1. (1)(a) A public adjuster contract shall contain one of the following compensation disclosures in a clear and prominent statement:

   1. (i) if an hourly rate, the contract shall state the hourly rate and how it will be applied to hours of service provided by the public adjuster to calculate the amount payable;

      1. (ii) if a flat fee, the contract shall state the amount payable to the public adjuster;

      2. (iii) if a percentage, the contract:

         1. (A) shall state and display the exact percentage that will be applied to the settlement of the claim to calculate the amount payable to the public adjuster; and
         2. (B) may not display a blank space; or
      3. (iv) if another method of calculation is chosen, the contract shall include a detailed explanation of how the amount payable will be determined based on service provided by the adjuster.

   2. (b) Notwithstanding the chosen payment method, a public adjuster may not:

      1. (i) charge, agree to, or accept as compensation or reimbursement, a payment, commission, fee, or other thing of value equal to more than:

         1. (A) 10% for a catastrophic insurance claim settlement; or
         2. (B) 20% for a non-catastrophic insurance claim settlement; or
      2. (ii) require, demand, or accept a fee, retainer, compensation, deposit, or other thing of value before the settlement of a claim.
   3. (c) Notwithstanding the chosen payment method, a public adjuster shall provide to the insured, at the conclusion of a claim, an itemized invoice of each expense the public adjuster incurs during the process of resolving a claim.

2. (2) The following disclosures shall be included on the same page as the disclosures required in Subsection (1).

   1. (a) A public adjuster may not receive compensation for referring the insured to a particular attorney, appraiser, umpire, construction company, contractor, repair firm, or salvage company.
   2. (b) A public adjuster may not receive compensation for a claim if the insurer pays or commits in writing to pay the policy limits within 72 hours of the loss report.

   3. (c)(i) Except for direct payment of compensation by the insured, any draft or check shall include the insured as a payee and shall require the written signature or endorsement of the insured.

      1. (ii) A public adjuster may not sign or endorse any payment draft or check on behalf of the insured.
   4. (d) A public adjuster may not enter into a contract with an insured or collect compensation as provided in the contract without performing the service customarily provided by a licensed public adjuster for the insured.
   5. (e) The type of initial expenses, with dollar estimates, that the insured approves to reimburse the public adjuster from the proceeds of the claim payment.

3. (3) A public adjuster contract may not include the following compensation terms:

   1. (a) a term allowing a public adjuster to collect the public adjuster's percentage fee when money is due from an insurance company but the insurance company has not paid;
   2. (b) a term allowing a public adjuster to collect the entire fee from the first check an insurance company issues instead of a percentage of each check the insurance company issues;
   3. (c) a term requiring an insured to authorize an insurance company to issue a check only in the name of the public adjuster;
   4. (d) a term imposing a collection cost or a late fee;
   5. (e) a term preventing an insured from pursuing a civil remedy; or
   6. (f) a term that allows a public adjuster to accept a payment in violation of a statute or this rule.

KEY: insurance, public adjusters

Date of Last Change: June 23, 2026

Notice of Continuation: August 22, 2022

Authorizing, and Implemented or Interpreted Law: 31A-26-401; 31A-26-403