Illinois, Indiana Join Other States in Passing Public Claims Adjuster Reforms | Insurance Business America
Reforms aimed at protecting consumers from bad actors
By Mika Pangilinan
Illinois and Indiana have joined the growing list of states passing legislation to reform public claims adjusters.
The Illinois Public Examiner Bill (SB 1495) passed both houses of the legislature last week and will now go to the governor. Meanwhile, Indiana Gov. Eric Holcomb recently signed HB 1329, which increases data transparency and allows an insured to void or withdraw from a contract with a public claims adjuster.
These bills follow similar steps in other states and build on the work the American Property Casualty Insurance Association (APCIA) has done with industry partners and legislators.
“This is a continuation of APCIA’s work with lawmakers to protect consumers from being re-victims by evil actors who sometimes target storm victims in the aftermath of disasters,” said Ronald Jackson, vice president of state government relations for APCIA’s southeast region .
Earlier this year, Kentucky enacted HB 232, which revises the rules governing the licensing of public surveyors and the fees they may charge.
Similarly, with HB 254, Georgia created a regulatory framework for public experts. Also this year, the state passed HB 222, which revised the requirements for public expert contracts to ensure there are no conflicts of interest.
In addition to its legislation reforming public claims adjusters, Indiana has also introduced legislation regarding delivery network companies (DNCs) and third-party funding of litigation.
HB 1125 specifies insurance requirements for DNCs to fill potential insurance gaps for delivery drivers. Meanwhile, HB 1124 requires third-party litigation funding arrangements to be disclosed during civil proceedings to promote transparency and prevent potential conflicts of interest.
Brooke Kelley, APCIA associate vice president for state government relations, commended Indiana’s actions and said the state had struck the right balance between consumer protection and informed insurance decisions.
“The actions of the Legislature and Gov. Holcomb ensure Indiana is moving in a positive direction by striking the right balance between consumer protection and informed insurance decisions while protecting an insurer’s proprietary information,” Kelley said.
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