The proposed legislation, General Assembly Raised Bill No. 1270, aims to amend the regulations surrounding public adjusters in relation to insurance settlements. Specifically, it stipulates that public adjusters are prohibited from charging or collecting fees if an insurer offers to pay the full policy limits within thirty days of a loss. Additionally, any fees charged by public adjusters must be based solely on the amount of settlement proceeds paid by the insurer for the loss, rather than the amount received by the insured.

Furthermore, the bill specifies that public adjusters can only collect their fees after the insurer has disbursed the settlement proceeds. This change is intended to ensure that public adjuster fees are directly tied to the insurer's payment, thereby providing greater transparency and protection for insured individuals. The effective date for these changes is set for October 1, 2025.

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Raised Bill: