SB 439 Summary

• Increases public adjuster surety bond requirement from $10,000 to $25,000 and modifies nonresident adjuster eligibility requirements to allow licensing based on examination in another state where applicant is currently licensed.

• Establishes comprehensive contract requirements for public adjusters including mandatory disclosures of compensation terms, prohibition on redacting fee information, requirement to deliver original executed contract to insured, and prohibition on certain contract terms regarding fee collection and authorization limits.

• Limits public adjuster compensation to 10% of insurance settlement on claims resulting from Commissioner-declared emergencies, except for for-profit commercial entities, and requires compensation disclosure to insured for all third-party payments received.

• Modifies emergency adjuster licenses to allow Commissioner declaration per zip code or county basis with maximum 90-day duration (extendable 90 additional days), and restricts emergency adjusters to claims related to the specific declared catastrophe.

• Adds new grounds for license suspension or revocation including failure to respond to Department inquiries within 30 days, providing services as multiple adjuster types on same claim, and establishes new public adjuster conduct requirements including record-keeping, escrow account provisions, and prohibition on soliciting during loss-producing occurrences; effective November 1, 2015.