Legislators should consider alternatives to licensure


** Adjusting the occupational licensure mindset
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** Creating a license for public insurance adjusters is not necessary in Wisconsin
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CONTACT: Badger Institute Policy Analyst Julie Grace, 330-410-6212 or [email protected].

A
new piece of legislation ([link removed]) would spend state resources to create a new occupational license for a profession made up of just eight to 10 people in Wisconsin — and make it harder for others to get into the field.

Public adjusters work on behalf of insurance policyholders (not insurance companies) to help file claims or navigate the insurance industry after a loss or damage to property.

Elsewhere in the country, critics have complained that adjusters have appeared in areas ravaged by natural disasters, target individuals who’ve lost their homes or property and try to convince them to use adjuster services for a fee or a percentage of the claim.
At two recent public hearings, proponents of the legislation here said requiring a license is necessary to promote consumer protection and public safety. But when asked whether there have been any consumer complaints registered with the Wisconsin Office of the Commissioner of Insurance ([link removed]) (OCI) regarding public adjusters, no examples were forthcoming.

The push to license adjusters in Wisconsin isn’t coming from consumers or the public. Similarly, none of the practicing public insurance adjusters in Wisconsin were consulted when the legislation was being drafted. Instead, legislators are being lobbied by the insurance industry and the national associations that represent insurance adjusters, groups some believe are trying to fence out competition.

“Licensing appears to be responsive to political pressure from occupational associations seeking to become regulated. Occupations that are well-organized and have well-funded campaigns with no organized opposition are more likely to find themselves at the top of the agenda before occupational regulatory commissions,” wrote
Morris Kleiner ([link removed]) , AFL-CIO Chair in Labor Policy at the Humphrey School of Public Affairs at the University of Minnesota.

The bill would require public adjusters to pass a written examination, pay fees and obtain 15 continuing education credits (including one ethics course) every two years. If public adjusters don’t meet one of these or other requirements, they may have their license suspended or revoked, making it illegal for them to continue working in the field.

History shows that ([link removed]) once an occupational license is created, it is unlikely it will ever be eliminated. So, before legislators rush to license a tiny segment of the state’s workforce, they should consider other viable options.

A better approach would be the
model used in Ohio ([link removed]) , where public insurance adjusters must obtain a certificate of authority from the state and show proof of bonding but need not obtain a license or complete continuing education requirements.

Some states require that less onerous alternatives be weighed every time a new occupational license is proposed. Wisconsin should consider such a
sunrise review ([link removed]) process.

Until then, given that licensing is the most restrictive form of occupational regulation, legislators in Madison should make a habit of considering less restrictive, voluntary choices.

Read the entire article here ([link removed])

Julie Grace is a policy analyst for the Badger Institute ([link removed]) . Permission to reprint is granted as long as the authors and the Badger Institute are properly cited.

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We believe competitive free markets, limited government, private initiative and personal responsibility are essential to our democratic way of life. The Badger Institute is a nonprofit, 501(c)(3) tax-exempt organization and does not receive government funding. Our work is funded solely through tax-deductible gifts from foundations, companies and individuals. We appreciate your support.
** Contribute ([link removed])
** Facebook ([link removed])
** Twitter ([link removed])
** Website ([link removed])
Copyright © 2019 Badger Institute, All rights reserved.
You are receiving this email because you opted in via our website.

Our mailing address is:
Badger Institute
700 W. Virginia St., Suite 301
Milwaukee, Wi 53204
USA
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