A bill introduced in the Virginia House of Delegates seeks to create licensing requirements and impose new restrictions on public adjusters operating in the state. House Bill 437 would require public adjusters to obtain a state license before conducting any work or advertising their services.
Under the proposed legislation, adjusters would not be permitted to bypass the licensing requirement by obtaining a power of attorney, becoming a named beneficiary, or being "similarly identified in an insurance policy." The measure aims to establish a regulatory framework for public adjusters, who represent policyholders in insurance claims.
Virginia's proposed bill follows regulatory actions in other states aimed at defining the boundaries of public adjuster activities. In August 2025, a federal district court dismissed a lawsuit challenging Iowa’s restriction on residential contractors performing the work of public adjusters. The court ruled the state's regulations did not violate constitutional protections.
Regulators in Iowa had issued cease-and-desist orders to contractors accused of advising insureds on claims and soliciting business related to insurance losses without proper licensing.
The Virginia bill includes provisions governing financial arrangements tied to public adjusting contracts. HB 437 would prohibit public adjusters from paying or receiving "anything of value" in connection with agreements related to such contracts.
The legislation also addresses conduct related to claim settlements and repairs. Public adjusters would be barred from recommending that policyholders accept settlements that would be disadvantageous or result in repairs not being fully completed.
HB 437 further restricts the roles public adjusters can hold on claims they have handled. The bill would prevent adjusters from serving as appraisers or umpires on any claim in which they have been involved.
Consumer protection provisions are also included in the bill. The legislation defines a "vulnerable adult" and establishes that exploitation of such individuals by a public adjuster would be grounds for probation, license revocation, suspension, or denial.
