5/31/2011
State Rep. Nick Micozzie (R-Delaware), as chairman of the House Insurance Committee, last week moved a bill out of committee that is designed to hold public insurance adjusters more accountable for fraudulent activities. The bill now goes to the full House for a vote.
“This is a necessary consumer protection bill,” said Micozzie. “We need to make sure that public adjusters are not taking advantage of consumers in times of stress and that all information is disclosed to the consumer at the time of signing any contracts. If signed into law, House Bill 424 would make changes to the existing laws that are needed in order to serve as an effective deterrent to fraudulent and criminal conduct that may be committed by public adjusters.”
The main consumer protection provisions of House Bill 424 are:
Adjusters may not solicit business in the middle of an emergency.
Adjusters must include key disclosure and information in the adjuster/consumer contract.
Consumers have a right to rescind or cancel a contract within five days after signing.
In addition, Micozzie said 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.
“A tougher penalty for fraudulent activities, misrepresentation and misappropriation of funds demonstrates our seriousness with this issue,” said Micozzie. “Insurance fraud causes a ripple effect that creates a financial burden for everyone through the cost of higher insurance premiums, and adjusters should be held accountable to more stringent penalties than currently apply.”
House Bill 424 is currently before the House on second consideration.
State Representative Nicholas Micozzie
163rd District, Pennsylvania House of Representatives
Contact: Tricia Lehman
tlehman@pahousegop.com
717.772.9840
RepMicozzie.com
