BEFORE THE COMMISSIONER OF SECURITIES AND INSURANCE

MONTANA STATE AUDITOR

 

In the matter of the amendment of ARM 6.6.1601, 6.6.1605, 6.6.1607, 6.6.1608, 6.6.1610, 6.6.1611, and 6.6.1613 and the repeal of 6.6.1602, 6.6.1603, 6.6.1604, 6.6.1606, 6.6.1609, 6.6.1612, 6.6.1614, 6.6.1615, and 6.6.1616, relating to licensing of public adjusters

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NOTICE OF AMENDMENT AND REPEAL

 

TO: All Concerned Persons

 

1. On January 26, 2018, the Commissioner of Securities and Insurance, Montana State Auditor published MAR Notice No. 6-242 pertaining to the public hearing on the proposed amendment and repeal of the above-stated rules at page 142 of the 2018 Montana Administrative Register, Issue Number 2.

 

2. The department has amended the following rules as proposed: ARM 6.6.1601, 6.6.1605, 6.6.1607, 6.6.1608, 6.6.1610, and 6.6.1613.

 

3. The department has repealed the above-stated rules as proposed. 

 

4. After consideration of the comments received, the department amends the following rule as proposed, but with the following changes from the original proposal, new matter underlined, deleted matter interlined:

 

6.6.1611 PUBLIC ADJUSTER'S BOND (1) Prior to the issuance of a license as a public adjuster, the applicant shall file with the commissioner a surety bond in favor of the people of Montana in the amount of $5,000, executed by a surety company authorized to do business in the state. The total aggregate liability on the bond may be limited to the payment of $5,000. The bond shall be conditioned on the accounting of the adjuster to any insured whose claim the adjuster is handling for moneys or any other settlement in connection with the claim.

(2) remains as proposed. 

 

5. The department has thoroughly considered the comments and testimony received. A summary of the comments received and the department's responses are as follows:

 

COMMENT No. 1: One commenter stated that removal of the language regarding "aggregate liability" in ARM 6.6.1611(1) would substantively modify the existing rule. The commenter noted that allowing a bond to limit aggregate liability would be different than a bond which had to pay up to $5,000 on each claim. 

 

RESPONSE No. 1: The CSI agrees with the commenter, and has reinserted the language limiting the bond's aggregate liability. 

 

COMMENT No. 2: One commenter stated that the definition of "public adjuster" in ARM 6.6.1602(1) did not exactly match the statutory definition in 33-17-102(21), MCA. 

 

RESPONSE No. 2: The CSI agrees with the commenter, and has repealed ARM 6.6.1602 so there is no confusion over the definition of "public adjuster." 

 

 

/s/ Michael A. Kakuk                                   /s/ Kristin Hansen                          

Michael A. Kakuk                                        Kristin Hansen

Rule Reviewer                                            Chief Counsel

                                                                                   

Certified to the Secretary of State May 15, 2018.