SACRAMENTO – Insurance Commissioner Dave Jones directed the licensing department to issue a notice to all licensed public adjusters and admitted carriers to remind them of the rules, regulations, and limitations on solicitation and compensation that govern public adjusters' work in California.

Jones issued the notice in the wake of the devastating fires that tore through Northern and Southern California damaging and destroying thousands of homes, business, vehicles, and equipment, and the resulting need for residents to begin the long road to recovery and rebuilding,

Public adjusters do not work for insurance companies but rather directly for policyholders who hire the adjuster for a fee to work to settle their insurance claim.

Public adjusters' fees are paid by the policyholder and are typically a percentage of the settled claim, which means it comes out of the funds used to recover from the loss.

"When people experience such devastating losses the emotional need is to return to normal, which leaves many people vulnerable," said Jones. "We strongly suggest people take their time when considering a contract for a public adjuster or hiring a contractor. It is difficult to make business decisions when you are most vulnerable emotionally."

The Department of Insurance urges consumers to begin the claims process by contacting their insurance company or agent.

If consumers have questions or concerns about their claim, what their insurer is telling them, or settlement offers, the department's consumer services team can assist and there is no charge for that assistance.

Policyholders are not restricted from contacting public adjusters directly. If a policyholder is considering hiring a public adjuster, the department also urges consumers to check the adjuster's license and make sure they are properly licensed and in good standing.

The law limits how and when public adjusters may solicit business after a disaster like the fires that burned across the state this month.

For example, public adjusters are prohibited from soliciting business from fire victims until seven days after the conclusion of the loss-producing event, in this case, after the evacuation order was lifted.

California law also limits how and when public adjusters may contact consumers, how they are compensated, and what they are required to have in their contracts for service.

In 2016, the department sponsored and Gov. Jerry Brown signed SB 488, which ushered in new reforms and limitations on public adjusters.

Many of those reforms were the direct result of consumer complaints and criminal investigations conducted into alleged wrongdoing by public adjusters.

Questions regarding this notice should be directed to the Department of Insurance Licensing Hotline at 800-967-9331.