STATEMENT TO

SENATE, No. 1320

with Assembly Floor Amendments

(Proposed by Assemblyman STANLEY)

ADOPTED: MARCH 24, 2025

     This floor amendment:

     (1) clarifies that an individual, firm, association, or corporation licensed under the “Public Adjusters’ Licensing Act” has no right to compensation from any insured for or on account of services rendered to an insured as a public adjuster unless the right to compensation is based upon a written contract that defines an insured person’s right to cancel a contract within three business days, or terminate any time after that period;

     (2)   deems certain statements sufficient with regard to defining the services to be rendered and a description of the right to cancel or terminate;

     (3) provides that an insured person that cancels a contract within three business days remains liable for reasonable expenses and necessary emergency out-of-pocket expenses or services, if they were approved by the insured, that the public adjuster incurred on the insured’s behalf that were necessary to protect the insured’s investment between the signing of the contract and cancellation;

     (4)   provides that an insured person who terminates a contract after midnight on the third business day is obligated to pay from any insurance proceeds recovered, either prior to or after the date of termination, a fee for the reasonable value of services provided by the public adjuster based upon the nature of the services performed by the public adjuster supported by a record of such work;

     (5)   permits an insured person to cancel a contract via email; and

     (6)   grants the Commissioner of Banking and Insurance authority to promulgate regulations regarding the required notice of an insured person’s right to cancel or terminate.