(An edited version of this article appeared in the February 1997 issue of Claims Magazine)

PROFESSIONAL UPDATE

by Ronald J. Zaremba, CPCU, AIC,ARM

Professionally speaking, have we made any progress in the last year ?? For the impatient, seemingly little; but in comparison to prior years, 1996 was a great year. To use the old analogy, it is as if the giant awakes. We are still a bit groggy, but we are moving and more importantly, moving in the right direction.

Last months issue listed over one hundred claims associations and claims trade associations that are active in the United States. If the truth be known, that is probably less than half of the active associations in the claims field in this country alone. Each and every group and association must make a contribution to the claims process, otherwise its members will not support it. I am not personally familiar with each group's contribution, so do not be offended if I do not mention the great things done in 1996 by your association. Several important events did occur.

The National Association of Independent Insurance Adjusters (NAIIA) last year formally adopted a model Adjuster Licensing Act that they fervently are trying to get to the attention of the NAIC (National Association of Insurance Commissioners) for their consideration. The Model Act standardizes the ethical, educational and continuing education requirements for adjusters. The Model act is designed for independent adjusters but is structured in modules so its scope can be extended to staff adjusters as well. I am not a big proponent of licensing since all that ever seems to be accomplished is developing a new revenue source for the state. However nearly all the states license independent adjusters and the trend is toward licensing all adjusters. Thus, since it is going to come to pass, uniformity is important.

Consider the plight of a small insurer or adjusting firm doing business in a half a dozen states. Under current licensing rules, the adjuster's licensing in one state may qualify the adjuster to get a license in another state, but not always. Each state has its own requirements that must be met by each adjuster working in that state. Not all states have reciprocal agreements. Even in those states with reciprocal agreements, the paperwork is mostly redundant. The problems expands exponentially as the number of states increase.

On a related problem, editor Barry Smith in the Winter 1996 issue of CPCU Journal calls for a uniform set of certification requirements. When you have speakers that speak to members from

several states in an educational meeting, such as the Annual CPCU Meeting, each state requires that certification forms be completed for each speaker and attendee for which continuing education credit is sought. Furthermore, the presentation given by the speaker must also be approved for content and length. By each state ! Because there is no uniformity or standards, most of the paperwork is redundant. You end up filling out the forms and answering the same questions for twenty or so states. Adoption of a model Adjuster Licensing Act and setting uniform standards for all insurance continuing education are steps in the right direction. If you want to help or want more information about the model Adjusters Licensing Act, contact NAIIA member Gary Keenan, Kennan & Associates, P O Box 14527, Albuquerque, NM 87191-4527.

The California Association of Independent Insurance Adjusters (CAIIA) initiated a new educational and professional designation this year, the Registered Professional Adjuster (RPA). This designation defines a new class of "super adjuster" who has achieved high levels of expertise through a combination of education and experience. Over sixty adjusters have qualified thus far and over one hundred adjusters are expected to be qualified in the near future. This program is a natural for independent adjusters who can enjoy real marketing advantages by being professionally certified. It is a worth while career goal for every adjuster who enjoys being in the field. The "RPA" will increase your credibility, earn the respect of those with whom you work, and enhance your self image and esteem. By meeting the high criteria of the Registered Professional Adjuster, your skills are more apt to merit the financial rewards you deserve. For more information, contact Gene Riggs at CAIIA, P O Box 3159, Napa, CA 94558.

Since I called for a new national adjuster's association last year, (Needed: Professional Adjusters; Jan., 1996) a new association is now taking place. The new association is the National Association of Insurance Claims Professionals (NAICP). The NAICP intends to implement a three stage attack on the problem of professionalism. To be a profession, we must have a code of ethics, learn and maintain the knowledge to do our tasks well, set and maintain well defined education and ethical standards, and have a national organization to promote our interests. The first stage is to establish and maintain education and ethical standards for professional claims people. Who better to set our standards than ourselves through a national association ? The second stage is to increase the industry's awareness of our role in the claims resolution process and gain the crediability to actively participate in solving the problems confronting our industry. To do so requires active participation and leadership to address the problems. Thirdly, we must increase the public's awareness and trust in our ability and willingness

to act in their best interests. This will require the most effort and the greatest amount of patience. First we must do our tasks well, (stage one). For further information, write Coral Stern, Secretary, NAICP, 7334 Topanga Cyn Blvd. Suite 215, Canoga Park Ca, 91303.

These are some of the efforts of three claims associations out of over one hundred associations throughout this country. The public's perception does not change rapidly and there are forces in the marketplace who have a vested interest in the status quo.

We must use any and all positive means to improve the public's perception of us and our industry. Get involved !