Sec. 38a-724. Employment contract required. Cancellation. Solicitation prohibition.
Secs. 38a-727 to 38a-730. Reserved
Sec. 38a-723. Definition. As used in this title, unless the context or subject matter otherwise requires, “public adjuster” means any person, partnership, association, limited liability company or corporation who or which:
(1) On behalf of an insured and for monetary or other compensation or anything of value, (A) prepares, documents and submits a first-party property claim to an insurance company for loss or damage by a covered peril under a personal or commercial risk insurance policy, as defined in section 38a-663, issued by such company, or (B) negotiates, adjusts or effects the settlement of such claim;
(2) Advertises or solicits business as a public adjuster; or
(3) Holds himself or itself out to the public as engaging in the activities set forth in subparagraphs (A) and (B) of subdivision (1) of this section as a business. Lawyers settling claims of clients shall not be deemed to be public adjusters.
(P.A. 90-243, S. 23; P.A. 95-79, S. 147, 189; P.A. 10-32, S. 123; 10-79, S. 1.)
History: P.A. 95-79 redefined “public adjuster” to include a limited liability company, effective May 31, 1995; P.A. 10-32 made technical changes, effective May 10, 2010; P.A. 10-79 redefined “public adjuster” and made technical changes.
Employment contract between licensed public adjuster and property owner was unenforceable because statute and regulations governing public adjusters limit a licensed public adjuster's employment to adjusting losses and damages arising under a fire insurance policy on behalf of an insured under the policy; additionally, it was a condition precedent to enforcement of a licensed public adjuster's employment contract that such adjuster represent an insured party. 252 C. 400.
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Sec. 38a-724. Employment contract required. Cancellation. Solicitation prohibition. (a) The use of an employment contract between a public adjuster and the insured shall be mandatory.
(1) Any such contract signed on or after July 1, 2019, shall contain a provision, prominently displayed on the first page of such contract in not less than twelve-point boldface type, specifying that the insured may cancel the contract, provided such insured notifies the public adjuster at such public adjuster's main office or branch office at the address shown in the contract, by certified mail, return receipt requested or, if agreed between the insured and the public adjuster, by electronic means with proof of a delivery receipt, posted or delivered not later than midnight of the fourth calendar day after the day on which the insured signs the contract, except that if the signing is on a Friday, Saturday or Sunday, the cancellation shall be posted not later than midnight of the Thursday immediately following, and thereafter the contract shall be void ab initio.
(2) Any such contract signed on or after July 1, 2019, that does not display the provision as specified in subdivision (1) of this subsection shall be void ab initio.
(b) No public adjuster shall solicit an insured between the hours of eight o'clock p.m. and eight o'clock a.m. Any public adjuster employment contract that results from a public adjuster's solicitation between such hours shall be void ab initio.
(P.A. 90-243, S. 169; P.A. 10-79, S. 2; P.A. 13-138, S. 3; P.A. 14-175, S. 4; P.A. 18-158, S. 17; P.A. 19-125, S. 6, 16.)
History: P.A. 10-79 designated existing provisions as Subsec. (a) and amended same to replace “client” with “insured” and make technical changes, and added Subsec. (b) re solicitation prohibition; P.A. 13-138 amended Subsec. (a) to designate existing provision re contract cancellation as Subdiv. (1) and amend same to add provision re prominent display of cancellation provision, replace “second calendar day” with “fourth calendar day” and replace “Tuesday immediately following” with “Thursday immediately following”, and to add Subdiv. (2) re penalty for failure to display cancellation provision; P.A. 14-175 amended Subsec. (b) to add provision re contract that results from solicitation during prohibited hours to be void ab initio; P.A. 18-158 amended Subsec. (a) by substituting “2019” for “2013” and adding provisions re notice by electronic means and proof of delivery, effective October 1, 2019; P.A. 19-125 amended Subsec. (a) by substituting “July 1, 2019” for “October 1, 2013” in Subdivs. (1) and (2) and adding provisions in Subdiv. (1) re notice by electronic means, and repealed P.A. 18-158, S. 17, effective July 1, 2019.
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Sec. 38a-725. Penalty. Any person who acts within this state, either on the person's own behalf or as representative or agent of any other person or any partnership, association or corporation as a public adjuster, unless such person holds a license then in force from the commissioner authorizing the person so to act, shall be fined not more than ten thousand dollars or imprisoned not more than three months, or both.
(P.A. 90-243, S. 25; P.A. 08-178, S. 27.)
History: P.A. 08-178 made technical changes and increased maximum fine from $500 to $10,000.
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Sec. 38a-726. Fees charged. (a) No public adjuster shall charge or collect a fee if, within thirty days of a loss to a structure covered by a fire insurance policy, the insurer offers in writing to pay the full policy limits.
(b) Any fee charged to an insured by a public adjuster shall be based only on the amount of the insurance settlement proceeds actually received by the insured and shall be collected by such public adjuster after the insured has received such proceeds from the insurer.
(P.A. 90-326; P.A. 12-162, S. 4.)
History: P.A. 12-162 designated existing provision as Subsec. (a) and added Subsec. (b) re basis of fee charged by public adjuster, effective July 1, 2012.
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Secs. 38a-727 to 38a-730. Reserved for future use.
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