Right.

You know, public adjusters, uh, were acknowledged under statute for conduct that used to be considered the practice of law.

I mean, that's the really interesting issue here.

What public adjusters do, up until about 25 years ago, was considered by a lot of states and court decisions to be the practice of law.

Therefore, public adjusters couldn't do it.

So they went and got a, a legislative carve out from what constitutes the practice of law to allow them to negotiate insurance claims.

And what's happened in Kentucky now is it's effectively taken that away.

Hmm.

Concern has actually increased to the point of there's been some pressure on the public adjusting profession to address, I guess, abuses by some of the bad

actors

This is something that's been brewing for a while, right?

It has been, and those voices are getting louder to raise complaints and concerns about the profession.

We're seeing more and more of that.

And it's really coming from three areas.

Number one, PAs are seeing pushback in the claim process generally from insurance companies because there's a general growing distrust whenever there's a public adjuster involved, which, again, is unfortunate for the good PAs.

The bad actors drive the narrative.

And I guess the figure was $2 million versus what was actually a $700,000 job.

Yeah, and this is a common problem we face that we use Xactimate estimates in the claim process.

We'll use an estimate to determine initially what the ACV should be.

Then we go set reserves based upon that.

But the problem we have with a lot of public adjusters is that once the work is done, like the Colorado matter, what we owe is we owe the replacement costs, the amount actually incurred.

But when we pay the amount actually incurred, there's really no way for the public adjuster to be paid.

If it's a $2 million roof and we pay $2 million because that's what it costs, how is the PA paid? Well, the insurance is going to have to go out of pocket.

I mean, it does something, but it's a bit restrictive.