Regulation of public adjusters and granting rule-making authority. (FE)

Additionally, the commissioner may impose a civil penalty on the individual.

The bill requires a registered public adjuster to enter into a contract with the insured before providing services to the insured. The contract must contain certain provisions, including provisions that disclose the public adjuster's compensation and the circumstances under which the insured may void the contract. The bill prohibits the contract from containing provisions that impose collection costs and late fees on the insured, require the insured to authorize the insurer to issue a check solely in the public adjuster's name, or limit the insured's right to pursue civil remedies against the public adjuster.

Under the bill, the public adjuster may not be paid prior to the insured receiving payment from the insurer and, if the insurer pays the policy limit within five business days from the date the loss is reported, the public adjuster may only be paid a reasonable hourly rate for the time spent on the claim. Additionally, the public adjuster's compensation may not exceed 10 percent of an insured's actual recovery if the claim is due to a catastrophic disaster.

The bill imposes requirements on a public adjuster to address conflicts of interest that may arise while working for the insured, including a requirement to notify the insured if the public adjuster has a financial interest in, or may receive compensation from, an entity working on the claim, such as a repair shop. The bill also imposes other requirements and limitations on a public adjuster, including that he or she must have the insured's written consent to agree to a settlement, may solicit business only during certain hours of the day, and may not work as an adjuster for an insurer or as an independent adjuster while registered as a public adjuster.