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SF2869 (Legislative Session 94 (2025-2026))

Public adjuster appearance as an advocate in any action or proceeding prohibition provision

Related bill: HF2608

AI Generated Summary

Purpose of the Bill

The purpose of the bill is to regulate the activities of public adjusters in Minnesota by expanding the list of prohibited practices. This aims to ensure ethical conduct and protect the interests of clients in the insurance claims process.

Main Provisions

  • Prohibited Practices: The bill adds new restrictions to the existing list of prohibited practices for public adjusters. Key provisions include:
    • Advocacy Restrictions: Public adjusters are prohibited from serving as an advocate or representative for any party in legal actions or proceedings, including arbitration.
    • Referral Payments: Public adjusters cannot provide money or gifts as compensation for client referrals.
    • Fee Rebates and Splitting: Public adjusters are prohibited from rebating a part of their fee or splitting fees unless the payment recipient is also a licensed public adjuster.
    • Contact Restrictions: Adjusters cannot contact potential clients during late-night or early-morning hours, specifically between 8 p.m. and 8 a.m.
    • Conflict of Interest: Public adjusters must not have any interest in construction, salvage, or appraisal firms to avoid conflicts of interest.
    • Fraudulent Misrepresentation: Adjusters are prohibited from making willful misrepresentations or false statements regarding insurance companies or their representatives.
    • Client Solicitation: Public adjusters cannot solicit clients who have existing contracts with other adjusters, to protect client agreements.

Significant Changes to Existing Law

  • The bill amends Minnesota Statutes 2024, section 72B.135, subdivision 4, by adding the new prohibition on public adjusters appearing as representatives or advocates in any legal or administrative proceedings, which broadens the scope of activities they are barred from engaging in.

Relevant Terms

public adjuster, prohibited practices, referral payments, fee splitting, advocacy restrictions, conflict of interest, misrepresentation, client solicitation, legal proceedings, arbitration

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 23, 2025SenateFloorActionIntroduction and first reading
March 23, 2025SenateFloorActionReferred toCommerce and Consumer Protection

Citations

 
[
  {
    "analysis": {
      "added": [
        "Prohibits a public adjuster from appearing as an advocate or representative in any action or proceeding before an administrative tribunal."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill prohibits public adjusters from certain activities while modifying current prohibitions under section 72B.135, subdivision 4.",
      "modified": [
        ""
      ]
    },
    "citation": "72B.135",
    "subdivision": "subdivision 4"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "The bill references section 65B.525 regarding arbitration proceedings in which public adjusters are prohibited from appearing as advocates.",
      "modified": [
        ""
      ]
    },
    "citation": "65B.525",
    "subdivision": ""
  }
]

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