HB181 Summary

• Establishes licensing and regulatory framework for public adjusters in Alabama who represent insureds in first-party property insurance claims, with qualifications requirements including prelicensing coursework, written examination, and biennial continuing education of 24 hours (including 3 hours ethics).

• Requires public adjusters to obtain surety bond or irrevocable letter of credit of at least $50,000 and maintain written contracts with insureds that specify all material terms, fees, and services, with 3-5 business day cancellation rights.

• Prohibits public adjusters from charging fees before claim settlement, acquiring salvage interests, accepting commissions from referrals to repair firms, or engaging in practices that constitute unauthorized law practice.

• Creates grounds for license denial, suspension, or revocation including fraud, dishonesty, misrepresentation, unfair trade practices, failure to maintain bond, violations of conduct standards, and administrative actions in other jurisdictions.

• Amends Section 27-4-2 to establish license and application fees for public adjusters ($30 application fee, $80 individual/$200 business entity license fees for biennial renewal) and authorizes 24-month delayed enforcement for fingerprinting, prelicensing, and continuing education provisions.