Senate Bill No. 1270, also known as Public Act No. 25-106, amends the regulations governing public adjusters in relation to fees charged for their services. The bill 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 to a structure covered by a fire insurance policy. Additionally, the bill modifies the basis for calculating fees, stating that any fee charged must be based solely on the amount of settlement proceeds paid by the insurer for the loss.

Furthermore, the bill changes the timing of when public adjusters can collect their fees. Previously, fees could be collected after the insured received the settlement proceeds; now, they can only be collected after the insurer has paid the settlement proceeds. This shift aims to ensure that public adjusters are compensated only after the insurer has fulfilled its payment obligations, thereby protecting the interests of the insured. The effective date for these changes is set for October 1, 2025.

Statutes affected:
Raised Bill:
INS Joint Favorable:
File No. 73:
Public Act No. 25-106: