VirginiaHB4372026 Regular SessionHouseWALLET

Insurance; standards of conduct for public adjusters, unauthorized practice of public adjusting.

Sponsored By: Destiny LeVere Bolling (Democratic)

Signed by Governor

Summary

Insurance; standards of conduct for public adjusters; unauthorized practice of public adjusting. Prohibits any person who does not hold a valid public adjuster license from soliciting, investigating, negotiating, adjusting, or providing advice to a policyholder, in relation to a first party claim arising under an insurance contract that insures the real or personal property of a policyholder, for the purpose of effecting the settlement of a claim on behalf of the policyholder. The bill prohibits any public adjuster from assisting in a claim where the policyholder has improperly assigned the duties, rights, or benefits under the relevant policy to any contractor or vendor. The bill adds requirements for advertisements by public adjusters, and excludes certain materials from being considered advertisements. The bill also includes specific standards of conduct for public adjusters regarding vulnerable adults, as defined in the bill, and contains technical amendments.

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Bill Overview

Analyzed Economic Effects

10 provisions identified: 8 benefits, 1 costs, 1 mixed.

Clear contracts and cancellation rights for policyholders

Public adjusters must use written contracts listing their identity, license number, contacts, services, loss details, fees, signatures, and cancellation rights. Contracts must include a bond statement when required. A separate disclosure explains that hiring an adjuster is optional, the adjuster is not an insurer employee, and who pays costs. Policyholders must sign an authorization letter to the insurer. You can cancel within three business days after signing, or five following a catastrophic disaster declared by the President or Virginia Governor. Mail or deliver written notice to the contract address; the adjuster must return anything received within 15 business days of receiving notice. You can void a contract that violates licensing rules, and contracts cannot block civil remedies after cancellation deadlines.

Clearer public adjuster ads for consumers

Only licensed public adjusters or firms can advertise public-adjusting services, and knowingly false or misleading claims are banned. Ads must show the responsible adjuster's full name and license number; firms with several adjusters must name one responsible adjuster. Written or electronic ads using unlicensed spokespeople must disclose their unlicensed status, endorsement, and whether they are paid. Ads must also disclose computer-generated avatars, and the named adjuster must personally review ads for accuracy and compliance. Internal communications, training materials, and policyholder messages that do not solicit business are excluded from these advertising rules.

Licensed claim help for Virginia policyholders

Virginia requires a public-adjuster license to offer, advertise, or perform covered help with policyholders' own property-insurance claims. Covered work includes preparing claims, investigating losses, advising policyholders, and negotiating settlements; specified liability and third-party claims are excluded. An insurance agent advising only about a policy the agent sold, solicited, or negotiated is not acting as a public adjuster. Other legal exemptions and limited administrative tasks also remain outside licensing, provided those tasks do not explain insurance or encourage hiring an adjuster. Licensed adjusters cannot knowingly help unauthorized practice, and nobody can negotiate or settle with an unauthorized adjuster. A power of attorney cannot bypass licensing, and a public-adjuster license does not authorize representing or binding an insurer.

Limits on public adjuster fees

Public adjusters cannot demand or accept fees, retainers, deposits, or other things of value before a claim settles. Fees must be fair and reasonable for the work and include costs for estimating and settling the claim. For claims adjusted during a catastrophic disaster, total fees and expenses cannot exceed 10% of the insurance settlement. Fees cannot be based on money the insurer paid before the written contract date. If the insurer pays or commits in writing to pay the policy limit within 72 hours of the loss report, percentage fees are banned. The adjuster must explain that this is the policy's maximum recovery and charge only reasonable amounts based on time and expenses.

Policyholders gain control over claim decisions

Public adjusters must deal fairly and honestly and disclose compensation terms in writing. They need your written approval to settle a claim or acquire interests in damaged property kept after a loss. They cannot represent both sides of the same claim or serve as its appraiser or umpire after adjusting it. You choose your own lawyer and can veto proposed loss-estimating professionals after receiving advance written notice. Architects, engineers, and contractors used for estimates must hold required professional licenses. Kickbacks and deductible-related inducements are banned; referrals to businesses the adjuster owns require disclosure and contract permission. Adjusters cannot solicit during an ongoing loss event or between 8:00 p.m. and 8:00 a.m.

Safer handling of policyholders' claim money

Public adjusters holding claim money for policyholders must keep it separate from their own money and maintain records. They must deposit it by the close of the second business day into a separate trust account that earns no interest. The account must be at a financial institution licensed in Virginia. Adjusters must disburse funds within 30 calendar days after receiving an invoice, once the policyholder or claimant approves satisfactory completion.

Safer settlement checks for policyholders

Public-adjuster contracts cannot collect percentage fees on money the insurer owes but has not paid. Fees must come proportionally from each check, rather than entirely from the first check. Contracts cannot require checks payable only to the adjuster or impose collection costs or late fees. An adjuster can be named alongside you on a check, but the contract must state the exact settlement-based fee percentage. It must list initial expense types and estimated dollar costs, and you must approve added expenses before they are incurred.

Stronger oversight protects public adjuster clients

The Virginia State Corporation Commission can investigate misconduct and deny, suspend, revoke, or place public-adjuster licenses on probation. Grounds include fraud, insurance-law violations, mishandled funds, exploiting vulnerable adults, unauthorized adjusting, and knowingly accepting unlawfully solicited services from unlicensed people. Certain criminal convictions, unfair trade practices, other jurisdictions' licensing denials, and child-support or Virginia income-tax failures also support action. The Commission must find a legal ground; suspension or revocation requires notice and an opportunity to be heard. It can act after a license lapses or is surrendered, refer crimes to law enforcement, and impose multi-year reapplication bans.

Adjuster businesses face license-ending deadlines

A resident public adjuster's license authority ends immediately when the adjuster moves out of Virginia. A firm losing its only responsible adjuster must name a replacement and notify the Commission within 30 calendar days. Missing that deadline ends the firm's license authority. The Bureau must terminate affected entity licenses within 90 calendar days after receiving notice that specified charters, registrations, or operating authorities ended or were revoked.

Claim data protected, investigation access limited

Public adjusters must use written security programs with administrative, technical, and physical safeguards suited to their business size and work. Commission records under this law are confidential and privileged, generally blocking public inspection, subpoenas, discovery, and use in private civil lawsuits. The Commission can use records in regulatory or legal actions and share them with authorized partners that agree to confidentiality. People providing information without malice, fraud, or bad faith are protected from civil liability. The Commission can release final adjudicated actions that are open to public inspection.

Sponsors & Cosponsors

Sponsor

  • Destiny LeVere Bolling

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 321 • No: 1

Senate vote • 2/26/2026

Passed Senate Block Vote

Yes: 40 • No: 0

Senate vote • 2/25/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote • 2/25/2026

Constitutional reading dispensed Block Vote (on 2nd reading)

Yes: 40 • No: 0

Senate vote • 2/23/2026

Reported from Commerce and Labor

Yes: 15 • No: 0

House vote • 2/4/2026

Read third time and passed House Block Vote

Yes: 97 • No: 1

House vote • 2/4/2026

Passed House Block Vote

Yes: 98 • No: 0

House vote • 1/29/2026

Reported from Labor and Commerce with amendment(s)

Yes: 22 • No: 0

House vote • 1/27/2026

Subcommittee recommends reporting with amendment(s)

Yes: 9 • No: 0

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP0142)

    4/6/2026Governor
  2. Approved by Governor-Chapter 142 (effective 7/1/2026)

    4/6/2026Governor
  3. Governor's Action Deadline 11:59 p.m., April 13, 2026

    3/10/2026Governor
  4. Enrolled Bill communicated to Governor on March 10, 2026

    3/10/2026House
  5. Fiscal Impact Statement from State Corporation Commission (HB437)

    3/5/2026House
  6. Bill text as passed House and Senate (HB437ER)

    3/3/2026House
  7. Enrolled

    3/3/2026House
  8. Signed by President

    3/3/2026Senate
  9. Signed by Speaker

    3/3/2026House
  10. Fiscal Impact Statement from State Corporation Commission (HB437)

    3/2/2026House
  11. Passed Senate Block Vote (40-Y 0-N 0-A)

    2/26/2026Senate
  12. Read third time

    2/26/2026Senate
  13. Passed by for the day Block Vote (Voice Vote)

    2/25/2026Senate
  14. Constitutional reading dispensed Block Vote (on 2nd reading) (40-Y 0-N 0-A)

    2/25/2026Senate
  15. Rules suspended

    2/25/2026Senate
  16. Reported from Commerce and Labor (15-Y 0-N)

    2/23/2026Senate
  17. Referred to Committee on Commerce and Labor

    2/5/2026Senate
  18. Constitutional reading dispensed (on 1st reading)

    2/5/2026Senate
  19. Passed House Block Vote (98-Y 0-N 0-A)

    2/4/2026House
  20. Reconsideration of passage agreed to by House

    2/4/2026House
  21. Read third time and passed House Block Vote (97-Y 1-N 0-A)

    2/4/2026House
  22. Engrossed by House as amended

    2/3/2026House
  23. committee amendments agreed to

    2/3/2026House
  24. Read second time

    2/3/2026House
  25. Read first time

    2/2/2026House

Bill Text

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