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Bill

SD 2387

An Act relative to insurance claims

194th Legislature (2025-2026) Introduced by Joan Lovely

Prohibits policy language that blocks insureds from hiring a public adjuster; renders such restrictions unlawful and requires removal by all insurers.

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Bill Summary · SD 2387

Summary: An Act relative to insurance claims (Senate Docket No. 2387)

Overview

  • Bill: An Act relative to insurance claims
  • Senate Docket: 2387 (Senate No. 785 in the 2025-2026 session)
  • Sponsor: Joan B. Lovely
  • Purpose: Prohibit insurers from including policy language that blocks insureds from hiring a public insurance adjuster, ensuring a policyholder’s right to obtain independent adjusting services when handling property and casualty claims.
  • Relation: Similar measure previously filed as House Bill 4307 (2023-2024)

Key Provisions

1) Prohibition on policy language restricting hiring public adjusters (Chapter 175)
- Adds new Section 2C to Chapter 175.
- Prohibits insurers (both admitted and non-admitted/surplus lines) from including in a property and casualty policy any language, form, or endorsement that prohibits an insured from hiring, retaining, engaging, utilizing, consulting, or contracting with a public insurance adjuster (as defined in Section 162 of Chapter 175).
- Any such restriction is deemed unlawful, unenforceable, and must be excised from the policy, with all remaining language unaffected.

2) Prohibition in policy provisions regarding public adjusters (Chapter 176D)
- Amends Clause (9) of the first paragraph of Section 3 of Chapter 176D (as appearing in the 2022 Official Edition) by adding Subclause (o).
- Subclause (o) clarifies that a policy provision in any property or casualty policy that prohibits an insured from hiring a public adjuster for services under the policy is not permissible.

  • Definitions: The bill relies on “public insurance adjuster” as defined in Section 162 of Chapter 175.

Who Is Affected

  • Insureds/policyholders of property and casualty insurance policies.
  • Insurance companies, including:
    • Admitted (domestic) insurers
    • Non-admitted or surplus-lines insurers
  • Public insurance adjusters (as a regulated profession) benefit from clarity that insureds may hire them without policy restrictions.

Practical Impact

  • Consumer protection: Ensures insureds can engage public adjusters to assist with claims, potentially improving accuracy and outcomes in claim handling.
  • Standard forms: Insurers cannot preemptively bar insureds from using public adjusters via policy language.
  • Administrative/Regulatory: Enforceability would hinge on enforcement of the policy language prohibition; the text does not specify penalties, but “unlawful” and “unenforceable” language would be removed from policies.

Timeline and Procedures

  • Filed: January 17, 2025
  • Introduced in the Senate as Senate Docket No. 2387; Senate No. 785
  • Effective dates and specific implementing rules are not stated in the text; typically, enactment would follow passage and signing into law, with any additional regulatory rules to be determined by statute or regulations.

Additional context

  • The bill is part of a broader effort to regulate insurance claims and aligns with prior similar legislation from the 2023-2024 session (House No. 4307).
  • Definitions and cross-references to Chapter 175 and Chapter 176D indicate the focus is on property and casualty insurance policy language.

Compiled from official sources — confirm details with the bill’s official record.

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