Pennsylvania Senate Committee Amends Adjuster Fee Bill
The legislative update addresses fee caps and bonding requirements for public adjusters operating within the state.
Updated on Oct. 29, 2026 in Insurance
Live Poll
Should the state impose stricter fee caps and bond requirements on public insurance adjusters?
On June 9, 2026, the Pennsylvania Senate Banking and Insurance Committee amended House Bill 1972 to reform the regulation of public adjusters. The proposed legislation seeks to curb conflicts of interest and standardize consumer protections across the insurance industry.
Why it matters
The bill aims to regulate professional fees, eliminate industry conflicts of interest, and enhance consumer disclosures within the public adjusting sector. By tightening oversight, the measure intends to address persistent issues in claim handling that have evolved since the original licensing law was established.
The bill mandates a 20% fee cap for standard claims and a 10% cap for catastrophic claims. It also doubles the minimum surety bond requirement for public adjusters from $20,000 to $40,000.
The players
Pennsylvania Senate Banking and Insurance Committee
This standing committee is responsible for reviewing and reporting on legislation pertaining to financial institutions and insurance regulations in the Commonwealth.
The details
House Bill 1972 prohibits public adjusters from accepting referral payments from contractors and introduces stricter rescission windows for policyholders. Additionally, operating as an unlicensed public adjuster would be classified as a third-degree felony under the updated insurance fraud statutes.
Timeline
1983: The original Public Adjuster Licensing Law was enacted in Pennsylvania.
October 2025: House Bill 1972 was introduced to the legislature.
June 9, 2026: The Senate Banking and Insurance Committee officially amended the bill.
Market Dynamics
These amendments update the 1983 Public Adjuster Licensing Law to reflect modern industry standards. The changes represent a broader effort to modernize state oversight and curb conflicts of interest in the insurance adjusting market.
Policyholders may benefit from capped fees and clearer disclosures when hiring a public adjuster for claims. These protections provide residents with increased financial security and standardized legal recourse during property loss events.
The takeaway
Consumers should review their insurance contracts and stay informed about potential legislative changes affecting professional representation. Understanding these new fee caps and rescission windows can help homeowners effectively navigate the claims process.
Further reading
Learn more about local oversight by visiting the Pennsylvania Insurance section.
Source note: This article includes information reported by Insurance Business.
Live Poll
Should the state impose stricter fee caps and bond requirements on public insurance adjusters?
