Public insurance adjusters.

Assembly Member Harabedian's legislation revises California's regulation of public insurance adjusters by implementing new contract requirements and consumer protections, particularly for disaster victims. The bill mandates that public adjuster contracts specify the claims and coverages involved while capping fees at 15% of insurer payments for claims related to catastrophic disasters or states of emergency.

The measure prohibits public adjusters from collecting fees on insurance payments made before contract execution or for services unrelated to specific claims. It also restricts solicitation during active disasters when emergency responders are present or evacuation orders are in effect, and bans client contact between 6 p.m. and 8 a.m. unless requested by the policyholder.

For consumer protection, the bill expands contract cancellation rights. Clients may void agreements without time limits if adjusters misrepresent facts or violate solicitation rules. In declared disaster areas, policyholders have five calendar days to cancel contracts. The legislation requires adjusters to provide detailed service descriptions and fee structures in writing, with all documents presented in the primary language used during negotiations.

The Insurance Commissioner maintains authority to approve contracts, enforce regulations, and pursue actions against unlicensed individuals operating as public adjusters. The provisions apply to residential property insurance policies and commercial property policies with limits up to $10 million. As an urgency measure, the bill takes effect immediately upon enactment.