New Rules for Pennsylvania Public Adjustors

There are new rules for Pennsylvania Public Adjustors effective on January 1, 2024.

Public adjusters are hired by policyholders to help them negotiate with insurance companies after a property loss. However, some public adjusters have been accused of engaging in fraudulent or unethical practices. The increased bond amount is designed to deter these practices and provide additional protection for consumers.

The Pennsylvania Insurance Department has announced that it will be implementing changes for Pennsylvania Public Adjustors including:

• Increasing the Pennsylvania Public Adjustors Bond amount from $20,000 to 50,000
• Requiring public adjusters to take a continuing education course every two years
• Prohibiting public adjusters from soliciting policyholders immediately after a loss
• Requiring public adjusters to disclose their fees in writing to policyholders

These measures are designed to further protect consumers and ensure that they are receiving fair treatment from public adjusters.

You can apply for the new bond now. 

Reasons why the PA public adjustor bond amount is increasing to $50,000 on 1/1/2024:

• The cost of property damage has increased in recent years due to inflation and other factors.
• The complexity of insurance claims has increased, making it more difficult for policyholders to navigate the claims process on their own.
• The number of public adjuster complaints has increased in recent years.

The increased bond amount is a necessary step to protect consumers from unscrupulous public adjusters. It will also help to ensure that public adjusters are properly trained and licensed.

Issues that prompted the new rules for Pennsylvania Public Adjusters:

• Complaints of fraud and unethical practices. Some public adjusters have been accused of engaging in fraud and unethical practices, such as inflating claims, misrepresenting themselves, and engaging in kickbacks.
• Lack of oversight. There was a lack of oversight of public adjusters in Pennsylvania, which allowed some public adjusters to operate without being properly licensed or trained.
• Need for consumer protection. Consumers were not adequately protected from unscrupulous public adjusters.

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