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Bill > HB568

KY HB568

KY HB568
AN ACT relating to public adjusters.

summary

Introduced
02/05/2026
In Committee
02/25/2026
Crossed Over
02/25/2026
Passed
Dead

Introduced Session

2026 Regular Session

Bill Summary

Amend KRS 304.9-020 to modify the definition of "apprentice adjuster," "negotiate," and "public adjuster"; amend KRS 304.9-430 to prohibit the issuing of a public adjuster license on or after the effective date of the Act; amend KRS 304.9-432 to prohibit issuing an apprentice adjuster license to a person that is supervised by a public adjuster; prohibit temporary or apprentice adjuster licensees from taking an examination for, or being issued, a public adjuster license; amend KRS 304.9-433 to prohibit a public adjuster from providing services until the required rescission period has concluded; establish information to be included in contracts between a public adjuster and an insured; require a public adjuster to provide a physical copy of the contract to the insured and insurer; modify the required rescission period for contracts between a public adjuster and an insured; provide that contracts in violation of KRS Chapter 304 are not enforceable; amend KRS 304.9-4331 to prohibit a public adjuster from being affiliated with an entity or person that obtains business in connection with a claim, utilizing a contractor, another form of business, or other person to solicit or obtain contract signatures; prohibit a public adjuster from negotiating with an insurer on behalf of an insured; amend KRS 304.9-4332 to require a public adjuster to provide insured with a receipt of deposit within 3 business days; amend KRS 304.9-4333 to modify fees that may be charged by a public adjuster; amend KRS 304.9-440 to require the commissioner to take certain regulatory actions against an adjuster or apprentice licensee under certain conditions; amend KRS 304.9-436 and 304.9-295 to conform; make conforming and technical amendments throughout; direct that certain sections apply to contracts entered on or after the effective date of the Act.

AI Summary

This bill makes significant changes to the regulation of public adjusters, who are individuals hired by policyholders to help them settle insurance claims for property damage. It modifies the definitions of "apprentice adjuster," "negotiate," and "public adjuster" to clarify their roles and responsibilities. A key provision prohibits the issuance of new public adjuster licenses after the bill's effective date, though existing licenses can be renewed. The bill also prevents apprentice adjusters from being supervised by public adjusters and prohibits temporary or apprentice licensees from obtaining a full public adjuster license. It establishes a mandatory rescission period for contracts between public adjusters and insureds, requiring that services cannot be provided until this period has concluded, and outlines specific information that must be included in these contracts, which must also be provided in physical form to both the insured and the insurer. The rescission period is extended, and contracts violating these provisions will be unenforceable. Furthermore, the bill prohibits public adjusters from being affiliated with entities that solicit business or obtain contract signatures, and they are also barred from negotiating with insurers on behalf of insureds. Public adjusters are now required to provide insureds with a receipt of deposit within three business days of receiving funds. The bill also modifies the fees public adjusters can charge and grants the commissioner authority to take regulatory actions against adjusters under certain conditions. Finally, it includes conforming amendments to related sections and specifies that certain changes apply to contracts entered into on or after the bill's effective date.

Committee Categories

Business and Industry

Sponsors (9)

Last Action

to Committee on Committees (S) (on 02/25/2026)

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