Establishes compensation limits for licensed public adjusters during certain emergencies.
Impact
The bill amends the Public Adjusters' Licensing Act, which governs the practice of public adjusting in New Jersey. By imposing these compensation limits, the bill aims to safeguard consumers from potential overcharging by public adjusters in times of distress following natural disasters. Supporters argue that this could prevent exploitation of vulnerable insured individuals during emergencies when they are most in need of assistance with their claims. The bill is positioned as a consumer protection measure aimed at ensuring ethical practices within the public adjusting profession.
Summary
Assembly Bill A987 proposes to establish compensation limits for licensed public adjusters in the state of New Jersey during certain catastrophic emergency situations. Specifically, it seeks to limit the compensation that public adjusters can accept to no more than 10 percent of the total insurance claim payments made by insurers. This limitation applies solely to claims resulting from events categorized as catastrophic losses, such as floods, hurricanes, storms, or earthquakes, and is enforced for one year following the official designation of such an occurrence by authorized agencies.
Contention
There are likely to be debates surrounding this bill regarding its potential effects on public adjusters' ability to earn a living and the operational limitations it may impose. Critics may argue that these restrictions could deter qualified professionals from providing necessary services during critical times due to reduced financial incentives. Additionally, questions about the precise definition of a 'catastrophic loss occurrence' and its implications for various types of emergencies could also arise, leading to discussions on the adequacy of this measure to address the needs of the public effectively.
Authorizes establishment of tax-advantaged catastrophe savings accounts to cover losses from damage to taxpayers' primary residences and commercial property (OR DECREASE GF RV See Note)