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Committee backs bill to give contractor board authority over unlicensed public-adjusting by contractors
Summary
House Bill 121 would let the state contractors licensing board take disciplinary action when a licensed contractor engages in unlicensed public-adjusting activities; committee reported the bill favorably after sponsors and Department of Insurance staff described complaints following weather events.
House Bill 121, carried by Representative Adams, would add authority in the contractor code to allow the state contractors licensing board to take action against licensed contractors who engage in public-adjusting activities they are not licensed to perform.
Department of Insurance staff described complaints following weather events in which contractors advertised public-adjusting services (interpreting policies, handling claims) without a public-adjuster license. Representative Adams said the bill is intended to close an enforcement gap: the conduct is already a crime under the insurance code if done without a public-adjuster license, but contractors' licensing penalties were not expressly available to the contractor board.
Committee members asked about appropriate sanctions and whether penalties would be proportionate to the harm. Adam Patrick of the Department of Insurance said the contractor board has regulatory enforcement tools including fines, license suspension and revocation, and the bill simply ensures the board can act when a licensee is doing public-adjusting work outside their permitted scope.
The committee recorded strong support from insurance-industry trade associations and moved the bill favorably to the next legislative step.
