Pennsylvania Governor Tom Corbett recently signed into law House Bill (HB) 424, amending licensing requirements and other regulations governing public insurance adjusters for the first time in 29 years. Pennsylvania Representative Dom Costa, who supported the bill, said HB 424 is designed to “ensure insurance adjusters are who they say they are and are properly trained” by introducing requirements such as criminal background checks and continuing education.
Some of the provisions of the law include the following:
- requires fingerprinting of applicants for national criminal background searches
- introduces $200 application and renewal fees
- sets a licensing period of no more than 2 years
- requires 24 credit hours of continuing education per license period
- requires a rescission period of 3 calendar days for contracts with public adjusters, disclosed upon signing
- requires disclosure of how adjuster fees are paid
- requires disclosure of any financial interests the adjuster may have in other businesses involved in the claim
- prohibits solicitation of business during the progress of a loss-producing event when the immediate safety and security of persons and property is paramount
- provides for non-resident licenses of adjusters or businesses from other states that have reciprocal licensing agreements with Pennsylvania
The law also raises maximum civil penalties for non-compliance from $1,000 to $5,000 and increases criminal penalties for some violations. It takes effect September 30, 2012.