Transparency and Consumer Safeguards: Public Adjuster Reform Gains Momentum in Indiana, Illinois

Indiana and Illinois have recently joined the growing number of states enacting legislation aimed at reforming public adjuster practices. These measures are designed to enhance consumer protection, increase transparency, and regulate the activities of public adjusters within the insurance industry.

In Illinois, a public adjuster bill (SB 1495) successfully passed both houses of the legislature last week and is now awaiting the governor’s approval.

Meanwhile, Indiana Governor Eric Holcomb signed HB 1329 into law, which introduces new provisions to promote data transparency and grant insured individuals the ability to void or rescind contracts with public adjusters when necessary.

These legislative actions follow similar initiatives in other states, reflecting the ongoing efforts of the American Property Casualty Insurance Association (APCIA) in collaboration with industry partners and lawmakers.

Several states have already made strides in public adjuster reform. Kentucky revised licensing provisions for public adjusters and imposed regulations on their fee structures. Georgia established a regulatory framework for public adjusters, and revised their contract requirements to prevent conflicts of interest.

Additionally, Indiana HB 1124 mandates disclosure of third-party litigation funding agreements during civil proceedings, promoting transparency and mitigating conflicts of interest.

The implementation of public adjuster reform and other related measures underscores the commitment of states to enhance regulatory oversight and protect policyholders from fraudulent practices. These legislative efforts are vital in fostering a fair and transparent insurance environment that benefits consumers and the insurance industry as a whole.