Senate committee advances AB 597 to curb certain public-adjuster practices after catastrophic disasters

Assemblymember John Harabitian told the Senate Insurance Committee that AB 597 targets unfair fee practices by some public adjusters following catastrophic disasters, noting the bill is intended to protect disaster survivors from being charged for money insurers already paid before an adjuster was retained. "A public adjuster is a licensed professional that helps policyholders, file and collect on their claims in certain instances," Harabitian said, and he described problems where adjusters charged contingency fees on payments that were already in policyholders’ bank accounts before the adjuster did any work.

Josephine Figueroa, deputy commissioner and legislative director for the California Department of Insurance, said the department sponsors the bill and that it would protect consumers by prohibiting adjusters from considering payments received by the consumer prior to entering into a contract with a public adjuster in a declared emergency or catastrophic disaster. "AB 597 ensures funds go to where they are needed most to the consumer by…