Establishes compensation limits for licensed public adjusters during certain emergencies.
Impact
The bill is significant in providing consumer protection for individuals impacted by catastrophic events, defining strict compensation limits for public adjusters in those contexts. By instituting these limits, the legislation reflects an intention to prevent exploitation of distressed policyholders during emergencies such as floods, storms, or other disasters declared by federal or state authorities. This may help to ease the financial burden on individuals who are already facing considerable challenges after a loss.
Summary
Assembly Bill A2106 proposes new regulations concerning licensed public adjusters, particularly focusing on their compensation during designated emergencies. The bill asserts that no licensed public adjuster can charge, agree to, or accept compensation exceeding 10 percent of the total insurance claim payments made following a catastrophic loss occurrence for a period of one year. This aims to curtail potentially excessive fees charged by public adjusters during times of crisis when policyholders may be particularly vulnerable.
Contention
As with many legislative initiatives, points of contention may arise concerning the balance between protecting consumers and allowing public adjusters the ability to adequately compensate themselves for their professional services. Advocates for stronger regulations may argue that without such limits, public adjusters could take advantage of clients in desperate circumstances, while opponents might state that such limits could hinder the ability of qualified adjusters to earn fair compensation for their work, especially during periods when their services are in high demand.
Board of Registrars; background checks required, authorize pay during emergencies, qualification for compensation during holidays and emergencies specified