The Kentucky General Assembly passed House Bill 568, modifying licensing requirements and fees for public adjusters. Now, a legal challenge is already scheduled for Monday.A spokesperson for the bill's sponsors said they do not comment on pending litigation, but a hearing is scheduled for Monday at 2 p.m. in Jefferson County Circuit Court.Brian Goodman, general counsel for the National Association of Public Insurance Adjusters points out that public adjusters are fully licensed in 46 of the 50 states in the United States. He adds that it's a very common occupation that comes under the regulatory auspices of the insurance department of each state, including the Commonwealth of Kentucky.Speaking with LEX 18 via zoom from his office in Maryland, Goodman said the bill is harmful to Kentucky citizens for two specific reasons.First, no new licenses will be issued to public adjusters for two years."Why they picked that arbitrary period I don't know, why they decided to do that, I don't know. Public adjusters being fully licensed...they're like lawyers and doctors. People have a right to a public adjuster if they want one for their loss," Goodman said.Second, Goodman said the bill strips adjusters of a core function."They also have specifically said that public adjusters can no longer negotiate insurance claims for claimants. Bear in mind when you have a loss in your house, if your house burns down or your business, why is the insurance company entitled to have an adjuster but the policyholder is not?"According to Goodman, Kentucky would become the only state to "do anything remotely like this."When asked what his response would be to people who feel public adjusters are being singled out by the bill, Goodman was direct: "This bill is only directed at public adjusters."He added that the bill crosses a legal line."I don't know what drove this. It's very draconian and we don't think it's legal," Goodman said.Kevin Stamper of Thoroughbred Alliance Group, who lives in Kentucky, also weighed in on the legislation."What we're seeing is a coordinated shift, changing the rules at the state level to control claim outcomes," Stamper said. "After a storm or fire, homeowners don't need fewer options, they need qualified representation to ensure their claim is paid correctly. These bills remove that option, shift the balance of power back to the insurance companies, and raise serious questions about whether these changes are protecting consumers or protecting carrier balance sheets. The insurance company is now becoming the storm after the storm, wrecking peoples livelihoods, businesses, and homes."Critics are also fighting HB 355 pertaining to the regulation of real property appraisers.Public adjusters, contractors, the American Adjuster Association, and the National Association of Public Insurance Adjusters argue that, in property insurance claims, the bills weaken consumer protections. ...read more read less