Pennsylvania HB 1972: An Act amending the act of December 20, 1983 (P.L.260, No.72), referred to as the Public Adjuster Licensing Law, further providing for definitions, for license, for written disclosure of financial interest and for bond; providing for fees, for requirements and prohibitions and for separate pre-contract disclosure; and further providing for contract and for revocation, etc., of license.

Bill Text

SENATE AMENDED
PRIOR PRINTER'S NOS. 2487, 2847 PRINTER'S NO. 3550
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1972
Session of
2025
INTRODUCED BY MERSKI, OLSOMMER, PICKETT, SANCHEZ, K. HARRIS,
HILL-EVANS, NEILSON, CIRESI, D. WILLIAMS, FLEMING AND KHAN,
OCTOBER 20, 2025
SENATOR GEBHARD, BANKING AND INSURANCE, IN SENATE, AS AMENDED,
JUNE 9, 2026
AN ACT
Amending the act of December 20, 1983 (P.L.260, No.72), entitled
"An act providing for the licensing and regulating of public
adjusters and public adjuster solicitors," further providing
for definitions, for license, for written disclosure of
financial interest and for bond; providing for fees, for
requirements and prohibitions and for separate pre-contract
disclosure; and further providing for contract and for
revocation, etc., of license.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definition of "public adjuster" in section 1
of the act of December 20, 1983 (P.L.260, No.72), referred to as
the Public Adjuster Licensing Law, is amended and the section is
amended by adding definitions to read:
Section 1. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
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"Catastrophic claim settlement." A settlement for a claim
arising from a catastrophic event.
"Catastrophic event." Any of the following:
(1) A major disaster as declared by the President of the
United States.
(2) A disaster emergency proclaimed or declared by the
Governor under 35 Pa.C.S. § 7301 (relating to general
authority of Governor).
(3) An incident, whether natural or human-caused, that
results in any of the following:
(i) Substantial loss of life or serious bodily
injury affecting a significant portion of the population.
(ii) Widespread destruction or disabling of critical
infrastructure, including facilities essential for public
health, safety, transportation, communication, energy and
the provision of food and water.
(iii) Overwhelming demand on local, regional or
national emergency response systems, such that existing
resources are insufficient to contain, mitigate or
recover from the incident without external assistance.
(iv) Severe disruption of economic activity,
including long-term impairment of commerce, employment or
financial stability within the affected jurisdiction.
(v) Impairment of governmental or private sector
capacity to initiate, coordinate or sustain effective
response and recovery operations.
* * *
"Insurance claim settlement." A settlement for a claim not
arising from a catastrophic event.
* * *
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"Negotiate." To confer directly with or to offer advice
directly to a purchaser or prospective purchaser of a particular
contract for public adjuster services concerning the substantive
benefits, terms or conditions of the contract.
* * *
"Public adjuster." Any person advertising, soliciting
business or holding himself out to the public as an adjuster of
claims, excluding claims for personal or commercial auto lines
of insurance, for losses or damages arising out of policies of
insurance, surety or indemnity upon property, persons or
insurable business interests within this Commonwealth, and
receiving any compensation or reward for the giving of advice or
assistance to the insured in the adjustment of claims for such
losses, or who for compensation or reward, whether by way of
salary or commission or otherwise, directly or indirectly,
solicits business, investigates or adjusts losses or advises the
insured with reference to claims for losses on behalf of any
other person engaged in the business of adjusting losses. The
term does not include an agent or employee of an insurance
company, association or an exchange, through whom a policy of
insurance was written, in adjusting loss or damage under such
policy, nor does it include an insurance producer acting as an
adjuster if the services of the insurance producer in the
adjustment are without compensation.
"Relative." A spouse, parent, child, stepparent, stepchild,
grandparent, grandchild, brother, sister, half brother, half
sister, aunt, uncle, niece, nephew or first or second cousin.
* * *
"Sell." To exchange a contract by any means for money or
anything of value.
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"Settlement." The money paid out by an insurer, in whole or
in part, to settle a claim, less amounts paid for additional
living expenses.
"Solicit." To attempt to sell, ask or urge a person to
obtain public adjuster services.
Section 2. Sections 2(a) and (d), 3.1 and 4 of the act are
amended to read:
Section 2. License.
(a) License required.--No person or entity shall represent
as or advertise to be a public adjuster, sell, solicit or
negotiate