NCOIL adopts new public adjuster standards for P&C committee
NCOIL adopts new public adjuster standards for P&C committee | Insurance Business America
Property
NCOIL adopts new public adjuster standards for P&C committee
It also stipulates fiduciary responsibilities for adjusters handling claim settlement funds
Property
By
Kenneth Araullo
The Model Act introduces comprehensive standards for public adjusters, including mandatory written contracts pre-approved by the commissioner before service provision, written notifications of rights to insureds, stringent conflict of interest rules, and restrictions on filing complaints without written consent from the insured.
It also stipulates fiduciary responsibilities for adjusters handling claim settlement funds and caps fees to 15% for non-catastrophic claims and 10% for catastrophic claims.
Sponsored by representative Michael Meredith (KY), alongside co-sponsors representative Matt Lehman (IN) and delegate Steve Westfall (WV), the Model Act aims to enhance the regulatory framework for public adjusters across states.
Additionally, the committee progressed discussions on the draft NCOIL Catalytic Converter Theft Prevention Model Act, a collaboration between NCOIL president representative Tom Oliverson, MD, (TX), and NCOIL secretary representative Edmond Jordan (LA).
Representative Forrest Bennett (OK), chair of the committee, highlighted the swift and effective actions taken early in 2024, emphasizing the successful adoption of the Model Act and the constructive debate on catalytic converter theft prevention.
Feedback during the Model Act’s development phase came from various stakeholders, including the American Association of Public Insurance Adjusters (AAPIA) and the National Insurance Crime Bureau (NICB).
The Model Act is set for final approval at the NCOIL Spring Meeting in Nashville.
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