HB405: HB405 Insurance; require licensed adjusters to be licensed contractors

Currently, Georgia insurance adjusters (people who evaluate insurance claims, often for property damage) do not need a contractor's license to do their job. This bill changes that by amending Georgia's insurance licensing law (O.C.G.A. § 33-23-5). Starting July 1, 2026, anyone applying to become a licensed adjuster would have to already hold one of several contractor licenses set out in Georgia law (O.C.G.A. Chapter 41 of Title 43): residential-basic contractor, residential-light commercial contractor, commercial general contractor, or commercial general contractor limited tier. Which license an adjuster needs would depend on the type of work they adjust claims for. The bill also lets people who already hold one of those contractor licenses become adjusters, but only within the scope of work covered by their contractor license. The state insurance Commissioner would write rules spelling out exactly what each adjuster license type covers and could allow exemptions or extensions based on an applicant's experience or qualifications.

• Requires new adjuster license applicants, beginning July 1, 2026, to hold a matching contractor license (residential-basic, residential-light commercial, commercial general, or commercial general limited tier).
• Ties the specific contractor license an applicant holds to the scope of adjusting work they are allowed to perform.
• Allows people who already hold one of the listed contractor licenses to become licensed adjusters, limited to their contractor scope of practice.
• Directs the Commissioner to issue rules and regulations defining the scope of practice for these adjuster licenses.
• Lets the Commissioner create exemptions or extensions for license renewals based on an applicant's experience or contractor qualifications.
• Repeals any existing Georgia laws that conflict with these new requirements.

Insurance adjusters and people applying to become adjusters in Georgia, licensed contractors in the residential and commercial building trades, the state Insurance Commissioner's office, and insurance companies that rely on adjusters to evaluate property damage claims.

If enacted, becoming an insurance adjuster in Georgia would require construction trade credentials that many current or aspiring adjusters may not have, while giving licensed contractors a new path into adjusting work. This could change who is eligible to evaluate property insurance claims statewide.

• Section 1 adds subsection (e) to O.C.G.A. § 33-23-5, requiring adjuster applicants after July 1, 2026 to hold a relevant contractor license depending on their area of practice.
• Section 1 also adds subsection (f), letting current holders of qualifying contractor licenses become adjusters limited to their contractor scope of practice.
• The Commissioner is directed to set rules and procedures defining scope of practice for adjuster licenses and may grant exemptions based on experience or contractor qualifications under O.C.G.A. § 43-41-6.
• Section 2 repeals any conflicting Georgia laws, a standard clause with no substantive effect beyond resolving conflicts.

1. 2025-02-13House Second Readers (House)
2. 2025-02-12House First Readers (House)
3. 2025-02-11House Hopper (House)

• Spencer Frye (D, HD-122)Primary sponsor
• Marcus Wiedower (R, HD-121)
• Stacey Evans (D, HD-057)
• Omari Crawford (D, HD-089)
• Shea Roberts (D, HD-052)
• Gabe Okoye (D, HD-102)

• insurance regulation
• contractor licensing
• insurance adjusters
• property insurance claims