Mississippi’s House Bill 1174, recently signed into law and to take effect on July 1, 2025, brings significant reforms to Mississippi Code 83-17-503, reshaping the landscape for public adjusters operating within the state and adding more requirements for public adjusters, including non-resident public adjusters.
Key Amendments to Mississippi Law 83-17-503
The bill introduces several critical changes:
· Licensing Requirements: Public adjusters must exhibit character requirements such as reliability and good reputation as determined through an investigation by the insurance commissioner. Requirements for a business entity to be licensed. The bill also adds key requirements for Nonresident public adjusters.
· Financial Responsibility: Adjusters must demonstrate financial responsibility, by at least maintaining a minimum $50,000 surety bond and an irrevocable letter of credit issued by a qualified financial institution in the minimum amount of $50,000 This is in addition to the already imposed duty under the code to have a none interest-bearing fiduciary trust account from a bank licensed to do business in Mississippi for which client funds must be deposited within 2 days of receiving them.
· A public adjuster’s license is automatically terminated should evidence of financial responsibility be terminated or impaired.
· Allows an insured to revoke a public adjusters contract within 5 days of execution.
· Written Contracts: Adjusters cannot provide services until a written contract is executed, that includes at least the following requirements:
o (i) The legible full name of the adjuster signing the contract, as specified in the department's licensing records;
o (ii) The adjuster's permanent home state business address and phone number;
o (iii) The license number issued to the adjuster by the department;
o (iv) A title of “Public Adjuster Contract”;
o (v) The insured's full name, street address, insurer name, and policy number, if known or upon notification;
o (vi) A description of the loss or damage and its location, if applicable;
o (vii) A description of services to be provided to the insured;
o (viii) The signatures of the adjuster and the insured;
o (ix) The date the contract was signed by:
§ 1. The adjuster; and
§ 2. The insured;
o (x) Attestation language stating that the adjuster has a letter of credit or a surety bond as required by Section 83–17–511.
o (i) A contract between a public adjuster and an insured shall be executed in duplicate to provide an original contract to the public adjuster and the insured.
· Disciplinary Actions: The Commissioner of Insurance has the authority to suspend, revoke, or refuse to renew licenses based on violations.
The original bill sought out to place regulations and licensure requirements on independent and staff adjusters as well so all adjusters would have to abide by the same requirements, but that language was scrapped. No need to regulate everyone. House Bill 1174 marks a significant shift in Mississippi’s approach to public adjuster regulation and can be seen in some aspects as a positive step forward. However, Mississippi still remains one of very few states with no statutes on first party property claims handling. If Mississippi is looking for consumer protection laws it must incorporate regulation that levels the playing field. A Good Faith Claims Handling Statute would provide even stronger consumer protections by requiring insurers to handle claims fairly, transparently, and without unnecessary delays, ultimately benefiting policyholders more directly. For a full breakdown of the bill, you can read the official text Here.
https://legiscan.com/MS/text/HB1174/id/3068154