1.A public adjuster shall serve with objectivity and complete loyalty to the interest of the
insured. A public adjuster shall render to the insured in good faith information, counsel, and
service, that in the opinion of the public adjuster will best serve the insured’s insurance claim
needs and interest. These duties extend to the claims process and include providing timely
responses to both the insurer and the insured.
2.For a minimum of seventy-two hours following a catastrophic disaster, to allow time
for the commissioner to safely deploy consumer protection resources, a public adjuster shall
not, in person or by telephone, directly offer to contract, attempt to offer to contract, or enter
into an adjuster contract with an insured unless the offer to contract, the attempt to offer to
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1. A public adjuster shall serve with objectivity and complete loyalty to the interest of the
insured. A public adjuster shall render to the insured in good faith information, counsel, and
service, that in the opinion of the public adjuster will best serve the insured’s insurance claim
needs and interest. These duties extend to the claims process and include providing timely
responses to both the insurer and the insured.
2. For a minimum of seventy-two hours following a catastrophic disaster, to allow time
for the commissioner to safely deploy consumer protection resources, a public adjuster shall
not, in person or by telephone, directly offer to contract, attempt to offer to contract, or enter
into an adjuster contract with an insured unless the offer to contract, the attempt to offer to
contract, orenteringintoacontractisinitiatedbyaconsumer. Ifthecommissionerdeemsthe
severity of the catastrophic disaster to have placed people under duress, the commissioner
shall immediately dispatch the consumer advocate and other personnel to the disaster area
to provide consumer guidance. If, after a public hearing, the commissioner determines that,
due to the scope and severity of the catastrophic disaster, additional time is necessary to
safely deploy additional consumer protection resources, the commissioner may extend the
time period that a public adjuster shall not offer to contract, attempt to offer to contract, or
enter into a contract for an additional seventy-two hours.
3. A public adjuster shall not solicit between the hours of 8:00 p.m. and 9:00 a.m.
Solicitation shall include but is not limited to a door-to-door sale as that term is defined in
section 555A.1.
4. A public adjuster, or an independent adjuster, shall not permit an unlicensed employee
or representative of the public adjuster or independent adjuster, nor any person associated
with a claim, to conduct business for which a license is required under this chapter.
5. An adjuster shall not have a direct or indirect financial interest in any aspect of a claim
other than the amount payable pursuant to the written contract with an insured under section
522C.10.
6. An adjuster shall not acquire any interest in salvage of property.
7. An adjuster shall not undertake the adjustment of any claim if the adjuster is not
competent and knowledgeable as to the terms and conditions of the insurance coverage, or
if the loss or coverage otherwise exceeds the adjuster’s current expertise.
8. An adjuster shall maintain all documentation relating to all estimates and coverage
determinations for a minimum of five years from the date of completion of a settlement.
9. An adjuster shall not knowingly make any false oral or written material statements
regarding any person engaged in the business of insurance, or any other adjuster, to an
insured who is a client or potential client.
10. a. An adjuster shall not reasonably act, or fail to act, in any manner that obstructs
or prevents an insurer or adjuster from timely conducting an inspection of any part of an
insured’s property for which there is a claim for loss or damage.
b. If a public adjuster is unavailable after reasonable request by an insurer, resulting in
delay of the insurer’s timely inspection of the property, the insured shall allow the insurer
to have access to the property without the participation or presence of the public adjuster to
facilitate the insurer’s prompt inspection of the loss or damage.
11. An adjuster shall respond to an inquiry from an insurer or an insured regarding a
claimwithinfifteenbusinessdaysofthedateoftheinquiryunlessgoodcauseexistsfordelay.
11 LICENSING OF ADJUSTERS, §522C.11
The adjuster shall reply within fifteen business days to all pertinent communications from the
insured, the insurer, or a representative of the insured or the insurer that reasonably suggest
that a response is expected.
12. Upon receiving notification of a claim, an insurer shall provide necessary claim forms,
instructions, and reasonable assistance within fifteen business days of notification of the
claim so that first-party claimants can comply with the policy conditions and the insurer’s
reasonable requirements.
13. An adjuster shall not act as an appraiser and as an adjuster on the same claim.
14. An adjuster shall not act as an umpire and as an adjuster on the same claim.
15. A public adjuster shall not enter into a contract that accepts a power of attorney or
limited power of attorney for an insured.
16. a. An independent adjuster shall not act as an independent adjuster and a public
adjuster on the same claim.
b. A public adjuster shall not act as a public adjuster and an independent adjuster on the
same claim.
17. A staff adjuster may be licensed as a public adjuster or as an independent adjuster, but
shall be prohibited from providing services as an independent adjuster or a public adjuster
while employed as a staff adjuster.
18. A public adjuster shall not agree to, or reject, any loss settlement without the insured’s
express knowledge and written consent.
19. An adjuster shall not engage in any act or practice that is a conflict of interest. A
conflict of interest shall include but is not limited to the following:
a. A direct or indirect financial interest with a person responsible for the reconstruction,
repair, or restoration of damaged property that is the subject of a claim, or with a person
involved in resolving a claim valuation dispute.
b. Adirectorindirectfinancialinterest, orothervaluableconsiderationregardlessofform
or amount paid to an adjuster in exchange for referring an insured to an appraiser, umpire,
construction company, contractor, salvage company, or attorney.
c. Being an owner, employee, agent, investor, or having other financial interest in a
business entity responsible for the reconstruction, repair, or restoration of damaged property
that is the subject of a claim, or having an immediate family member who is an owner,
employee, agent, or investor in a business entity responsible for the reconstruction, repair,
or restoration of a damaged property that is the subject of a claim.
d. Entering into a written or verbal contract, or formal or informal agreement, with any
person that compromises the adjuster’s duty of loyalty to the insured.
e. Using claim information obtained in the course of a claim investigation for commercial
purposes including marketing or advertising for the benefit of the adjuster.
20. A public adjuster shall not file a complaint with the division on behalf of an insured
without the insured’s knowledge and written consent.
21. An adjuster shall not represent, directly or indirectly, that damage has occurred at a
property unless the adjuster has inspected the damaged areas of the property.
22. An adjuster shall produce a detailed written estimate to repair or replace covered
damages and provide a copy to both the insured and the insurer in a timely manner.
23. A public adjuster shall not offer to pay an insured’s deductible, or claim that the
insured’s deductible will be waived, as an inducement to use the services of the public
adjuster.
24. An adjuster shall respond reasonably promptly to inquiries by the division.
25. A public adjuster shall provide a detailed invoice for completed services to an insured
prior to requesting payment for services pursuant to a contract under section 522C.10.
26. Funds received or held by a public adjuster on behalf of an insured toward the
settlement of a claim shall be:
a. Held in a fiduciary capacity.
b. Deposited by the adjuster into one or more separate noninterest-bearing fiduciary trust
accounts in a financial institution licensed to do business in this state no later than the close
of the fifth business day from the date the public adjuster received the funds, and either
§522C.11, LICENSING OF ADJUSTERS 12
depositedintheinsured’snameorinthenameofthepublicadjusterastrusteefortheinsured,
to be held and administered as a trust account for the benefit and protection of the insured.
c. Held separately from personal or nonbusiness funds.
d. Held separately from other business funds.
e. Listed specifically and separately, by the insured’s name and the amount in trust in the
book of accounts and records of the public adjuster. The book of accounts and records must
indicate the fiduciary nature of the account and any amounts deposited or withdrawn.
f. Disbursedwithinthirtycalendardaysofreceiptofaninvoicebythepublicadjusterfrom
a contractor that completed work, if the public adjuster receives approval of the insured that
the work was satisfactorily completed.
27. A public adjuster shall comply with all applicable local ordinances.
28. An adjuster who fails to comply with this section shall be subject to penalties under
sections 522C.13 and 522C.14.