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Assembly committee passes AB 597 to cap public adjuster fees at 15% in declared disasters
Summary
The Assembly Committee on Insurance voted to pass AB 597, a bill that would cap public adjuster fees at 15% for claims tied to declared disasters, tighten contract disclosure rules and ban solicitation while emergency conditions are active. The measure was referred to the Appropriations Committee after a unanimous committee vote.
The Assembly Committee on Insurance voted to pass AB 597 on March 10, 2025, sending the bill to the Appropriations Committee with a unanimous committee vote. Authored by Assemblymember Harabedian, AB 597 would cap public insurance adjuster fees at 15% of an insurance payout for claims arising from declared disasters, require clearer contract disclosures about the claims and coverages an adjuster will handle, prohibit solicitations while emergency conditions are present, and give policyholders a right to rescind contracts solicited during a prohibited period.
The bill’s author told the committee AB 597 is designed to protect disaster survivors from “bad actors” who charge excessive fees and use misleading contract terms. “These reforms are straightforward,…
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