The Mass. Insurance Federation and representatives of the public-adjuster community testified in support of House Bill 1113, legislation to tighten the regulation of assignment-of-benefits practices in homeowners insurance claims.

Christopher Stark, executive director of the Massachusetts Insurance Federation, told the committee the bill is "very simple" in purpose: to clarify the assignment-of-benefits process and protect homeowners from out-of-state operators that, in other states, have led to abusive practices and inflated claims costs. "Local public adjusters by and large are very good actors in this space," Stark said. "When we get out-of-state folks, especially after any natural catastrophe, issues arise."

Brian Lanaine of the Massachusetts Association of Public Insurance Adjusters said assignments to contractors or other vendors can create conflicts and noted public adjusters are licensed and subject to continuing education and oversight. He argued that allowing contractors or third-party vendors to take assignment of benefits can disadvantage homeowners and enable fraud.

Why it matters: Witnesses said clarifying assignment rules protects consumers and legitimate local adjusters while reducing the incentive for predatory operators to traffic claims after storms. Testifiers noted success in other states where assignment-of-benefit reform pacified abusive claim practices.

Process: The industry witnesses said they were working on a small technical amendment with the public-adjuster community; no committee vote on H.1113 is recorded in the transcript.

Ending: Supporters framed H.1113 as a targeted consumer-protection fix designed to preserve homeowner claim integrity and protect consumers from out-of-state actors.