Public adjuster law signee

Governor Josh Shapiro signed House Bill 1972 into law, modernizing Pennsylvania's public adjuster law and delivering stronger protections for homeowners, businesses, and families navigating the insurance claims process after a loss.

Governor Shapiro and the Pennsylvania Insurance Department (PID) worked closely with Representative Robert Merski, the sponsor of the bill, and the General Assembly to advance this landmark legislation that achieved unanimous votes of approval in the House and Senate.

"When families are recovering from a fire, storm, or other devastating event, they should not have to worry about excessive fees, hidden conflicts, or individuals operating outside the law. Pennsylvanians deserve honest, transparent, and professional assistance when recovering from a disaster," said Pennsylvania Insurance Commissioner Michael Humphreys. "In signing this legislation, the Governor puts consumers first by strengthening oversight, reducing conflicts of interest, preventing unlicensed activity, and ensuring that policyholders keep more of the insurance benefits they need to rebuild their lives. PID thanks Governor Shapiro and the bill sponsors and members of both chambers for their leadership and bipartisan commitment to protecting Pennsylvania consumers."

This bill advances Governor Shapiro's commitment to protect consumers and increase accountability across industries that serve Pennsylvanians, while also reflecting national best practices adopted by the National Association of Insurance Commissioners (NAIC). By establishing stronger standards for public adjusters, the legislation helps ensure that Pennsylvanians obtain fair treatment during insurance claim settlements when recovering from a disaster and other covered losses.

This new legislation:

Caps public adjuster fees at 10 percent for catastrophic claims and 20 percent for other claims, helping consumers retain more of their insurance recovery.

Expands cancellation rights, giving consumers additional time to reconsider contracts signed after a disaster or major loss.

Requires insurers to verify that individuals acting as public adjusters are properly licensed and report suspected unlicensed activity to PID.

Establishes stronger conflict-of-interest protections by prohibiting public adjusters from having a financial interest in repair or reconstruction work related to the same claim.

Increases bonding requirements and strengthens licensing standards to improve accountability and consumer safeguards.

Requires clearer contract disclosures so consumers understand their rights, responsibilities, and alternatives before hiring a public adjuster.

Prohibits contract provisions that can unfairly divert insurance payments away from policyholders.

"This bill is a result of bipartisan compromise," said Rep. Robert Merski, D-Erie. "Working across the aisle and with the administration, Senate and stakeholders, we were able to enhance consumer protections and provide common sense reforms and clarification for the industry."

"HB 1972 is about protecting Pennsylvania consumers when they are at their most vulnerable, following a fire, flood, or other property loss," said Rep. Jeff Olsommer, R-Pike/Wayne. "I am proud of what we accomplished and believe consumers will be better protected because of this legislation."

"This bill reflects the mutual efforts of Governor Josh Shapiro's Administration, Insurance Commissioner Michael Humphreys and the PA Insurance Department, the PA House Insurance Committee members and caucus staff, the PA Senate Banking and Insurance Committee members and caucus staff, and the input of consumer, public adjuster and insurance industry members and advocates, culminating with a new law that will ensure needed consumer protections while maintaining economic viability for public adjusters," said Rep. Perry Warren, D-Bucks. "Congratulations to prime sponsor Democratic Rep. Bob Merski and co-prime sponsor Republican Rep. Jeff Olsommer for their tenacious work in shepherding this bill to Governor Shapiro's desk."

Pennsylvanians with questions about their insurance or who wish to file a complaint can visit pa.gov/consumer or call 1-866-PA-COMPLAINT (1-866-722-6675).

To learn more about insurance, visit PID's website. Follow PID on Facebook, Instagram, X or LinkedIn.

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