Public insurance adjusters.

Assembly Member Harabedian's legislation strengthens oversight of public insurance adjusters by modifying contract requirements and expanding consumer protections, particularly during catastrophic events. The bill requires public adjuster contracts to specify which claims and coverages their services address, while prohibiting fees based on insurance payments made before the contract date for catastrophic disasters or state emergencies.

The measure restricts public adjusters from soliciting business during active loss events or contacting policyholders between 6 p.m. and 8 a.m. without explicit request. It enables insured parties to void contracts if adjusters misrepresent information or violate solicitation rules. For properties in declared disaster or emergency areas, clients gain an extended five-day window to cancel contracts without penalty.

New mandatory disclosures explain the distinct roles of public, company, and independent adjusters, while detailing clients' rights and fee structures. The bill maintains existing requirements for written contracts approved by the Insurance Commissioner and retains provisions requiring duplicate contract execution, with copies maintained for regulatory inspection. As an urgency measure, these consumer safeguards take effect immediately upon enactment to address concerns about predatory practices following disasters.