Under California law, can adjusters charge fees directly to policyholders?

In California, adjusters are prohibited from charging fees directly to policyholders until after a settlement has been reached. This regulation aims to protect policyholders from potential conflicts of interest and ensures that the adjuster's compensation is tied to the outcome of the claim. By allowing charges only after settlement, the law promotes ethical practices within the insurance claims process, ensuring that adjusters remain focused on securing fair outcomes for policyholders rather than prioritizing their financial gain beforehand.

This restriction is important as it maintains trust in the claims handling process, allowing policyholders to feel secure that their adjuster is advocating for their best interests without the pressure of upfront financial obligations. The other options suggest scenarios that would not align with California law regarding adjusters' fees, as only charging after the claim's resolution maintains regulation around adjuster practices and protects consumers.