(LEX 18) — A proposed Kentucky bill could significantly impact how homeowners handle insurance claims after disasters, according to industry professionals who oppose the legislation.
House Bill 568, currently under consideration in the legislative session, would modify licensing requirements and fees for public adjusters in Kentucky. The bill would change the definition of public adjuster and restrict the issuance of new public adjuster licenses in the state.
Kevin Stamper, owner and CEO of Thoroughbred Alliance, is among those fighting against the bill. Stamper, who has decades of experience in claims adjusting, said the legislation, in part, would reduce options for homeowners during recovery efforts in the aftermath of weather-related disasters.
"We're salt of the earth kind of people," Stamper said. "We're here to help Kentuckians."
His response to the bill?
"This bill would be forcing homeowners to have to rely upon going to attorneys," Stamper said.
The Thoroughbred Alliance owner reflected on scenarios like last May, when an EF-4 tornado rolled through Laurel and Pulaski counties. He said homeowners affected by such disasters would face significant challenges under the proposed legislation.
"They would have a very difficult time if they'll even be able to get a proper settlement with the insurance company," Stamper said.
Both Stamper and the American Adjuster Association oppose Kentucky House Bill 568. Stamper believes public adjusters are being unfairly targeted by the legislation.
"You don't take out an entire industry because of a few bad characters, you take out the bad characters," Stamper said.
There are 30 licensed resident public adjusters in the state, according to Stamper.
Currently in Kentucky, public adjusters can charge up to 10% of the total insurance recovery for catastrophic claims. For non-catastrophic claims, the maximum fee is 15% of the total insurance recovery. According to Stamper, if the bill passes, that could change to 5%, a flat rate, or an hourly rate.
The bill is 25% through the legislative process, according to Stamper. Sponsors of House Bill 568 were contacted for comment.
