Public adjusters must act loyally and objectively for the insured, make required disclosures, keep contracts in writing, and follow several limits on solicitation, conflicts, and settlement decisions.
A public adjuster is obligated, under the public adjuster's license, to serve with objectivity and complete loyalty in the interest of the adjuster's client alone; and to render to the insured such information, counsel and service, as within the knowledge, understanding and opinion in good faith of the adjuster, as will best serve the insured's insurance claim needs and interest. A public adjuster shall not solicit an insured for two (2) days after any loss and shall not contract with an insured for an additional three (3) days. For catastrophic losses, a public adjuster shall not solicit an insured for seven (7) days after the loss. This subsection (b) shall not apply to commercial insurance. A public adjuster shall not permit an unlicensed employee or representative of the public adjuster to conduct business for which a license is required under this part. A public adjuster shall not have a direct or indirect financial interest in any aspect of the claim, other than the salary, fee, commission or other consideration established in the written contract with the insured, unless full written disclosure has been made to the insured. A public adjuster shall not refer or direct the insured to get needed repairs or services in connection with a loss from any person with whom the public adjuster has a financial interest, or from whom the public adjuster may receive direct or indirect compensation for the referral, unless the interest or compensation is disclosed to the insured. A public adjuster shall not, directly or indirectly, buy or obtain for resale or other remuneration, any salvage of the insured that is subject to a claim upon which the public adjuster is or has worked. A public adjuster shall disclose to an insured if the adjuster has any interest or will be compensated by any construction firm, building appraisal firm, motor vehicle repair shop or any other firm that performs any work in conjunction with damages caused by the insured loss. “Firm” includes any individual corporation, partnership, association, joint-stock company or legal entity. Any compensation or anything of value in connection with an insured's specific loss that will be received by a public adjuster shall be disclosed by the public adjuster to the insured in writing, including the source and amount of the compensation. A public adjuster may not agree to any loss settlement without the insured's knowledge and consent. Public adjusters shall adhere to the following general ethical requirements: A public adjuster shall not undertake the adjustment of any claim, if the public adjuster is not sufficiently competent and knowledgeable as to the terms and conditions of the insurance coverage so as to properly discharge the duties as public adjuster, or that otherwise exceeds the public adjuster's current expertise; A public adjuster shall not knowingly make any oral or written material misrepresentations or statements to any insured client or potential insured client that are false or maliciously critical and intended to injure any person engaged in the business of insurance; No public adjuster, while so licensed by the commissioner, may represent or act as a company adjuster or independent adjuster on the same claim; The contract shall not be construed to prevent an insured from pursuing any civil remedy after the three-business-day revocation or cancellation period; A public adjuster shall not enter into a contract or accept a power of attorney that vests in the public adjuster the effective authority to choose the persons who shall repair the insured's property; and A public adjuster shall ensure that all contracts for the public adjuster's services are in writing and set forth all material terms and conditions of the engagement.