1. 1.

   1. a. Upon a determination by the commissioner after a hearing conducted pursuant to chapter 17A that an adjuster has violated a provision of this chapter, the commissioner shall reduce the findings of the hearing to writing and deliver a copy of the findings to the adjuster.

   2. b. Upon a determination by the commissioner that an adjuster has engaged, is engaging, or is about to engage in any act or practice constituting a violation of this chapter or a rule adopted or order issued under this chapter, the commissioner may take the following actions:

      1. (1) Issue an order requiring the adjuster to cease and desist from engaging in the conduct resulting in the violation.
      2. (2) Assess a civil penalty against the adjuster of not more than one thousand dollars for each violation of this chapter, not to exceed an aggregate of ten thousand dollars.
      3. (3) If the adjuster knew or reasonably should have known the adjuster was in violation of this chapter, assess a civil penalty of not more than five thousand dollars for each violation of this chapter, not to exceed an aggregate penalty of fifty thousand dollars in any one six-month period.

      4. (4)

         1. (a) Issue a summary order, including a brief statement of findings of fact, conclusions of law, and policy reasons for the decision, and directing the adjuster to cease and desist from engaging in the act or practice or to take affirmative action as is necessary in the judgment of the commissioner to comply with the requirements of this chapter.
         2. (b) An adjuster may contest a summary order by filing, within thirty calendar days from the date of the issuance of the summary order, a written request for a contested case proceeding and hearing as provided in chapter 17A and in accordance with rules adopted by the commissioner. Section 17A.18A shall be inapplicable to a summary order issued under this subsection. If a hearing is not requested within thirty calendar days from the date of issuance of the summary order, the summary order shall become final by operation of law. A summary order shall remain effective from the date of issuance until the date the order becomes final by operation of law, or is modified or overturned by a presiding officer or court following a request for hearing.
         3. (c) An adjuster violating a summary order issued under this subsection shall be deemed in contempt of the summary order. The commissioner may petition the district court to enforce the order as certified by the commissioner. The district court shall find the adjuster in contempt of the order if the court finds, after conducting a hearing, that the adjuster is not in compliance with the order. The court may assess a civil penalty against the adjuster and may issue further orders as the court deems appropriate.
   3. c. In addition to any other penalty under this section, if the commissioner finds that a violation of this chapter was directed, encouraged, condoned, ignored, or ratified by the employer of the adjuster, the commissioner shall assess a penalty to the employer. Penalties under this paragraph may be retained by the commissioner under section 505.7, subsection 9.

2. 2.

   1. a. A person acting as an adjuster without proper licensure, or an adjuster who willfully violates any provision of this chapter or an order issued under this chapter, is guilty of a class “D” felony. If the violation results in a loss of more than ten thousand dollars, the person or adjuster is guilty of a class “C” felony.
   2. b. An adjuster who steals, converts, or misappropriates funds that should be held in trust under section 522C.11, is guilty of a class “D” felony. If the violation results in a loss of more than ten thousand dollars, the adjuster is guilty of a class “C” felony.
   3. c. The commissioner may refer such evidence as is available concerning a violation of this chapter, or of any rule adopted or order issued under this chapter, or of the failure of a person to comply with the licensing requirements of this chapter, to the attorney general or the proper county attorney who may institute the appropriate criminal proceedings under this chapter.
   4. d. This chapter does not limit the power of the state to punish any person for conduct that constitutes a crime under any other statute.
3. 3. Any contract regulated by this chapter that is entered into by an insured with a person who is not a licensed public adjuster in this state shall be void. If a contract is void, the insured is not liable for the payment for any past services rendered, or future services to be rendered, by that person.

Section applies beginning July 22, 2025, to a person currently doing business in this state as an independent adjuster or a staff adjuster as of January 1, 2025; 2025 Acts, ch 28, §52 NEW section

2025 Acts, ch 28, §48, 52

Referred to in §522C.10, 522C.11, 522C.12, 522C.13, 522C.15