Kentucky’s General Assembly has passed two bills, HB 568 and HB 355, that together would effectively end public adjusting as a viable profession in this state. The Governor has not yet signed them, but both bills passed with overwhelming legislative support.
What the Bills Do
HB 568 immediately prohibits new public adjuster licenses and strips existing licensees of the right to negotiate with insurers on behalf of policyholders. Whatever other functions remain, a public adjuster who cannot negotiate is not, in any practical sense, a public adjuster.
HB 355 closes the gap. Licensed real property appraisers are separately prohibited from negotiating on any insurance claim relating to real property. The two bills work in tandem. When both take effect, the only professional who can negotiate on behalf of a Kentucky property owner in a disputed insurance claim is an attorney.
What This Means for Policyholders
For many Kentucky homeowners and small business owners, that means no professional advocate at all. Public adjusters worked on contingency at rates accessible to ordinary people dealing with property losses. Attorneys are significantly more expensive. For a disputed $40,000 claim, litigation is often not economically rational. Public adjusters existed precisely because that gap existed, and they consistently produced better outcomes for policyholders than unrepresented insureds achieve on their own.
As an attorney who handles policyholder disputes, I have regularly referred cases to public adjusters when a claim was not large enough to justify attorney rates but the policyholder still needed an advocate. I have also filed suit on these cases when the insurance company committed bad faith. I know how this profession serves ordinary Kentuckians, and I know what losing it means for them.
We Are Fighting Back
Kemper Law Office currently represents a group of Kentucky-licensed public adjusters and believes strong legal grounds exist to challenge these laws once they are signed. We are in communication with national public adjuster organizations that share these concerns.
Contact Us
If you are a Kentucky-licensed public adjuster whose livelihood is affected by this legislation, contact us at aaronkemper@lawhelplouisville.com. Initial consultations are free.
If you are a Kentucky property owner with a disputed insurance claim, we handle policyholder disputes, first-party property claims, and bad faith insurance litigation. We are here to help.