Summary of Bill S 785: An Act Relative to Insurance Claims

Purpose and Intent

Bill S 785 aims to enhance consumer protections in the insurance industry by prohibiting certain restrictive clauses in property and casualty insurance policies. Specifically, it seeks to ensure that insured individuals have the right to hire public insurance adjusters without facing penalties or restrictions from their insurance providers.

Key Provisions

The bill introduces two significant amendments to existing Massachusetts General Laws:

1. Amendment to Chapter 175:

   • Section 2C: This section makes it unlawful for insurance companies, including non-admitted or surplus lines insurers, to include any policy language that prohibits an insured from hiring or consulting with a public insurance adjuster. Any such prohibitive language will be deemed unenforceable and removed from the policy, while the remaining terms will remain intact.

2. Amendment to Chapter 176D:

   • Clause (9) Addition: This clause explicitly states that any policy provision that restricts an insured from hiring a public adjuster is prohibited. This reinforces the rights of policyholders to seek assistance in navigating their insurance claims.

Affected Parties

• Insured Individuals: The primary beneficiaries of this bill are policyholders who will gain greater freedom to engage public adjusters for assistance with their claims.
• Insurance Companies: Insurers will need to revise their policy language to comply with the new regulations, ensuring that they do not impose restrictions on the hiring of public adjusters.

Legislative Process and Timeline

• Introduced: February 27, 2025
• Referred to Committee: The bill was initially referred to the Financial Services Committee and has since been reported favorably by the committee.
• Current Status: As of November 10, 2025, the bill has been reported favorably and referred to the committee on Senate Rules for further consideration.
• Hearing Scheduled: A public hearing is set for May 13, 2025, from 10:00 AM to 1:00 PM in Room A-2.

Sponsors

The bill is sponsored by Joan B. Lovely and has multiple cosponsors, including:
- Paul J. Donato
- Robyn K. Kennedy
- Adrianne Pusateri Ramos
- Bradley H. Jones, Jr.
- Bruce E. Tarr
- Barry R. Finegold
- Patrick M. O'Connor
- Lydia Edwards
- Steven S. Howitt
- Christopher J. Worrell
- John J. Cronin
- Kelly W. Pease
- Brendan P. Crighton
- Michael O. Moore
- John F. Keenan
- Nick Collins
- John C. Velis
- Michael D. Brady
- Dylan A. Fernandes
- Sal N. DiDomenico
- Donald H. Wong
- Paul W. Mark

Conclusion

Bill S 785 represents a significant step toward empowering consumers in the insurance market by ensuring their right to seek professional assistance without facing punitive restrictions. As it progresses through the legislative process, it has the potential to reshape how insurance claims are handled in Massachusetts, promoting fairness and transparency in the industry.