§ 10-411. Contracts for public adjuster services
West's Annotated Code of MarylandInsuranceEffective: January 1, 2018
Effective: January 1, 2018
MD Code, Insurance, § 10-411
§ 10-411. Contracts for public adjuster services
(a) A contract for public adjuster services shall:
(b)(1) The public adjuster contract may specify that the public adjuster be named as a co-payee on an insurer's payment of a claim.
(c) If the insurer, within 72 hours after the time the loss is reported to the insurer, either pays or commits in writing to pay to the insured the policy limit of the insurance policy, the public adjuster:
(3) 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.
(d)(1) 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.
(2) 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.
(e) A public adjuster contract may not contain any provision that:
(f) Before the signing of the public adjuster contract, the public adjuster shall provide the insured with a separate disclosure document signed by the insured regarding the claim process that substantially states:
(ii) “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.
(iii) “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.
(g)(1) 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.
(h) The public adjuster contract shall contain a statement that:
Credits
Added by Acts 2017, c. 106, § 1, eff. Jan. 1, 2018.
MD Code, Insurance, § 10-411, MD INSURANCE § 10-411
Current through legislation effective through April 25, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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