HB591 Alabama 2015 Session

Updated Feb 24, 2026

Summary

Primary Sponsor: Jimmy Martin
Republican
Session: Regular Session 2015
Title: Insurance Department, adjusters, public adjusters licensed and regulated, adjustment of claims on behalf of insured party, license fees, Sec. 27-4-2 am'd.
Summary: HB591 would license and regulate public adjusters who represent insureds in first‑party insurance claims and add related fees and standards for these professionals.
What This Bill Does
Creates licensing and regulatory framework for public adjusters who work for insureds in first‑party claims. Requires a prelicensing course, a written exam (with exemptions), continuing education (24 hours biennially), and a bond or letter of credit of at least $50,000. Gives the Insurance Commissioner authority to issue rules, oversee fingerprints/background checks, require written contracts and disclosures, and enforce penalties; also updates license/fee structure in Section 27‑4‑2. Establishes rules for nonresident licensees and enhances contract, recordkeeping, and conduct requirements.

Who It Affects
Insureds/consumers who hire public adjusters will gain regulated, written contracts, disclosures of conflicts of interest, cancellation rights, and standardized fee rules intended to protect them in the claims process.
Public adjusters and their business entities (including nonresident adjusters) must become licensed, meet education and examination requirements, post financial security, maintain records, follow contract and conduct rules, and be subject to penalties for violations.

Key Provisions
Public adjuster defined as someone who assists insureds with first‑party claims and is licensed to operate in Alabama; certain professionals and insurer employees are excluded or limited from this act.
Licensing required: individuals and business entities must obtain a public adjuster license; only licensed individuals may exercise the license for a licensed entity.
Qualifications and licensure: applicants must designate a home state, complete a 20‑hour prelicensing course, pass a public adjuster exam (with some exemptions), and pay applicable fees; fingerprinting/background checks required; financial responsibility demonstrated.
Nonresident licensing: nonresidents must hold a home‑state license and meet Alabama requirements; continued licensure depends on maintaining a home‑state license.
Continuing education: licensed public adjusters must complete 24 hours of CE (including 3 hours ethics) every two years, with certain exemptions for part‑year or reciprocating states.
Bond or letter of credit: applicants must secure a $50,000 bond or irrevocable letter of credit to cover damages or misconduct, with conditions for termination notice.
Fees: new license and renewal fees for public adjusters are established (e.g., individual license $80; business entity license $200; exam up to $100; application/other fees as listed in the schedule).
Contracts with insureds: contracts must be in writing and include specific information (identity, office, license number, insured details, loss description, compensation, expenses, and signing dates); insureds have a three‑business‑day cancelation right (longer during emergencies).
Fees and payout rules: limitations on commissions; no fee charged prior to settlement; clear disclosure of any financial interests in related firms; restrictions on certain fee structures and advertising; contractors must provide a direct claim process disclosure to the insured.
Recordkeeping: public adjusters must keep detailed records for at least five years and make them available for inspection; confidential data is protected.
Standards and enforcement: public adjusters must act in the insured’s best interest, avoid misrepresentation, disclose conflicts of interest, and refrain from improper practices; penalties can include probation, suspension, revocation, and fines up to $10,000 per violation.
Fingerprinting and background checks: mandatory for license eligibility; centralized NAIC/CJIS handling and confidentiality measures.
Rules and delayed enforcement: the Commissioner may issue rules and may allow up to 24 months of delayed enforcement for certain items to implement fingerprinting, prelicensing, and CE requirements.
Effective date: the act becomes law on January 1 following approval, with some provisions potentially implemented later as allowed.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Insurance Department