PURPOSE: This regulation explains the scope of the public adjuster’s licensing act and states the applicability of the unfair trade practices and frauds act to public adjusters.

1. (1) Definition of Public Adjuster. The term adjustment or settlement of claims as used in section 325.010(1), RSMo 1986 shall include any person not otherwise exempted by that definition who negotiates with an insurer on behalf of an insured as to the amount or extent of a loss covered by a policy of fire or allied lines of insurance. This shall include the acts of representing the insured or speaking on behalf of the insured toward any agent or other person granted the authority to adjust claims by an insurer. No person shall so act unless licensed as required by sections 325.010–325.055, RSMo 1986.
2. (2) Licensing. Each public adjuster license shall be numbered. That number shall be entered upon any proof of loss, estimate or any other correspondence from the adjuster to an insurer or its agents.
3. (3) Applicability of Unfair Trade Practices Act. Notice is provided to all public adjusters that they are within the scope of the unfair trade practices act, sections 375.930–375.948, RSMo 1986, with attendant penalties. Particular attention is directed to the prohibitions of section 375.936(1), RSMo 1986, relating to restraint of trade; section 375.936(2), RSMo 1986, defamatory statements; section 375.936(4), RSMo 1986, making untrue, deceptive or misleading statements with respect to the business of insurance or any person in the conduct of that business; and section 375.936(5), RSMo 1986, misrepresentations of the benefits of an insurance policy.

AUTHORITY: sections 325.010 and 375.936, RSMo 1986.* This rule was previously filed as 4 CSR 190-12.070. Original rule filed Dec. 23, 1975, effective Jan. 2, 1976. Amended: Filed Oct. 31, 1988, effective March 1, 1989. *Original authority: 325.010, RSMo 1973 and 375.936, RSMo 1959, amended 1967, 1969, 1971, 1976, 1978, 1983.