The state House is almost certain to approve legislation that makes changes to the way public adjusters solicit business and handle contracts with consumers. The sponsor of the bill and Chairman of the House Insurance Committee, Nick Micozzie, R-Delaware said the bill stems from discussions with the insurance industry. It has bipartisan support.

“Some of the adjusters still aren’t happy with it,” Micozzie said. “But we feel it’s necessary to protect consumers.”

The bill prohibits the adjusters from soliciting business during an emergency and interfering with discussions between consumers and their insurance carrier.

“Under the bill, you can’t approach a homeowner when his house is on fire and you can’t tell a consumer not to talk to their insurance company,” Micozzie said.

The bill also gives consumers five business days to rescind a contract after signing.

Micozzie said that currently any violation under the Public Adjuster Licensing Law is graded as a misdemeanor punishable by fines of no less than $500 and no more than $1,000. Although this grading of offense would still hold true for most violations, House Bill 424 would grade specific fraudulent activities under the law as third-degree felonies punishable by up to seven years in prison and a fine of up to $15,000.