HB 405: Insurance; require licensed adjusters to be licensed contractors

Currently, Georgia insurance adjusters (the people who inspect property damage and estimate repair costs for insurance claims) do not need a contractor's license to do that job. This bill changes Georgia's insurance licensing law (O.C.G.A. § 33-23-5) so that, beginning July 1, 2026, anyone applying to become a licensed adjuster must already hold one of several contractor licenses set out in Georgia's contractor licensing law (O.C.G.A. Chapter 41 of Title 43), such as a residential-basic, residential-light commercial, commercial general, or limited-tier commercial general contractor license. Which contractor license an adjuster needs would depend on the type of property or construction work they handle. The bill also works the other way: a person who already holds one of those contractor licenses would become eligible to be licensed as an adjuster, but only within the scope of work covered by their contractor license. The state insurance Commissioner would write rules setting the specific scope-of-practice rules and could allow exemptions or extensions based on an applicant's experience or existing qualifications.

• Requires new adjuster license applicants, starting July 1, 2026, to hold a matching contractor license (residential-basic, residential-light commercial, commercial general, or commercial general limited tier).
• Limits an adjuster's scope of work to the category matched to whichever contractor license they hold.
• Allows people who already hold one of those contractor licenses to become licensed adjusters within their contractor scope of practice.
• Directs the insurance Commissioner to write rules setting criteria and procedures for adjusters' scope of practice.
• Lets the Commissioner create exemptions or extensions to these requirements based on an applicant's experience or existing contractor qualifications.

Insurance adjusters and people applying to become adjusters in Georgia, licensed contractors in the residential and commercial building trades who might now qualify as adjusters, the state insurance Commissioner's office, which must write new rules, and insurance companies and policyholders whose claims are handled by adjusters.

Georgians filing property insurance claims, especially after storm or construction-related damage, would have their claims reviewed by adjusters who also hold hands-on contractor licenses in that specific type of construction work, potentially changing who can become an adjuster and how claims are evaluated.

• Section 1 adds new subsection (e) to O.C.G.A. § 33-23-5, requiring adjuster license applicants starting July 1, 2026 to hold a matching contractor license.
• New subsection (e) directs the Commissioner to set rules for adjusters' scope of practice and allows exemptions or renewal extensions.
• New subsection (f) allows current holders of the specified contractor licenses to become licensed adjusters, limited to their contractor scope of practice.
• New subsection (f) also lets the Commissioner exempt applicants from adjuster licensing requirements based on experience or contractor qualifications under O.C.G.A. § 43-41-6.
• Section 2 repeals any conflicting laws.

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
• property insurance claims
• adjuster licensing