Purpose of the Bill

The bill is intended to regulate the activities of public adjusters in Minnesota by prohibiting certain practices. It aims to prevent conflicts of interest and ensure that public adjusters act in a professional and ethical manner.

Main Provisions

• Prohibited Practices: The bill outlines specific actions that public adjusters are not allowed to engage in. These include:

  • Paying for client referrals or giving inducements for business.
  • Rebating part of a fee to clients.
  • Contacting prospective clients during unsociable hours (between 8 p.m. and 8 a.m.).
  • Splitting fees with unlicensed individuals.
  • Having direct or indirect interests in related firms like construction or salvage.
  • Making false representations or advising on legal questions.
  • Making false statements about insurance companies or their personnel.
  • Soliciting clients already under contract with another adjuster.
  • Representing both the insurer and the insured in the same matter.
  • Advancing money to clients before settlements.

• New Restriction: The bill introduces a new restriction prohibiting public adjusters from appearing as advocates or representatives in actions or proceedings, including arbitration, which involves their clients.

Significant Changes to Existing Law

The current law permits certain activities and professional interactions by public adjusters. This amendment significantly changes existing regulations by explicitly barring public adjusters from acting as advocates in legal or administrative proceedings involving their clients.

Relevant Terms

public adjuster, advocate, referral, rebate, conflicts of interest, arbitration, legal proceedings, ethics, insurance, solicitation, misrepresentation