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State Rep. Dom Costa D-Allegheny www.pahouse.com/DCosta

House passes public adjuster bill

Legislation mirrors Costa's bill from last session

HARRISBURG, June 15 – The Pennsylvania House of Representatives today unanimously passed a bill that would protect the public from unscrupulous insurance adjusters by strengthening state regulations.

The bill mirrors state Rep. Dom Costa's H.B. 561 from last session.

"I was pleased to support this bill when it came before the House Insurance Committee and when it came to the House floor for a vote because it aims to make sure insurance adjusters are qualified and honest," said Costa, D-Allegheny, Democratic vice chairman of the House Insurance Committee.

Similar to Costa's bill, the measure that passed the House today would update the state's public adjuster regulations for the first time in 25 years to include:

· Requiring applicants to submit fingerprints for a national criminal background search.

· Submission of a nonrefundable $200 fee with the license application.

· Licenses issued for a period not to exceed two years.

· Successful completion by applicants of 24 credit hours of approved continuing education for each two-year license period.

· Disclosure that the insured has the right to rescind the contract within five calendar days after signature of a contract with a public adjuster (Costa's bill would have allowed contracts to be rescinded within 15 days), and disclose how the fees come from a portion of the claims payment.

· A reciprocal licensing agreement in the state for nonresidents of the Commonwealth who are currently licensed in another state provided their home state has a reciprocal licensing agreement with Pennsylvania. Current law does not provide for the licensing of non-residents or business entities.

Costa's bill would have also prohibited licensees from having an interest in or receiving any profit from any salvage or restoration company or similar business, but H.B. 424 does not include that provision.

The bill now moves to the state Senate for consideration.