§ 56-6-911 — Financial responsibility

Prior to issuance of a license as a public adjustor, and for the duration of the license, the applicant shall secure evidence of financial responsibility in a format prescribed by the commissioner through a surety bond and an errors and omissions insurance policy, or other security satisfactory to the department of insurance. (1) A surety bond executed and issued by an insurer authorized to issue surety bonds in this state shall: (A) Be in the minimum amount of fifty thousand dollars ($50,000); (B) Be in favor of this state and shall specifically authorize recovery by the commissioner on behalf of any person in this state who sustained damages as the result of erroneous acts, failure to act, conviction of fraud, or conviction of unfair practices in the capacity as a public adjuster; (C) Not be terminated, unless at least thirty-days' prior written notice has been filed with the commissioner and given to the licensee; and (D) Be in a form approved by the commissioner. (2) The licensed public adjuster shall promptly notify the commissioner upon termination of the bond, unless otherwise directed by the commissioner. (3) The commissioner may ask for the evidence of financial responsibility at any time the commissioner deems it necessary and proper to protect the rights of Tennessee consumers. (4) The authority to act as a public adjuster shall automatically terminate if the evidence of financial responsibility terminates or becomes substantially impaired. (5) The errors and omissions policy shall be executed by and issued by an admitted insurer authorized to issue errors and omissions policies in this state, and shall be in the minimum amount of five hundred thousand dollars ($500,000) per occurrence.

Legislative History

Acts 2006, ch. 997, § 12.