SB 95
Department of Legislative Services
Maryland General Assembly
2020 Session
FISCAL AND POLICY NOTE
Third Reader - Revised
Senate Bill 95 (Chair, Finance Committee)(By Request - Departmental -
Maryland Insurance Administration)
Finance Economic Matters
Public Adjusters - Disbursement of Insurance Settlement Payments
This departmental bill requires a public adjuster to disburse insurance settlement payments
received from an insurer on behalf of an insured within 15 business days.
Fiscal Summary
State Effect: The bill does not directly affect State operations or expenditures. Revenues
are not affected.
Local Effect: The bill does not directly affect local governmental operations or finances.
Small Business Effect: The Maryland Insurance Administration (MIA) has determined
that this bill has minimal or no impact on small business (attached). The Department of
Legislative Services concurs with this assessment. (The attached assessment does not
reflect amendments to the bill.)
Analysis
Current Law: A “public adjuster” is a person who, for compensation, (1) acts or aids,
solely in relation to first-party claims arising under a policy of real or personal property,
on behalf of the insured in negotiating for, or effecting the settlement of, a claim for loss
or damage covered by an insurance policy; (2) unless marketing on behalf of a public
adjuster, solicits for employment as a public adjuster for insurance claims; or
(3) investigates or adjusts losses, or advises an insured about first-party claims arising out
of an insurance policy that insures real or personal property for another person engaged as
a public adjuster for the insured.
In order to act as a public adjuster in the State, an individual or business must obtain a
public adjuster license from MIA, which includes paying an application fee and may
include passing a written professional examination. Once licensed, a public adjuster is
obligated to serve with objectivity and complete loyalty to the interest of the client alone
and provide high quality information, counsel, and service to best serve the insured’s
insurance claim needs and interests.
Background: MIA advises that the purpose of the bill is to enhance consumer protections
for insureds who hire public adjusters. MIA has recently received consumer complaints
that public adjusters are withholding or delaying settlement payments instead of disbursing
them to their clients in a timely manner. The bill addresses this issue by requiring public
adjusters to disburse any such settlement payments within 15 business days.
Additional Information
Prior Introductions: None.
Designated Cross File: None.
Information Source(s): Maryland Insurance Administration; Department of Legislative
Services
Fiscal Note History: First Reader - January 7, 2020
an/jc Third Reader - March 11, 2020
Revised - Amendment(s) - March 11, 2020
Analysis by: Richard L. Duncan Direct Inquiries to:
(410) 946-5510
(301) 970-5510
SB 95/ Page 2
ANALYSIS OF ECONOMIC IMPACT ON SMALL BUSINESSES
TITLE OF BILL: Insurance – Public Adjuster- Payment
BILL NUMBER: Senate Bill 95
PREPARED BY:
(Dept./Agency) Maryland Insurance Administration
PART A. ECONOMIC IMPACT RATING
This agency estimates that the proposed bill:
X WILL HAVE MINIMAL OR NO ECONOMIC IMPACT ON MARYLAND
SMALL BUSINESS
OR
WILL HAVE MEANINGFUL ECONOMIC IMPACT ON MARYLAND
SMALL BUSINESSES
PART B. ECONOMIC IMPACT ANALYSIS
This proposal only requires public adjusters to distribute settlement payments to the insured in a
timely manner and does not affect the public adjusters’ commission.
SB 95/ Page 3


Statutes affected:
Text - First - Public Adjusters - Disbursement of Insurance Settlement Payments: 10-414 Insurance, 10-411 Insurance
Text - Third - Public Adjusters - Disbursement of Insurance Settlement Payments: 10-414 Insurance, 10-411 Insurance