Bill > AB597

This bill amends existing California law regarding public insurance adjusters by introducing several key protections for policyholders. The bill requires public adjuster contracts to include a detailed description of services, specifically outlining the claim and coverages to which those services apply. It prohibits public adjusters from charging fees based on amounts already paid by insurers prior to the contract, especially in cases of catastrophic disasters or states of emergency. The legislation also strengthens restrictions on when and how public adjusters can solicit clients, expanding previous prohibitions to include solicitation during loss-producing occurrences and limiting contact hours. The bill provides enhanced consumer protections by allowing policyholders to void or rescind contracts if a public adjuster misrepresents material facts or solicits employment improperly, and extends the contract cancellation period to five calendar days for losses in areas under a state of emergency. Additionally, the bill mandates a comprehensive disclosure document that explains the different types of insurance adjusters and the rights of policyholders, aimed at preventing predatory practices and ensuring transparency in the claims process. The urgency of the bill is justified by the need to protect vulnerable individuals, particularly wildfire victims, from exploitative practices in the aftermath of major disasters.

Budget and Finance, Business and Industry

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB597