California Assembly Bill AB597

California 2025-2026 Regular Session

• Introduced: 2/13/25
• Refer: 3/10/25
• Report Pass: 3/10/25
• Refer: 3/11/25
• Report Pass: 3/19/25
• Refer: 3/19/25
• Engrossed: 4/1/25
• Refer: 4/2/25
• Refer: 5/7/25
• Report Pass: 7/3/25
• Refer: 7/3/25
• Report Pass: 7/10/25
• Refer: 7/14/25
• Refer: 8/18/25

Caption

An act to amend Section 15027 of the Insurance Code, relating to insurance, and declaring the urgency thereof, to take effect immediately.

Summary

AB 597 revises California’s Public Insurance Adjusters Act to add consumer protections for insureds who hire public adjusters, especially after disasters. The bill requires public adjuster contracts to more clearly describe the services being provided, including the specific claim and coverages covered by the agreement, and it tightens rules on how fees may be calculated. In particular, it bars fees or commissions from being based on amounts paid to the insured before the contract date in catastrophic disaster or state of emergency situations, and bars fees based on insurer payments for claims or coverages outside the scope of the adjuster’s services. The bill also strengthens restrictions on solicitation. It changes the prohibited solicitation period to apply to policyholders and their representatives during a loss-producing occurrence, and it bars contact with a policyholder’s representative during the restricted evening and early-morning hours. It expands the insured’s right to void or rescind a contract without time limit if the adjuster misrepresents or conceals a material fact, or if the adjuster solicits in violation of the new restrictions. It also extends the short cancellation window from five calendar days to losses in areas subject to a state of emergency, not just catastrophic disasters, and updates the required cancellation notice and disclosure language accordingly.

Impact

AB 597 would amend Insurance Code Section 15027, which governs public insurance adjuster contracts, disclosures, cancellation rights, and solicitation practices. The bill would impose additional contract-content requirements, expand consumer cancellation and rescission rights, and create new compliance obligations for licensed public adjusters. Because violations of these provisions are criminal offenses under existing law, the bill would also affect enforcement and could create a state-mandated local program, though the bill states no reimbursement is required. The measure is an urgency statute and would take effect immediately if enacted.

Sentiment

The overall sentiment reflected in the bill text and voting history is strongly supportive of consumer protection, with unanimous committee and floor votes shown in the available history. The urgency clause frames the bill as a response to wildfire victims and other disaster survivors who may be vulnerable to predatory or exploitative public adjuster practices. The bill’s repeated passage through committees without recorded opposition suggests broad agreement with its protective purpose, even though it was later held under submission and placed on suspense in the appropriations process.

Contention

The main policy tension is between protecting disaster survivors from unfair adjuster practices and preserving the ability of public adjusters to market their services and charge compensation. The bill’s restrictions on solicitation, its limits on fee calculations, and its expanded rescission rights could be viewed by public adjusters as more burdensome or restrictive, particularly in disaster settings where claims are urgent and complex. The bill also raises implementation and enforcement issues because it adds criminally enforceable requirements and expands the scope of regulated conduct to include a policyholder’s representative, which may require clearer compliance practices by adjusters and oversight by the Insurance Commissioner.