Title 10. Regulation of Insurance Professions — Subtitle 4. Public Adjusters

the state where a public adjuster’s principal place of residence or principal place of business is located; or

the state a public adjuster designates under § 10–409(a)(2) of this subtitle.

spouse;

child;

child’s spouse;

parent;

spouse’s parent;

sibling; or

sibling’s spouse.

“Public adjuster” means a person who for compensation or any other thing of value:

“Public adjuster” does not include a person that investigates, adjusts, or appraises claims for loss or damage covered by a motor vehicle insurance policy.

regularly act as a public adjuster; and

represent to the public by sign, advertisement, or otherwise that the attorney at law acts as a public adjuster;

a life, health, or motor vehicle insurance policy; or

an annuity contract;

an individual who meets the requirements of subsection (b) of this section; or

a business entity that meets the requirements of subsection (c) of this section.

An individual applicant must be trustworthy and competent to transact business as a public adjuster so as to safeguard the interests of the public.

Except as otherwise provided in this subsection, an individual applicant shall:

The examination requirement of paragraph (2) of this subsection does not apply to an individual who was licensed as a public adjuster in the State on June 30, 1985.

An individual applicant who fails an examination may not take another examination until at least 14 days after the date of the last examination that the applicant failed.

be trustworthy and competent to transact business as a public adjuster so as to safeguard the interests of the public;

employ one or more individual licensed public adjusters; and

pay the applicable license fee required by § 2–112 of this article.

the name and address of the applicant;

whether any other insurance license or certificate has been issued to the applicant;

for a business entity applicant:

any other information that the Commissioner requires of applicants to enable the Commissioner to determine the trustworthiness and competence of the applicant to transact business as a public adjuster so as to safeguard the interests of the public.

in the case of an individual applicant, by the applicant; or

in the case of an applicant that is a business entity, by an individual who has direct control over its fiscal management, an owner, partner, member, or manager of the business entity, or a director of a business entity that is a corporation.

the process for renewing the license;

the date by which the Commissioner must receive the renewal application for the renewal to be issued and mailed before the license expires; and

the amount of the renewal fee.

otherwise is entitled to a license;

files with the Commissioner a renewal application:

completes the continuing education requirements under subsection (e) of this section; and

pays to the Commissioner the renewal fee required by § 2–112 of this article.

The Commissioner shall require a public adjuster who is not a business entity to receive continuing education as a condition of renewing a license of the public adjuster.

A public adjuster shall complete the continuing education required under paragraph (1) of this subsection not later than 30 days before the expiration date of the public adjuster’s license.

The public adjuster shall successfully complete 24 credit hours of approved continuing education for each 2–year license period as a condition for license renewal unless the Commissioner modifies the requirement by regulation.

Of the required hours of continuing education required for a renewal period under paragraph (3) of this subsection, at least 3 hours shall relate directly to ethics.

The Commissioner may grant a waiver to a public adjuster who has requested a waiver for reasons that the Commissioner determines warrant the waiver.

This subsection may not apply to a holder of a license who has not been licensed for 1 full year before the end of the applicable continuing education period.

the nonresident license holder satisfies the continuing education requirements of the home state of the nonresident license holder; and

the home state of the nonresident license holder allows a public adjuster who is a resident of this State to satisfy the continuing education requirements of the home state on the same basis by meeting the continuing education requirements of this State.

If mailed, an application for renewal of a license shall be considered made in a timely manner if it is postmarked on or before the expiration date of the license.

If submitted electronically, an application for renewal shall be considered made in a timely manner if, on or before the expiration date of the license, the application:

The Commissioner shall renew the license of each holder who meets the requirements of this section.

If the holder of a license files an application for renewal before the license expires, the license shall remain in effect until:

filing with the Commissioner the appropriate reinstatement application;

paying to the Commissioner the applicable reinstatement fee required under subsection (b) of this section; and

submitting proof of completion of the continuing education requirements in § 10–408 of this subtitle.

The fee for a reinstatement under this section shall be:

The Commissioner may limit the reinstatement fee to the amount of the renewal fee in cases where the reinstatement applicant did not make timely renewal because of service in the uniformed services, temporary incapacity, hospitalization, or other hardship.

If a person applies for reinstatement of an expired license within 60 days after the license expired, the Commissioner shall reinstate the license retroactively, with the reinstatement effective on the date that the person’s license expired.

If a person applies for reinstatement of an expired license more than 60 days after the license expired, the Commissioner shall reinstate the person’s license prospectively, with the reinstatement effective on the date that the license is reinstated.

Except as otherwise provided in this section, the Commissioner shall waive the license requirements for an applicant who is not a resident of the State if:

If neither the state where the public adjuster maintains a principal place of residence nor the state where the public adjuster maintains a principal place of business has a law governing public adjusters substantially similar to this subtitle, the public adjuster may declare another state where the public adjuster is licensed and acts as a public adjuster to be the public adjuster’s home state for purposes of this subtitle.

the person currently is licensed as a resident public adjuster and in good standing in the person’s home state;

the person files an application on the form that the Commissioner provides;

the person has paid the applicable fee pursuant to § 2–112 of this article; and

the person’s home state awards nonresident public adjuster licenses to residents of this State on the same basis.

has violated this article;

has made a material misstatement in the application for the license;

has engaged in fraudulent or dishonest practices;

has demonstrated incompetency or untrustworthiness to act as a public adjuster;

has misappropriated, converted, or unlawfully withheld money that belongs to an insurer, insurance producer, insured, or other person;

has willfully and materially misrepresented the provisions of a policy;

has been convicted of a felony, a crime of moral turpitude, or any criminal offense involving dishonesty or breach of trust;

has willfully failed to comply with or has willfully violated a proper order or regulation of the Commissioner;

has failed or refused to pay on demand money that belongs to an insurer, insurance producer, insured, or other person entitled to the money;

is not carrying on or does not intend to carry on business in good faith while representing to the public that the person is a public adjuster;

has been denied a license or has had a license suspended or revoked in another state; or

has knowingly employed or knowingly continued to employ an individual acting in a fiduciary capacity who has been convicted within the preceding 10 years of a felony or crime of moral turpitude.

The Commissioner may deny a license to a business entity applicant or suspend, revoke, or refuse to renew or reinstate the license of a business entity after notice and opportunity for a hearing under §§ 2–210 through 2–214 of this article, if an individual listed in paragraph (2) of this subsection:

The sanctions provided for under this subsection may be imposed on a business entity if the violation was committed by an individual who:

be in writing;

be titled “Public Adjuster Contract”; and

contain the following:

The public adjuster contract may specify that the public adjuster be named as a co–payee on an insurer’s payment of a claim.

If the compensation is based on a share of the insurance settlement, the public adjuster contract shall specify the exact percentage to be paid.

may not receive a commission consisting of a percentage of the total amount paid by an insurer to resolve a claim;

shall inform the insured that loss recovery amount might not be increased by the insurer; and

may be entitled only to reasonable compensation from the insured for services the public adjuster provides 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.

A public adjuster shall provide to the insured a written disclosure signed by the public adjuster and the insured concerning any direct or indirect financial interest that the public adjuster or any immediate family member of the public adjuster has with any other party that is involved in any aspect of the claim, other than the salary, fee, commission, or other consideration established in the written contract with the insured.

The disclosure shall include any ownership of, or any compensation expected to be received from, any construction firm, salvage firm, building appraisal firm, motor vehicle repair shop, or any other firm that provides estimates for work, or that performs any work, in conjunction with damages caused by the insured loss on which the public adjuster is engaged.

allows the public adjuster’s percentage fee to be collected when money is due from, but not yet paid by, an insurance company;

allows a public adjuster to collect the entire fee from the first check issued by an insurance company, rather than as a percentage of each check issued by an insurance company;

requires the insured to authorize an insurance company to issue a check only in the name of the public adjuster; or

precludes either party from pursuing any civil remedy.

“Company adjuster” means an insurance adjuster who is an employee of an insurance company. A company adjuster represents the interest of the insurance company and is paid by the insurance company. A company adjuster will not charge you a fee.

“Independent adjuster” means an insurance adjuster who is hired on a contractual basis by an insurance company to represent the insurance company’s interest in the settlement of the claim. An independent adjuster is paid by your insurance company. An independent adjuster will not charge you a fee.

“Public adjuster” means an insurance adjuster who does not work for any insurance company. A public adjuster works for the insured to assist in the preparation, presentation, and settlement of a claim. The insured hires a public adjuster by signing a contract agreeing to pay the public adjuster a fee or commission based on a percentage of the settlement, or another method of compensation.

The insured is not required to hire a public adjuster to help the insured meet the insured’s obligations under the policy but has the right to do so.

The insured has the right to initiate direct communications with the insured’s attorney, the insurer, the insurer’s adjuster, the insurer’s attorney, or any other person regarding the settlement of the insured’s claim.

A public adjuster is not a representative or an employee of the insurer.

The salary, fee, commission, or other consideration of a public adjuster is the obligation of the insured, not the insurer.”.

The public adjuster 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.

A contract with an electronic signature shall constitute an original contract.

the insured has the right to rescind or cancel the contract within 10 business days after the date the contract was signed;

the notice of rescission or cancellation shall be in writing and mailed or delivered to the public adjuster at the address stated in the contract within the time period specified in item (1) of this subsection;

if the insured exercises the right to rescind or cancel the contract, the public adjuster shall, within 15 business days after the public adjuster receives the notice, return anything of value given by the insured under the contract; and

provides a notice to the insured that a public adjuster, or anyone acting on behalf of a public adjuster, may not solicit or attempt to solicit a client between the hours of 8:00 p.m. and 8:00 a.m.

A public adjuster shall maintain a complete record of each transaction entered into as a public adjuster.

The records required by this section shall include:

The records shall be:

Any records required to be maintained under this section may be stored in an electronic format.

shall be treated as confidential by the Commissioner; and

may not be subject to Title 4, Subtitle 2 of the General Provisions Article.

serve with objectivity and complete loyalty the interest of the client alone;

render to the insured the information, counsel, and service that will best serve the insured’s insurance claim needs and interests, within the knowledge, understanding, and opinion in good faith of the public adjuster; and

disburse insurance settlement payments received on behalf of the insured within 15 business days after the date of the payment from an insurer.

A public adjuster who enters into a public adjuster contract during, or within 72 hours after, the loss giving rise to an insurance claim shall provide notice to the Commissioner that the public adjuster has entered into the contract.

The notice required under paragraph (1) of this subsection shall be:

a public adjuster may not undertake the adjustment of any claim if the public adjuster is not competent and knowledgeable as to the terms and conditions of the insurance coverage, or that otherwise exceeds the public adjuster’s current expertise;

a public adjuster may not make a statement that the public adjuster knows to be false or with reckless disregard as to the statement’s truth or falsity concerning the qualifications or integrity of any person engaged in the business of insurance to any insured client or potential insured client;

a public adjuster may not represent or act as a company adjuster or as an independent adjuster on the same claim;

the public adjuster contract may not be construed to prevent an insured from pursuing any civil remedy after the rescission or cancellation period under § 10–411(h) of this subtitle; and

a public adjuster may 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 perform repair work.

A public adjuster shall report to the Commissioner, within 30 days after the final disposition of the matter, any administrative action taken against the public adjuster in another jurisdiction, or by another governmental unit in the State.

The report shall include:

Within 30 days after the initial pretrial hearing date, a public adjuster shall report to the Commissioner any criminal prosecution of the public adjuster undertaken in any jurisdiction.

The report shall include: