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

Press Release

Congressman David Kustoff (TN-08), a member of the House Financial Services Committee, introduced the Claims Licensing Advancement for Interstate Matters Act (CLAIM Act). This bill 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.

"West Tennesseans are no stranger to the effects of natural disasters. Severe flooding impacted the lives of thousands of West Tennesseans and in times like this, it is critical that people can receive their insurance claims as soon as possible to start rebuilding their life," said Rep. Kustoff. "My bill would allow claim adjusters to practice across state lines, ensuring that in times of disaster, more claims would be addressed and settlements would be determined in a much more streamlined and faster process. Most importantly, this bill respects states' rights and would ensure that each state keeps its independence to adopt rules as it sees fit."

More information on the CLAIM Act:

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 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.

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