The following is a section by section guide to the proposed changes to the current Act

Section 1 Definitions:

• Deleted any references to a “public adjuster solicitor” as a separate licensee
  
• added non-significant definitions of “application, business entity, department, home state, licensee, nonresident public adjuster. ”
• changed definition of public adjuster in minor way to make the sentences grammatically correct and exclude insurance producers from definition

Section 2 Application for public adjuster’s license

• added section 2.1 to provide for, among other things, (2), fingerprints for the department to check national criminal databases; (3) documentation that applicant has passed licensing examination;
• added 2.1 (b), rules for business entities
• added section 2.2- licensing: added language that the Department may conduct an “investigation” of each individual who applies for license including (2) requirement  that applicant hasn’t violated the Act; (5) “possesses the general fitness, competence and reliability sufficient to satisfy  the department the applicant is worthy of licensure”,  (6) a catch-all phrase that allows them to further regulate
• added 2.2-b which requires that  (5) business entity has not committed an act which is prohibited under the Act; (6) “business entity is owned or  operated and managed by persons possessing the general fitness, competence, and reliability sufficient to satisfy the Department that the business entity is worthy of licensure”
• added 2.4 License renewals- 2.4 (a) department can deny renewal if licensee is not in compliance with Act; (b)  continuing education 24 credit hours (c) limits renewal of  lapsed licenses to within 60 days [model Act one year] 2.4 (b) follows model Act with nonresident license requirements and reciprocity

Section 3 Disclosure of financial interest

• 3.1  added:  Written disclosure on ownership of or compensation expected to be received from a construction firm, building appraisal firm, motor vehicle repair shop or another firm that provides estimates for work or that performs work in conjunction with damages caused by the insured loss on which the public adjuster is engaged.

Section 4 Bond:  a 20,000.00 bond now required for all adjusters.

Section 5 Contract- Substantially revised

      5(a) added a long section to the end which provides that the department can deny a contract form if the contract, among other things, is “unreasonable”, “misleading or unfair to insured”, and added that the department may require submission to the department of advertising or soliciting material

• 5 a (1) added that the contract may be rescinded by insured
• 5a.2(1) insured has right to rescind after five business days
  
• 5 a.2 (2)explanation of fees
• 5 a.2 (3) adjuster to provide copy of estimate to insured

Section 6 Revocation, etc. of license-

• 2 adds “misleading conduct” as  a violation, but not considered a felony unless rises to level of fraudulent conduct
  
• 14-18 added more offenses warranting penalties, including some from the model act-
• (14) having license suspended or revoked by governmental agency
• (15) failing to comply with child support order
• (16) failing to pay state income tax
• (17) committing a misdemeanor that involves the misuse of theft of money or property
• (18) filing to notify department of change of address
• (19)  added ban on solicitation as follows: “soliciting business during the progress of a loss-producing occurrence such as a fire, tornado, severe storm or other catastrophe where the immediate safety and security of persons and property is paramount. For purposes of this paragraph, it shall be presumed that the loss-producing occurrence is still in progress while emergency responders are present at the scene, unless the emergency responders have determined that the emergency status of the event has ended.”
• (20) added language which prohibits interfering with or seeking to prohibit communication or any form of contact between the insurer and the insured
  
• Did not take out number (7) which allows for vendor referral fees if included in contract,
• Section (b) changed amount of fine to $5000.00 per act
  

Section 7

• This is the section that was just proposed to be amended  in the original ,HB424, and it makes certain willful violations of the act 6(a)(1), (2), (3), (5), (6) or (12)   a third degree felony, and adds that:   In addition to the authority of the Attorney General under the act of December 6, 2002 (P.L. 1183, No. 47) and the act of February 7, 1990 (P.L. 11, No. 6), if the Attorney General finds that there has been a violation of this act, the Attorney General may bring an action to impose a civil penalty and to seek other relief, including injunctive relief, under the act of December 17, 1968 (P.L. 1224, No. 387), known as the Unfair Trade Practices and Consumer Protection Law.
• changes the fine from $1000 to $5000.