3907 VIOLATIONS AND PENALTIES

3907.1 The Commissioner may deny, suspend, revoke, refuse to renew a public insurance adjuster's license, or impose a civil penalty based on any violation of the Act or these rules, or for the commission or omission of any act by a public insurance adjuster which demonstrates that the applicant or licensee is not competent or trustworthy to act as a public insurance adjuster, or where the person has:

1. (a) Violated any provision of the District's insurance laws, including any rules promulgated thereunder;
2. (b) Violated any provision of the Act, including any rules promulgated thereunder;
3. (c) Committed a fraudulent or dishonest act;
4. (d) Demonstrated the licensee's lack of integrity, incompetency, bad faith, dishonesty, financial irresponsibility or untrustworthiness to act as a public insurance adjuster;
5. (e) Aided, abetted or assisted another person in violating any insurance law of the District or any state;
6. (f) Withheld material information or made a material misstatement in the application for licensure;
7. (g) Failed to pay any fine or comply with an order of the Commissioner;
8. (h) Charged or collected from any client any fee other than that agreed to in the employment contract in a form required in section 3909;
9. (i) Misappropriated, converted or illegally withheld, money which was received in the conduct of business as a public insurance adjuster that belonged to insurers, clients or others;
10. (j) Failed to notify the Commissioner within 30 days of a conviction for any misdemeanor (except minor traffic offense) or felony conviction, the suspension or revocation of any insurance license or public insurance adjusters license, or failed to supply any documentation that the Commissioner may request in connection therewith;
11. (k) Failed to appear in response to any subpoena issued by the Commissioner or his authorized designee; failed to produce any documents or other material requested in a subpoena; or refused or failed to cooperate with an investigation by the Commissioner of the activities of the person or any other licensee;
12. (l) Induced the cancellation of a duly executed written memorandum between an insured and a public insurance adjuster;
13. (m) Made any misrepresentation of facts or advised any person on questions of law in conjunction with the business as a public insurance adjuster;
14. (n) Had any professional license suspended or revoked in the District or in any state;
15. (o) Engaged in the business of a public insurance adjuster in the District or other jurisdiction without a valid license; or

(p) Committed any other act, or omission which the Commissioner determines to be inappropriate conduct by a licensee of the District.

3907.2 Notwithstanding the bases for disciplinary action provided in subsection 3907.1, the Commissioner may also deny, suspend, revoke, refuse to renew, or impose a civil penalty on a public insurance adjuster's license for the following prohibited practices:

(a) No public insurance adjuster shall pay any money or give anything of value to any person in consideration of a direct or indirect referral of a client or potential client.

(b) No public insurance adjuster shall pay any money or give anything of value to any person as an inducement to refer business or clients.

(c) No public insurance adjuster shall charge, collect, or receive any money or other thing of value from any person providing services to the insured, either directly or on behalf of the public insurance adjuster, in connection with the business of adjusting insurance claims, without the prior written disclosure of the fee or benefit to the insured.

(d) No public insurance adjuster shall rebate to a client any part of a fee specified in any employment contract.

(e) No public insurance adjuster shall split his fee or pay any money to any person for services rendered to a client unless such other person is also licensed as a public insurance adjuster.

(f) No public insurance adjuster licensed in the District shall have any interest directly or indirectly in any home improvement, restoration, construction, salvage, or appraisal business that conducts business in the District.

(g) No public insurance adjuster shall, in connection with the transaction of his or her business as a public insurance adjuster, make any misrepresentation of facts or advise any person on any question of law.

(h) No public insurance adjuster shall make any false statements about any insurance company or its employees, agents or representatives.

(i) No public insurance adjuster shall solicit employment of a client in connection with any loss which is the subject of an employment contract with another public insurance adjuster.

(j) No public insurance adjuster shall represent both an insurer and insured simultaneously.

(k) No public insurance adjuster shall advance any monies to a client pending the settlement of a loss where such amount would be included in a final settlement.

SOURCE: Emergency Rulemaking published at 50 DCR 5970(July 25, 2003) [EXPIRED]; as Final Rulemaking published at 50 DCR 3191 (April 25, 2003).