Public insurance adjusters.

Assembly Member Harabedian's legislation revises California's Public Insurance Adjusters Act to modify contract requirements and expand consumer protections. The bill requires public adjuster contracts to specify which insurance claims and coverages the services apply to, while prohibiting fees based on insurance payments made before contract execution or for claims outside the scope of services.

The measure restricts public adjusters from soliciting business from policyholders or their representatives during active loss events, such as when emergency responders are present or evacuation orders remain in effect. It also prohibits contact between 6 p.m. and 8 a.m. unless requested by the policyholder.

Contract cancellation rights are broadened to allow insureds to void agreements if adjusters misrepresent facts or violate solicitation rules. The bill extends the cancellation period from three business days to five calendar days for losses in areas under state emergency declarations. Required contract disclosures must explain these rights and detail the types of insurance adjusters consumers may encounter.

Public adjusters must notify insurers within three business days after a contract's cancellation period expires. The legislation maintains existing requirements for written contracts, fee disclosures, and prohibited practices like charging late fees or requiring direct insurer payments to adjusters. Violations remain classified as misdemeanors under the Insurance Code.