CHAPTER 27. PUBLIC ADJUSTERS
IC 27-1-27
Chapter 27. Public Adjusters
IC 27-1-27-1
"Public adjuster" defined
Sec. 1. (a) The term "public adjuster" shall include every
individual or corporation who, or which, for compensation or reward,
renders advice or assistance to the insured in the adjustment of a
claim or claims for loss or damages under any policy of insurance
covering real or personal property and any person or corporation
who, or which, advertises, solicits business, or holds itself out to the
public as an adjuster of such claims. However, no public adjuster
shall:
(1) act in any manner in relation to claims for personal injury or
automobile property damage; or
(2) bind the insured in the settlement of claims.
(b) This chapter does not apply to, and the following are not
included in the term "public adjuster":
(1) An attorney at law admitted to practice in the state of
Indiana who adjusts insurance losses in the course of the
practice of the attorney's profession.
(2) An officer, regular salaried employee, or other
representative of an insurer or of an attorney in fact of any
reciprocal insurer of Lloyd's underwriter licensed to do business
in Indiana who adjusts losses arising under an employer's or
principal's own policies.
(3) An adjustment bureau or association owned and maintained
by insurers to adjust or investigate losses of such insurers, or
any regular salaried employee who devotes substantially all the
employee's time to the business of such bureau or association.
(4) Any licensed insurance producer or an authorized insurer or
officer or employee of the same who adjusts losses for such
insurer, and any insurance producer or representative of a farm
mutual insurance company operating under the farm mutual
insurance laws of this state on behalf of an insurer.
(5) Any independent adjuster representing an insurer.
As added by P.L.257-1983, SEC.1. Amended by P.L.129-2003,
SEC.6; P.L.178-2003, SEC.28.
IC 27-1-27-2
Certification requirement
Sec. 2. (a) No individual or corporation shall act within Indiana
as a public adjuster, or receive, directly or indirectly, compensation
or reward for services rendered in the adjustment of any claim or
claims under the types of insurance policies set forth in section 1(a)
of this chapter, unless he, or it, is the holder of a certificate of
authority to act as such public adjuster issued by the commissioner
of insurance of the state of Indiana pursuant to this chapter.
(b) Any individual or corporation who, or which, shall have
received from the commissioner of insurance a public adjuster's
certificate of authority shall be styled and be known as a "Certified
Public Adjuster".
As added by P.L.257-1983, SEC.1.
IC 27-1-27-3
Certificates of authority; issuance; prerequisites
Sec. 3. (a) The commissioner of insurance shall issue resident and
nonresident public adjusters' certificates of authority to each person
who:
(1) has complied with the requirements of this chapter,
including the payment of fees, the completion of the
examination, and, in the case of a nonresident applicant, the
service of process designation;
(2) is at least eighteen (18) years of age; and
(3) has not been convicted of:
(A) an act which would constitute a ground for disciplinary
sanction under section 7 of this chapter; or
(B) a felony that has a direct bearing on his ability to
practice competently.
A certificate of authority may be issued to a corporation that has one
(1) or more officers, directors, or employees who have been issued
public adjusters' certificates of authority. However, a corporation
may practice public adjusting only through its officers, directors, or
employees who have been issued certificates under this chapter.
(b) The commissioner of insurance may issue a resident certificate
of authority only to an applicant who is a bona fide resident of
Indiana.
(c) The commissioner may issue a nonresident certificate of
authority only to a nonresident of Indiana who holds an equivalent
resident certificate of authority or a license issued under the laws of
any other state, any territorial possession of the United States, or any
foreign country.
As added by P.L.257-1983, SEC.1.
IC 27-1-27-4
Certificates of authority; application; renewal; surety bond
Sec. 4. (a) Each applicant for a certificate of authority as a public
adjuster shall file with the commissioner of insurance an application
therefor on forms furnished by the commissioner of insurance, which
application shall set forth:
(1) the name and address of the applicant, and if the applicant
be a corporation, the name and address of each of its officers
and directors;
(2) whether the person is applying as a resident or nonresident;
(3) whether any license or certificate of authority as insurance
producer, broker, public adjuster, or independent adjuster has
been issued previously by the commissioner of insurance of the
state of Indiana or by the insurance department of any other
state, any territorial possession of the United States, or any
foreign country to the applicant; and
(4) the business or employment in which the applicant has been
engaged for the five (5) years next preceding the date of the
application, and the name and address of such business and the
name or names and addresses of the applicant's employer or
employers.
(b) An application for any certificate of authority must be signed
and verified under oath by the applicant.
(c) An annual fee of fifty dollars ($50) is to be paid to the
commissioner of insurance by the applicant for such public adjuster's
certificate of authority before the application or annual renewal
thereof is granted. However, the commissioner may, by rule adopted
under IC 4-22-2, change the amount of the fee to an amount
necessary to pay all of the direct and indirect costs of administering
this chapter. Fees collected shall be used by the department to
administer this chapter.
(d) Every public adjuster's certificate of authority shall expire on
December 31 of the calendar year in which the same shall have been
issued, but if an application for the renewal of such certificate shall
have been filed with the commissioner of insurance before January
1 of any year, the certificate of authority sought to be renewed shall
continue in full force and effect until the issuance by the
commissioner of insurance of the new certificate applied for or until
five (5) days after the commissioner of insurance shall have refused
to issue such new certificate and shall have served notice of such
refusal on the applicant therefor. Service of such notice shall be
made by registered mail directed to the applicant at the place of
business specified in the application.
(e) The applicant shall file with the commissioner of insurance a
surety bond in a sum equal to ten thousand dollars ($10,000) payable
to the state of Indiana and conditioned on the principal's faithful
performance and discharge of the principal's duties under this title
and under any rule of the department of insurance. The bond must be
renewed annually.
As added by P.L.257-1983, SEC.1. Amended by P.L.178-2003,
SEC.29.
IC 27-1-27-5
Nonresident applicants; service of process designation
Sec. 5. (a) The commissioner may not issue a certificate of
authority to a nonresident applicant until that nonresident files with
the commissioner, in a form prescribed by the commissioner, a
designation of an individual resident of Indiana, a corporate resident
of Indiana, or an authorized Indiana insurer as the nonresident
applicant's legal representative upon whom may be served all lawful
process in any action, suit, or proceeding:
(1) instituted by or on behalf of an interested person; and
(2) arising out of the nonresident applicant's public adjuster's
insurance business.
(b) The designation required by subsection (a) constitutes an
agreement that service of process upon the nonresident applicant's
legal representative is of the same legal force and validity as personal
service of process upon an Indiana resident.
(c) Service upon a nonresident may be made by serving the
nonresident applicant's legal representative with an appropriate
number of copies of the process.
(d) The nonresident applicant's legal representative shall forward
a copy of the process by registered mail to the nonresident at his last
known address of record or principal place of business, keeping a
record of such process and service.
(e) Service of process is sufficient as long as notice of the service
and a copy of the process are sent not more than ten (10) days after
the nonresident applicant's legal representative received the service
of process on behalf of the nonresident.
(f) Service of process upon a nonresident in any action instituted
by the commissioner under this chapter shall be made by the
commissioner by mailing the process to the nonresident applicant's
legal representative or the nonresident by registered mail at his last
known address of record or principal place of business.
As added by P.L.257-1983, SEC.1. Amended by P.L.31-1988,
SEC.15; P.L.130-1994, SEC.33; P.L.116-1994, SEC.43;
P.L.268-1999, SEC.14.
IC 27-1-27-6
Examination requirement; exception
Sec. 6. (a) The commissioner of insurance shall, in order to
determine the competency of an applicant for a certificate of
authority to act as a public adjuster, require such applicant to submit
to a written examination, except such applicants who shall be entitled
to such certificate without the examination as provided in this
chapter. Such examinations shall be held in such place in the state of
Indiana and at such time as the commissioner of insurance may
designate. The examination as described in this section shall include
such questions which, at the discretion of the commissioner, will
properly test the applicant's knowledge and competency to engage in
the adjustment of claims of an insured to include, but not be limited
to the following areas:
(1) The Indiana insurance law, IC 27.
(2) Inventory and appraisal procedures.
(3) Building construction.
(4) Standard fire policy.
(5) Insurance contracts related to claims on real or personal
property.
(6) Insurance coverage questions regarding business
interruption, improvements and betterments, replacement cost
coverage, concurrent and noncurrent apportionment,
coinsurance, and contribution.
(b) The commissioner of insurance may issue a public adjuster's
certificate of authority without examination to any individual or
corporation who, or which, has transacted the business of adjusting,
as a public adjuster, losses covered by policies of insurance within
Indiana as his or its principal occupation or business for a period of
at least one (1) year immediately preceding the date of application
for such certificate of authority, and who, or which, the
commissioner determines to be competent to act as a public adjuster.
Examination shall not be required for an applicant for renewal of a
certificate of authority in effect at the date the application for
renewal thereof is filed.
As added by P.L.257-1983, SEC.1.
IC 27-1-27-7
Disciplinary sanctions and proceedings
Sec. 7. (a) As used in this section, "practitioner" means an
individual or corporation who or which holds a certificate of
authority under this chapter.
(b) A practitioner shall conduct the practice of public adjusting in
accordance with the standards established by the commissioner of
insurance under section 8 of this chapter and is subject to the
exercise of the disciplinary sanctions under subsection (e), if after a
hearing, the commissioner finds:
(1) the practitioner has employed or knowingly cooperated in
fraud or material deception in order to obtain a certificate to
practice public adjusting, or has engaged in fraud or material
deception in the course of professional services or activities, or
has advertised services in a false or misleading manner;
(2) the practitioner has been convicted of a crime which has
direct bearing on the practitioner's ability to continue to practice
competently;
(3) a practitioner has knowingly violated any rule adopted by
the commissioner under section 8 of this chapter;
(4) a practitioner has continued to practice although he has
become unfit to practice public adjusting due to:
(A) professional incompetence;
(B) failure to keep abreast of current professional theory or
practice;
(C) physical or mental disability; or
(D) addiction or severe dependency upon alcohol or other
drugs which endangers the public by impairing a
practitioner's ability to practice safely;
(5) a practitioner has engaged in a course of lewd or immoral
conduct in connection with the delivery of services to clients;
or
(6) a practitioner has allowed his name or a certificate issued to
him under this chapter to be used in connection with any
individual who renders public adjusting services beyond the
scope of his training, experience, or competence.
(c) The commissioner of insurance may order a practitioner to
submit to a reasonable physical or mental examination if his physical
or mental capacity to practice safely is at issue in a disciplinary
proceeding.
(d) Failure to comply with an order under subsection (c) shall
render a practitioner liable to the summary revocation procedures
under subsection (f).
(e) The commissioner of insurance may impose any of the
following sanctions, singly or in combination, when he finds that a
practitioner is guilty of any offense under subsection (b):
(1) Permanently revoke a practitioner's certificate.
(2) Suspend a practitioner's certificate.
(3) Censure a practitioner.
(4) Issue a letter of reprimand.
(5) Place a practitioner on probation status and require the
practitioner to:
(A) report regularly to the commissioner upon the matters
which are the basis of probation;
(B) limit practice to those areas prescribed by the
commissioner; or
(C) continue or renew professional education under a
practitioner approved by the commissioner until a
satisfactory degree of skill has been attained in those areas
which are the basis of the probation.
The commissioner may withdraw a probation order if he finds
that the deficiency which required disciplinary action has been
remedied.
(f) The commissioner of insurance may summarily suspend a
practitioner's certificate for a period of ninety (90) days in advance
of a final adjudication or during the appeals process if the
commissioner finds that a practitioner represents a clear and
immediate danger to the public health and safety if he is allowed to
continue to practice. The summary suspension may be renewed upon
a hearing before the commissioner, and each renewal may be for a
period of ninety (90) days or less.
(g) The commissioner of insurance may reinstate a certificate
which has been suspended under this chapter if, after a hearing, the
commissioner is satisfied that the applicant is able to practice public
adjusting with reasonable skill and safety to clients. As a condition
of reinstatement, the commissioner may impose disciplinary or
corrective measures authorized under this chapter.
(h) The commissioner of insurance shall seek to achieve
consistency in the application of the sanctions authorized in this
section, and significant departures from prior decisions involving
similar conduct shall be explained in the commissioner's findings or
orders.
(i) The commissioner of insurance may initiate proceedings under
this section on his own motion or on the verified written complaint
of any interested person. All such proceedings shall be conducted in
accordance with IC 4-21.5.
As added by P.L.257-1983, SEC.1. Amended by P.L.7-1987,
SEC.142.
IC 27-1-27-8
Professional standards; adoption
Sec. 8. The commissioner of insurance shall, in the manner
prescribed by IC 4-22-2, adopt standards for the competent practice
of public adjusting appropriate to establish and maintain a high
standard of integrity and dignity in the profession of public adjusting.
As added by P.L.257-1983, SEC.1.
IC 27-1-27-9
Practice of law prohibited
Sec. 9. A public adjuster may not:
(1) engage in the practice of law;
(2) deal directly with any claimant represented by an attorney
at law without the consent of the attorney;
(3) advise a claimant to refrain from seeking legal advice or
retaining counsel; or
(4) in the case where legal counsel is desired by claimants,
advise the retention of specific attorneys or law firms.
As added by P.L.257-1983, SEC.1.
IC 27-1-27-10
Validity of resident certificates of authority
Sec. 10. A resident certificate of authority issued to a person
claiming residency is void if that person:
(1) holds a resident certificate of authority issued by another
state;
(2) makes application for a resident certificate of authority from
another state; or
(3) ceases to be a resident of Indiana.
As added by P.L.257-1983, SEC.1.
IC 27-1-27-11
Violations
Sec. 11. (a) A person who adjusts an insurance loss without
having obtained the required certificate of authority or who adjusts
an insurance loss after his certificate of authority has been cancelled,
suspended, or revoked by the commissioner of insurance commits a
Class B infraction.
(b) A person who makes any false statement pertaining to any
matter or thing required by this chapter to be made commits a Class
B infraction.
(c) A contract or agreement for compensation or services made
between any insured and a public adjuster for any loss suffered by
the insured which occurred in Indiana is void unless the public
adjuster, at the time of the making of the contract or agreement, has
a certificate of authority issued by the commissioner of insurance
under this chapter.
(d) This section does not limit the authority of the commissioner
of insurance to suspend, revoke, place on probation, or refuse to
issue a certificate of authority.
As added by P.L.257-1983, SEC.1.