Kentucky's House Bill 568: Implications for Public Adjusters and Homeowners

House Bill 568, a proposed legislative change in Kentucky, is set to significantly impact public adjusters handling insurance claims, especially post-disasters. The bill seeks to revise licensing requirements and associated fees, causing concern among industry professionals about its potential ramifications for homeowners dealing with severe weather events. The proposed changes could influence regulatory compliance requirements and limit options available to homeowners during the recovery process.

Impact on Public Adjusters and Homeowners

Kevin Stamper, CEO of Thoroughbred Alliance, strongly opposes the bill, highlighting that reduced options for homeowners may lead them to rely on attorneys. Stamper emphasized the additional burden on individuals seeking settlements post-disaster, as seen after the EF-4 tornado that affected Laurel and Pulaski counties. House Bill 568 proposes changes such as redefining public adjusters and restricting new licenses, potentially impacting risk management for homeowners.

Fee Structure and Industry Concerns

Current state regulations permit Kentucky public adjusters to charge up to 10% for catastrophic claims and 15% for non-catastrophic cases. The bill suggests altering these to a flat 5% rate or an hourly charge, potentially impacting the underwriting process and claims satisfaction. Stamper argues this approach could unjustly target the entire industry instead of addressing specific problematic entities. With 25% of the legislative process completed, the bill's sponsors have been contacted for comment. Stamper and the American Adjuster Association caution against inequitable measures affecting regulatory compliance and industry health.