HB 428 Summary

• Establishes licensing and regulatory framework for public adjusters in Alabama, defining them as representatives of insureds (not insurers) who assist in settling first-party property, casualty, and workers' compensation insurance claims.

• Requires public adjusters to complete a 20-hour prelicensing course, pass a written examination, maintain a minimum $20,000 surety bond or irrevocable letter of credit, and complete 24 hours of continuing education biennially (including 3 hours in ethics).

• Restricts public adjusters from charging fees exceeding 10 percent of settlement proceeds during declared states of emergency, prohibits pre-settlement fees, requires written contracts with specific disclosures, and establishes a 3-5 business day contract cancellation right for insureds.

• Imposes standards of conduct requiring loyalty to clients, disclosure of conflicts of interest, prohibition on soliciting during active losses, and restrictions on financial relationships with contractors and repair services involved in claims.

• Authorizes the Commissioner of Insurance to promulgate rules, conduct criminal background checks via fingerprinting, deny or revoke licenses for violations, and imposes civil penalties up to $10,000 per violation.