HB 591 Summary

• Establishes licensing and regulation of public adjusters in Alabama who represent insureds (not insurance companies) in first-party property insurance claims for compensation.

• Requires public adjusters to complete a 20-hour prelicensing course, pass a written examination, maintain a $50,000 bond or letter of credit, and complete 24 hours of biennial continuing education (including 3 hours in ethics).

• Mandates written contracts with insureds containing specific terms including fee disclosure, cancellation rights (3 business days normally, 5 days during state of emergency), and prohibits various unethical practices including solicitation during loss, taking fees before settlement, and kickbacks from contractors.

• Prohibits public adjusters from representing both insureds and insurers on the same claim, acquiring salvage interests, providing loans to clients, and engaging in the practice of law unless licensed as an attorney.

• Authorizes the Commissioner of Insurance to deny, suspend, or revoke licenses for violations including fraud, misappropriation of funds, unlicensed practice, and child support or tax delinquency; establishes civil penalties up to $10,000 per violation.