The Pennsylvania Insurance Department published a news release announcing the signing of House Bill 1972, which amends public adjuster law to protect insureds.

The bill places a cap on public adjuster fees of 10 percent for catastrophic claims and 20 percent for all other claims. It also expands cancellation rights, giving insureds more time to reconsider policies signed after a disaster.

Insurers are required to verify that public adjusters are properly licensed and report unlicensed activity. Public adjusters may not have a financial interest in repair or reconstruction work related to a claim. The bill also requires clearer contract disclosures to increase consumer transparency and prohibits provisions that divert insurance payments away from insureds.