HB 2323 -- Public Adjusters

Sponsor:  Molendorp

This bill changes the laws regarding public adjusters.  In its
main provisions, the bill:

(1)  Allows public adjusters to only solicit an insured or
claimant directly or indirectly by any means on Monday through
Saturday from 8:00 a.m. to 8:00 p.m. and prohibits any contact
from being initiated or any contract from being entered into
until at least 48 hours after the occurrence of an event that
might be the subject of a claim under the insurance policy unless
contact is initiated by the insured or claimant;

(2)  Specifies that it is an unfair and deceptive insurance trade
practice under the Unfair Trade Practices Act in Sections
375.930 - 375.948, RSMo, to disseminate any information with
respect to the business of insurance which is false, deceptive,
or misleading;

(3)  Prohibits a public adjuster, a public adjuster apprentice,
or anyone acting on his or her behalf from giving or offering to
give a monetary loan or advance to a client or prospective client
or giving any article of merchandise having a value exceeding $25
for the purpose of advertising or as an inducement to enter into
a contract;

(4)  Requires a public adjuster's written contract to contain the
adjuster's name, mailing and physical address, license number,
telephone and fax number, a detailed explanation of any
commission payable, and the adjuster's email and web site
addresses and employer's name, address, and license number if
applicable;

(5)  Specifies the wording that contracts must contain on the
signature page regarding the right to cancel and that the
contract is not required to make a claim for loss or damage on an
insurance policy; and

(6)  Requires a contract to also specify that the adjuster cannot
charge, agree to, or accept anything of value in excess of 10% of
the amount of insurance claim payments when the claim is the
subject of a declaration of a state of emergency by the Governor
or 20% of the amount of all other insurance claim payments.  If
an insurer pays or commits in writing to pay the insured the
policy limits of the insurance policy within 96 hours of a loss
being reported, the public adjuster will only be compensated for
his or her actual time and expenses provided to the insured
before the claim was paid or the written commitment to pay was
received.

Any violation of these provisions will be a level two violation
under Section 374.049.

Missouri House of Representatives
95th General Assembly, 2nd Regular Session
Last Updated September 14, 2010 at 3:13 pm