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 adjusters and give consumers clearer protections when they hire someone to negotiate insurance claims on their behalf. Senators asked whether the measure or the insurance commissioner’s implementation might slow the arrival of experienced out-of-state adjusters after large disasters, when quick access to help can be important.

Key provisions and points of debate

- Licensing and standards: The bill requires licensing by the insurance commissioner, a minimum age of 21, Mississippi residency (subject to reciprocity), and a passing score on an exam. It also authorizes the commissioner to investigate and determine whether an applicant is “trustworthy, reliable and of good reputation.”

- Financial safeguards: Public adjusters must obtain a bond or letter of credit; if the required bond lapses, the adjuster’s license terminates. The bill also requires adjusters to maintain client funds in fiduciary trust accounts and lists items that must appear in written agreements (address, phone number, license number, loss description and verification of bonding).

- Reciprocity and emergency licensure: The conference report includes reciprocity: an out-of-state adjuster may apply if their home state offers similar licensure on the same basis. The Senate debate noted an existing emergency statute the insurance commissioner can use to temporarily license out-of-state adjusters for up to 90 days (and extend for additional 90-day periods) during catastrophic events; that emergency authority was not changed by this bill.

- Oversight and discretion: Several senators pressed the presenter on language that allows the commissioner to “require additional information or submissions” from applicants, expressing concern that open-ended investigatory authority could delay approvals. Senator Hill warned that undefined additional requirements might lengthen the approval timeline and hamper timely access to adjusters after losses. The presenter said the additional information clause is intended to ensure the commissioner can vet applicants and protect consumers.

Questions from the floor

Senator Thompson asked whether the bill gives the insurance commissioner authority to add regulations beyond the statute’s text; the presenter replied he was not aware of such authority in the bill. Senator Hill pressed about the meaning of the commissioner’s investigation of “trustworthy” and whether that language reintroduces character-based licensing standards that other recent licensing bills had removed; the presenter confirmed the language remains and that the commissioner would use available tools, including records of complaints and bond compliance, to vet applicants.

Senator Hobson and others asked whether Mississippi currently licenses public adjusters (the presenter said yes) and how many are licensed in the state (not specified). The presenter said many public adjusters still operate as small shops in Mississippi, but larger firms may be used after major losses. The presenter and other senators said the emergency licensure statute should help bring in out-of-state adjusters quickly when needed.

Final action and vote

A motion to adopt the conference report was made and the chamber recorded several negative votes on the morning roll call (names entered in the record included Chisholm, Hobson, Thompson, Macan and Sparks). The clerk announced 14 no votes; the presiding officer then declared the bill passed by morning roll call.

What the bill does not do

The conference report does not change the emergency licensure statute referenced during debate, does not specify the detailed timeline for processing reciprocity applications, and does not include a numerical count of currently licensed public adjusters in Mississippi.

Next steps and implementation

The measure will proceed in the process as adopted by the Senate. The insurance commissioner’s office will be responsible for implementing licensure procedures, examinations and any administrative guidance allowed by existing law. Senators on the floor asked the commissioner’s office and staff to ensure vetting does not unduly delay access to qualified adjusters in disaster areas.