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HF2608 (Legislative Session 94 (2025-2026))

Public adjuster prohibited from appearing as an advocate in any action or proceeding.

Related bill: SF2869

AI Generated Summary

Purpose of the Bill

The bill is designed to regulate the practices of public adjusters in Minnesota, specifically prohibiting them from acting as advocates in legal actions or proceedings. The aim is to ensure clear boundaries and ethical practices within the public adjusting profession.

Main Provisions

  • Prohibitions on Referrals and Payments: The bill prohibits public adjusters from offering or giving anything of value for client referrals or as inducements to refer business. Adjusters cannot rebate part of their fees back to clients.
  • Restrictions on Client Contact: Public adjusters are not allowed to initiate contact with potential clients during late-night hours, specifically from 8 p.m. to 8 a.m.
  • Fee Splitting and Business Interest Limitations: Public adjusters cannot split fees with individuals who are not also licensed public adjusters. They are also prohibited from having a business interest in construction, salvage, or appraisal firms, whether directly or indirectly.
  • Misrepresentation and False Statements: Public adjusters must avoid making willful or knowing false statements about insurance companies, their agents, or related entities.
  • Employment Solicitation and Representation: Adjusters are forbidden from soliciting clients who are already under contract with another public adjuster and cannot represent both the insurer and the insured at the same time.
  • Advance Payments: The bill prevents public adjusters from advancing money to a client where it might be counted in a final insurance settlement.
  • New Prohibition on Advocacy: Importantly, the bill introduces a prohibition against public adjusters appearing as advocates or representatives for clients in any legal or administrative action, including arbitration under existing insurance law.

Significant Changes

The critical update to state law is the added restriction that prevents public adjusters from acting as representatives or advocates in legal and administrative proceedings. This ensures that adjusters concentrate on their primary role without overstepping into legal advocacy.

Relevant Terms

  • Public Adjuster
  • Advocate
  • Referral
  • Inducement
  • Fee Splitting
  • Misrepresentation
  • Tribunal
  • Arbitration

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 19, 2025HouseFloorActionIntroduction and first reading, referred toCommerce Finance and Policy

Citations

 
[
  {
    "analysis": {
      "added": [
        "Prohibits public adjusters from appearing as advocates in certain actions or proceedings."
      ],
      "removed": [],
      "summary": "This bill modifies the list of prohibited practices for public adjusters under section 72B.135, subdivision 4.",
      "modified": []
    },
    "citation": "72B.135",
    "subdivision": "subdivision 4"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill references the prohibition of public adjusters appearing as advocates in actions pursuant to arbitration in section 65B.525.",
      "modified": []
    },
    "citation": "65B.525",
    "subdivision": ""
  }
]

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