Current through Register Vol. XLI, No. 38, September 20, 2024
11.1. Public adjusters shall ensure that all
contracts for their services are in a document entitled "Public Adjuster Contract"
containing the following:
11.1.a. Full name of the
adjuster signing the contract;
11.1.b.
Permanent home state business address and phone number;
11.1.c. License number;
11.1.d. The insured's full name, street address,
insurance company name and policy number;
11.1.e. A description of the loss and its
location;
11.1.f. Description of
services to be provided to the insured;
11.1.g. Signatures of the public adjuster and the
insured and date(s) signed; and
11.1.h.
Full salary, fee, commission, compensation or other considerations the public
adjuster is to receive for services.
11.2. The contract may specify that the public
adjuster shall be named as a co-payee on an insurer's payment of a claim.
11.2.a. If the compensation is based on a share of
the insurance settlement, the exact percentage shall be specified.
11.2.b. Initial expenses to be reimbursed to the
public adjuster from the proceeds of the claim payment shall be specified by type,
with dollar estimates set forth in the contract and with any additional expenses
first approved by the insured.
11.2.c.
Compensation provisions in a public adjusting contract shall not be redacted in any
copy of the contract provided to the Commissioner.
11.3. If the insurer, no later than seventy-two
hours after the date on which the loss is reported to the insurer, either pays or
commits in writing to pay to the insured the policy limit of the insurance policy,
the public adjuster shall:
11.3.a. Not receive a
commission consisting of a percentage of the total amount paid by an insurer to
resolve a claim;
11.3.b. Inform the
insured that loss recovery amount might not be increased by insurer; and
11.3.c. Be entitled only to reasonable
compensation from the insured for services provided by the public adjuster on behalf
of the insured, based on the time spent on a claim and expenses incurred by the
public adjuster, until the claim is paid or the insured receives a written
commitment to pay from the insurer.
11.4. A public adjuster shall provide the insured
a written disclosure concerning any direct or indirect financial interest that the
public adjuster has with or in any other party who is involved in any aspect of the
claim, including but not limited to any ownership of, other than as a minority
stockholder, or any compensation expected to be received from, any construction
firm, salvage firm, building appraisal firm, motor vehicle repair shop, or any other
person that provides estimates for work, or that performs any work in conjunction
with damages caused by the insured loss.
11.5. A public adjuster contract may not contain
any contract term that:
11.5.a. Allows the public
adjuster's percentage fee to be collected when money is due from an insurance
company, but not paid, or that allows a public adjuster to collect the entire fee
from the first check issued by an insurance company, rather than as percentage of
each check issued by an insurance company;
11.5.b. Requires the insured to authorize an
insurance company to issue a check only in the name of the public
adjuster;
11.5.c. Imposes collection
costs or late fees; or
11.5.d. Precludes
an insured from pursuing civil remedies.
11.6. Prior to the signing of the contract, the
public adjuster shall provide the insured with a separate disclosure document
regarding the claim process that states:
11.6.a.
Property insurance policies obligate the insured to present a claim to his or her
insurance company for consideration. There are three types of adjusters that could
be involved in that process. The definitions of the three types are as follows:
11.6.a.1. "Company adjuster" means an adjuster
representing the interests of the insurer, including an independent contractor and a
salaried employee of the insurer. The company adjuster should not charge the insured
a fee for his or her services.
11.6.a.2.
"Independent adjuster" means an adjuster hired on a contract basis by an insurance
company to represent the insurance company's interest in the settlement of the
claim. An independent adjuster is paid by the insurance company and should not
charge the insured a fee for his or her services.
11.6.a.3. "Public adjuster" means an insurance
adjuster who does not work for any insurance company. The public adjuster works for
the insured to assist in the preparation, presentation and settlement of the claim.
The insured hires the public adjuster by signing a contract agreeing to pay him or
her a fee or commission based on a percentage of the settlement, or other method of
compensation.
11.6.b. The
insured is not required to hire a public adjuster to help the insured meet his or
her obligations under the policy, but has the right to do so.
11.6.c The insured has the right to initiate
direct communications with the insured's attorney, the insurer, the insurer's
adjuster, and the insurer's attorney, or any other person regarding the settlement
of the insured's claim.
11.6.d. The
public adjuster is not a representative or employee of the insurer.
11.6.e. The salary, fee, commission or other
consideration paid to a public adjuster is the obligation of the insured, not the
insurer.
11.6.f. The contract shall be
executed in duplicate to provide an original contract to the public adjuster and an
original contract to the insured. The public adjuster's original contract shall be
available at all times for inspection without notice by the Commissioner.
11.6.g. The public adjuster shall provide the
insurer a notification letter, which has been signed by the insured, authorizing the
public adjuster to represent the insured's interest.
11.6.h. The insured has the right to rescind the
contract within three business days after the date the contract was signed. The
rescission must be in writing and shall be delivered to the public adjuster at the
address in the contract within the three business day period: Provided, That a
rescission letter postmarked within the three-day rescission period shall be deemed
to have been delivered within such period.
11.6.i. If the insured exercises the right to
rescind the contract, anything of value given by the insured under the contract will
be returned to the insured within fifteen business days following the receipt by the
public adjuster of the cancellation notice.
