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| PRIOR PRINTER'S NO. 3452 | PRINTER'S NO. 3958 |
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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY D. COSTA, DeLUCA, BARBIN, DEASY, FABRIZIO, FRANKEL, HALUSKA, MATZIE, MELIO, PASHINSKI, READSHAW, SHAPIRO, SIPTROTH, THOMAS AND WHITE, MARCH 24, 2010 |
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| AS REPORTED FROM COMMITTEE ON INSURANCE, HOUSE OF REPRESENTATIVES, AS AMENDED, JUNE 22, 2010 |
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| AN ACT |
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1 | Amending the act of December 20, 1983 (P.L.260, No.72), entitled |
2 | "An act providing for the licensing and regulating of public |
3 | adjusters and public adjuster solicitors," further providing |
4 | for definitions and for license; providing for application |
5 | for public adjuster license, for licensing, for issuance and |
6 | term of license, for license renewals and for reciprocal |
7 | licensing; further providing for fees, for bond, and for | <-- |
8 | contract,; providing for written disclosure of financial | <-- |
9 | interest; further providing for revocation, etc., of license, | <-- |
10 | and for violations and; providing for civil remedy; further | <-- |
11 | providing for administration and enforcement; and providing |
12 | for persons licensed as public adjuster solicitors. |
13 | The General Assembly of the Commonwealth of Pennsylvania |
14 | hereby enacts as follows: |
15 | Section 1. Sections 1 and 2 of the act of December 20, 1983 |
16 | (P.L.260, No.72), referred to as the Public Adjuster Licensing |
17 | Law, are amended to read: |
18 | Section 1. Definitions. |
19 | The following words and phrases when used in this act shall |
20 | have the meanings given to them in this section unless the |
21 | context clearly indicates otherwise: |
22 | "Application." A form approved by the Insurance Department |
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1 | to be used to apply for a public adjuster license. |
2 | "Business entity." A corporation, partnership, association, |
3 | limited liability company or limited liability partnership. |
4 | "Business entity application." A form approved by the |
5 | department to be used by a business entity to apply for a public |
6 | adjuster license. |
7 | "Department." The Insurance Department of the Commonwealth. |
8 | "Home state." The District of Columbia, a state, |
9 | commonwealth or territory of the United States in which a public |
10 | adjuster resides and is licensed to act as a resident |
11 | publicadjuster public adjuster. | <-- |
12 | "Licensee." A person licensed by the Insurance Department |
13 | asa as a public adjuster. | <-- |
14 | "Nonresident public adjuster." A public adjuster whose home |
15 | state is not this Commonwealth. |
16 | "Public adjuster." Any person[, partnership, association or |
17 | corporation advertising,] soliciting business or holding himself |
18 | [or itself] out to the public as an adjuster of claims for |
19 | losses or damages arising out of policies of insurance, surety |
20 | or indemnity upon property, persons or insurable business |
21 | interests within this Commonwealth, and receiving any |
22 | compensation or reward for the giving of advice or assistance to |
23 | the insured in the adjustment of claims for such losses, or who |
24 | for compensation or reward, whether by way of salary or |
25 | commission or otherwise, directly or indirectly, [solicit] |
26 | solicits business, [investigate] investigates or [adjust] |
27 | adjusts losses or [advise] advises the insured with reference to |
28 | claims for losses on behalf of any other person[, partnership, |
29 | association or corporation] engaged in the business of adjusting |
30 | losses. The term does not include an agent or employee of an |
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1 | insurance company, association or an exchange, through whom a |
2 | policy of insurance was written, in adjusting loss or damage |
3 | under such policy, nor does it include [a broker or agent] an |
4 | insurance producer acting as an adjuster if the services of the |
5 | [agent or broker] insurance producer in the adjustment are |
6 | without compensation. |
7 | ["Public adjuster solicitor." Any person, partnership, |
8 | association or corporation, who or which solicits, directly or |
9 | indirectly, for a fee, or in any manner aids in securing for a |
10 | public adjuster a contract for the adjustment of a loss.] |
11 | "Repairs." Shall not include temporary or emergency repairs |
12 | made for the purpose of protecting the insured property or to |
13 | comply with policy terms and conditions. |
14 | Section 2. License. |
15 | (a) License required.--No person[, partnership, association |
16 | or corporation] shall, directly or indirectly, act within the |
17 | Commonwealth as a public adjuster [or a public adjuster |
18 | solicitor] without first procuring from the Insurance |
19 | Commissioner a license as a public adjuster [or public adjuster |
20 | solicitor, respectively]. |
21 | (b) [Insurance Commissioner to issue licenses.--The |
22 | Insurance Commissioner may issue a license as a public adjuster |
23 | or public adjuster solicitor to any person of at least 18 years |
24 | of age and to any partnership, association or corporation which |
25 | maintains a bona fide office in the Commonwealth, readily |
26 | accessible to the general public. No license shall be granted to |
27 | any corporation unless, by provisions of its charter, it is |
28 | authorized to engage in the business of insurance claim |
29 | adjusting and unless individual licenses are also secured for |
30 | each active officer of such corporation. No license shall be |
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1 | granted to a partnership or association unless individual |
2 | licenses are also secured for each active member of such |
3 | partnership or association. Before any such license is granted, |
4 | the applicant shall first make answer, in writing and under |
5 | oath, to interrogatories on forms and supplements such as the |
6 | Insurance Commissioner shall prepare: Provided, That any |
7 | applicant who shall have held such a license for a period of at |
8 | least two years prior to the effective date of this act shall be |
9 | entitled, upon proper application, to receive a license without |
10 | the necessity of submitting to an examination. When the |
11 | Insurance Commissioner is satisfied that the applicant is |
12 | trustworthy and competent to transact business as a public |
13 | adjuster and public adjuster solicitor, respectively, in such |
14 | manner as to safeguard the interest of the public, he shall |
15 | issue a license.] (Reserved). |
16 | (c) [Nonresident public adjusters and public adjuster |
17 | solicitors.--The Insurance Commissioner may issue a license as |
18 | public adjuster or public adjuster solicitor to a person not a |
19 | resident of this Commonwealth, upon compliance with the |
20 | applicable provisions of this act, if the State or the Province |
21 | of Canada of such person's residence will accord the same |
22 | privilege to a resident of this Commonwealth. The provisions of |
23 | this subsection relating to noneligibility for licensure shall |
24 | not apply to any nonresident public adjusters and public |
25 | adjuster solicitors who did business in Pennsylvania as licensed |
26 | public adjusters or public adjuster solicitors prior to the |
27 | effective date of this act. |
28 | (1) The Insurance Commissioner may enter into reciprocal |
29 | agreements with the appropriate official of any such other |
30 | state or province waiving the written examination of any |
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1 | applicant resident in such other state if: |
2 | (i) a written examination is required of applicants |
3 | for an insurance public adjuster or public adjuster |
4 | solicitor license in such other state or province; |
5 | (ii) the appropriate official of the other state or |
6 | province certifies that the applicant holds a currently |
7 | valid license as a public adjuster or public adjuster |
8 | solicitor in such other state or province and either |
9 | passed such a written examination or was the holder of an |
10 | insurance agent's license prior to the time a written |
11 | examination was required; and |
12 | (iii) that in such other state or province a |
13 | resident of this Commonwealth is privileged to procure a |
14 | public adjuster or public adjuster solicitor license upon |
15 | the foregoing conditions and without discrimination as to |
16 | fees otherwise in favor of the residents of such other |
17 | state or province.] (Reserved). |
18 | (d) License not to be issued to certain persons.--No license |
19 | as a public adjuster [or public adjuster solicitor] shall be |
20 | issued to any person[, partnership, association or corporation] |
21 | engaged or interested in, or receiving any profit from[, nor |
22 | shall the holder of any such license engage or be interested in, |
23 | or receive any profit from,] any salvage, restoration company or | <-- |
24 | similar business. No licensee shall be engaged in or have an | <-- |
25 | interest in or receive any profit from any salvage, restoration |
26 | company or similar business. |
27 | Section 2. The act is amended by adding sections to read: |
28 | Section 2.1. Application for public adjuster license. |
29 | (a) Individuals.--An individual who is a resident of this |
30 | Commonwealth may apply to the department for a resident public |
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1 | adjuster license. An individual who is not a resident of this |
2 | Commonwealth may apply for a nonresident public adjuster |
3 | license. To apply for a public adjuster license, an individual |
4 | shall submit to the department: |
5 | (1) a completed application on forms approved by the |
6 | department; |
7 | (2) the applicant's fingerprints, for the department to |
8 | receive national criminal history records information from |
9 | the Criminal Justice Information Services Division of the |
10 | Federal Bureau of Investigation; |
11 | (3) documentation verifying the applicant passed or is |
12 | exempt from the public adjuster licensing examination; and |
13 | (4) the required license fee and fees for obtaining |
14 | national criminal history records information. |
15 | (b) Business entities.--Upon designating one or more |
16 | officers or partners licensed under this act to be responsible |
17 | for the business entity's compliance with the insurance laws and |
18 | regulations of the Commonwealth, a business entity may apply to |
19 | the department for a public adjuster license. A business entity |
20 | with an office in this Commonwealth shall apply for a resident |
21 | public adjuster license. A business entity that does not have an |
22 | office in this Commonwealth shall apply for a nonresident public |
23 | adjuster license. The designated licensees of the business |
24 | entity shall submit to the department: |
25 | (1) a completed business entity application on forms |
26 | approved by the department; |
27 | (2) proof of the public adjuster license held by the |
28 | designated licensees; and |
29 | (3) the required license fee. |
30 | (c) License fee.--A nonrefundable $200 fee shall accompany a |
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1 | completed application for a resident or nonresident public |
2 | adjuster license until modified by the department by regulation. |
3 | Section 2.2. Licensing. |
4 | (a) Individuals.--The department shall review each |
5 | application and may conduct an investigation of each individual |
6 | who applies for a license in accordance with this act. The |
7 | department shall issue a resident or nonresident public adjuster |
8 | license, as appropriate, to the applicant when the department is |
9 | satisfied the following criteria have been met: |
10 | (1) the applicant has reached 18 years of age; |
11 | (2) the applicant has not committed any act which is |
12 | prohibited under this act; |
13 | (3) the applicant has passed or is exempt from the |
14 | public insurance adjuster licensing examination; |
15 | (4) the applicant has paid the applicable fees |
16 | established under this act; |
17 | (5) the applicant possesses the general fitness, |
18 | competence and reliability sufficient to satisfy the |
19 | department the applicant is worthy of licensure; and |
20 | (6) other criteria as the department may establish. |
21 | (b) Business entities.--The department shall review each |
22 | business entity application and may conduct an investigation of |
23 | each business entity seeking licensure and its designated |
24 | licensees. The department shall issue a resident or nonresident |
25 | public adjuster license, as appropriate, to the business entity |
26 | when the department is satisfied the following criteria have |
27 | been met: |
28 | (1) the business entity has one or more designated |
29 | licensees who are responsible for the business entity's |
30 | compliance with the insurance laws and regulations of this |
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1 | Commonwealth; |
2 | (2) the business entity's designated licensees and |
3 | officers, partners or members are licensees in good standing |
4 | with the department; |
5 | (3) if a corporation or limited liability company, |
6 | individual public adjuster licenses shall be held by or |
7 | secured for each officer of the corporation or limited |
8 | liability company; |
9 | (4) if a partnership, limited liability partnership or |
10 | association, individual public adjuster licenses shall be |
11 | held by or secured for each partner or member of the |
12 | association; |
13 | (5) the business entity or its designated licensees have |
14 | not committed an act which is prohibited under this act; |
15 | (6) the business entity is owned, operated and managed |
16 | by persons possessing the general fitness, competence and |
17 | reliability sufficient to satisfy the department that the |
18 | business entity is worthy of licensure; |
19 | (7) the business entity has paid the applicable fees |
20 | established under this act; and |
21 | (8) other criteria as the department may establish. |
22 | Section 2.3. Issuance and term of license. |
23 | A public adjuster license issued by the department shall be: |
24 | (1) issued only in the name of the individual or |
25 | business entity. If a licensee is doing business under a |
26 | fictitious name other than the name appearing on the public |
27 | adjuster license, the licensee is required to notify the |
28 | department in writing prior to using the fictitious name; |
29 | (2) issued in paper or electronic form; |
30 | (3) nontransferable; and |
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1 | (4) issued for a period not to exceed two years. |
2 | Section 2.4. License renewals. |
3 | (a) General rule.--A licensee may request renewal of the |
4 | license. The licensee shall submit to the department a completed |
5 | renewal form, the required fee and verification the licensee has |
6 | completed the continuing education required by this act. Upon |
7 | receipt and review, the department shall renew the license |
8 | unless it determines the licensee is not in compliance with this |
9 | act. |
10 | (b) Continuing education.--A licensee who is not a business |
11 | entity shall successfully complete 24 credit hours of approved |
12 | continuing education for each two-year license period as a |
13 | condition for license renewal unless modified by the department |
14 | by regulation. A licensee may carry forward excess continuing |
15 | education credit hours up to 24 credit hours from one licensing |
16 | period to the next licensing period. |
17 | (c) Lapses.--A licensee who allows his license to lapse by |
18 | failing to timely renew the license, pay the fee required by |
19 | this act or complete the continuing education required by this |
20 | act may within 60 days of the license renewal date request the |
21 | department to reinstate the license. Persons requesting |
22 | reinstatement of a lapsed license shall submit a completed |
23 | renewal form, the fee required by this act and verification the |
24 | person has completed all continuing education required by |
25 | subsection (b) for the previously licensed and lapsed periods. |
26 | If the department receives a request for reinstatement together |
27 | with a completed renewal application, payment of the lapsed |
28 | license fee and proof of continuing education compliance within |
29 | 60 days after the license lapsed, the department shall reinstate |
30 | the license retroactively with the reinstatement effective on |
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1 | the date the license lapsed. Except as set forth in subsection |
2 | (d), if a person applies for reinstatement more than 60 days |
3 | after the lapse date, the person shall reapply for a license |
4 | under this act. |
5 | (d) Extenuating circumstances.--A licensee who is unable to |
6 | timely comply with the requirements of subsection (a) as a |
7 | result of military service or other extenuating circumstance may |
8 | request the department to waive the requirements of completing |
9 | continuing education for the period in which the license had |
10 | lapsed and payment of the lapsed license fee. The request shall |
11 | include sufficient detail and supporting documentation to |
12 | determine the necessity of the waiver. If the department |
13 | determines that there is good cause for noncompliance, the |
14 | department shall grant the waiver and permit the licensee to |
15 | request renewal of the license in accordance with this act. |
16 | (e) Renewal fees.--The following nonrefundable fees shall |
17 | accompany an application for renewal of a public adjuster |
18 | license unless modified by the department by regulation: |
19 | (1) Resident or nonresident renewal fee, $200. |
20 | (2) Lapsed license renewal fee, $400. |
21 | Section 2.5. Reciprocal licensing. |
22 | (a) Nonresident individuals.-- |
23 | (1) An individual who is currently licensed as a |
24 | resident public adjuster in another state or territory may |
25 | apply to the department for a nonresident public adjuster |
26 | license. The individual shall submit to the department a |
27 | completed application, proof of the individual's current home |
28 | state license in a form or manner determined acceptable by |
29 | the department and the required license fee. |
30 | (2) Upon receipt and review of the application, proof of |
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1 | the home state license in a form or manner determined |
2 | acceptable by the department and the fee, the department |
3 | shall issue a nonresident public adjuster license to the |
4 | individual. The department may deny the application if the |
5 | individual's home state does not award nonresident public |
6 | adjuster licenses to resident licensees of this Commonwealth |
7 | on the same basis. |
8 | (b) Nonresident business entities.-- |
9 | (1) Upon designating one or more individuals licensed |
10 | under this act to be responsible for the business entity's |
11 | compliance with the insurance laws and regulations of this |
12 | Commonwealth, a business entity which is currently licensed |
13 | as a resident public adjuster in another state or territory |
14 | may apply to the department for a nonresident public adjuster |
15 | license. The designated licensees of the business entity |
16 | shall remit to the department a completed business entity |
17 | application, proof of the business entity's current home |
18 | state license in a form or manner determined acceptable by |
19 | the department and the required license fee. |
20 | (2) Upon receipt and review of the application, proof of |
21 | the home state license in a form or manner determined |
22 | acceptable by the department and the fee, the department |
23 | shall issue a nonresident public adjuster license to the |
24 | business entity if the department determines that the |
25 | business entity, its partners, members or officers, and its |
26 | designated licensees are licensees in good standing in the |
27 | business entity's home state. The department may deny the |
28 | application if the business entity's home state does not |
29 | award nonresident public adjuster licenses to resident |
30 | licensees of this Commonwealth on the same basis. |
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1 | Section 3. Sections 3, 4, 5, 6, 7 and 8 of the act are | <-- |
2 | Section 3 of the act is amended to read: | <-- |
3 | Section 3. [Fees. |
4 | (a) Public adjuster's license.--A fee shall be paid to the |
5 | Insurance Commissioner by the applicant for a public adjuster's |
6 | license at the time application is made, and annually thereafter |
7 | for the renewal thereof, of $100. If the applicant is a |
8 | corporation, partnership or association, such fee shall be paid |
9 | for each person specified in the license. |
10 | (b) Public adjuster solicitor's license.--A fee shall be |
11 | paid to the Insurance Commissioner by the applicant for a public |
12 | adjuster solicitor's license at the time application is made, |
13 | and annually thereafter for the renewal thereof, of $50. If the |
14 | applicant is a corporation, partnership, or association, such |
15 | fee shall be paid for each person specified in the license.] |
16 | (Reserved). |
17 | Section 4. The act is amended by adding a section to read: | <-- |
18 | Section 3.1. Written disclosure of financial interest. |
19 | (a) Requirement.--A public adjuster shall provide the |
20 | insured a written disclosure concerning a direct or indirect |
21 | financial interest the public adjuster has with another party |
22 | involved in an aspect of the claim other than the salary, fee, |
23 | commission or other consideration established in the written |
24 | contract with the insured, including, but not limited to, |
25 | ownership of or compensation expected to be received from a |
26 | construction firm, building appraisal firm, motor vehicle repair |
27 | shop or another firm that provides estimates for work or that |
28 | performs work in conjunction with damages caused by the insured |
29 | loss on which the public adjuster is engaged. |
30 | (b) Definition.--As used in this section, the term "firm" |
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1 | shall include a corporation, partnership, association, joint- |
2 | stock company or person. |
3 | Section 5. Sections 4, 5, 6 and 7 of the act are amended to |
4 | read: |
5 | Section 4. Bond. |
6 | (a) Public adjuster's bond.--Each person[, partnership, |
7 | association or corporation] receiving a public adjuster's |
8 | license shall, before transacting any business thereunder, |
9 | execute and deliver to the Insurance Commissioner a bond in the |
10 | minimum penal sum of [$40,000] $20,000 with such sureties as the | <-- |
11 | Insurance Commissioner may approve. |
12 | (b) [Public adjuster solicitor's bond.--Each person, |
13 | partnership, association or corporation receiving a public |
14 | adjuster solicitor's license shall, before transacting any |
15 | business thereunder, execute and deliver to the Insurance |
16 | Commissioner a bond in the minimum penal sum of $8,000 with such |
17 | sureties as the Insurance Commissioner may approve.] (Reserved). |
18 | (c) Condition of bond.--The bond of the public adjuster [and |
19 | the public adjuster solicitor] shall be conditioned that said |
20 | public adjuster [or public adjuster solicitor] will faithfully |
21 | comply with all the requirements of this act and shall not |
22 | embezzle, take, secrete or otherwise dispose of or fraudulently |
23 | withhold, appropriate, lend, invest or otherwise use or apply |
24 | any money or substitutes for money or any salvage, goods or |
25 | property received by him as such public adjuster [or public |
26 | adjuster solicitor] or employee of a public adjuster, contrary |
27 | to the instructions or without the consent of the assured or his |
28 | legal representative. Any person, firm or corporation who has |
29 | entered into a contract with a public adjuster, as provided in |
30 | section 5, and who shall suffer loss by reason of the failure of |
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1 | the public adjuster to comply with this act and faithfully |
2 | perform his duties shall have the right to intervene and be made |
3 | a party to any action instituted by the Commonwealth on the bond |
4 | of the public adjuster and to have his, her or its rights and |
5 | claims adjudicated in such action and judgment rendered thereon, |
6 | subject, however, to the priority of the claim and judgment of |
7 | the Commonwealth. If the amount of the liability of the surety |
8 | on said bond is sufficient to pay the full amount due the |
9 | Commonwealth, the remainder shall be distributed pro rata among |
10 | said intervenors. If no suit should be brought by the |
11 | Commonwealth of Pennsylvania, upon application therefore and |
12 | furnishing affidavit to the Insurance Department that loss has |
13 | been suffered by reason of failure of the public adjuster to |
14 | comply with this act or faithfully perform his duties, such |
15 | insured shall be furnished with a certified copy of said bond, |
16 | upon which he, she or it shall have a right of action, and shall |
17 | be and are hereby authorized to bring suit in the name of the |
18 | Commonwealth for his, her or its use and benefit against said |
19 | public adjuster and his sureties and to prosecute the same to |
20 | final judgment and execution. Where suit is instituted by any |
21 | such insureds on the bond of the public adjuster, it shall be |
22 | commenced within one year after the performance and final |
23 | settlement of said contract, and not later. Where suit is so |
24 | instituted by an insured or insureds, no other action shall be |
25 | brought by any other claimant, but any other claimant may file |
26 | his claim in the action first brought and be made party thereto |
27 | within one year from the completion of the work under said |
28 | contract, and not later. If two or more actions be brought on |
29 | the same day, the action in which the largest claim is demanded |
30 | shall be regarded as the first action. Any creditor who has |
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1 | brought an action within one year as aforesaid, but after suit |
2 | brought by another creditor or on the same day, may intervene in |
3 | the suit first brought within the year, notwithstanding the fact |
4 | that the intervention in such case be after the expiration of |
5 | the year, provided said intervention be made within 30 days |
6 | after the expiration of the year. If the recovery on the bond |
7 | should be inadequate to pay the amounts found due to all of said |
8 | creditors, judgment shall be given to each creditor pro rata of |
9 | the amount of the recovery. The surety on said bond may pay into |
10 | the court, for distribution among said claimants and creditors, |
11 | the full amount of the surety's liability, to wit, the penalty |
12 | named in the bond, less any amount which said surety may have |
13 | had to pay to the Commonwealth by reason of the execution of |
14 | said bond, and, upon so doing, the surety will be relieved from |
15 | further liability. In all suits instituted under the provisions |
16 | of this act, such personal notice of the pendency of such suits, |
17 | informing them of their right to intervene, as the court may |
18 | order, shall be given to all known creditors and, in addition |
19 | thereto, notice shall be given by publication in newspapers of |
20 | general circulation, published in the county or municipality |
21 | where the contract was performed, once a week for at least three |
22 | successive weeks: Provided, however, That, when such suit has |
23 | begun within three weeks of the end of the year within which |
24 | suit may be brought, said notice by publication shall be only |
25 | for the period intervening between the time of instituting such |
26 | suit and the end of the year. |
27 | Section 5. Contract. |
28 | (a) Written contract required.--No public adjuster shall, |
29 | directly or indirectly, act within this Commonwealth as a public |
30 | adjuster without having first entered into a contract, in |
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1 | writing, on a form approved by the [Insurance Commissioner] |
2 | department and executed in duplicate by the public adjuster and |
3 | the insured or a duly authorized representative. One copy of |
4 | this contract shall be kept on file by the public adjuster, |
5 | available at all times for inspection[, without notice,] by the |
6 | [Insurance Commissioner or his duly authorized representative. |
7 | No public adjuster or public adjuster solicitor shall solicit a |
8 | client for employment within 24 hours of a fire or other |
9 | catastrophe or occurrence which is the basis of the |
10 | solicitation. With respect to a fire, the 24-hour period shall |
11 | begin at such time as the fire department in charge determines |
12 | that the fire is extinguished. Any contract with a public |
13 | adjuster may be rescinded by any person signing the contract. |
14 | Such action must be taken within four calendar days after |
15 | signature. The Insurance Commissioner may issue regulations to |
16 | assure the implementation of this section. No public adjuster |
17 | solicitor shall use any form of contract other than that |
18 | approved for the public adjuster for whom he is soliciting, nor |
19 | shall he make any contracts or agreements for himself or for the |
20 | public adjuster other than such as are specified in the approved |
21 | contract.] department. The department shall disapprove a |
22 | contract form if, in the department's opinion, the contract or |
23 | its provisions: |
24 | (1) Fail to comply with this section. |
25 | (2) Are unreasonable. |
26 | (3) Are contrary to the interests of the public. |
27 | (4) Are misleading or unfair to the insured. |
28 | At the department's discretion, the department may also require |
29 | the submission of advertising or solicitation material. |
30 | (a.1) Rescission.--A contract with a public adjuster may be |
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1 | rescinded by any person signing the contract. |
2 | (a.2) Disclosure.--The contracts shall disclose the | <-- |
3 | following items with each of these items separately signed or |
4 | initialed by the insured and the public adjuster: |
5 | (1) That the insured has the right to rescind the |
6 | contract within 15 calendar five business days after | <-- |
7 | signature. |
8 | (2) Fees to be charged or assessed by the public |
9 | adjuster together with an explanation about how the fees will |
10 | come from a portion of the claims payment, if any, made by |
11 | the insurer under the policy and are not in addition to the |
12 | payments. |
13 | (3) That the adjuster will provide the insured a copy of |
14 | an estimate or report of losses and supporting documentation |
15 | it sends to the insurer. |
16 | (4) That the public adjuster is not a representative or | <-- |
17 | employee of the insurer and the insureds are not required to |
18 | hire a public adjuster but have the right to do so. |
19 | (a.3) Regulations.--The Insurance Commissioner may issue |
20 | regulations to assure the implementation of this section. |
21 | (b) Contracts only authorized by insured against his own |
22 | carrier.--No public adjuster [or public adjuster solicitor] may |
23 | adjust or solicit a contract for the adjustment of any claim for |
24 | losses or damages on behalf of any person except claims by an |
25 | insured against his own insurance carrier. |
26 | (c) Personal injury and automobile property damage claims |
27 | prohibited.--No public adjuster [or public adjuster solicitor] |
28 | shall act in any manner in relation to claims for personal |
29 | injury or automobile property damage. |
30 | (d) Contracts limited to adjustment of insurance losses.--No |
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1 | public adjuster [or public adjuster solicitor] shall, directly |
2 | or indirectly, through or with any person, partnership, |
3 | corporation or association in which it has an indirect or |
4 | beneficial interest, enter into any contract with any insured |
5 | for the repair, replacement, restoration, renovation or |
6 | demolition of damaged property, real or personal, at any time |
7 | prior to the date a verdict or award is entered or payment is |
8 | received from the insurance carrier, whichever event shall occur |
9 | first. |
10 | Section 6. Revocation, etc., of license. |
11 | (a) Grounds for fines, suspensions or revocations.-- |
12 | Committing any of the following acts shall be grounds for fine, |
13 | suspension or revocation of a public adjuster's [or public |
14 | adjuster solicitor's] license: |
15 | (1) Material misrepresentation of the terms and effect |
16 | of any insurance contract. |
17 | (2) Engaging in, or attempting to engage in, any |
18 | fraudulent [transaction] or misleading conduct with respect | <-- |
19 | to a claim or loss that licensee is adjusting. |
20 | (3) Misrepresentation of the services offered or the |
21 | fees or commission to be charged. |
22 | (4) Conviction by any court of or a plea of nolo |
23 | contendere to a felony under the laws of this Commonwealth, |
24 | any other state, the United States or any territory or |
25 | foreign country. |
26 | (5) Misappropriation, conversion to his own use or |
27 | improper withholding of moneys held on behalf of another |
28 | party to the contract. |
29 | (6) [To pay or cause] Paying or causing to be paid any |
30 | commission or any other compensation or thing of value |
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1 | whatsoever to any agent, broker, attorney, partner, clerk, |
2 | servant, employee or any other person, whosoever hired by or |
3 | employed by or with any insured named in any policy of |
4 | insurance as an inducement or solicitation to influence the |
5 | contracting of services for the services of public adjuster |
6 | [or public adjuster solicitor] with any insured. A public |
7 | adjuster may utilize the services of any person authorized by |
8 | the insurer to assist in connection with an insurance claim: |
9 | Provided, That said services must not conflict with the |
10 | services required to be rendered by a public adjuster. |
11 | (7) [To receive] Receiving, directly or indirectly, any |
12 | compensation, commission or thing of value or profit from any |
13 | person, partnership, association or corporation engaged or |
14 | interested in the business of salvage, repair, replacement, |
15 | restoration, renovation or demolition of damaged property, |
16 | real or personal, unless such compensation, commission or |
17 | thing of value or profit is disclosed to the insured and |
18 | agreed to in the contract. |
19 | (8) [Removal of a public adjuster's or a public adjuster |
20 | solicitor's office, accounts or records from the |
21 | Commonwealth] (Reserved). |
22 | (9) [The closure] Closing of a licensee's office for a |
23 | period in excess of 30 days, unless granted permission by the |
24 | Insurance Commissioner to close the office for a longer |
25 | period. |
26 | (10) Violation of any provision of this act or any rule |
27 | or regulation promulgated, published and adopted thereunder. |
28 | (11) Making a material misstatement in the application |
29 | for any such license. |
30 | (12) The commission of fraudulent practices. |
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1 | (13) [Has] Demonstrating, in the judgment of the |
2 | Insurance Commissioner, [demonstrated] his incompetency or |
3 | untrustworthiness to transact the business of a public |
4 | adjuster. |
5 | (14) Having a public adjuster license or other |
6 | professional license, or its equivalent, denied, suspended or |
7 | revoked by a governmental entity or self-regulating |
8 | professional association. |
9 | (15) Failing to comply with an administrative or court |
10 | order imposing a child support obligation. |
11 | (16) Failing to pay State income tax or comply with any |
12 | administrative or court order directing the payment of State |
13 | income tax. |
14 | (17) Committing a misdemeanor that involves the misuse |
15 | or theft of money or property belonging to another person. |
16 | (18) Failing to notify the department of a change |
17 | ofaddress of address within 30 days. | <-- |
18 | (19) Soliciting business during the progress of a loss- | <-- |
19 | producing occurrence. |
20 | (20) Interfering with or seeking to prohibit |
21 | communication or any form of contact between the insurer and |
22 | the insured. |
23 | (b) Civil penalty.--Regardless of whether the public |
24 | adjuster [or public adjuster solicitor] was licensed or not, the |
25 | Insurance Commissioner may, at his discretion, in cases |
26 | warranting such action, impose a civil penalty of not more than |
27 | [$1,000] $5,000 for each and every violation of this act. |
28 | (c) Notice and hearing.--Before the Insurance Commissioner |
29 | shall take any action as above set forth, he shall give written |
30 | notice to the person[, partnership, association or corporation] |
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1 | accused of violating the law, stating specifically the nature of |
2 | such alleged violation and fixing a time and place, at least ten |
3 | days thereafter, when a hearing of the matter shall be held. |
4 | After such hearing or upon failure of the accused to appear at |
5 | such a hearing, the Insurance Commissioner shall impose such of |
6 | the above penalties as he deems advisable. When the Insurance |
7 | Commissioner shall have taken any actions as above set forth, |
8 | the party aggrieved may appeal therefrom to the Commonwealth |
9 | Court. |
10 | (d) Adjusters [and solicitors] responsible for conduct of |
11 | employees.--Any public adjuster [or public adjuster solicitor] |
12 | employing, or using the services of, any person to solicit |
13 | business shall be held fully responsible for the conduct of that |
14 | person in connection with business dealings, including, but not |
15 | limited to, making certain that such person has a valid license |
16 | as a public adjuster [or public adjuster solicitor]. |
17 | Section 7. Violations. |
18 | [Any person[, partnership, association or corporation] | <-- |
19 | violating any of the provisions of this act shall be guilty of a |
20 | misdemeanor and, upon conviction thereof, shall be sentenced to |
21 | pay a fine of not less than $500 nor more than [$1,000] $5,000 | <-- |
22 | for each violation and conviction. [Prosecution for any | <-- |
23 | violation under this section may be instituted by the Insurance |
24 | Commissioner or his duly authorized representative.] A person, | <-- |
25 | partnership, association or corporation that willfully violates |
26 | section 6(a)(1), (2), (3), (5), (6) or (12) shall be guilty of a |
27 | felony of the third degree. A violation of another provision of |
28 | this act shall constitute a misdemeanor and, upon conviction, a |
29 | violator shall be sentenced to pay a fine of not less than $500 |
30 | nor more than $1,000 for each violation and conviction. |
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1 | Section 6. The act is amended by adding a section to read: |
2 | Section 7.1. Civil remedy. |
3 | A violation of this act may also be a violation of the act of |
4 | December 17, 1968 (P.L.1224, No.387), known as the Unfair Trade |
5 | Practices and Consumer Protection Law. |
6 | Section 7. Section 8 of the act is amended to read: |
7 | Section 8. Administration and enforcement. |
8 | (a) Insurance Commissioner to administer and enforce act.-- |
9 | The Insurance Commissioner is hereby charged with the |
10 | administration and enforcement of this act and shall prescribe, |
11 | publish, adopt and promulgate rules and regulations in |
12 | connection herewith. |
13 | (b) Insurance Commissioner may bring actions.--The Insurance |
14 | Commissioner or a duly authorized representative may maintain an |
15 | action for an injunction or other process against any person[, |
16 | partnership, association, corporation] or other entity to |
17 | restrain and prevent any of the foregoing from transacting |
18 | business as a public adjuster [or public adjuster solicitor] |
19 | without a license. Any such action shall be instituted in the |
20 | court of common pleas in any county where the alleged unlicensed |
21 | activity occurred. Such court may issue a temporary restraining |
22 | order or injunction under this act but shall determine any such |
23 | action on its merits as soon as possible whether in term time or |
24 | in vacation. No bond shall be required of and no costs shall be |
25 | taxed against the Insurance Commissioner, his duly authorized |
26 | representative or the Insurance Department on account of any |
27 | such action. |
28 | (c) Act to be supplementary.--The provisions of this act |
29 | shall be constructed as supplementary to all other acts dealing |
30 | with the same subject matter. No action brought under the |
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1 | provisions of this act shall prevent the prosecution or |
2 | institution of any civil or criminal action otherwise provided |
3 | by law for violation of any licensing act or departmental rule |
4 | or regulation promulgated thereunder. |
5 | Section 4 8. A person licensed as a public adjuster | <-- |
6 | solicitor before this section takes effect shall be licensed as |
7 | a public adjuster in accordance with the act and subject to its |
8 | requirements. |
9 | Section 9. Regulations not clearly inconsistent with the | <-- |
10 | provisions of this act shall remain in effect until replaced, |
11 | revised or amended. |
12 | Section 5 10. This act shall take effect in 180 days. | <-- |
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