Calif. Adjuster Rules Irk Industry
California property-casualty industry representatives have expressed concerns about proposed new training requirements for claims adjusters and medical bill reviews.
The California Department of Insurance submitted regulations requiring claims adjusters who adjust both medical and indemnity claims to complete at least 160 hours of training–a minimum 120 hours of which must be completed in a classroom with an instructor.
Sam Sorich, president of the Association of California Insurance Companies, said the regulations will be particularly onerous on small companies.
"California already has a shortage of instructors and the 160-hour requirement would take adjusters away from their current jobs for four weeks," Mr. Sorich said.
Those companies with small California books of business naturally have small adjuster staffs. "We believe 120 hours is sufficient," he said.
The proposed regulations have been submitted to the Office of Administrative Law where they will be reviewed for 30 days.
They are expected to take effect in mid-September.
The new rules will require at least 80 hours of training for claims adjusters who adjust only medical claims; at least 50 hours must be in the classroom.
The training would have to be completed within a 12-consecutive-month period, during which time a claims adjuster trainee may adjust claims under the supervision of an experienced claims adjuster.
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