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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, and they are consumer protections,” Assemblymember Harabedian said during his presentation.
Josephine Figueroa, deputy commissioner and legislative director at the California Department of Insurance, testified in support on behalf of Insurance Commissioner Ricardo Lara. Figueroa said investigators have received complaints of “charging exorbitant amounts upwards up to 30%” and aggressive solicitation during disasters. She described AB 597 as a way to “prevent the revictimization and targeting of disaster survivors when they are at their most vulnerable.” The department was listed as a sponsor of the bill.
Witnesses from industry and trade groups also addressed the committee. Mark Seager of the American Property Casualty Insurance Association, representatives from the Personal Insurance Federation of California and the Pacific Association of Domestic Insurance Companies registered support. Opponents included Ron Reitz of the Pacific Coast Association of Public Insurance Adjusters and Matthew Blumkin, president of the National Association of Public Adjusters; both said they opposed the bill as written but expressed willingness to work with the author and the department on revisions.
Committee members voted to pass the bill and refer it to Appropriations; roll-call statements in the hearing record show successive ayes and a final committee statement that the bill was “out.” The committee left the roll open for additional members during the hearing, and later recorded the bill as referred to Appropriations with the roll showing 17 ayes when concluded.
Supporters said the bill is intended to preserve more of a claim payout for survivors and curb predatory post-disaster practices; opponents said a flat cap could reduce consumer choice or create practical compliance issues for adjusters. The committee did not adopt a final urgency clause on the record during the hearing; the bill’s author said he would request an urgency clause.
The bill will next be considered by the Assembly Appropriations Committee. The hearing record lists contact and technical witnesses available for follow-up, including Tony Cignarelli, deputy commissioner for consumer services and marketing conduct at the Department of Insurance, who remained available to answer technical questions during the hearing.
