§ 58-33A-65. (Effective July 1, 2010) Contract between public adjuster and insured.
§ 58‑33A‑65. (Effective July 1, 2010) Contract between public adjuster and insured.
(a) Public adjustersshall ensure that all contracts for their services are in writing and containall of the following terms:
(1) Legible full name ofthe adjuster signing the contract, as specified in Department records.
(2) Permanent home statebusiness address and phone number.
(3) Department licensenumber.
(4) Title of"Public Adjuster Contract."
(5) The insured's fullname, street address, insurance company name and policy number, if known orupon notification.
(6) A description of theloss and its location, if applicable.
(7) Description ofservices to be provided to the insured.
(8) Signatures of thepublic adjuster and the insured.
(9) Date contract wassigned by the public adjuster and date the contract was signed by the insured.
(10) Attestation languagestating that the public adjuster is fully bonded pursuant to State law.
(11) Full salary, fee,commission, compensation, or other considerations the public adjuster is toreceive for services.
(b) The contract mayspecify that the public adjuster shall be named as a co‑payee on aninsurer's payment of a claim.
(1) If the compensationis based on a share of the insurance settlement, the exact percentage shall bespecified.
(2) Initial expenses tobe reimbursed to the public adjuster from the proceeds of the claim paymentshall be specified by type, with dollar estimates set forth in the contract andwith any additional expenses first approved by the insured.
(3) Compensationprovisions in a public adjusting contract shall not be redacted in any copy ofthe contract provided to the Commissioner. Such a redaction shall constitute anomission of material fact in violation of Article 63 of this Chapter.
(c) If the insurer, notlater than 72 hours after the date on which the loss is reported to theinsurer, either pays or commits in writing to pay to the insured the policylimit of the insurance policy, the public adjuster shall comply with all of thefollowing:
(1) Not receive acommission consisting of a percentage of the total amount paid by an insurer toresolve a claim.
(2) Inform the insuredthat loss recovery amount might not be increased by insurer.
(3) Be entitled only toreasonable compensation from the insured for services provided by the publicadjuster on behalf of the insured, based on the time spent on a claim andexpenses incurred by the public adjuster, until the claim is paid or theinsured receives a written commitment to pay from the insurer.
(d) A public adjustershall provide the insured a written disclosure concerning any direct orindirect financial interest that the public adjuster has with any other partywho is involved in any aspect of the claim, other than the salary, fee,commission, or other consideration established in the written contract with theinsured, including, but not limited to, any ownership of, other than as aminority stockholder, or any compensation expected to be received from anyconstruction firm, salvage firm, building appraisal firm, motor vehicle repairshop, or any other firm that provides estimates for work, or that performs anywork, in conjunction with damages caused by the insured loss on which thepublic adjuster is engaged. The word "firm" shall include any corporation,partnership, association, joint‑stock company, or person.
(e) A public adjustercontract may not contain any contract term that includes any of the followingterms:
(1) Allows the publicadjuster's percentage fee to be collected when money is due from an insurancecompany but not paid, or that allows a public adjuster to collect the entirefee from the first check issued by an insurance company rather than as apercentage of each check issued by an insurance company.
(2) Requires the insuredto authorize an insurance company to issue a check only in the name of thepublic adjuster.
(3) Imposes collectioncosts or late fees.
(4) Precludes a publicadjuster from pursuing civil remedies.
(f) Before the signingof the contract, the public adjuster shall provide the insured with a separatedisclosure document regarding the claim process that states:
(1) Property insurancepolicies obligate the insured to present a claim to his or her insurancecompany for consideration. There are three types of adjusters that could beinvolved in that process. The definitions of the three types are as follows:
a. "Companyadjuster" means the insurance adjusters who are employees of an insurancecompany. They represent the interest of the insurance company and are paid bythe insurance company. They will not charge you a fee.
b. "Independentadjuster" means the insurance adjusters who are hired on a contract basisby an insurance company to represent the insurance company's interest in thesettlement of the claim. They are paid by your insurance company. They will notcharge you a fee.
c. "Publicadjuster" means the insurance adjusters who do not work for any insurancecompany. They work for the insured to assist in the preparation, presentation,and settlement of the claim. The insured hires them by signing a contractagreeing to pay them a fee or commission based on a percentage of thesettlement or other method of compensation.
(2) The insured is notrequired to hire a public adjuster to help the insured meet his or herobligations under the policy but has the right to do so.
(3) The insured has theright to initiate direct communications with the insured's attorney, theinsurer, the insurer's adjuster, and the insurer's attorney, or any otherperson regarding the settlement of the insured's claim. Once a public adjusterhas been retained, the company adjuster or other insurance representative maynot communicate directly with the insured without the permission or consent ofthe public adjuster or the insured's legal counsel.
(4) The public adjusteris not a representative or employee of the insurer.
(5) The salary, fee,commission, or other consideration is the obligation of the insured, not theinsurer.
(g) The contracts shallbe executed in duplicate to provide an original contract to the public adjusterand an original contract to the insured. The public adjuster's originalcontract shall be available at all times for inspection without notice by theCommissioner.
(h) The public adjustershall provide the insurer a notification letter, which has been signed by theinsured, authorizing the public adjuster to represent the insured's interest.
(i) The insured hasthe right to rescind the contract within three business days after the date thecontract was signed. The rescission shall be in writing and mailed or deliveredto the public adjuster at the address in the contract within the three‑business‑dayperiod.
(j) If the insuredexercises the right to rescind the contract, anything of value given by theinsured under the contract will be returned to the insured within 15 businessdays after the receipt by the public adjuster of the cancellation notice. (2009‑565, s. 1.)