Senate adopts conference report tightening licensure and consumer protections for public adjusters

The Mississippi Senate adopted the conference report on House Bill 1174, a measure that establishes new licensing standards and consumer protections for public adjusters who represent insured policyholders.

The bill requires public adjusters to be licensed by the state insurance commissioner, be at least 21 years old, be a Mississippi resident (with a reciprocity process for out-of-state adjusters), pass an exam, and provide financial responsibility by obtaining either a surety bond or a letter of credit. The measure also requires public adjusters to deposit client funds into fiduciary trust accounts and lists specific information that must appear in written contracts, including the adjuster’s license number and proof of required bonding.

Senator (unnamed), who explained the conference report on the chamber floor, said the legislation narrows the bill to focus on public adjusters representing insureds and removes references to independent adjusters who represent insurers. “All this consumer protection language has been established as a model bill by the National Conference of Insurance Legislators, and it’s been vetted on a nationwide basis by insurance companies, by insurance commissioners, and by legislators throughout the 50 states,” the senator said.

Why it matters

Supporters said the bill aims to raise the professionalism and ethical standards of public…