| SENATE AMENDED |
| PRIOR PRINTER'S NOS. 390, 1946, 2082 | PRINTER'S NO. 2655 |
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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY GODSHALL, MICOZZIE, CALTAGIRONE, DeLUCA, HENNESSEY, SWANGER, TAYLOR, KORTZ, MILLER AND HESS, FEBRUARY 3, 2011 |
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| SENATOR D. WHITE, BANKING AND INSURANCE, IN SENATE, AS AMENDED, OCTOBER 26, 2011 |
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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; 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: |
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1 | "Application." A form approved by the Insurance Department |
2 | to be used to apply for a public adjuster license. |
3 | "Business entity." A corporation, partnership, association, |
4 | limited liability company or limited liability partnership. |
5 | "Business entity application." A form approved by the |
6 | department to be used by a business entity to apply for a public |
7 | adjuster license. |
8 | "Department." The Insurance Department of the Commonwealth. |
9 | "Home state." The District of Columbia, a state, |
10 | commonwealth or territory of the United States in which a public |
11 | adjuster resides and is licensed to act as a resident public |
12 | adjuster. |
13 | "Licensee." A person licensed by the Insurance Department as |
14 | a public adjuster. |
15 | "Nonresident public adjuster." A public adjuster whose home |
16 | state is not this Commonwealth. |
17 | "Public adjuster." Any person[, partnership, association or |
18 | corporation advertising,] soliciting business or holding himself |
19 | [or itself] out to the public as an adjuster of claims for |
20 | losses or damages arising out of policies of insurance, surety |
21 | or indemnity upon property, persons or insurable business |
22 | interests within this Commonwealth, and receiving any |
23 | compensation or reward for the giving of advice or assistance to |
24 | the insured in the adjustment of claims for such losses, or who |
25 | for compensation or reward, whether by way of salary or |
26 | commission or otherwise, directly or indirectly, [solicit] |
27 | solicits business, [investigate] investigates or [adjust] |
28 | adjusts losses or [advise] advises the insured with reference to |
29 | claims for losses on behalf of any other person[, partnership, |
30 | association or corporation] engaged in the business of adjusting |
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1 | losses. The term does not include an agent or employee of an |
2 | insurance company, association or an exchange, through whom a |
3 | policy of insurance was written, in adjusting loss or damage |
4 | under such policy, nor does it include [a broker or agent] an |
5 | insurance producer acting as an adjuster if the services of the |
6 | [agent or broker] insurance producer in the adjustment are |
7 | without compensation. |
8 | ["Public adjuster solicitor." Any person, partnership, |
9 | association or corporation, who or which solicits, directly or |
10 | indirectly, for a fee, or in any manner aids in securing for a |
11 | public adjuster a contract for the adjustment of a loss.] |
12 | "Repairs." Shall not include temporary or emergency repairs |
13 | made for the purpose of protecting the insured property or to |
14 | comply with policy terms and conditions. |
15 | Section 2. License. |
16 | (a) License required.--No person[, partnership, association |
17 | or corporation] shall, directly or indirectly, act within the |
18 | Commonwealth as a public adjuster [or a public adjuster |
19 | solicitor] without first procuring from the Insurance |
20 | Commissioner a license as a public adjuster [or public adjuster |
21 | solicitor, respectively]. |
22 | (b) [Insurance Commissioner to issue licenses.--The |
23 | Insurance Commissioner may issue a license as a public adjuster |
24 | or public adjuster solicitor to any person of at least 18 years |
25 | of age and to any partnership, association or corporation which |
26 | maintains a bona fide office in the Commonwealth, readily |
27 | accessible to the general public. No license shall be granted to |
28 | any corporation unless, by provisions of its charter, it is |
29 | authorized to engage in the business of insurance claim |
30 | adjusting and unless individual licenses are also secured for |
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1 | each active officer of such corporation. No license shall be |
2 | granted to a partnership or association unless individual |
3 | licenses are also secured for each active member of such |
4 | partnership or association. Before any such license is granted, |
5 | the applicant shall first make answer, in writing and under |
6 | oath, to interrogatories on forms and supplements such as the |
7 | Insurance Commissioner shall prepare: Provided, That any |
8 | applicant who shall have held such a license for a period of at |
9 | least two years prior to the effective date of this act shall be |
10 | entitled, upon proper application, to receive a license without |
11 | the necessity of submitting to an examination. When the |
12 | Insurance Commissioner is satisfied that the applicant is |
13 | trustworthy and competent to transact business as a public |
14 | adjuster and public adjuster solicitor, respectively, in such |
15 | manner as to safeguard the interest of the public, he shall |
16 | issue a license.] (Reserved). |
17 | (c) [Nonresident public adjusters and public adjuster |
18 | solicitors.--The Insurance Commissioner may issue a license as |
19 | public adjuster or public adjuster solicitor to a person not a |
20 | resident of this Commonwealth, upon compliance with the |
21 | applicable provisions of this act, if the State or the Province |
22 | of Canada of such person's residence will accord the same |
23 | privilege to a resident of this Commonwealth. The provisions of |
24 | this subsection relating to noneligibility for licensure shall |
25 | not apply to any nonresident public adjusters and public |
26 | adjuster solicitors who did business in Pennsylvania as licensed |
27 | public adjusters or public adjuster solicitors prior to the |
28 | effective date of this act. |
29 | (1) The Insurance Commissioner may enter into reciprocal |
30 | agreements with the appropriate official of any such other |
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1 | state or province waiving the written examination of any |
2 | applicant resident in such other state if: |
3 | (i) a written examination is required of applicants |
4 | for an insurance public adjuster or public adjuster |
5 | solicitor license in such other state or province; |
6 | (ii) the appropriate official of the other state or |
7 | province certifies that the applicant holds a currently |
8 | valid license as a public adjuster or public adjuster |
9 | solicitor in such other state or province and either |
10 | passed such a written examination or was the holder of an |
11 | insurance agent's license prior to the time a written |
12 | examination was required; and |
13 | (iii) that in such other state or province a |
14 | resident of this Commonwealth is privileged to procure a |
15 | public adjuster or public adjuster solicitor license upon |
16 | the foregoing conditions and without discrimination as to |
17 | fees otherwise in favor of the residents of such other |
18 | state or province.] (Reserved). |
19 | (d) License not to be issued to certain persons.--No license |
20 | as a public adjuster [or public adjuster solicitor] shall be |
21 | issued to any person[, partnership, association or corporation] |
22 | engaged or interested in, or receiving any profit from, nor |
23 | shall the holder of any such license engage or be interested in, |
24 | or receive any profit from, any salvage or similar business. |
25 | Section 2. The act is amended by adding sections to read: |
26 | Section 2.1. Application for public adjuster license. |
27 | (a) Individuals.--An individual who is a resident of this |
28 | Commonwealth may apply to the department for a resident public |
29 | adjuster license. An individual who is not a resident of this |
30 | Commonwealth may apply for a nonresident public adjuster |
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1 | license. To apply for a public adjuster license, an individual |
2 | shall submit to the department: |
3 | (1) a completed application on forms approved by the |
4 | department; |
5 | (2) the applicant's fingerprints, for the department to |
6 | receive national criminal history records information from |
7 | the Criminal Justice Information Services Division of the |
8 | Federal Bureau of Investigation; |
9 | (3) documentation verifying the applicant passed or is |
10 | exempt from the public adjuster licensing examination; and |
11 | (4) the required license fee and fees for obtaining |
12 | national criminal history records information. |
13 | (b) Business entities.--Upon designating one or more |
14 | officers or partners licensed under this act to be responsible |
15 | for the business entity's compliance with the insurance laws and |
16 | regulations of the Commonwealth, a business entity may apply to |
17 | the department for a public adjuster license. A business entity |
18 | with an office in this Commonwealth shall apply for a resident |
19 | public adjuster license. A business entity that does not have an |
20 | office in this Commonwealth shall apply for a nonresident public |
21 | adjuster license. The designated licensees of the business |
22 | entity shall submit to the department: |
23 | (1) a completed business entity application on forms |
24 | approved by the department; |
25 | (2) proof of the public adjuster license held by the |
26 | designated licensees; and |
27 | (3) the required license fee. |
28 | (c) License fee.--A nonrefundable $200 fee shall accompany a |
29 | completed application for a resident or nonresident public |
30 | adjuster license until modified by the department by regulation. |
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1 | Section 2.2. Licensing. |
2 | (a) Individuals.--The department shall review each |
3 | application and may conduct an investigation of each individual |
4 | who applies for a license in accordance with this act. The |
5 | department shall issue a resident or nonresident public adjuster |
6 | license, as appropriate, to the applicant when the department is |
7 | satisfied the following criteria have been met: |
8 | (1) the applicant has reached 18 years of age; |
9 | (2) the applicant has not committed any act which is |
10 | prohibited under this act; |
11 | (3) the applicant has passed or is exempt from the |
12 | public insurance adjuster licensing examination; |
13 | (4) the applicant has paid the applicable fees |
14 | established under this act; |
15 | (5) the applicant possesses the general fitness, |
16 | competence and reliability sufficient to satisfy the |
17 | department the applicant is worthy of licensure; and |
18 | (6) other criteria as the department may establish. |
19 | (b) Business entities.--The department shall review each |
20 | business entity application and may conduct an investigation of |
21 | each business entity seeking licensure and its designated |
22 | licensees. The department shall issue a resident or nonresident |
23 | public adjuster license, as appropriate, to the business entity |
24 | when the department is satisfied the following criteria have |
25 | been met: |
26 | (1) the business entity has one or more designated |
27 | licensees who are responsible for the business entity's |
28 | compliance with the insurance laws and regulations of this |
29 | Commonwealth; |
30 | (2) the business entity's designated licensees and |
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1 | officers, partners or members are licensees in good standing |
2 | with the department; |
3 | (3) if a corporation or limited liability company, |
4 | individual public adjuster licenses shall be held by or |
5 | secured for each officer of the corporation or limited |
6 | liability company; |
7 | (4) if a partnership, limited liability partnership or |
8 | association, individual public adjuster licenses shall be |
9 | held by or secured for each partner or member of the |
10 | association; |
11 | (5) the business entity or its designated licensees have |
12 | not committed an act which is prohibited under this act; |
13 | (6) the business entity is owned, operated and managed |
14 | by persons possessing the general fitness, competence and |
15 | reliability sufficient to satisfy the department that the |
16 | business entity is worthy of licensure; |
17 | (7) the business entity has paid the applicable fees |
18 | established under this act; and |
19 | (8) other criteria as the department may establish. |
20 | Section 2.3. Issuance and term of license. |
21 | A public adjuster license issued by the department shall be: |
22 | (1) issued only in the name of the individual or |
23 | business entity. If a licensee is doing business under a |
24 | fictitious name other than the name appearing on the public |
25 | adjuster license, the licensee is required to notify the |
26 | department in writing prior to using the fictitious name; |
27 | (2) issued in paper or electronic form; |
28 | (3) nontransferable; and |
29 | (4) issued for a period not to exceed two years. |
30 | Section 2.4. License renewals. |
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1 | (a) General rule.--A licensee may request renewal of the |
2 | license. The licensee shall submit to the department a completed |
3 | renewal form, the required fee and verification the licensee has |
4 | completed the continuing education required by this act. Upon |
5 | receipt and review, the department shall renew the license |
6 | unless it determines the licensee is not in compliance with this |
7 | act. |
8 | (b) Continuing education.--A licensee who is not a business |
9 | entity shall successfully complete 24 credit hours of approved |
10 | continuing education for each two-year license period as a |
11 | condition for license renewal unless modified by the department |
12 | by regulation. A licensee may carry forward excess continuing |
13 | education credit hours up to 24 credit hours from one licensing |
14 | period to the next licensing period. |
15 | (c) Lapses.--A licensee who allows his license to lapse by |
16 | failing to timely renew the license, pay the fee required by |
17 | this act or complete the continuing education required by this |
18 | act may within 60 days of the license renewal date request the |
19 | department to reinstate the license. Persons requesting |
20 | reinstatement of a lapsed license shall submit a completed |
21 | renewal form, the fee required by this act and verification the |
22 | person has completed all continuing education required by |
23 | subsection (b) for the previously licensed and lapsed periods. |
24 | If the department receives a request for reinstatement together |
25 | with a completed renewal application, payment of the lapsed |
26 | license fee and proof of continuing education compliance within |
27 | 60 days after the license lapsed, the department shall reinstate |
28 | the license retroactively with the reinstatement effective on |
29 | the date the license lapsed. Except as set forth in subsection |
30 | (d), if a person applies for reinstatement more than 60 days |
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1 | after the lapse date, the person shall reapply for a license |
2 | under this act. |
3 | (d) Extenuating circumstances.--A licensee who is unable to |
4 | timely comply with the requirements of subsection (a) as a |
5 | result of military service or other extenuating circumstance may |
6 | request the department to waive the requirements of completing |
7 | continuing education for the period in which the license had |
8 | lapsed and payment of the lapsed license fee. The request shall |
9 | include sufficient detail and supporting documentation to |
10 | determine the necessity of the waiver. If the department |
11 | determines that there is good cause for noncompliance, the |
12 | department shall grant the waiver and permit the licensee to |
13 | request renewal of the license in accordance with this act. |
14 | (e) Renewal fees.--The following nonrefundable fees shall |
15 | accompany an application for renewal of a public adjuster |
16 | license unless modified by the department by regulation: |
17 | (1) Resident or nonresident renewal fee, $200. |
18 | (2) Lapsed license renewal fee, $400. |
19 | Section 2.5. Reciprocal licensing. |
20 | (a) Nonresident individuals.-- |
21 | (1) An individual who is currently licensed as a |
22 | resident public adjuster in another state or territory may |
23 | apply to the department for a nonresident public adjuster |
24 | license. The individual shall submit to the department a |
25 | completed application, proof of the individual's current home |
26 | state license in a form or manner determined acceptable by |
27 | the department and the required license fee. |
28 | (2) Upon receipt and review of the application, proof of |
29 | the home state license in a form or manner determined |
30 | acceptable by the department and the fee, the department |
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1 | shall issue a nonresident public adjuster license to the |
2 | individual. The department may deny the application if the |
3 | individual's home state does not award nonresident public |
4 | adjuster licenses to resident licensees of this Commonwealth |
5 | on the same basis. |
6 | (b) Nonresident business entities.-- |
7 | (1) Upon designating one or more individuals licensed |
8 | under this act to be responsible for the business entity's |
9 | compliance with the insurance laws and regulations of this |
10 | Commonwealth, a business entity which is currently licensed |
11 | as a resident public adjuster in another state or territory |
12 | may apply to the department for a nonresident public adjuster |
13 | license. The designated licensees of the business entity |
14 | shall remit to the department a completed business entity |
15 | application, proof of the business entity's current home |
16 | state license in a form or manner determined acceptable by |
17 | the department and the required license fee. |
18 | (2) Upon receipt and review of the application, proof of |
19 | the home state license in a form or manner determined |
20 | acceptable by the department and the fee, the department |
21 | shall issue a nonresident public adjuster license to the |
22 | business entity if the department determines that the |
23 | business entity, its partners, members or officers, and its |
24 | designated licensees are licensees in good standing in the |
25 | business entity's home state. The department may deny the |
26 | application if the business entity's home state does not |
27 | award nonresident public adjuster licenses to resident |
28 | licensees of this Commonwealth on the same basis. |
29 | Section 3. Section 3 of the act is amended to read: |
30 | Section 3. [Fees. |
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1 | (a) Public adjuster's license.--A fee shall be paid to the |
2 | Insurance Commissioner by the applicant for a public adjuster's |
3 | license at the time application is made, and annually thereafter |
4 | for the renewal thereof, of $100. If the applicant is a |
5 | corporation, partnership or association, such fee shall be paid |
6 | for each person specified in the license. |
7 | (b) Public adjuster solicitor's license.--A fee shall be |
8 | paid to the Insurance Commissioner by the applicant for a public |
9 | adjuster solicitor's license at the time application is made, |
10 | and annually thereafter for the renewal thereof, of $50. If the |
11 | applicant is a corporation, partnership, or association, such |
12 | fee shall be paid for each person specified in the license.] |
13 | (Reserved). |
14 | Section 4. The act is amended by adding a section to read: |
15 | Section 3.1. Written disclosure of financial interest. |
16 | (a) Requirement.--A public adjuster shall provide the |
17 | insured a written disclosure concerning a direct or indirect |
18 | financial interest the public adjuster has with another party |
19 | involved in an aspect of the claim other than the salary, fee, |
20 | commission or other consideration established in the written |
21 | contract with the insured, including ownership of or |
22 | compensation expected to be received from a construction firm, |
23 | building appraisal firm, motor vehicle repair shop or another |
24 | firm that provides estimates for work or that performs work in |
25 | conjunction with damages caused by the insured loss on which the |
26 | public adjuster is engaged. |
27 | (b) Definition.--As used in this section, the term "firm" |
28 | shall include a corporation, partnership, association, joint- |
29 | stock company or person. |
30 | Section 5. Sections 4, 5, 6 and 7 of the act are amended to |
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1 | read: |
2 | Section 4. Bond. |
3 | (a) Public adjuster's bond.--Each person[, partnership, |
4 | association or corporation] receiving a public adjuster's |
5 | license shall, before transacting any business thereunder, |
6 | execute and deliver to the Insurance Commissioner a bond in the |
7 | minimum penal sum of [$40,000] $20,000 with such sureties as the |
8 | Insurance Commissioner may approve. |
9 | (b) [Public adjuster solicitor's bond.--Each person, |
10 | partnership, association or corporation receiving a public |
11 | adjuster solicitor's license shall, before transacting any |
12 | business thereunder, execute and deliver to the Insurance |
13 | Commissioner a bond in the minimum penal sum of $8,000 with such |
14 | sureties as the Insurance Commissioner may approve.] (Reserved). |
15 | (c) Condition of bond.--The bond of the public adjuster [and |
16 | the public adjuster solicitor] shall be conditioned that said |
17 | public adjuster [or public adjuster solicitor] will faithfully |
18 | comply with all the requirements of this act and shall not |
19 | embezzle, take, secrete or otherwise dispose of or fraudulently |
20 | withhold, appropriate, lend, invest or otherwise use or apply |
21 | any money or substitutes for money or any salvage, goods or |
22 | property received by him as such public adjuster [or public |
23 | adjuster solicitor] or employee of a public adjuster, contrary |
24 | to the instructions or without the consent of the assured or his |
25 | legal representative. Any person, firm or corporation who has |
26 | entered into a contract with a public adjuster, as provided in |
27 | section 5, and who shall suffer loss by reason of the failure of |
28 | the public adjuster to comply with this act and faithfully |
29 | perform his duties shall have the right to intervene and be made |
30 | a party to any action instituted by the Commonwealth on the bond |
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1 | of the public adjuster and to have his, her or its rights and |
2 | claims adjudicated in such action and judgment rendered thereon, |
3 | subject, however, to the priority of the claim and judgment of |
4 | the Commonwealth. If the amount of the liability of the surety |
5 | on said bond is sufficient to pay the full amount due the |
6 | Commonwealth, the remainder shall be distributed pro rata among |
7 | said intervenors. If no suit should be brought by the |
8 | Commonwealth of Pennsylvania, upon application therefore and |
9 | furnishing affidavit to the Insurance Department that loss has |
10 | been suffered by reason of failure of the public adjuster to |
11 | comply with this act or faithfully perform his duties, such |
12 | insured shall be furnished with a certified copy of said bond, |
13 | upon which he, she or it shall have a right of action, and shall |
14 | be and are hereby authorized to bring suit in the name of the |
15 | Commonwealth for his, her or its use and benefit against said |
16 | public adjuster and his sureties and to prosecute the same to |
17 | final judgment and execution. Where suit is instituted by any |
18 | such insureds on the bond of the public adjuster, it shall be |
19 | commenced within one year after the performance and final |
20 | settlement of said contract, and not later. Where suit is so |
21 | instituted by an insured or insureds, no other action shall be |
22 | brought by any other claimant, but any other claimant may file |
23 | his claim in the action first brought and be made party thereto |
24 | within one year from the completion of the work under said |
25 | contract, and not later. If two or more actions be brought on |
26 | the same day, the action in which the largest claim is demanded |
27 | shall be regarded as the first action. Any creditor who has |
28 | brought an action within one year as aforesaid, but after suit |
29 | brought by another creditor or on the same day, may intervene in |
30 | the suit first brought within the year, notwithstanding the fact |
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1 | that the intervention in such case be after the expiration of |
2 | the year, provided said intervention be made within 30 days |
3 | after the expiration of the year. If the recovery on the bond |
4 | should be inadequate to pay the amounts found due to all of said |
5 | creditors, judgment shall be given to each creditor pro rata of |
6 | the amount of the recovery. The surety on said bond may pay into |
7 | the court, for distribution among said claimants and creditors, |
8 | the full amount of the surety's liability, to wit, the penalty |
9 | named in the bond, less any amount which said surety may have |
10 | had to pay to the Commonwealth by reason of the execution of |
11 | said bond, and, upon so doing, the surety will be relieved from |
12 | further liability. In all suits instituted under the provisions |
13 | of this act, such personal notice of the pendency of such suits, |
14 | informing them of their right to intervene, as the court may |
15 | order, shall be given to all known creditors and, in addition |
16 | thereto, notice shall be given by publication in newspapers of |
17 | general circulation, published in the county or municipality |
18 | where the contract was performed, once a week for at least three |
19 | successive weeks: Provided, however, That, when such suit has |
20 | begun within three weeks of the end of the year within which |
21 | suit may be brought, said notice by publication shall be only |
22 | for the period intervening between the time of instituting such |
23 | suit and the end of the year. |
24 | Section 5. Contract. |
25 | (a) Written contract required.--No public adjuster shall, |
26 | directly or indirectly, act within this Commonwealth as a public |
27 | adjuster without having first entered into a contract, in |
28 | writing, on a form approved by the [Insurance Commissioner] |
29 | department and executed in duplicate by the public adjuster and |
30 | the insured or a duly authorized representative. One copy of |
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1 | this contract shall be kept on file by the public adjuster, |
2 | available at all times for inspection[, without notice,] by the |
3 | [Insurance Commissioner or his duly authorized representative. |
4 | No public adjuster or public adjuster solicitor shall solicit a |
5 | client for employment within 24 hours of a fire or other |
6 | catastrophe or occurrence which is the basis of the |
7 | solicitation. With respect to a fire, the 24-hour period shall |
8 | begin at such time as the fire department in charge determines |
9 | that the fire is extinguished. Any contract with a public |
10 | adjuster may be rescinded by any person signing the contract. |
11 | Such action must be taken within four calendar days after |
12 | signature. The Insurance Commissioner may issue regulations to |
13 | assure the implementation of this section. No public adjuster |
14 | solicitor shall use any form of contract other than that |
15 | approved for the public adjuster for whom he is soliciting, nor |
16 | shall he make any contracts or agreements for himself or for the |
17 | public adjuster other than such as are specified in the approved |
18 | contract.] department. The department shall disapprove a |
19 | contract form if, in the department's opinion, the contract or |
20 | its provisions: |
21 | (1) Fail to comply with this section. |
22 | (2) Are unreasonable. |
23 | (3) Are contrary to the interests of the public. |
24 | (4) Are misleading or unfair to the insured. |
25 | At the department's discretion, the department may also require |
26 | the submission of advertising or solicitation material. |
27 | (a.1) Rescission.--A contract with a public adjuster may be |
28 | rescinded by any person signing the contract. |
29 | (a.2) Disclosure.--The contracts shall disclose the |
30 | following items with each of these items separately signed or |
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1 | initialed by the insured and the public adjuster: |
2 | (1) That the insured has the right to rescind the |
3 | contract within five business three calendar days after | <-- |
4 | signature. |
5 | (2) Fees to be charged or assessed by the public |
6 | adjuster together with an explanation about how the fees will |
7 | come from a portion of the claims payment, if any, made by |
8 | the insurer under the policy and are not in addition to the |
9 | payments. |
10 | (3) That the adjuster will provide the insured a copy of |
11 | an estimate or report of losses and, upon the insured's | <-- |
12 | request, any supporting documentation it sends to the |
13 | insurer. |
14 | (4) That the public adjuster is not a representative or |
15 | employee of the insurer and the insureds are not required to | <-- |
16 | hire a public adjuster but have the right to do so and is an | <-- |
17 | independent licensee of the department. |
18 | (a.3) Regulations.--The Insurance Commissioner may issue |
19 | regulations to assure the implementation of this section. |
20 | (b) Contracts only authorized by insured against his own |
21 | carrier.--No public adjuster [or public adjuster solicitor] may |
22 | adjust or solicit a contract for the adjustment of any claim for |
23 | losses or damages on behalf of any person except claims by an |
24 | insured against his own insurance carrier. |
25 | (c) Personal injury and automobile property damage claims |
26 | prohibited.--No public adjuster [or public adjuster solicitor] |
27 | shall act in any manner in relation to claims for personal |
28 | injury or automobile property damage. |
29 | (d) Contracts limited to adjustment of insurance losses.--No |
30 | public adjuster [or public adjuster solicitor] shall, directly |
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1 | or indirectly, through or with any person, partnership, |
2 | corporation or association in which it has an indirect or |
3 | beneficial interest, enter into any contract with any insured |
4 | for the repair, replacement, restoration, renovation or |
5 | demolition of damaged property, real or personal, at any time |
6 | prior to the date a verdict or award is entered or payment is |
7 | received from the insurance carrier, whichever event shall occur |
8 | first. |
9 | Section 6. Revocation, etc., of license. |
10 | (a) Grounds for fines, suspensions or revocations.-- |
11 | Committing any of the following acts shall be grounds for fine, |
12 | suspension or revocation of a public adjuster's [or public |
13 | adjuster solicitor's] license: |
14 | (1) Material misrepresentation of the terms and effect |
15 | of any insurance contract. |
16 | (2) Engaging in, or attempting to engage in, any |
17 | fraudulent [transaction] or misleading conduct with respect |
18 | to a claim or loss that the licensee is adjusting. Misleading |
19 | conduct shall not be considered a felony unless the conduct |
20 | constitutes fraud. |
21 | (3) Misrepresentation of the services offered or the |
22 | fees or commission to be charged. |
23 | (4) Conviction by any court of or a plea of nolo |
24 | contendere to a felony under the laws of this Commonwealth, |
25 | any other state, the United States or any territory or |
26 | foreign country. |
27 | (5) Misappropriation, conversion to his own use or |
28 | improper withholding of moneys held on behalf of another |
29 | party to the contract. |
30 | (6) [To pay or cause] Paying or causing to be paid any |
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1 | commission or any other compensation or thing of value |
2 | whatsoever to any agent, broker, attorney, partner, clerk, |
3 | servant, employee or any other person, whosoever hired by or |
4 | employed by or with any insured named in any policy of |
5 | insurance as an inducement or solicitation to influence the |
6 | contracting of services for the services of public adjuster |
7 | [or public adjuster solicitor] with any insured. A public |
8 | adjuster may utilize the services of any person authorized by |
9 | the insurer to assist in connection with an insurance claim: |
10 | Provided, That said services must not conflict with the |
11 | services required to be rendered by a public adjuster. |
12 | (7) [To receive] Receiving, directly or indirectly, any |
13 | compensation, commission or thing of value or profit from any |
14 | person, partnership, association or corporation engaged or |
15 | interested in the business of salvage, repair, replacement, |
16 | restoration, renovation or demolition of damaged property, |
17 | real or personal, unless such compensation, commission or |
18 | thing of value or profit is disclosed to the insured and |
19 | agreed to in the contract. |
20 | (8) [Removal of a public adjuster's or a public adjuster |
21 | solicitor's office, accounts or records from the |
22 | Commonwealth] (Reserved). |
23 | (9) [The closure] Closing of a licensee's office for a |
24 | period in excess of 30 days, unless granted permission by the |
25 | Insurance Commissioner to close the office for a longer |
26 | period. |
27 | (10) Violation of any provision of this act or any rule |
28 | or regulation promulgated, published and adopted thereunder. |
29 | (11) Making a material misstatement in the application |
30 | for any such license. |
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1 | (12) The commission of fraudulent practices. |
2 | (13) [Has] Demonstrating, in the judgment of the |
3 | Insurance Commissioner, [demonstrated] his incompetency or |
4 | untrustworthiness to transact the business of a public |
5 | adjuster. |
6 | (14) Having a public adjuster license or other |
7 | professional license, or its equivalent, denied, suspended or |
8 | revoked by a governmental entity or self-regulating |
9 | professional association. |
10 | (15) Failing to comply with an administrative or court |
11 | order imposing a child support obligation. |
12 | (16) Failing to pay State income tax or comply with any |
13 | administrative or court order directing the payment of State |
14 | income tax. |
15 | (17) Committing a misdemeanor that involves the misuse |
16 | or theft of money or property belonging to another person. |
17 | (18) Failing to notify the department of a change of |
18 | address within 30 days. |
19 | (19) Soliciting business during the progress of a loss- |
20 | producing occurrence such as a fire, tornado, severe storm or |
21 | other catastrophe where the immediate safety and security of |
22 | persons and property is paramount. For purposes of this |
23 | paragraph, it shall be presumed that the loss-producing |
24 | occurrence is still in progress while emergency responders |
25 | are present at the scene, unless the emergency responders |
26 | have determined that the emergency status of the event has |
27 | ended. |
28 | (20) Interfering with or seeking to prohibit Prohibiting | <-- |
29 | communication or any form of contact between the insurer and | <-- |
30 | the insured. |
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1 | (21) Failing to notify the insured's insurer within two | <-- |
2 | calendar days of entering into a contract. |
3 | (b) Civil penalty.--Regardless of whether the public |
4 | adjuster [or public adjuster solicitor] was licensed or not, the |
5 | Insurance Commissioner may, at his discretion, in cases |
6 | warranting such action, impose a civil penalty of not more than |
7 | [$1,000] $5,000 for each and every violation of this act. |
8 | (c) Notice and hearing.--Before the Insurance Commissioner |
9 | shall take any action as above set forth, he shall give written |
10 | notice to the person[, partnership, association or corporation] |
11 | accused of violating the law, stating specifically the nature of |
12 | such alleged violation and fixing a time and place, at least ten |
13 | days thereafter, when a hearing of the matter shall be held. |
14 | After such hearing or upon failure of the accused to appear at |
15 | such a hearing, the Insurance Commissioner shall impose such of |
16 | the above penalties as he deems advisable. When the Insurance |
17 | Commissioner shall have taken any actions as above set forth, |
18 | the party aggrieved may appeal therefrom to the Commonwealth |
19 | Court. |
20 | (d) Adjusters [and solicitors] responsible for conduct of |
21 | employees.--Any public adjuster [or public adjuster solicitor] |
22 | employing, or using the services of, any person to solicit |
23 | business shall be held fully responsible for the conduct of that |
24 | person in connection with business dealings, including, but not |
25 | limited to, making certain that such person has a valid license |
26 | as a public adjuster [or public adjuster solicitor]. |
27 | Section 7. Violations. |
28 | [Any person, partnership, association or corporation |
29 | violating any of the provisions of this act shall be guilty of a |
30 | misdemeanor and, upon conviction thereof, shall be sentenced to |
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1 | pay a fine of not less than $500 nor more than $1,000 for each |
2 | violation and conviction. Prosecution for any violation under |
3 | this section may be instituted by the Insurance Commissioner or |
4 | his duly authorized representative.] A person, partnership, |
5 | association or corporation that willfully violates section 6(a) |
6 | (1), (2), (3), (5), (6) or (12) shall be guilty of a felony of |
7 | the third degree. A violation of another provision of this act |
8 | shall constitute a misdemeanor and, upon conviction, a violator |
9 | shall be sentenced to pay a fine of not less than $500 nor more |
10 | than $1,000 for each violation and conviction. |
11 | Section 6. The act is amended by adding a section to read: |
12 | Section 7.1. Civil remedy. |
13 | In addition to the authority of the Attorney General under |
14 | Article XI of the act of May 17, 1921 (P.L.789, No.285), known |
15 | as The Insurance Department Act of 1921, and 18 Pa.C.S. § 4117 |
16 | (relating to motor vehicle insurance fraud), if the Attorney |
17 | General finds that there has been a violation of this act, the |
18 | Attorney General may bring an action to impose a civil penalty |
19 | and to seek other relief, including injunctive relief, under the |
20 | act of December 17, 1968 (P.L.1224, No.387), known as the Unfair |
21 | Trade Practices and Consumer Protection Law. |
22 | Section 7. Section 8 of the act is amended to read: |
23 | Section 8. Administration and enforcement. |
24 | (a) Insurance Commissioner to administer and enforce act.-- |
25 | The Insurance Commissioner is hereby charged with the |
26 | administration and enforcement of this act and shall prescribe, |
27 | publish, adopt and promulgate rules and regulations in |
28 | connection herewith. |
29 | (b) Insurance Commissioner may bring actions.--The Insurance |
30 | Commissioner or a duly authorized representative may maintain an |
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1 | action for an injunction or other process against any person[, |
2 | partnership, association, corporation] or other entity to |
3 | restrain and prevent any of the foregoing from transacting |
4 | business as a public adjuster [or public adjuster solicitor] |
5 | without a license. Any such action shall be instituted in the |
6 | court of common pleas in any county where the alleged unlicensed |
7 | activity occurred. Such court may issue a temporary restraining |
8 | order or injunction under this act but shall determine any such |
9 | action on its merits as soon as possible whether in term time or |
10 | in vacation. No bond shall be required of and no costs shall be |
11 | taxed against the Insurance Commissioner, his duly authorized |
12 | representative or the Insurance Department on account of any |
13 | such action. |
14 | (c) Act to be supplementary.--The provisions of this act |
15 | shall be constructed as supplementary to all other acts dealing |
16 | with the same subject matter. No action brought under the |
17 | provisions of this act shall prevent the prosecution or |
18 | institution of any civil or criminal action otherwise provided |
19 | by law for violation of any licensing act or departmental rule |
20 | or regulation promulgated thereunder. |
21 | Section 8. A person licensed as a public adjuster solicitor |
22 | prior to the effective date of this section shall be licensed as |
23 | a public adjuster in accordance with the act. |
24 | Section 9. Regulations which are inconsistent with the |
25 | provisions of this act are hereby abrogated to the extent of |
26 | their inconsistency. |
27 | Section 10. This act shall take effect in 180 days. |
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