PA HB1972

Caps public adjuster compensation at 10% for catastrophic claims (presidentially or gubernatorially declared disasters) and 18% for standard insurance claims, prohibiting any fees before settlement or on pre-retention claim amounts

Increases required surety bond from $20,000 to $40,000 and prohibits public adjusters and their employees, relatives, or affiliates from having financial interests in any aspect of claims they adjust or receiving referral compensation

Establishes tiered contract rescission periods: 10 business days for catastrophic claims, 5 business days for insurance claims signed within 48 hours of a loss due to direct solicitation, and 3 business days for all other insurance claims

Requires public adjusters to provide pre-contract disclosures explaining the three types of adjusters (company, independent, public), that hiring a public adjuster is optional, and that fees come from the insured's settlement

Makes unlicensed public adjuster activity and violations of financial interest prohibitions a third-degree felony under Pennsylvania's insurance fraud statute, with the act taking effect in 180 days