CHAPTER 701b
PUBLIC ADJUSTERS

      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 practices as a business the adjusting of loss or damage by fire or other hazard under any policies of insurance in behalf of the insured under such policies, or who advertises or solicits business as a public adjuster, or holds himself out to the public as engaging in such adjusting as a business. Lawyers settling claims of clients shall not be deemed to be insurance adjusters.

      (P.A. 90-243, S. 23; P.A. 95-79, S. 147, 189.)

      History: P.A. 95-79 redefined "public adjuster" to include a limited liability company, effective May 31, 1995.

      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.

      Sec. 38a-724. Employment contract required. Cancellation. The use of an employment contract between a public adjuster and a client shall be mandatory. Such contract shall contain a provision specifying that the client may cancel the contract, provided he notifies the public adjuster at his main office or branch office at the address shown in the contract, by certified mail, return receipt requested, posted not later than midnight of the second calendar day after the day on which the client 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 Tuesday immediately following, and thereafter the contract shall be void ab initio.

      (P.A. 90-243, S. 169.)

      Sec. 38a-725. Penalty. Any person who acts within this state, either in his 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 him so to act, shall be fined not more than five hundred dollars or imprisoned not more than three months or both.

      (P.A. 90-243, S. 25.)

      Sec. 38a-726. Fees within thirty days of loss prohibited. 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.

      (P.A. 90-326.)

      Secs. 38a-727 to 38a-730. Reserved for future use.