get licenses for each state in which they work. Given the licensing complexities, it is common for adjusters to hold multiple state licenses, which is inefficient, harms job creation and requires adjusters to take time off from their job and travel to each state in which they seek a license. 

This legislation would end this costly burden, and overall, streamline the claims adjustment process so that individual claims adjusters can respond in the fastest and most cost-effective manner possible.  

Kustoff is a member of the House Financial Services Committee, serving on three subcommittees for the 115th Congress: Financial Institutions and Consumer Credit, Oversight and Investigation and Terrorism and Illicit Finance. He previously served as the U.S. Attorney for the Western District of Tennessee under President George W. Bush.