VirginiaHB4372026 Regular SessionHouseWALLET

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

Sponsored By: Destiny LeVere Bolling (Democratic)

Became Law

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

6 provisions identified: 6 benefits, 0 costs, 0 mixed.

Limits on public adjuster fees

Public adjusters may not charge fees or take money before your claim settles. In a declared catastrophic disaster, their fee cannot be more than 10% of your settlement. If the insurer pays or promises the policy limit within 72 hours after the loss is reported, percentage fees are banned and the adjuster can only bill for reasonable time and expenses. They also cannot pre-set fees tied to insurer payments made before you signed, or add collection or late fees. A catastrophic disaster means an event with a state or federal emergency declaration.

Clear contracts and easy cancellation

All public adjuster contracts must be in writing with key facts and full fee terms. You can cancel within 3 business days, or within 5 business days after a catastrophic disaster. The adjuster must return any money or thing of value within 15 business days after you cancel. You must get a separate disclosure that you do not have to hire them, they are not the insurer’s employee, you pay their fees, you can talk to the insurer, and how to check their license. Contracts cannot block your right to sue after the cancellation window, and you can void a contract made with an unlicensed adjuster.

Only licensed adjusters can handle claims

The law makes it illegal to offer or do public adjusting without a Virginia license. It defines what counts as public adjusting and who must be licensed. Only licensed adjusters may file, negotiate, or settle claims for pay or advertise as one. You cannot settle a claim with an unlicensed adjuster, and licensed adjusters may not help them. No one can use a power of attorney to dodge these rules. Basic paperwork-only helpers are exempt.

Safeguards for your money and data

Any money an adjuster gets for you must go into a separate noninterest trust account by the close of the second business day. Funds must be itemized and, after you approve an invoice, paid out within 30 calendar days. Each adjuster must run a written information security program to protect your personal data. Materials given to the Commission in an investigation are confidential and may be shared only with regulators or law enforcement.

Stronger conduct and ad rules

Public adjusters must act fairly and honestly. They cannot stop you from talking with your insurer, the insurer’s adjuster, or your lawyer. They may not profit from repair or restoration work on your claim or refer you to businesses they own or that pay them. Ads must be truthful, show the adjuster’s full name and Virginia license number, and say when a spokesperson is not licensed.

Tougher enforcement and license actions

The Commission can fine, put on probation, deny, suspend, or revoke licenses for misrepresentation, law violations, misusing funds, exploiting a vulnerable adult, crimes of dishonesty, and more. Licenses end automatically in some cases, like moving residence out of Virginia, if a firm dissolves or loses its charter within 90 days of notice, or if a firm fails to name a replacement responsible adjuster within 30 days. A revoked license usually cannot be reissued for five years. The law defines vulnerable adults to help target and punish exploitation.

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

Constitutional reading dispensed Block Vote (on 2nd reading)

Yes: 40 • No: 0

Senate vote 2/25/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote 2/23/2026

Reported from Commerce and Labor

Yes: 15 • No: 0

House vote 2/4/2026

Passed House Block Vote

Yes: 98 • No: 0

House vote 2/4/2026

Read third time and passed House Block Vote

Yes: 97 • No: 1

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 • Other: 1

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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