SB329: Bill Text

SB329,8,18 (5) A public adjuster shall include with the contract under sub. (1) a notice of the insured's right to file a complaint with the commissioner about an insurance problem. The notice shall be on a single piece of paper that is separate from the contract and shall include all of the following:

SB329,8,19 (a) The information described in sub. (1) (a).

SB329,8,20 (b) A clear statement of the insured's right to file a complaint.

SB329,8,22 (c) Information on how the insured may obtain a complaint form by contacting the office of the commissioner or from the office's Internet site.

SB329,8,24 (d) The office of the commissioner's mailing address and phone numbers and the address of the office's Internet site.

SB329,9,6 629.05 Compensation. (1) In this section, “catastrophic disaster” means an event that results in large numbers of deaths and injuries, causes extensive damage or destruction of facilities that provide and sustain human needs, produces an overwhelming demand on state and local response resources, causes a severe long-term effect on general economic activity, and severely affects state, local, and private-sector capabilities to begin and sustain response activities.

SB329,9,8 (2) The contract under s. 629.04 shall clearly disclose the compensation the public adjuster is to receive from the insured.

SB329,9,12 (3) If an insurer pays, or commits in writing to pay, the policy limit no later than 5 business days after the date the loss is reported to the insurer, the only compensation a public adjuster may receive from the insured shall be compensation at a reasonable hourly rate for the time spent on the claim.

SB329,9,14 (4) A public adjuster may not demand compensation from the insured prior to the insured receiving payment from the insurer.

SB329,9,17 (5) If an insurer pays a claim in installments, the public adjuster shall receive the compensation in equal amounts prorated over the number of checks issued by the insurer and may not demand to be paid entirely from the first check issued.

SB329,9,20 (6) A public adjuster may not receive compensation in excess of 10 percent of an insured's actual recovery under the insurance policy if the claim is due to a catastrophic disaster.

SB329,9,25 629.06 Disclosure of additional compensation. A public adjuster may not directly or indirectly accept compensation or anything else of value from an insured and a person who provides estimates for work or performs work in conjunction with damage or loss under a claim subject to a contract under s. 629.04 unless the public adjuster provides the insured with prior written notice. The notice shall clearly and conspicuously disclose any direct or indirect financial interest that the public adjuster has in the other person and all amounts to be paid, directly or indirectly, by the other person to the public adjuster. The notice shall be in the form prescribed by the commissioner and be provided prior to the date the insured incurs an obligation to make any payment under the contract or to the other person.

SB329,10,10 629.07 Assignment of proceeds prohibited. (1) A public adjuster may not request or accept an assignment of insurance policy proceeds from an insured with whom the public adjuster has entered into a contract under s. 629.04. An insurer may not be required to honor an assignment of insurance policy proceeds to a public adjuster.

SB329,10,13 (2) A public adjuster may request that an insurer include both the public adjuster and the insured on a check paying all or part of the proceeds of an insurance policy if the contract under s. 629.04 permits joint payment of proceeds.

SB329,10,18 629.08 Escrow of funds. A public adjuster who, on behalf of an insured, receives, accepts, or holds any funds for the settlement of a first-party claim shall deposit the funds in a noninterest-bearing escrow account in a federally insured financial institution that is located in the state in which the insured resides or the loss occurred.

SB329,10,23 629.09 Contractors. A public adjuster may not require an insured to use a particular contractor or vendor and may not take any action that vests the effective authority with the public adjuster to choose a person to perform work on the insured's claim. A contract under s. 629.04 shall state that the insured may choose any contractor or vendor.

SB329,10,25 629.10 Prohibitions. In addition to the other prohibitions in this chapter, a public adjuster may not engage in any of the following activities:

SB329,11,2 (1) Solicit, or attempt to solicit, an insured during the progress of a loss-producing occurrence, as defined in the insured's insurance policy.

SB329,11,4 (2) Allow an unregistered employee or representative to perform an adjusting service for which registration is required under this chapter.

SB329,11,7 (3) Own a direct or indirect financial interest in any aspect of a claim, other than the compensation agreed to under s. 629.04 (1) (f), unless notification is provided to the insured under s. 629.06.

SB329,11,9 (4) Acquire an interest in salvage of the insured's property unless obtaining written permission from the insured after settlement of the claim.

SB329,11,13 (5) Refer the insured to a person in whom the public adjuster has a direct or indirect financial interest or from whom the public adjuster may directly or indirectly receive anything of value for the referral unless notification is provided to the insured under s. 629.06.

SB329,11,14 (6) Solicit an insured outside the hours of 9 a.m. and 6 p.m.

SB329,11,17 (7) Undertake an adjusting service without being competent and knowledgeable about the terms and conditions of the insured's insurance coverage or if the loss or coverage exceeds the public adjuster's expertise.

SB329,11,19 (8) Knowingly make a false material statement regarding any person engaged in the business of insurance to a client or potential client.

SB329,11,21 (9) Act as an adjuster for an insurer or independent adjuster while registered under s. 629.02.

SB329,11,23 (10) Agree to a settlement without the insured's knowledge and written consent.

SB329,12,3 629.11 Continuing education. (1) A public adjuster shall complete, on a biennial basis, a minimum of 15 credits of continuing education, including 3 credits of ethics. Each credit shall consist of at least 50 minutes of instruction and shall be approved by the commissioner. A public adjuster shall report the credits in conjunction with the registration renewal under s. 629.02 (4).

SB329,12,10 (2) An individual who is not a resident of this state and who is a licensed or registered public adjuster in the individual's state of residence and complies with continuing education requirements in that state that are substantially similar to the requirements under sub. (1) may submit to the commissioner proof of compliance with that state's requirements. If the individual's state of residence provides credit to the residents of this state on a reciprocal basis, the commissioner shall accept the proof of compliance as meeting the requirement under sub. (1).

SB329,12,16 629.12 Reporting of administrative and criminal actions. (1) A public adjuster shall report to the commissioner any administrative action related to the business of insurance that is taken against the public adjuster by a governmental agency or regulatory body. The report shall be made no later than 30 days after the final disposition of the matter and shall include a copy of the order, consent to order, or similar document.

SB329,12,21 (2) A public adjuster shall report to the commissioner any criminal prosecution taken against the public adjuster in any jurisdiction. The report shall be made no later then 30 days after the date of the initial pretrial hearing and shall include a copy of the complaint, the order from the hearing, and any other information required by the commissioner.

SB329,12,25 629.13 Denial, suspension, or revocation of registration. The commissioner may, after a hearing, deny, suspend, revoke, or refuse to renew an individual's registration under s. 629.02 (2) or (4) or may levy a civil penalty, or both, upon a finding that the individual has done any of the following:

SB329,13,2 (1) Provided false, misleading, or incomplete information in the registration application.

SB329,13,3 (2) Failed to comply with any provision in this chapter.

SB329,13,5 (3) Violated any insurance law or rule or any subpoena or order of the commissioner or insurance regulatory body of another state.

SB329,13,7 (4) Obtained, or attempted to obtain, registration as a public adjuster through misrepresentation or fraud.

SB329,13,9 (5) Misappropriated or otherwise improperly handled money or property received in the course of doing business as a public adjuster.

SB329,13,10 (6) Intentionally misrepresented the terms of an insurance policy.

SB329,13,12 (7) Been convicted of a felony related to the duties and obligations of a public adjuster or the business of insurance.

SB329,13,14 (8) Admitted to committing, or is found to have committed, any insurance unfair trade practice or insurance fraud.

SB329,13,17 (9) Used fraudulent, coercive, or dishonest practices, or demonstrated incompetence, untrustworthiness, or financial irresponsibility, in the conduct of business in any jurisdiction.

SB329,13,19 (10) Had an intermediary license or public adjuster license or registration denied, suspended, or revoked in any jurisdiction.

SB329,13,20 (11) Cheated on an examination for a public adjuster license or registration.

SB329,13,22 (12) Misrepresented to a person that the individual represents or is employed by an insurer in any capacity, including as an independent adjuster.

SB329,13,24 (13) Failed to maintain evidence of financial responsibility as required by the commissioner.

SB329,8 Section 8. Effective date.

SB329,14,2 (1) This act takes effect on the first day of the 4th month beginning after publication.

SB329,14,3 (End)