(SACRAMENTO, CA) - Today, Assemblymember John Harabedian (D-Pasadena) introduced AB 597 to protect policyholders from unfair fees and price gouging by public adjusters after major disasters.
"Public adjusters should help wildfire survivors rebuild, not wreck their recovery. Some public adjustors will charge excessive fees or take a portion of homeowners’ insurance payouts through unfair practices. I’m proud to partner with Commissioner Lara on AB 597 to ensure wildfire survivors get every dollar they deserve to rebuild their lives," said Assemblymember John Harabedian (D-Pasadena).
"As disasters become more frequent and severe, my responsibility is to assist wildfire survivors in their recovery. This proposal is designed to safeguard them from unfair charges and exploitation, ensuring that consumers keep as much of their insurance claims as possible to support their recovery and rebuilding efforts. I am proud to collaborate with Assemblymember Harabedian on this vital consumer protection bill," said Commissioner Lara, sponsor of the legislation.
In short, this bill will do the following:
- AB 597 - The Insurance Payment Protection Act: prevents unfair fees and price gouging by adjustors, particularly after major disasters, and applies to residential properties and certain commercial properties. Inspired by the need to safeguard policyholders during vulnerable times, this bill also allows policyholders to cancel contracts if the public adjuster violates the law or solicits business during prohibited periods. Additionally, public adjuster contracts must clearly outline the services being provided, including the specific claims or coverages they will handle. By ensuring transparency and fairness, AB 597 strengthens consumer protections and protects wildfire victims.
This bill is sponsored by the California Department of Insurance.
The bill will be heard in Assembly policy committees during the spring.
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