<p class=ldtitle>A BILL to amend and reenact §§ 38.2-812 through 38.2-815, 38.2-1824, 38.2-1866, 38.2-1867, 38.2-1868.1, 38.2-1869, 38.2-1871, and 38.2-1873 of the Code of Virginia and to amend the Code of Virginia by adding in Chapter 18 of Title 38.2 an article numbered 4.2, consisting of sections numbered 38.2-1845.24 through 38.2-1845.42, relating to property and casualty insurance; regulation and licensing of all-lines adjusters.</p>
SB208 creates a new licensing framework in Virginia for “all-lines adjusters,” defined as company adjusters and independent adjusters who investigate, negotiate, or settle property, casualty, and workers’ compensation claims. The bill adds a new article to Title 38.2 setting out who must be licensed, how resident and nonresident licenses are obtained, examination and fingerprinting requirements, bonding requirements, renewal and reinstatement rules, and when licenses may be denied, suspended, revoked, or terminated. It also exempts certain related professionals, such as licensed public adjusters, attorneys, and technical assistants, from the new article.
The bill also revises existing insurance code provisions to incorporate all-lines adjusters into Virginia’s continuing education system and related regulatory provisions. It requires biennial continuing education, ethics training, reporting of address/name changes and criminal or administrative actions, record retention, and adoption of written information security programs. It further authorizes the State Corporation Commission to investigate all-lines adjusters, share confidential information with other regulators, delegate ministerial functions, and enforce advertising and conduct standards for the new license category.
SB208 would substantially amend Title 38.2 of the Code of Virginia by adding a new Article 4.2 governing all-lines adjuster licensing and by conforming existing provisions on public adjusters and continuing education to include all-lines adjusters. It would create new statutory duties for individual and business entity adjusters, including licensure, bonding, background checks, reciprocity for nonresidents, continuing education, reporting, and privacy/security compliance, while giving the State Corporation Commission expanded oversight and enforcement authority. The act is set to become effective January 1, 2027.
The bill appears to have received initial support in the Senate Commerce and Labor Committee, where it was reported 14-0, indicating broad agreement with the concept of regulating all-lines adjusters. However, it later stalled in the Finance and Appropriations Committee and was continued to the next session on a 10-5 vote, suggesting that while the policy may be generally acceptable, fiscal, administrative, or implementation concerns prevented final advancement in this session.
The main points of contention likely center on the costs and administrative burden of the new licensing regime, including fees, fingerprinting, bonding, continuing education, and Commission oversight. The bill’s requirements for business entities to designate a responsible licensed adjuster, maintain a $50,000 bond, and comply with reporting and information-security obligations may also raise concerns for insurers, independent adjusters, and smaller firms. The split vote in Finance and Appropriations suggests that objections were not to the core policy alone, but to the bill’s broader fiscal or operational implications for the state and regulated industry.