THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY GODSHALL, MICOZZIE, CALTAGIRONE, DeLUCA, HENNESSEY, SWANGER AND TAYLOR, FEBRUARY 3, 2011

AS REPORTED FROM COMMITTEE ON INSURANCE, HOUSE OF REPRESENTATIVES, AS AMENDED, MAY 24, 2011   

AN ACT

Amending the act of December 20, 1983 (P.L.260, No.72), entitled

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"An act providing for the licensing and regulating of public

adjusters and public adjuster solicitors," further providing

for violations; and providing for civil remedy.

Amending the act of December 20, 1983 (P.L.260, No.72), entitled

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"An act providing for the licensing and regulating of public

adjusters and public adjuster solicitors," further providing

for definitions and for license; providing for application

for public adjuster license, for licensing, for issuance and

term of license, for license renewals and for reciprocal

licensing; further providing for fees, for bond and for

contract; providing for written disclosure of financial

interest; further providing for revocation, etc., of license

and for violations; providing for civil remedy; further

providing for administration and enforcement; and providing

for persons licensed as public adjuster solicitors.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 7 of the act of December 20, 1983

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(P.L.260, No.72), referred to as the Public Adjuster Licensing

Law, is amended to read:

Section 7.  Violations.

[Any person, partnership, association or corporation

violating any of the provisions of this act shall be guilty of a

misdemeanor and, upon conviction thereof, shall be sentenced to

pay a fine of not less than $500 nor more than $1,000 for each

violation and conviction. Prosecution for any violation under

this section may be instituted by the Insurance Commissioner or

his duly authorized representative.] Any person, partnership,

association or corporation that willfully violates section 6(a)

(1), (2), (3), (5), (6) or (12) of this act, shall be guilty of

a felony of the third degree. A violation of any other provision

of this act shall constitute a misdemeanor and, upon conviction

thereof, a violator shall be sentenced to pay a fine of not less

than $500 nor more than $1000 for each violation and conviction.

Prosecution for any violation under this section is at the

discretion of the Insurance Commissioner and may be instituted

by the Insurance Commissioner or his duly authorized

representative.

Section 2.  The act is amended by adding a section to read:

Section 7.1.  Civil remedy.

A violation of this act may also be a violation of the act of

December 17, 1968 (P.L.1224, No.387), known as the Unfair Trade

Practices and Consumer Protection Law.

Section 3.  This act shall take effect in 60 days.

Section 1.  Sections 1 and 2 of the act of December 20, 1983

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(P.L.260, No.72), referred to as the Public Adjuster Licensing

Law, are amended to read:

Section 1.  Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Application."  A form approved by the Insurance Department

to be used to apply for a public adjuster license.

"Business entity."  A corporation, partnership, association,

limited liability company or limited liability partnership.

"Business entity application."  A form approved by the

department to be used by a business entity to apply for a public

adjuster license.

"Department."  The Insurance Department of the Commonwealth.

"Home state."  The District of Columbia, a state,

commonwealth or territory of the United States in which a public

adjuster resides and is licensed to act as a resident public

adjuster.

"Licensee."  A person licensed by the Insurance Department as

a public adjuster.

"Nonresident public adjuster."  A public adjuster whose home

state is not this Commonwealth.

"Public adjuster."  Any person[, partnership, association or

corporation advertising,] soliciting business or holding himself

[or itself] out to the public as an adjuster of claims for

losses or damages arising out of policies of insurance, surety

or indemnity upon property, persons or insurable business

interests within this Commonwealth, and receiving any

compensation or reward for the giving of advice or assistance to

the insured in the adjustment of claims for such losses, or who

for compensation or reward, whether by way of salary or

commission or otherwise, directly or indirectly, [solicit] 

solicits business, [investigate] investigates or [adjust] 

adjusts losses or [advise] advises the insured with reference to

claims for losses on behalf of any other person[, partnership,

association or corporation] engaged in the business of adjusting

losses. The term does not include an agent or employee of an

insurance company, association or an exchange, through whom a

policy of insurance was written, in adjusting loss or damage

under such policy, nor does it include [a broker or agent] an 

insurance producer acting as an adjuster if the services of the

[agent or broker] insurance producer in the adjustment are

without compensation.

["Public adjuster solicitor."  Any person, partnership,

association or corporation, who or which solicits, directly or

indirectly, for a fee, or in any manner aids in securing for a

public adjuster a contract for the adjustment of a loss.]

"Repairs."  Shall not include temporary or emergency repairs

made for the purpose of protecting the insured property or to

comply with policy terms and conditions.

Section 2.  License.

(a)  License required.--No person[, partnership, association

or corporation] shall, directly or indirectly, act within the

Commonwealth as a public adjuster [or a public adjuster

solicitor] without first procuring from the Insurance

Commissioner a license as a public adjuster [or public adjuster

solicitor, respectively].

(b)  [Insurance Commissioner to issue licenses.--The

Insurance Commissioner may issue a license as a public adjuster

or public adjuster solicitor to any person of at least 18 years

of age and to any partnership, association or corporation which

maintains a bona fide office in the Commonwealth, readily

accessible to the general public. No license shall be granted to

any corporation unless, by provisions of its charter, it is

authorized to engage in the business of insurance claim

adjusting and unless individual licenses are also secured for

each active officer of such corporation. No license shall be

granted to a partnership or association unless individual

licenses are also secured for each active member of such

partnership or association. Before any such license is granted,

the applicant shall first make answer, in writing and under

oath, to interrogatories on forms and supplements such as the

Insurance Commissioner shall prepare: Provided, That any

applicant who shall have held such a license for a period of at

least two years prior to the effective date of this act shall be

entitled, upon proper application, to receive a license without

the necessity of submitting to an examination. When the

Insurance Commissioner is satisfied that the applicant is

trustworthy and competent to transact business as a public

adjuster and public adjuster solicitor, respectively, in such

manner as to safeguard the interest of the public, he shall

issue a license.] (Reserved).

(c)  [Nonresident public adjusters and public adjuster

solicitors.--The Insurance Commissioner may issue a license as

public adjuster or public adjuster solicitor to a person not a

resident of this Commonwealth, upon compliance with the

applicable provisions of this act, if the State or the Province

of Canada of such person's residence will accord the same

privilege to a resident of this Commonwealth. The provisions of

this subsection relating to noneligibility for licensure shall

not apply to any nonresident public adjusters and public

adjuster solicitors who did business in Pennsylvania as licensed

public adjusters or public adjuster solicitors prior to the

effective date of this act.

(1)  The Insurance Commissioner may enter into reciprocal

agreements with the appropriate official of any such other

state or province waiving the written examination of any

applicant resident in such other state if:

(i)  a written examination is required of applicants

for an insurance public adjuster or public adjuster

solicitor license in such other state or province;

(ii)  the appropriate official of the other state or

province certifies that the applicant holds a currently

valid license as a public adjuster or public adjuster

solicitor in such other state or province and either

passed such a written examination or was the holder of an

insurance agent's license prior to the time a written

examination was required; and

(iii)  that in such other state or province a

resident of this Commonwealth is privileged to procure a

public adjuster or public adjuster solicitor license upon

the foregoing conditions and without discrimination as to

fees otherwise in favor of the residents of such other

state or province.] (Reserved).

(d)  License not to be issued to certain persons.--No license

as a public adjuster [or public adjuster solicitor] shall be

issued to any person[, partnership, association or corporation] 

engaged or interested in, or receiving any profit from, nor

shall the holder of any such license engage or be interested in,

or receive any profit from, any salvage or similar business.

Section 2.  The act is amended by adding sections to read:

Section 2.1.  Application for public adjuster license.

(a)  Individuals.--An individual who is a resident of this

Commonwealth may apply to the department for a resident public

adjuster license. An individual who is not a resident of this

Commonwealth may apply for a nonresident public adjuster

license. To apply for a public adjuster license, an individual

shall submit to the department:

(1)  a completed application on forms approved by the

department;

(2)  the applicant's fingerprints, for the department to

receive national criminal history records information from

the Criminal Justice Information Services Division of the

Federal Bureau of Investigation;

(3)  documentation verifying the applicant passed or is

exempt from the public adjuster licensing examination; and

(4)  the required license fee and fees for obtaining

national criminal history records information.

(b)  Business entities.--Upon designating one or more

officers or partners licensed under this act to be responsible

for the business entity's compliance with the insurance laws and

regulations of the Commonwealth, a business entity may apply to

the department for a public adjuster license. A business entity

with an office in this Commonwealth shall apply for a resident

public adjuster license. A business entity that does not have an

office in this Commonwealth shall apply for a nonresident public

adjuster license. The designated licensees of the business

entity shall submit to the department:

(1)  a completed business entity application on forms

approved by the department;

(2)  proof of the public adjuster license held by the

designated licensees; and

(3)  the required license fee.

(c)  License fee.--A nonrefundable $200 fee shall accompany a

completed application for a resident or nonresident public

adjuster license until modified by the department by regulation.

Section 2.2.  Licensing.

(a)  Individuals.--The department shall review each

application and may conduct an investigation of each individual

who applies for a license in accordance with this act. The

department shall issue a resident or nonresident public adjuster

license, as appropriate, to the applicant when the department is

satisfied the following criteria have been met:

(1)  the applicant has reached 18 years of age;

(2)  the applicant has not committed any act which is

prohibited under this act;

(3)  the applicant has passed or is exempt from the

public insurance adjuster licensing examination;

(4)  the applicant has paid the applicable fees

established under this act;

(5)  the applicant possesses the general fitness,

competence and reliability sufficient to satisfy the

department the applicant is worthy of licensure; and

(6)  other criteria as the department may establish.

(b)  Business entities.--The department shall review each

business entity application and may conduct an investigation of

each business entity seeking licensure and its designated

licensees. The department shall issue a resident or nonresident

public adjuster license, as appropriate, to the business entity

when the department is satisfied the following criteria have

been met:

(1)  the business entity has one or more designated

licensees who are responsible for the business entity's

compliance with the insurance laws and regulations of this

Commonwealth;

(2)  the business entity's designated licensees and

officers, partners or members are licensees in good standing

with the department;

(3)  if a corporation or limited liability company,

individual public adjuster licenses shall be held by or

secured for each officer of the corporation or limited

liability company;

(4)  if a partnership, limited liability partnership or

association, individual public adjuster licenses shall be

held by or secured for each partner or member of the

association;

(5)  the business entity or its designated licensees have

not committed an act which is prohibited under this act;

(6)  the business entity is owned, operated and managed

by persons possessing the general fitness, competence and

reliability sufficient to satisfy the department that the

business entity is worthy of licensure;

(7)  the business entity has paid the applicable fees

established under this act; and

(8)  other criteria as the department may establish.

Section 2.3.  Issuance and term of license.

A public adjuster license issued by the department shall be:

(1)  issued only in the name of the individual or

business entity. If a licensee is doing business under a

fictitious name other than the name appearing on the public

adjuster license, the licensee is required to notify the

department in writing prior to using the fictitious name;

(2)  issued in paper or electronic form;

(3)  nontransferable; and

(4)  issued for a period not to exceed two years.

Section 2.4.  License renewals.

(a)  General rule.--A licensee may request renewal of the

license. The licensee shall submit to the department a completed

renewal form, the required fee and verification the licensee has

completed the continuing education required by this act. Upon

receipt and review, the department shall renew the license

unless it determines the licensee is not in compliance with this

act.

(b)  Continuing education.--A licensee who is not a business

entity shall successfully complete 24 credit hours of approved

continuing education for each two-year license period as a

condition for license renewal unless modified by the department

by regulation. A licensee may carry forward excess continuing

education credit hours up to 24 credit hours from one licensing

period to the next licensing period.

(c)  Lapses.--A licensee who allows his license to lapse by

failing to timely renew the license, pay the fee required by

this act or complete the continuing education required by this

act may within 60 days of the license renewal date request the

department to reinstate the license. Persons requesting

reinstatement of a lapsed license shall submit a completed

renewal form, the fee required by this act and verification the

person has completed all continuing education required by

subsection (b) for the previously licensed and lapsed periods.

If the department receives a request for reinstatement together

with a completed renewal application, payment of the lapsed

license fee and proof of continuing education compliance within

60 days after the license lapsed, the department shall reinstate

the license retroactively with the reinstatement effective on

the date the license lapsed. Except as set forth in subsection

(d), if a person applies for reinstatement more than 60 days

after the lapse date, the person shall reapply for a license

under this act.

(d)  Extenuating circumstances.--A licensee who is unable to

timely comply with the requirements of subsection (a) as a

result of military service or other extenuating circumstance may

request the department to waive the requirements of completing

continuing education for the period in which the license had

lapsed and payment of the lapsed license fee. The request shall

include sufficient detail and supporting documentation to

determine the necessity of the waiver. If the department

determines that there is good cause for noncompliance, the

department shall grant the waiver and permit the licensee to

request renewal of the license in accordance with this act.

(e)  Renewal fees.--The following nonrefundable fees shall

accompany an application for renewal of a public adjuster

license unless modified by the department by regulation:

(1)  Resident or nonresident renewal fee, $200.

(2)  Lapsed license renewal fee, $400.

Section 2.5.  Reciprocal licensing.

(a)  Nonresident individuals.--

(1)  An individual who is currently licensed as a

resident public adjuster in another state or territory may

apply to the department for a nonresident public adjuster

license. The individual shall submit to the department a

completed application, proof of the individual's current home

state license in a form or manner determined acceptable by

the department and the required license fee.

(2)  Upon receipt and review of the application, proof of

the home state license in a form or manner determined

acceptable by the department and the fee, the department

shall issue a nonresident public adjuster license to the

individual. The department may deny the application if the

individual's home state does not award nonresident public

adjuster licenses to resident licensees of this Commonwealth

on the same basis.

(b)  Nonresident business entities.--

(1)  Upon designating one or more individuals licensed

under this act to be responsible for the business entity's

compliance with the insurance laws and regulations of this

Commonwealth, a business entity which is currently licensed

as a resident public adjuster in another state or territory

may apply to the department for a nonresident public adjuster

license. The designated licensees of the business entity

shall remit to the department a completed business entity

application, proof of the business entity's current home

state license in a form or manner determined acceptable by

the department and the required license fee.

(2)  Upon receipt and review of the application, proof of

the home state license in a form or manner determined

acceptable by the department and the fee, the department

shall issue a nonresident public adjuster license to the

business entity if the department determines that the

business entity, its partners, members or officers, and its

designated licensees are licensees in good standing in the

business entity's home state. The department may deny the

application if the business entity's home state does not

award nonresident public adjuster licenses to resident

licensees of this Commonwealth on the same basis.

Section 3.  Section 3 of the act is amended to read:

Section 3.  [Fees.

(a)  Public adjuster's license.--A fee shall be paid to the

Insurance Commissioner by the applicant for a public adjuster's

license at the time application is made, and annually thereafter

for the renewal thereof, of $100. If the applicant is a

corporation, partnership or association, such fee shall be paid

for each person specified in the license.

(b)  Public adjuster solicitor's license.--A fee shall be

paid to the Insurance Commissioner by the applicant for a public

adjuster solicitor's license at the time application is made,

and annually thereafter for the renewal thereof, of $50. If the

applicant is a corporation, partnership, or association, such

fee shall be paid for each person specified in the license.] 

(Reserved).

Section 4.  The act is amended by adding a section to read:

Section 3.1.  Written disclosure of financial interest.

(a)  Requirement.--A public adjuster shall provide the

insured a written disclosure concerning a direct or indirect

financial interest the public adjuster has with another party

involved in an aspect of the claim other than the salary, fee,

commission or other consideration established in the written

contract with the insured, including ownership of or

compensation expected to be received from a construction firm,

building appraisal firm, motor vehicle repair shop or another

firm that provides estimates for work or that performs work in

conjunction with damages caused by the insured loss on which the

public adjuster is engaged.

(b)  Definition.--As used in this section, the term "firm"

shall include a corporation, partnership, association, joint-

stock company or person.

Section 5.  Sections 4, 5, 6 and 7 of the act are amended to

read:

Section 4.  Bond.

(a)  Public adjuster's bond.--Each person[, partnership,

association or corporation] receiving a public adjuster's

license shall, before transacting any business thereunder,

execute and deliver to the Insurance Commissioner a bond in the

minimum penal sum of [$40,000] $20,000 with such sureties as the

Insurance Commissioner may approve.

(b)  [Public adjuster solicitor's bond.--Each person,

partnership, association or corporation receiving a public

adjuster solicitor's license shall, before transacting any

business thereunder, execute and deliver to the Insurance

Commissioner a bond in the minimum penal sum of $8,000 with such

sureties as the Insurance Commissioner may approve.] (Reserved).

(c)  Condition of bond.--The bond of the public adjuster [and

the public adjuster solicitor] shall be conditioned that said

public adjuster [or public adjuster solicitor] will faithfully

comply with all the requirements of this act and shall not

embezzle, take, secrete or otherwise dispose of or fraudulently

withhold, appropriate, lend, invest or otherwise use or apply

any money or substitutes for money or any salvage, goods or

property received by him as such public adjuster [or public

adjuster solicitor] or employee of a public adjuster, contrary

to the instructions or without the consent of the assured or his

legal representative. Any person, firm or corporation who has

entered into a contract with a public adjuster, as provided in

section 5, and who shall suffer loss by reason of the failure of

the public adjuster to comply with this act and faithfully

perform his duties shall have the right to intervene and be made

a party to any action instituted by the Commonwealth on the bond

of the public adjuster and to have his, her or its rights and

claims adjudicated in such action and judgment rendered thereon,

subject, however, to the priority of the claim and judgment of

the Commonwealth. If the amount of the liability of the surety

on said bond is sufficient to pay the full amount due the

Commonwealth, the remainder shall be distributed pro rata among

said intervenors. If no suit should be brought by the

Commonwealth of Pennsylvania, upon application therefore and

furnishing affidavit to the Insurance Department that loss has

been suffered by reason of failure of the public adjuster to

comply with this act or faithfully perform his duties, such

insured shall be furnished with a certified copy of said bond,

upon which he, she or it shall have a right of action, and shall

be and are hereby authorized to bring suit in the name of the

Commonwealth for his, her or its use and benefit against said

public adjuster and his sureties and to prosecute the same to

final judgment and execution. Where suit is instituted by any

such insureds on the bond of the public adjuster, it shall be

commenced within one year after the performance and final

settlement of said contract, and not later. Where suit is so

instituted by an insured or insureds, no other action shall be

brought by any other claimant, but any other claimant may file

his claim in the action first brought and be made party thereto

within one year from the completion of the work under said

contract, and not later. If two or more actions be brought on

the same day, the action in which the largest claim is demanded

shall be regarded as the first action. Any creditor who has

brought an action within one year as aforesaid, but after suit

brought by another creditor or on the same day, may intervene in

the suit first brought within the year, notwithstanding the fact

that the intervention in such case be after the expiration of

the year, provided said intervention be made within 30 days

after the expiration of the year. If the recovery on the bond

should be inadequate to pay the amounts found due to all of said

creditors, judgment shall be given to each creditor pro rata of

the amount of the recovery. The surety on said bond may pay into

the court, for distribution among said claimants and creditors,

the full amount of the surety's liability, to wit, the penalty

named in the bond, less any amount which said surety may have

had to pay to the Commonwealth by reason of the execution of

said bond, and, upon so doing, the surety will be relieved from

further liability. In all suits instituted under the provisions

of this act, such personal notice of the pendency of such suits,

informing them of their right to intervene, as the court may

order, shall be given to all known creditors and, in addition

thereto, notice shall be given by publication in newspapers of

general circulation, published in the county or municipality

where the contract was performed, once a week for at least three

successive weeks: Provided, however, That, when such suit has

begun within three weeks of the end of the year within which

suit may be brought, said notice by publication shall be only

for the period intervening between the time of instituting such

suit and the end of the year.

Section 5.  Contract.

(a)  Written contract required.--No public adjuster shall,

directly or indirectly, act within this Commonwealth as a public

adjuster without having first entered into a contract, in

writing, on a form approved by the [Insurance Commissioner] 

department and executed in duplicate by the public adjuster and

the insured or a duly authorized representative. One copy of

this contract shall be kept on file by the public adjuster,

available at all times for inspection[, without notice,] by the

[Insurance Commissioner or his duly authorized representative.

No public adjuster or public adjuster solicitor shall solicit a

client for employment within 24 hours of a fire or other

catastrophe or occurrence which is the basis of the

solicitation. With respect to a fire, the 24-hour period shall

begin at such time as the fire department in charge determines

that the fire is extinguished. Any contract with a public

adjuster may be rescinded by any person signing the contract.

Such action must be taken within four calendar days after

signature. The Insurance Commissioner may issue regulations to

assure the implementation of this section. No public adjuster

solicitor shall use any form of contract other than that

approved for the public adjuster for whom he is soliciting, nor

shall he make any contracts or agreements for himself or for the

public adjuster other than such as are specified in the approved

contract.] department. The department shall disapprove a

contract form if, in the department's opinion, the contract or

its provisions:

(1)  Fail to comply with this section.

(2)  Are unreasonable.

(3)  Are contrary to the interests of the public.

(4)  Are misleading or unfair to the insured.

At the department's discretion, the department may also require

the submission of advertising or solicitation material.

(a.1)  Rescission.--A contract with a public adjuster may be

rescinded by any person signing the contract.

(a.2)  Disclosure.--The contracts shall disclose the

following items with each of these items separately signed or

initialed by the insured and the public adjuster:

(1)  That the insured has the right to rescind the

contract within five business days after signature.

(2)  Fees to be charged or assessed by the public

adjuster together with an explanation about how the fees will

come from a portion of the claims payment, if any, made by

the insurer under the policy and are not in addition to the

payments.

(3)  That the adjuster will provide the insured a copy of

an estimate or report of losses and supporting documentation

it sends to the insurer.

(4)  That the public adjuster is not a representative or

employee of the insurer and the insureds are not required to

hire a public adjuster but have the right to do so.

(a.3)  Regulations.--The Insurance Commissioner may issue

regulations to assure the implementation of this section.

(b)  Contracts only authorized by insured against his own

carrier.--No public adjuster [or public adjuster solicitor] may

adjust or solicit a contract for the adjustment of any claim for

losses or damages on behalf of any person except claims by an

insured against his own insurance carrier.

(c)  Personal injury and automobile property damage claims

prohibited.--No public adjuster [or public adjuster solicitor] 

shall act in any manner in relation to claims for personal

injury or automobile property damage.

(d)  Contracts limited to adjustment of insurance losses.--No

public adjuster [or public adjuster solicitor] shall, directly

or indirectly, through or with any person, partnership,

corporation or association in which it has an indirect or

beneficial interest, enter into any contract with any insured

for the repair, replacement, restoration, renovation or

demolition of damaged property, real or personal, at any time

prior to the date a verdict or award is entered or payment is

received from the insurance carrier, whichever event shall occur

first.

Section 6.  Revocation, etc., of license.

(a)  Grounds for fines, suspensions or revocations.--

Committing any of the following acts shall be grounds for fine,

suspension or revocation of a public adjuster's [or public

adjuster solicitor's] license:

(1)  Material misrepresentation of the terms and effect

of any insurance contract.

(2)  Engaging in, or attempting to engage in, any

fraudulent [transaction] or misleading conduct with respect

to a claim or loss that the licensee is adjusting. Misleading

conduct shall not be considered a felony unless the conduct

constitutes fraud.

(3)  Misrepresentation of the services offered or the

fees or commission to be charged.

(4)  Conviction by any court of or a plea of nolo

contendere to a felony under the laws of this Commonwealth,

any other state, the United States or any territory or

foreign country.

(5)  Misappropriation, conversion to his own use or

improper withholding of moneys held on behalf of another

party to the contract.

(6)  [To pay or cause] Paying or causing to be paid any

commission or any other compensation or thing of value

whatsoever to any agent, broker, attorney, partner, clerk,

servant, employee or any other person, whosoever hired by or

employed by or with any insured named in any policy of

insurance as an inducement or solicitation to influence the

contracting of services for the services of public adjuster

[or public adjuster solicitor] with any insured. A public

adjuster may utilize the services of any person authorized by

the insurer to assist in connection with an insurance claim:

Provided, That said services must not conflict with the

services required to be rendered by a public adjuster.

(7)  [To receive] Receiving, directly or indirectly, any

compensation, commission or thing of value or profit from any

person, partnership, association or corporation engaged or

interested in the business of salvage, repair, replacement,

restoration, renovation or demolition of damaged property,

real or personal, unless such compensation, commission or

thing of value or profit is disclosed to the insured and

agreed to in the contract.

(8)  [Removal of a public adjuster's or a public adjuster

solicitor's office, accounts or records from the

Commonwealth] (Reserved).

(9)  [The closure] Closing of a licensee's office for a

period in excess of 30 days, unless granted permission by the

Insurance Commissioner to close the office for a longer

period.

(10)  Violation of any provision of this act or any rule

or regulation promulgated, published and adopted thereunder.

(11)  Making a material misstatement in the application

for any such license.

(12)  The commission of fraudulent practices.

(13)  [Has] Demonstrating, in the judgment of the

Insurance Commissioner, [demonstrated] his incompetency or

untrustworthiness to transact the business of a public

adjuster.

(14)  Having a public adjuster license or other

professional license, or its equivalent, denied, suspended or

revoked by a governmental entity or self-regulating

professional association.

(15)  Failing to comply with an administrative or court

order imposing a child support obligation.

(16)  Failing to pay State income tax or comply with any

administrative or court order directing the payment of State

income tax.

(17)  Committing a misdemeanor that involves the misuse

or theft of money or property belonging to another person.

(18)  Failing to notify the department of a change of

address within 30 days.

(19)  Soliciting business during the progress of a loss-

producing occurrence such as a fire, tornado, severe storm or

other catastrophe where the immediate safety and security of

persons and property is paramount. For purposes of this

paragraph, it shall be presumed that the loss-producing

occurrence is still in progress while emergency responders

are present at the scene, unless the emergency responders

have determined that the emergency status of the event has

ended.

(20)  Interfering with or seeking to prohibit

communication or any form of contact between the insurer and

the insured.

(b)  Civil penalty.--Regardless of whether the public

adjuster [or public adjuster solicitor] was licensed or not, the

Insurance Commissioner may, at his discretion, in cases

warranting such action, impose a civil penalty of not more than

[$1,000] $5,000 for each and every violation of this act.

(c)  Notice and hearing.--Before the Insurance Commissioner

shall take any action as above set forth, he shall give written

notice to the person[, partnership, association or corporation] 

accused of violating the law, stating specifically the nature of

such alleged violation and fixing a time and place, at least ten

days thereafter, when a hearing of the matter shall be held.

After such hearing or upon failure of the accused to appear at

such a hearing, the Insurance Commissioner shall impose such of

the above penalties as he deems advisable. When the Insurance

Commissioner shall have taken any actions as above set forth,

the party aggrieved may appeal therefrom to the Commonwealth

Court.

(d)  Adjusters [and solicitors] responsible for conduct of

employees.--Any public adjuster [or public adjuster solicitor] 

employing, or using the services of, any person to solicit

business shall be held fully responsible for the conduct of that

person in connection with business dealings, including, but not

limited to, making certain that such person has a valid license

as a public adjuster [or public adjuster solicitor].

Section 7.  Violations.

[Any person, partnership, association or corporation

violating any of the provisions of this act shall be guilty of a

misdemeanor and, upon conviction thereof, shall be sentenced to

pay a fine of not less than $500 nor more than $1,000 for each

violation and conviction. Prosecution for any violation under

this section may be instituted by the Insurance Commissioner or

his duly authorized representative.] A person, partnership,

association or corporation that willfully violates section 6(a)

(1), (2), (3), (5), (6) or (12) shall be guilty of a felony of

the third degree. A violation of another provision of this act

shall constitute a misdemeanor and, upon conviction, a violator

shall be sentenced to pay a fine of not less than $500 nor more

than $1,000 for each violation and conviction.

Section 6.  The act is amended by adding a section to read:

Section 7.1.  Civil remedy.

In addition to the authority of the Attorney General under

the act of July 6, 1984 (P.L.614, No.127), known as the Sheriff

Fee Act, and 18 Pa.C.S. § 4117 (relating to motor vehicle

insurance fraud), if the Attorney General finds that there has

been a violation of this act, the Attorney General may bring an

action to impose a civil penalty and to seek other relief,

including injunctive relief, under the act of December 17, 1968

(P.L.1224, No.387), known as the Unfair Trade Practices and

Consumer Protection Law.

Section 7.  Section 8 of the act is amended to read:

Section 8.  Administration and enforcement.

(a)  Insurance Commissioner to administer and enforce act.--

The Insurance Commissioner is hereby charged with the

administration and enforcement of this act and shall prescribe,

publish, adopt and promulgate rules and regulations in

connection herewith.

(b)  Insurance Commissioner may bring actions.--The Insurance

Commissioner or a duly authorized representative may maintain an

action for an injunction or other process against any person[,

partnership, association, corporation] or other entity to

restrain and prevent any of the foregoing from transacting

business as a public adjuster [or public adjuster solicitor] 

without a license. Any such action shall be instituted in the

court of common pleas in any county where the alleged unlicensed

activity occurred. Such court may issue a temporary restraining

order or injunction under this act but shall determine any such

action on its merits as soon as possible whether in term time or

in vacation. No bond shall be required of and no costs shall be

taxed against the Insurance Commissioner, his duly authorized

representative or the Insurance Department on account of any

such action.

(c)  Act to be supplementary.--The provisions of this act

shall be constructed as supplementary to all other acts dealing

with the same subject matter. No action brought under the

provisions of this act shall prevent the prosecution or

institution of any civil or criminal action otherwise provided

by law for violation of any licensing act or departmental rule

or regulation promulgated thereunder.

Section 8.  A person licensed as a public adjuster solicitor

prior to the effective date of this section shall be licensed as

a public adjuster in accordance with the act.

Section 9.  Regulations which are inconsistent with the

provisions of this act are hereby abrogated to the extent of

their inconsistency.

Section 10.  This act shall take effect in 180 days.