40-5516. Adjuster requirements; ethical requirements.
40-5516
40-5516. Adjuster requirements; ethicalrequirements.(a) A public adjuster is obligated, under the publicadjuster'slicense, to serve with objectivity and complete loyalty, the interest of theinsured only and to render to the insuredsuch information, counsel and service, as within the knowledge, understandingand opinion ingood faith of the public adjuster, as will best serve the insured's insuranceclaim needs andinterest.
(b) A public adjuster shall not solicit, or attempt to solicit, an insuredduring the progressof a loss-producing occurrence, as defined in the insured's insurance contract.
(c) A public adjuster shall not permit an unlicensed employee orrepresentative of thepublic adjuster to conduct business for which a license is required under thisact.
(d) A public adjuster shall not have a direct or indirect financial interestin any aspect ofthe claim, other than the salary, fee, commission or other considerationestablished in the writtencontract with the insured, unless full written disclosure has been made to theinsured as set forthin K.S.A. 2009 Supp. 40-5514, and amendments thereto.
(e) A public adjuster shall not acquire any interest in salvage of propertysubject to thecontract with the insured, unless the public adjuster obtains writtenpermission from the insuredafter settlement of the claim with the insurer as set forth in K.S.A. 2009Supp. 40-5514, andamendments thereto.
(f) The public adjuster shall abstain from referring or directing the insuredto get neededrepairs or services in connection with a loss from any person, unless disclosedto the insured:
(1) With whom the public adjuster has a financial interest; or
(2) from whom the public adjuster may receive direct or indirect compensationfor thereferral.
(g) The public adjuster shall disclose to an insured if the public adjusterhas any interestor will be compensated by any construction firm, salvage firm, buildingappraisal firm, motorvehicle repair shop or any other firm that performs any work in conjunctionwith damages causedby the insured loss. As used in this subsection "firm" shall include anybusiness entity orindividual.
(h) Any compensation or anything of value in connection with an insured'sspecific lossthat will be received by a public adjuster shall be disclosed by the publicadjuster to the insuredin writing, including the source and amount of any such compensation.
(i) Public adjusters shall adhere to the following general ethicalrequirements:
(1) A public adjuster shall not undertake the adjustment of any claim if thepublic adjusteris not competent and knowledgeable as to the terms and conditions of theinsurance coverage, orwhich otherwise exceeds the public adjuster's current expertise;
(2) a public adjuster shall not knowingly make any oral or written materialmisrepresentations or statements which are false or maliciously critical andintended to injure anyperson engaged in the business of insurance to any insured client or potentialinsured client;
(3) no licensed public adjuster may represent or act as a company adjuster orindependentadjuster on the same claim;
(4) the public adjuster contract shall not be construed to prevent an insuredfrom pursuingany civil remedy after the three-business day revocation or cancellationperiod;
(5) a public adjuster shall not enter into a contract or accept a power ofattorney that vestsin the public adjuster the effective authority to choose the persons who shallperform repair work;and
(6) a public adjuster shall ensure that all contracts for the publicadjuster's services are inwriting and set forth all terms and conditions of the engagement.
(j) A public adjuster may not agree to any loss settlement without theinsured's knowledge and consent.
History: L. 2009, ch. 83, § 16; Apr. 23.