SB451 Summary

• Establishes licensing and regulatory framework for public adjusters in Alabama, defining them as professionals who represent insureds (not insurers) in first-party insurance claims for property damage.

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

• Prohibits public adjusters from charging more than 10% of settlement proceeds during declared states of emergency, charging fees before claim settlement, and requires written contracts with specific disclosures about the three types of adjusters and insured rights.

• Establishes grounds for license denial, suspension, or revocation including fraud, misrepresentation, financial irresponsibility, felony conviction, and violation of conduct standards; allows civil penalties up to $10,000 per violation.

• Sets licensing and application fees in amended Section 27-4-2, with $20 application fee and $80 (individual) or $200 (business entity) biennial continuation fees for public adjusters.