Mississippi legislature strengthens consumer protection for public adjusters in House Bill 1174

Mississippi lawmakers have taken a significant step to enhance consumer protection in the insurance claims process by approving a conference report on House Bill 1174. This legislation focuses on increasing the professionalism and standards for public adjusters, who represent consumers during insurance claims, while removing references to independent adjusters who represent insurance companies.

The bill establishes new requirements for public adjusters, mandating that they be licensed by the state’s insurance commissioner, at least 21 years old, and residents of Mississippi. Additionally, they must pass a qualifying exam and demonstrate financial responsibility through a bond or letter of credit. If their bond lapses, their license will be terminated. The legislation also includes provisions for public adjusters to deposit funds into fiduciary trust accounts, ensuring greater accountability.

This initiative aligns with a model bill developed by the National Conference of Insurance Legislators, which has been reviewed by insurance companies and legislators nationwide. The aim is to create a more reliable and ethical environment for consumers navigating the often complex claims process.

During the meeting, lawmakers discussed the importance of these changes, particularly in light of recent natural disasters that have increased the demand for public adjusters. Questions were raised about the licensing process and the ability of the insurance commissioner to expedite approvals during emergencies. Current provisions allow for temporary licenses for out-of-state adjusters in the event of a disaster, ensuring that Mississippi residents can receive timely assistance when needed.

The bill is expected to streamline the claims process and improve outcomes for consumers, as it emphasizes the need for qualified and trustworthy representatives in the insurance industry. As Mississippi prepares for potential future emergencies, these legislative changes aim to bolster consumer confidence and ensure that residents have access to competent support during critical times.