Plain English Breakdown
The source text mentions that violations are misdemeanors but does not specify fine amounts or jail time lengths.
AB-597: New Rules for Public Insurance Adjusters
This law updates rules for contracts between public insurance adjusters and policyholders, adds limits on fees during emergencies, and expands the right to cancel agreements.
What This Bill Does
- Requires written contracts to list specific claims and coverages that services will address.
- Prohibits charging fees based on money paid before the contract was signed or for insurance payments not covered by the agreement.
- Bans adjusters from asking policyholders or their representatives for work during a loss event or at restricted times.
- Allows insured people to cancel contracts within 5 days if the property is in an area under a state of emergency.
- Permits immediate cancellation without time limits if an adjuster lies about facts or breaks solicitation rules.
Who It Names or Affects
- Public insurance adjusters who hold licenses to work with clients.
- Homeowners and policyholders hiring public insurance adjusters for claims.
- Representatives acting on behalf of policyholders during the claims process.
Terms To Know
- Public Insurance Adjuster
- A licensed professional hired by homeowners to handle insurance claims on their behalf.
- Solicitation
- The act of asking someone for business or trying to get them to hire a service provider.
- Rescind
- To cancel an agreement and return both parties to their original positions before the deal started.
Limits and Unknowns
- The bill takes effect immediately as an urgency statute, but no specific calendar date is listed in this text.
- Violations of these rules are crimes punishable by law, though exact penalty amounts or jail times are not detailed here.