Senate Bill No. 1270 modifies the regulations surrounding the fees charged by public adjusters in relation to insurance settlements. The bill stipulates that any fee charged by a public adjuster must be based solely on the amount of insurance settlement proceeds that the insurer has paid for a loss, rather than the amount received by the insured. Additionally, the public adjuster is required to collect this fee only after the insurer has paid the settlement proceeds. This change aligns the law with current practices and aims to provide clarity in the fee collection process for public adjusters.

Furthermore, the bill maintains the existing provision that prohibits public adjusters from charging or collecting fees if the insurer offers to pay the full policy limits in writing within thirty days of a loss covered by a fire insurance policy. The effective date for these changes is set for October 1, 2025. Overall, the bill does not anticipate any fiscal impact on the state or municipalities, as it primarily serves to update the statutory language to reflect current practices in the industry.

Statutes affected:
Raised Bill:
INS Joint Favorable:
File No. 73: