An Act amending the act of December 20, 1983 (P.L.260, No.72), referred to as the Public Adjuster Licensing Law, further providing for definitions, for license, for written disclosure of financial interest and for bond; providing for fees, for requirements and prohibitions and for separate pre-contract disclosure; and further providing for contract and for revocation, etc., of license.

PRINTER'S NO. 1261
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 1074
Session of
2025
INTRODUCED BY COLEMAN, STREET, KANE AND VOGEL, OCTOBER 21, 2025
REFERRED TO BANKING AND INSURANCE, OCTOBER 21, 2025
AN ACT
Amending the act of December 20, 1983 (P.L.260, No.72), entitled
"An act providing for the licensing and regulating of public
adjusters and public adjuster solicitors," further providing
for definitions, for license, for written disclosure of
financial interest and for bond; providing for fees, for
requirements and prohibitions and for separate pre-contract
disclosure; and further providing for contract and for
revocation, etc., of license.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definition of "public adjuster" in section 1
of the act of December 20, 1983 (P.L.260, No.72), referred to as
the Public Adjuster Licensing Law, is amended and the section is
amended by adding definitions to read:
Section 1. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
* * *
"Catastrophic claim settlement." A settlement for a claim
arising from a major disaster as declared by the President of
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the United States or a disaster emergency proclaimed by the
Governor under 35 Pa.C.S. § 7301 (relating to general authority
of Governor).
* * *
"Negotiate." To confer directly with or to offer advice
directly to a purchaser or prospective purchaser of a particular
contract for public adjuster services concerning the substantive
benefits, terms or conditions of the contract.
* * *
"Public adjuster." Any person advertising, soliciting
business or holding himself out to the public as an adjuster of
claims, excluding claims for personal or commercial auto lines
of insurance, for losses or damages arising out of policies of
insurance, surety or indemnity upon property, persons or
insurable business interests within this Commonwealth, and
receiving any compensation or reward for the giving of advice or
assistance to the insured in the adjustment of claims for such
losses, or who for compensation or reward, whether by way of
salary or commission or otherwise, directly or indirectly,
solicits business, investigates or adjusts losses or advises the
insured with reference to claims for losses on behalf of any
other person engaged in the business of adjusting losses. The
term does not include an agent or employee of an insurance
company, association or an exchange, through whom a policy of
insurance was written, in adjusting loss or damage under such
policy, nor does it include an insurance producer acting as an
adjuster if the services of the insurance producer in the
adjustment are without compensation.
"Relative." A spouse, parent, child, stepparent, stepchild,
grandparent, grandchild, brother, sister, half brother, half
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sister, aunt, uncle, niece, nephew or first or second cousin.
* * *
"Sell." To exchange a contract by any means for money or
anything of value.
"Solicit." To attempt to sell, ask or urge a person to
obtain public adjuster services.
Section 2. Sections 2(a) and (d), 3.1 and 4 of the act are
amended to read:
Section 2. License.
(a) License required.--No person or entity shall represent
as or advertise to be a public adjuster, sell, solicit or
negotiate a contract for public adjusting services or, directly
or indirectly, act within the Commonwealth as a public adjuster
without first procuring from the Insurance Commissioner a
license as a public adjuster.
* * *
(d) License not to be issued to certain persons.--No license
as a public adjuster shall be issued to any person engaged or
interested in, or receiving any profit from, nor shall the
holder of any such license engage or be interested in, or
receive any profit from, any salvage, repair, replacement,
restoration, renovation or demolition of damaged property, real
or personal, or similar business.
Section 3.1. [Written disclosure] Prohibition of financial
interest.
(a) Requirement.--A public adjuster [shall provide the
insured a written disclosure concerning], or any of the public
adjuster's employees, relatives or affiliates, may not have a
direct or indirect financial interest [the public adjuster has
with another party involved in an] in any aspect of the claim
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being adjusted, other than the salary, fee, commission or other
consideration established in the written contract with the
insured[, including ownership of or compensation expected to be
received from a construction firm, building appraisal firm,
motor vehicle repair shop or another firm that provides
estimates for work or that performs work in conjunction with
damages caused by the insured loss on which the public adjuster
is engaged].
(a.1) Referrals.--The public adjuster, or any of the public
adjuster's employees, relatives or affiliates, may not refer or
direct an insured to get needed repairs or services in
connection with a loss from any person:
(1) with whom the public adjuster or any of the public
adjuster's employees, relatives or affiliates has a financial
interest; or
(2) from whom the public adjuster or any of the public
adjuster's employees, relatives or affiliates may receive
direct or indirect compensation for the referral.
(b) Definition.--As used in this section, the term "firm"
shall include a corporation, partnership, association, joint-
stock company or person.
Section 4. Bond.
(a) Public adjuster's bond.--Each person receiving a public
adjuster's license shall, before issuance and renewal of a
license or transacting any business thereunder, execute and
deliver to the Insurance Commissioner a bond in the minimum
penal sum of [$20,000] $40,000 with such sureties as the
Insurance Commissioner may approve[.] and shall provide proof of
the bond to the Insurance Commissioner.
(a.1) Termination or replacement of public adjuster bond.--
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The issuer of a bond issued to a public adjuster shall not
terminate or replace the bond unless written notice is filed
with the Insurance Commissioner and given to the licensee no
less than 30 days prior to the termination or replacement of the
bond.
(b) (Reserved).
(c) Condition of bond.--The bond of the public adjuster
shall be conditioned that said public adjuster will faithfully
comply with all the requirements of this act and shall not
embezzle, take, secrete or otherwise dispose of or fraudulently
withhold, appropriate, lend, invest or otherwise use or apply
any money or substitutes for money or any salvage, goods or
property received by him as such public adjuster or employee of
a public adjuster[, contrary to the instructions or without the
consent of the assured or his legal representative]. Any person,
firm or corporation who has entered into a contract with a
public adjuster, as provided in section 5, and who shall suffer
loss by reason of the failure of the public adjuster to comply
with this act and faithfully perform his duties shall have the
right to intervene and be made a party to any action instituted
by the Commonwealth on the bond of the public adjuster and to
have his, her or its rights and claims adjudicated in such
action and judgment rendered thereon, subject, however, to the
priority of the claim and judgment of the Commonwealth. If the
amount of the liability of the surety on said bond is sufficient
to pay the full amount due the Commonwealth, the remainder shall
be distributed pro rata among said intervenors. If no suit
should be brought by the Commonwealth of Pennsylvania, upon
application therefore and furnishing affidavit to the department
that loss has been suffered by reason of failure of the public
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adjuster to comply with this act or faithfully perform his
duties, such insured shall be furnished with a certified copy of
said bond, upon which he, she or it shall have a right of
action, and shall be and are hereby authorized to bring suit in
the name of the Commonwealth for his, her or its use and benefit
against said public adjuster and his sureties and to prosecute
the same to final judgment and execution. [Where suit is
instituted by any such insureds on the bond of the public
adjuster, it shall be commenced within one year after the
performance and final settlement of said contract, and not
later. Where suit is so instituted by an insured or insureds, no
other action shall be brought by any other claimant, but any
other claimant may file his claim in the action first brought
and be made party thereto within one year from the completion of
the work under said contract, and not later. If two or more
actions be brought on the same day, the action in which the
largest claim is demanded shall be regarded as the first action.
Any creditor who has brought an action within one year as
aforesaid, but after suit brought by another creditor or on the
same day, may intervene in the suit first brought within the
year, notwithstanding the fact that the intervention in such
case be after the expiration of the year, provided said
intervention be made within 30 days after the expiration of the
year.] If the recovery on the bond should be inadequate to pay
the amounts found due to all of said creditors, judgment shall
be given to each creditor pro rata of the amount of the
recovery. The surety on said bond may pay into the court, for
distribution among said claimants and creditors, the full amount
of the surety's liability, to wit, the penalty named in the
bond, less any amount which said surety may have had to pay to
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the Commonwealth by reason of the execution of said bond, and,
upon so doing, the surety will be relieved from further
liability. In all suits instituted under the provisions of this
act, such personal notice of the pendency of such suits,
informing them of their right to intervene, as the court may
order, shall be given to all known creditors and, in addition
thereto, notice shall be given by publication in newspapers of
general circulation, published in the county or municipality
where the contract was performed, once a week for at least three
successive weeks: Provided, however, That, when such suit has
begun within three weeks of the end of the year within which
suit may be brought, said notice by publication shall be only
for the period intervening between the time of instituting such
suit and the end of the year.
Section 3. The act is amended by adding sections to read:
Section 4.1. Fees.
(a) Limits.--A public adjuster may not charge, agree to or
accept as compensation or reimbursement any payment, commission,
fee or another thing of value that is more than:
(1) for a catastrophic claim settlement, 10%; or
(2) for an insurance claim settlement, 15%.
(b) Prohibition.--A public adjuster may not:
(1) require, demand or accept any fee, retainer,
compensation, deposit or other thing of value prior to
settlement of a claim; or
(2) collect a fee from the portion of a claim offered to
or received by the insured before the public adjuster was
retained.
Section 4.2. Requirements and prohibitions.
(a) Notification letter.--A public adjuster shall provide
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the insurer a notification letter, which must be signed by the
insured, authorizing the public adjuster to represent the
insured's interest. The insurer shall verify that the person
acting as the public adjuster holds a valid license with the
department. If the person acting as the public adjuster does not
hold a valid license, the insurer:
(1) Shall notify the department, who may refer the
matter to the Office of Attorney General for investigation of
a violation of any of the following:
(i) The act of December 17, 1968 (P.L.1224, No.387),
known as the Unfair Trade Practices and Consumer
Protection Law.
(ii) The act of October 17, 2008 (P.L.1645, No.132),
known as the Home Improvement Consumer Protection Act.
(iii) Section 6(b.1).
(2) May not issue payment to the person acting as an
adjuster associated with the claim.
(b) Assignment.--
(1) Subject to a policy's terms relating to
assignability, a property insurance policy, regardless of
when issued, may provide that the rights and benefits under
the insurance policy may only be assigned to a person who has
the legal authority to represent the named insured or to a
subsequent owner of the property to whom title is
transferred, and may prohibit assignment of rights and
benefits to any other person, including a property repair
contractor.
(2) For the purposes of this subsection, having "legal
authority to represent the named insured" includes the person
named by the named insured as having the named insured's
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power of attorney, the person who is the named insured's
licensed public adjuster or any other comparable person.
Property repair contractors operating in this Commonwealth
may not subvert the public adjuster licensing requirements of
the act through the acquisition of a power of attorney from
the named insured.
(c) Prohibitions.--A public adjuster may not:
(1) Suggest that the property is damaged unless an
inspection of the property has been completed.
(2) Offer to pay an insured's deductible or indicate
that the insured's deductible will be waived.
(3) Acquire any interest in the salvage of property
subject to a contract with the insured.
(4) Withhold funds due to an insured in excess of the
amount of the fee due to the public adjuster for more than 30
d ays subject to section 5(e)(4).
(5) Restrict or prevent an insurer or other person
acting on behalf of the insurer from:
(i) Accessing the insured property that is the
subject of the claim.
(ii) Obtaining information necessary to investigate
and process a claim.
(iii) Contacting the insured directly regarding the
claim, except the insurer shall send to the public
adjuster a copy of any correspondence with the insured
relating to the claim.
(d) Inquiry or request for information.--For a written
inquiry by the department or a request for documentation related
to an application or renewal of a license or an investigation, a
public adjuster must provide a written response or produce the
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requested documents within 30 days of receiving the inquiry or
request.
(e) Cooperation with investigation.--A public adjuster shall
cooperate with the department in any investigation related to a
violation of this act. Cooperation includes, but is not limited
to, being interviewed by the department, providing a written
statement to the department, providing pertinent documentation,
testifying at a proceeding and completing an authorization for
release of information, as necessary, in a form specified by the
department.
(f) Failure to respond.--If a public adjuster fails to
respond to an inquiry as specified in subsection (d) and fails
to correct the violation within 15 days, the department may file
an order to show cause against the public adjuster on that basis
and seek a fine of no more than $100 per day in addition to the
denial, suspension or revocation of a license.
(g) Required reporting of denial, suspension or revocation
of license.--A public adjuster must report having a public
adjuster license or other professional license, or an
equivalent, denied, suspended or revoked by a governmental
entity or self-regulating professional association to the
department within 30 days of the occurrence.
(h) Required reporting of criminal charge.--Within 30 days
of being charged with criminal conduct, a public adjuster shall
report the charges to the department. The public adjuster shall
provide the department with the following within 30 days of
availability to the public adjuster:
(1) A copy of the criminal complaint, information or
indictment.
(2) A copy of the order resulting from a pretrial
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hearing, if any.
(3) A report of the final disposition of the charges.
Section 4.3. Separate pre-contract disclosure.
Prior to the signing of a contract, a public adjuster shall
provide the insured with a separate disclosure document
regarding the claim process, which must contain the following
information:
(1) That a property insurance policy obligates the
insured to present a claim to the insurance company for
consideration.
(2) An explanation of the three types of adjusters that
could be involved in the claim consideration process under
paragraph (1), as follows:
(i) A company adjuster who is an insurance adjuster
who is an employee of an insurance company. A company
adjuster represents the interest of the insurance company
and is paid by the insurance company. A company adjuster
will not charge the insured a fee.
(ii) An independent adjuster who is the insurance
adjuster hired on a contract basis by an insurance
company to represent the insurance company's interest in
the settlement of the claim. An independent adjuster is
paid by the insured's insurance company. An independent
adjuster will not charge the insured a fee.
(iii) A public adjuster who is an insurance adjuster
who does not work for an insurance company. A public
adjuster works for the insured to assist in the
preparation, presentation and settlement of the claim.
The insured hires a public adjuster by signing a contract
agreeing to pay the public adjuster a fee or commission
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based on a percentage of the settlement or other method
of compensation.
(3) That the insured may, but is not required to, hire a
public adjuster to help the insured meet the obligations
under the policy.
(4) That the insured may initiate direct communications
with an attorney retained by the insured, the insurer, the
insurer's adjuster, the insurer's attorney or any other
person regarding the settlement of the insured's claim.
(5) That the public adjuster is not a representative or
employee of the insurer.
(6) That the salary, fee, commission or other
consideration paid to a public adjuster is the obligation of
the insured.
(7) The public adjuster's license number and the web
address of or a link to the department's publicly accessible
Internet website to verify current licensure.
(8) A statement that the individual may file a complaint
with the department that contains the web address of or a
link to the department's current publicly accessible Internet
website, email and telephone number.
Section 4. Sections 5(a), (a.1), (a.2) and (d) and 6(a)
introductory paragraph and (7) of the act are amended and the
sections are amended by adding subsections to read:
Section 5. Contract.
(a) Written contract required.--No public adjuster shall,
directly or indirectly, act within this Commonwealth as a public
adjuster without having first entered into a contract, in
writing, on a form approved by the department prior to the
issuance of the public adjuster's license and executed in
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duplicate by the public adjuster and the insured or a duly
authorized representative. One copy of this contract shall be
kept on file by the public adjuster, available at all times for
inspection by the department. The department shall disapprove a
contract form if, in the department's opinion, the contract or
its provisions:
(1) Fail to comply with this section or any regulation.
(2) Are unreasonable.
(3) Are contrary to the interests of the public.
(4) Are misleading or unfair to the insured.
At the department's discretion, the department may also require
the submission of advertising or solicitation material.
(a.1) Rescission.--
(1) A contract with a public adjuster may be rescinded
by any person signing the contract[.] within:
(i) five business days after signature for all
contracts; or
(ii) 15 business days if the contract was signed
within five business days after the loss was discovered
by the insured.
(2) If the insured exercises the right to rescind the
contract, anything of value given by the insured under the
contract shall be returned to the insured within 15 business
days following the receipt by the public adjuster of the
rescission notice.
(3) If an insured exercises the insured's right to
rescind under this subsection, the insured shall be liable
for:
(i) the reasonable value of services performed by
the public adjuster; and
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(ii) the reasonable and necessary emergency out-of-
pocket expenses or services that were paid for or
incurred by the public adjuster during the period
preceding rescission.
(a.2) Disclosure.--The contracts shall disclose the
following items with each of these items separately signed or
initialed by the insured and the public adjuster:
(1) That the insured has the right to rescind the
contract [within three calendar days after signature]
pursuant to subsection (a.1).
(2) Fees to be charged or assessed by the public
adjuster together with an explanation about how the fees will
come from a portion of the claims payment, if any, made by
the insurer under the policy and are not in addition to the
payments.
(3) That the adjuster will provide the insured a copy of
an estimate or report of losses and, upon the insured's
request, any supporting documentation it sends to the
insurer.
(4) That the public adjuster is not a representative or
employee of the insurer and is an independent licensee of the
department.
(5) The public adjuster's license number and the web
address of or a link to the department's publicly accessible
Internet website to verify current licensure.
(6) A description and location of the loss, if
applicable.
(7) A description of services to be provided to the
insured.
(8) Attestation language stating that the public
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adjuster is fully bonded under the laws of this Commonwealth.
(9) A statement that the individual may file a complaint
with the department, which shall contain the department's
current publicly accessible Internet website, email and
telephone number.
* * *
(a.4) Co-payee.--A contract may specify that a public
adjuster shall be named as a co-payee on an insurer's payment of
a claim only if the following requirements are met:
(1) The public adjuster's compensation is based on a
share of the insurance settlement, the exact percentage of
which must be specified.
(2) Initial expenses to be reimbursed to the public
adjuster from the proceeds of the claim payment are specified
by type, with dollar estimates specified in the contract and
with any additional expenses first approved by the insured.
(3) Compensation provisions in a public adjusting
contract may not be redacted in any copy of the contract
provided to the Insurance Commissioner.
(a.5) Responsibilities of public adjuster.--If an insurer,
not later than five business days after the date on which a loss
is reported to the insurer, either pays or commits in writing to
pay to the insured the policy limit of the insurance policy, the
public adjuster:
(1) May not receive a commission consisting of a
percentage of the total amount paid by an insurer to resolve
a claim.
(2) Shall inform the insured that the loss recovery
amount might not be increased by the insurer.
(3) Shall be entitled only to reasonable compensation,
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as determined by the Insurance Commissioner, for services
provided by the public adjuster based on the time spent on a
claim and expenses incurred by the public adjuster during the
five business days.
* * *
(d) Contracts limited to adjustment of insurance losses.--No
public adjuster shall, directly or indirectly, through or with
any person, partnership, corporation or association in which it
has an indirect or beneficial interest, enter into any contract
with any insured for the repair, replacement, restoration,
renovation or demolition of damaged property, real or personal,
[at any time prior to the date a verdict or award is entered or
payment is received from the insurance carrier, whichever event
shall occur first.] that the public adjuster has been contracted
to adjust.
(e) Public adjuster contract contents.--A public adjuster
contract may not contain any contract term that:
(1) allows the public adjuster's percentage fee to be
collected when money is due from an insurance company but not
paid or that allows a public adjuster to collect the entire
fee from the first check issued by an insurance company
rather than as percentage of each check issued by an
insurance company;
(2) requires the insured to authorize an insurance
company to issue a check only in the name of the public
adjuster;
(3) imposes collection costs or late fees; or
(4) permits the public adjuster to:
(i) charge a fee for the negotiation of additional
living expenses; or
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(ii) withhold a fee from payment of additional
living expenses.
Section 6. Revocation, etc., of license.
(a) Grounds for fines, suspensions or revocations.--
[Committing any of the following acts] The following acts are
prohibited and shall be grounds for fine, suspension or
revocation of a public adjuster's license:
* * *
(7) Receiving, directly or indirectly, any compensation,
referral fee, commission or thing of value or profit from any
person, partnership, association or corporation engaged or
interested in the business of salvage, repair, replacement,
restoration, renovation or demolition of damaged property,
real or personal[, unless such compensation, commission or
thing of value or profit is disclosed to the insured and
agreed to in the contract].
* * *
(b.1) Additional penalty.--In addition to a penalty provided
under this act, unlicensed activity prohibited under this act
shall constitute an offense under 18 Pa.C.S. § 4117 (relating to
insurance fraud) and shall subject a person or entity to
criminal prosecution as a felony of the third degree and to
civil penalties.
* * *
Section 5. This act shall take effect in 180 days.
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