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Panel backs licensure, fingerprinting and fee caps for public adjusters after fraud concerns
Summary
S196, which creates licensing rules for company, independent and public insurance adjusters and adds background checks and fee caps for public adjusters, received support from insurers and the Department of Insurance after witnesses described predatory tactics by some public adjusters and roofers.
The Banking & Insurance Subcommittee approved S196 after several witnesses described predatory behavior by some public adjusters and associated roofing contractors and urged licensing, background checks and fee caps.
David Wiley of South Carolina Farm Bureau Mutual Insurance said the bill establishes a level playing field by creating licensure and continuing-education requirements for company, independent and public adjusters. He introduced Glenn Hayes, the Farm Bureau property claims manager, who recounted multiple examples in which roofers and public-adjusting firms allegedly used high-pressure tactics, questionable representation letters and inflated supplemental claims, increasing costs and leading to lawsuits and extra legal expense for insurers and insureds.
Robert Cathcart of the Department of Insurance said the bill also adds fingerprinting and background checks for adjusters, and noted the committee already caps public-adjuster fees at 10% to ensure more recovery goes to consumers; witnesses described instances where fees as high as 30% had been reported. After questions and brief supporting remarks from the South Carolina Insurance Association, the subcommittee voted to approve S196 and send it to the full committee.
