AB 597 (Pending): Proposed Public Adjuster Regulations in California
California AB 597 is a pending bill that would cap Public Adjuster fees at 15% for catastrophic-disaster claims and impose new contract and solicitation requirements. Currently held in Senate Appropriations as of August 2025.
By Leland Coontz III, Licensed Public Adjuster · June 7, 2026
This Article Is Not Legal Advice
This article is educational commentary by a Licensed California Public Adjuster. It is not legal advice. For legal questions about your specific situation, consult a licensed California attorney.
AB 597 Status: Pending — Not Enacted
AB 597 (Harabedian, “The Insurance Payment Protection Act”) is a pending California bill. It is not law. The bill has been held under submission in the California Senate Appropriations Committee suspense file since August 29, 2025, and has not been signed by the Governor.
This page describes a bill that has been introduced in the California Legislature but has not become law. Until AB 597 is enacted, none of the provisions described below are enforceable, and current law continues to govern Public Adjuster contracts and fees.
What AB 597 Would Do, If Enacted
- Cap Public Adjuster fees at 15% of insurer payments received after the contract date, for claims arising from a catastrophic disaster or declared state of emergency.
- Prohibit fees calculated on amounts the insurer paid before the contract date.
- Require PA contracts to specify the services performed and the specific coverages addressed.
- Extend the post-signing cancellation window to five calendar days during a state of emergency.
- Restrict solicitation during active loss-producing occurrences and between 6 p.m. and 8 a.m.
Current California Law (Not AB 597)
Public adjuster contracts remain governed by California Insurance Code § 15027 and related sections. There is no statutory percentage capon PA fees under current law — the percentage is whatever the written contract specifies. Common contract practice in catastrophe contexts is 10%, but that is industry custom, not statutory law. For current-law guidance see Public Adjuster fees and what a Public Adjuster does.
Track AB 597
- California Legislative Information AB-597 status page — authoritative source for current bill status, amendments, and committee actions.
- Omnibus 2025–2026 California insurance-laws tracker — covers AB 597 alongside other pending insurance legislation.
Editorial Note
This page will be expanded into a full explainer once AB 597 is enacted, killed, or substantially amended. The page was previously published with framing that incorrectly described AB 597 as enacted law taking effect January 1, 2026. That framing was corrected on 2026-05-17 to match the bill’s actual status (pending, held in Senate Appropriations) after primary-source verification at the California Legislature’s bill information site.
This article is for informational purposes only and does not constitute legal advice. Insurance policies and applicable law vary by state and by policy form. Consult with a licensed professional regarding your specific situation.
Written by Leland Coontz III, Licensed Public Adjuster, CA License #2B53445.
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