HB 1174 Mississippi House · 2025 Regular Session

Public adjusters licensure; revise provisions related to.

HB 1174 updates Mississippi's licensing rules for public adjusters, directly affecting individuals and businesses that help insurance policyholders negotiate claims. The bill clarifies key terms, requires adjusters to maintain $50,000 in financial security (via bond or letter of credit), and mandates that all client funds be held in special trust accounts. It also adds new contract requirements for adjuster-insured agreements and establishes rules for licensing business entities and nonresident adjusters. These changes aim to strengthen oversight and consumer protections within Mississippi's insurance claims process.

Bill status signed all 5 stages cleared

Introduction

Feb 2025

Committee Review

Mar 2025

House Passage

Feb 2025

Senate Passage

Mar 2025

Signed into Law

Apr 2025

Introduced Feb 11, 2025 Signed Apr 17, 2025

Maddy AI version diff · 3 comparisons

What changed between versions

As Passed the lower → Current version · 8 edits

MODERATE

This bill was amended to streamline the Mississippi Public Adjuster licensing law by removing redundant sections and consolidating provisions into fewer, clearer sections. The changes clarify definitions, update eligibility requirements, and strengthen consumer protections while reducing the total number of sections in the act.

Scope change

The bill's scope was narrowed by removing references to independent adjusters and focusing primarily on public adjusters, eliminating duplicate provisions that were previously scattered across multiple sections.

DEFINITION

Added specific definitions for 'Certified', 'Commissioner', 'Department', 'Insurer', 'Public adjuster', 'Person', and 'Home state' to clarify regulatory terms and ensure consistent application across the code.

ELIGIBILITY

Changed the minimum age requirement for public adjusters from 18 to 21 years old and added a requirement that applicants must pay privilege taxes and fees pursuant to specific code sections.

Updated nonresident licensing requirements to require reciprocity and proper fee payments, and clarified that nonresident licenses terminate immediately if the home state license terminates.

REQUIREMENT

Added new requirements for contracts between public adjusters and insureds, including specific mandatory terms, dual execution, and a 5-day rescission right for consumers.

Strengthened fiduciary requirements by mandating that all funds held by public adjusters be deposited into separate noninterest-bearing trust accounts within two business days of receipt.

SCOPE

Removed extensive provisions related to independent adjusters, temporary emergency registration for independent adjusters, and several previously separate sections that were consolidated or deleted.

ENFORCEMENT

Updated penalty provisions and streamlined the grounds for license denial, suspension, or revocation while maintaining civil penalty authority up to $5,000 per violation.

TIMELINE

Changed the effective date of the act from July 1, 2016 to July 1, 2025, indicating this is a new legislative session version.

As Introduced → Committee Substitute · 9 edits

MAJOR

This bill updates Mississippi's public adjuster regulations by modernizing licensing requirements, establishing clearer financial responsibility rules, and creating stricter contract and fee disclosure standards. The changes aim to protect consumers from unethical practices while maintaining flexibility for emergency situations and specialized professionals like attorneys and healthcare providers.

Scope change

The bill expands the scope of regulated activities by explicitly defining what constitutes a public adjuster and clarifying which professionals are exempt from licensing requirements, while also strengthening enforcement mechanisms for violations.

REQUIREMENT

New requirement that public adjusters must execute a written contract with insureds before providing services, with specific terms and content requirements including full compensation disclosure.

Established new fiduciary trust account requirements for handling client funds, mandating deposit within two business days and maintaining separate non-interest-bearing accounts.

Added requirement for public adjusters to provide written notice of insured rights and maintain records of all funds handled in fiduciary capacity.

Established 72-hour notification requirement to insurers when a public adjuster contract is executed with an insured.

ELIGIBILITY

Changed minimum age requirement for public adjusters from 21 years to 18 years, aligning with independent adjuster standards.

FISCAL

Updated fee caps for public adjusters to 15% for non-catastrophic claims and 10% for catastrophic claims, replacing previous blanket 10% cap.

EXEMPTIONS

Expanded list of professionals exempt from public adjuster licensing to include attorneys, healthcare providers, and employees of automated claims adjudication systems.

ENFORCEMENT

Created new civil penalty provisions with fines up to $5,000 per violation for public adjusters and up to $1,000 for individual violations.

TIMELINE

Set effective date for the new provisions to July 1, 2025, providing a transition period for existing licensees.

Floor votes · Senate Mar 6, 2025 · House Feb 10, 2025

How they voted

31–18

Passed · 2 other

Total votes 51

Mar 6, 2025

D Democratic16

8 Yea 8 Nay

50% Nay

R Republican35

23 Yea 10 Nay 2

65% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Apr 17, 2025

Signed into law

Approved by Governor

executive

Mar 31, 2025

Lower · Passed

Conference Report Adopted

lower

Mar 29, 2025

Upper · Passed

Conference Report Adopted

upper

Mar 28, 2025

Lower · Passed

Conference Report Filed

lower

Mar 6, 2025

Upper · Passed

Passed As Amended

upper

Mar 6, 2025

Upper · Passed

Amended

upper

Mar 4, 2025

Upper · Passed

Title Suff Do Pass As Amended

upper

Feb 17, 2025

Committee

Referred To Insurance

upper

Feb 11, 2025

Introduced

Transmitted To Senate

lower

Feb 10, 2025

Lower · Passed

Passed

lower

Feb 4, 2025

Lower · Passed

Title Suff Do Pass Comm Sub

lower

Jan 20, 2025

Committee

Referred To Insurance

lower

1 primary · 0 co-sponsors