Bill Text: NJ S2791 | 2012-2013 | Regular Session | Introduced
Bill Title: Establishes additional standards regulating the conduct of licensed public adjusters.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-05-20 - Introduced in the Senate, Referred to Senate Commerce Committee [S2791 Detail]
Download: New_Jersey-2012-S2791-Introduced.html
Sponsored by:
Senator JEFF VAN DREW
District 1 (Atlantic, Cape May and Cumberland)
SYNOPSIS
Establishes additional standards regulating the conduct of licensed public adjusters.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning licensed public adjusters and amending P.L.1993, c.66.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 13 of P.L.1993, c.66 (C.17:22B-13) is amended to read as follows:
13. No individual, firm, association or corporation licensed under this act shall:
a. solicit the adjustment of a loss or damage occurring in this State from an insured, whether by personal interview, by telephone, or by any other method [, between the hours of six p.m. and eight a.m.] during the 24 hours after the loss has occurred;
b. enter into any agreement, oral or written, with an insured to negotiate or settle claims for loss or damage occurring in this State between the hours of six p.m. and eight a.m. during the 24 hours after the loss has occurred;
c. have any right to compensation from any insured for or on account of services rendered to an insured as a public adjuster unless the right to compensation is based upon a written memorandum, signed by the party to be charged and by the adjuster, and specifying or clearly defining the services to be rendered and the amount or extent of the compensation on a form and with such language as the commissioner may prescribe;
d. induce cancellation of a duly executed written memorandum between an insured and a public adjuster;
e. make any misrepresentation of facts or advise any person on questions of law in connection with the transaction of business as an adjuster; [or]
f. receive, accept or hold any moneys towards the settlement of a claim for loss or damage on behalf of an insured unless the public adjuster deposits the moneys in an interest bearing escrow account in a banking institution or savings and loan association in this State insured by an agency of the federal government. Any funds held in escrow together with interest accumulated thereon shall be the property of the insured until disbursement thereof pursuant to a written memorandum, signed by the insured and by the adjuster, specifying or clearly defining the services rendered and the amount of any compensation to be paid therefrom. In the event of the insolvency or bankruptcy of a public adjuster, the claim of an insured for any settlement moneys received, accepted or held by the adjuster shall constitute a statutory trust;
g. disclose information concerning the negotiation or settlement of claims on behalf of the insured under a property insurance policy to anyone other than the insured and those persons specifically authorized by the insured;
h. direct any insured needing repairs or other services to any person with whom the adjuster has an undisclosed financial interest or who is anticipated to provide the adjuster with any compensation for the referral for any resulting business; or
i. acquire any interest in salvaged property or participate in any way, directly or indirectly, in the reconstruction, repair or restoration of damaged property, except with the knowledge, consent and permission of the insured.
(cf: P.L.2010, c.116, s.3)
2. This act shall take effect on the 60th day next following enactment.
STATEMENT
This bill provides that no individual, firm, association or corporation licensed under the "Public Adjusters' Licensing Act" shall: (1) disclose information concerning the negotiation or settlement of claims on behalf of the insured under a property insurance policy to anyone other than the insured and those persons specifically authorized by the insured; (2) direct any insured needing repairs or other services to any person with whom the adjuster has an undisclosed financial interest or who is anticipated to provide the adjuster with any compensation for the referral for any resulting business; or (3) acquire any interest in salvaged property or participate in any way, directly or indirectly, in the reconstruction, repair or restoration of damaged property, except with the knowledge, consent and permission of the insured.
In addition, the bill provides that no individual, firm, association or corporation licensed under the "Public Adjusters' Licensing Act" shall solicit the adjustment of a loss or damage occurring in this State from an insured, whether by personal interview, by telephone, or by any other method during the 24 hours after the loss has occurred. Under current law, a ban on such solicitation is limited to the hours between six p.m. and eight a.m. during the 24 hours after the loss has occurred.
