 |
 |
|
 |
 |
 |
|
A Public Adjustor is a person who, for a fee, contracts with a party who has suffered a claim (usually property). Once an insured has contracted with a Public Adjustor, your agent is not permitted to advocate or assist you on your claim. The Public Adjustor completes the documentation and negotiates the claim with the insurance company. Public Adjustors must be licensed. Under N.J.S.A. 17:22B-13, Public Adjustors are prohibited from taking certain actions: Prohibited acts No individual, firm, association or corporation licensed under this act shall: a. enter into any agreement, oral or written, with an insured to negotiate or settle claims for loss or damage occurring in this State between the hours of six p.m. and eight a.m. during the 24 hours after the loss has occurred; b. have any right to compensation from any insured for or on account of services rendered to an insured as a public adjuster unless the right to compensation is based upon a written memorandum, signed by the party to be charged and by the adjuster, and specifying or clearly defining the services to be rendered and the amount or extent of the compensation on a form and with such language as the commissioner may prescribe; c. induce cancellation of a duly executed written memorandum between an insured and a public adjuster; d. make any misrepresentation of facts or advise any person on questions of law in connection with the transaction of business as an adjuster; or e. receive, accept or hold any moneys towards the settlement of a claim for loss or damage on behalf of an insured unless the public adjuster deposits the moneys in an interest bearing escrow account in a banking institution or savings and loan association in this State insured by an agency of the federal government. Any funds held in escrow together with interest accumulated thereon shall be the property of the insured until disbursement thereof pursuant to a written memorandum, signed by the insured and by the adjuster, specifying or clearly defining the services rendered and the amount of any compensation to be paid therefrom. In the event of the insolvency or bankruptcy of a public adjuster, the claim of an insured for any settlement moneys received, accepted or held by the adjuster shall constitute a statutory trust. Violations & Complaints If
a Public Adjustor violates N.J.S.A. 17:22B-13, they are subject to fines and
possible loss of license. To file a complaint against a public adjuster: Obtain
the adjuster’s name or company name and any other details (from a business card
if possible). Forward this information along with your name, position and a
description of the unprofessional conduct to: State of New Jersey Department of
Banking and Insurance Enforcement / Consumer Protection PO Box 329 Trenton, NJ
08625-0329. |
 |
 |
