HARRISBURG, PA — Legislation to better protect consumers and modernize the best practices for public adjusters has unanimously passed the House and will head to the governor’s desk for signature, says Rep. Jeff Olsommer (R-Wayne/Pike).

The bill, House Bill 1972, reforms the Public Adjuster Licensing Law to implement additional disclosures and protections for consumers. Olsommer worked with his colleague from across the aisle, Rep. Bob Merski (D-Erie), on this legislation.

“This is about protecting Pennsylvanians, particularly when they are at their most vulnerable, following a fire, flood or other property loss,” Olsommer said. “By strengthening our public adjuster laws, we are by providing greater transparency, clearer contracts, reasonable limits on fees and stronger protections against conflicts of interest.”

When a property owner experiences a significant loss, they may hire a licensed public adjuster to manage their insurance claim. Unlike insurance adjusters who are hired by the insurance company, public adjusters represent the insured. They provide services such as gathering information on the loss, filing a claim and negotiating payments with the insurance company. Public adjusters often receive a percentage of the claim as payment for their services. Current law is silent on how much a public adjuster can charge.

While many licensed public adjusters serve their clients well, the law needs to be updated to improve consumer protection, enforcement, and oversight rules that align with the latest national standards, according to Olsommer's office.

The updated law would:

• Provide consumers with disclosures and a window of time to cancel a contract.
• Strengthen the licensing provisions so that no person can represent or advertise themselves as a public adjuster without a license.
• Strengthen the conflict-of-interest provisions that prohibit public adjusters from receiving financial benefits from contractors.
• Place a limit on the amount a public adjuster receives as compensation for a claim.

“I want to sincerely thank Rep. Merski for his partnership, and everyone who worked together in good faith to move this legislation forward,” Olsommer continued. “We had a lot of conversations, worked through differences and ultimately found common ground. That’s how the legislative process should work. I’m proud of what we’ve accomplished together, and I believe Pennsylvania consumers will be better protected because of our efforts.”