CHAPTER 27. PUBLIC ADJUSTERS
IC 27-1-27
Chapter 27. Public Adjusters
IC 27-1-27-1
"Public adjuster" defined
Sec. 1. (a) The term "public adjuster" shall include everyindividual or corporation who, or which, for compensation or reward,renders advice or assistance to the insured in the adjustment of aclaim or claims for loss or damages under any policy of insurancecovering real or personal property and any person or corporationwho, or which, advertises, solicits business, or holds itself out to thepublic as an adjuster of such claims. However, no public adjustershall:
(1) act in any manner in relation to claims for personal injury orautomobile property damage; or
(2) bind the insured in the settlement of claims.
(b) This chapter does not apply to, and the following are notincluded in the term "public adjuster":
(1) An attorney at law admitted to practice in the state ofIndiana who adjusts insurance losses in the course of thepractice of the attorney's profession.
(2) An officer, regular salaried employee, or otherrepresentative of an insurer or of an attorney in fact of anyreciprocal insurer of Lloyd's underwriter licensed to do businessin Indiana who adjusts losses arising under an employer's orprincipal's own policies.
(3) An adjustment bureau or association owned and maintainedby insurers to adjust or investigate losses of such insurers, orany regular salaried employee who devotes substantially all theemployee's time to the business of such bureau or association.
(4) Any licensed insurance producer or an authorized insurer orofficer or employee of the same who adjusts losses for suchinsurer, and any insurance producer or representative of a farmmutual insurance company operating under the farm mutualinsurance laws of this state on behalf of an insurer.
(5) Any independent adjuster representing an insurer.
As added by P.L.257-1983, SEC.1. Amended by P.L.129-2003,SEC.6; P.L.178-2003, SEC.28.
IC 27-1-27-2
Certification requirement
Sec. 2. (a) No individual or corporation shall act within Indianaas a public adjuster, or receive, directly or indirectly, compensationor reward for services rendered in the adjustment of any claim orclaims under the types of insurance policies set forth in section 1(a)of this chapter, unless he, or it, is the holder of a certificate ofauthority to act as such public adjuster issued by the commissionerof insurance of the state of Indiana pursuant to this chapter.
(b) Any individual or corporation who, or which, shall havereceived from the commissioner of insurance a public adjuster's
certificate of authority shall be styled and be known as a "CertifiedPublic Adjuster".
As added by P.L.257-1983, SEC.1.
IC 27-1-27-3
Certificates of authority; issuance; prerequisites
Sec. 3. (a) The commissioner of insurance shall issue resident andnonresident public adjusters' certificates of authority to each personwho:
(1) has complied with the requirements of this chapter,including the payment of fees, the completion of theexamination, and, in the case of a nonresident applicant, theservice of process designation;
(2) is at least eighteen (18) years of age; and
(3) has not been convicted of:
(A) an act which would constitute a ground for disciplinarysanction under section 7 of this chapter; or
(B) a felony that has a direct bearing on his ability topractice competently.
A certificate of authority may be issued to a corporation that has one(1) or more officers, directors, or employees who have been issuedpublic adjusters' certificates of authority. However, a corporationmay practice public adjusting only through its officers, directors, oremployees who have been issued certificates under this chapter.
(b) The commissioner of insurance may issue a resident certificateof authority only to an applicant who is a bona fide resident ofIndiana.
(c) The commissioner may issue a nonresident certificate ofauthority only to a nonresident of Indiana who holds an equivalentresident certificate of authority or a license issued under the laws ofany other state, any territorial possession of the United States, or anyforeign country.
As added by P.L.257-1983, SEC.1.
IC 27-1-27-4
Certificates of authority; application; renewal; surety bond
Sec. 4. (a) Each applicant for a certificate of authority as a publicadjuster shall file with the commissioner of insurance an applicationtherefor on forms furnished by the commissioner of insurance, whichapplication shall set forth:
(1) the name and address of the applicant, and if the applicantbe a corporation, the name and address of each of its officersand directors;
(2) whether the person is applying as a resident or nonresident;
(3) whether any license or certificate of authority as insuranceproducer, broker, public adjuster, or independent adjuster hasbeen issued previously by the commissioner of insurance of thestate of Indiana or by the insurance department of any otherstate, any territorial possession of the United States, or anyforeign country to the applicant; and (4) the business or employment in which the applicant has beenengaged for the five (5) years next preceding the date of theapplication, and the name and address of such business and thename or names and addresses of the applicant's employer oremployers.
(b) An application for any certificate of authority must be signedand verified under oath by the applicant.
(c) An annual fee of fifty dollars ($50) is to be paid to thecommissioner of insurance by the applicant for such public adjuster'scertificate of authority before the application or annual renewalthereof is granted. However, the commissioner may, by rule adoptedunder IC 4-22-2, change the amount of the fee to an amountnecessary to pay all of the direct and indirect costs of administeringthis chapter. Fees collected shall be used by the department toadminister this chapter.
(d) Every public adjuster's certificate of authority shall expire onDecember 31 of the calendar year in which the same shall have beenissued, but if an application for the renewal of such certificate shallhave been filed with the commissioner of insurance before January1 of any year, the certificate of authority sought to be renewed shallcontinue in full force and effect until the issuance by thecommissioner of insurance of the new certificate applied for or untilfive (5) days after the commissioner of insurance shall have refusedto issue such new certificate and shall have served notice of suchrefusal on the applicant therefor. Service of such notice shall bemade by registered mail directed to the applicant at the place ofbusiness specified in the application.
(e) The applicant shall file with the commissioner of insurance asurety bond in a sum equal to ten thousand dollars ($10,000) payableto the state of Indiana and conditioned on the principal's faithfulperformance and discharge of the principal's duties under this titleand under any rule of the department of insurance. The bond must berenewed annually.
As added by P.L.257-1983, SEC.1. Amended by P.L.178-2003,SEC.29.
IC 27-1-27-5
Nonresident applicants; service of process designation
Sec. 5. (a) The commissioner may not issue a certificate ofauthority to a nonresident applicant until that nonresident files withthe commissioner, in a form prescribed by the commissioner, adesignation of an individual resident of Indiana, a corporate residentof Indiana, or an authorized Indiana insurer as the nonresidentapplicant's legal representative upon whom may be served all lawfulprocess in any action, suit, or proceeding:
(1) instituted by or on behalf of an interested person; and
(2) arising out of the nonresident applicant's public adjuster'sinsurance business.
(b) The designation required by subsection (a) constitutes anagreement that service of process upon the nonresident applicant's
legal representative is of the same legal force and validity as personalservice of process upon an Indiana resident.
(c) Service upon a nonresident may be made by serving thenonresident applicant's legal representative with an appropriatenumber of copies of the process.
(d) The nonresident applicant's legal representative shall forwarda copy of the process by registered mail to the nonresident at his lastknown address of record or principal place of business, keeping arecord of such process and service.
(e) Service of process is sufficient as long as notice of the serviceand a copy of the process are sent not more than ten (10) days afterthe nonresident applicant's legal representative received the serviceof process on behalf of the nonresident.
(f) Service of process upon a nonresident in any action institutedby the commissioner under this chapter shall be made by thecommissioner by mailing the process to the nonresident applicant'slegal representative or the nonresident by registered mail at his lastknown address of record or principal place of business.
As added by P.L.257-1983, SEC.1. Amended by P.L.31-1988,SEC.15; P.L.130-1994, SEC.33; P.L.116-1994, SEC.43;P.L.268-1999, SEC.14.
IC 27-1-27-6
Examination requirement; exception
Sec. 6. (a) The commissioner of insurance shall, in order todetermine the competency of an applicant for a certificate ofauthority to act as a public adjuster, require such applicant to submitto a written examination, except such applicants who shall be entitledto such certificate without the examination as provided in thischapter. Such examinations shall be held in such place in the state ofIndiana and at such time as the commissioner of insurance maydesignate. The examination as described in this section shall includesuch questions which, at the discretion of the commissioner, willproperly test the applicant's knowledge and competency to engage inthe adjustment of claims of an insured to include, but not be limitedto the following areas:
(1) The Indiana insurance law, IC 27.
(2) Inventory and appraisal procedures.
(3) Building construction.
(4) Standard fire policy.
(5) Insurance contracts related to claims on real or personalproperty.
(6) Insurance coverage questions regarding businessinterruption, improvements and betterments, replacement costcoverage, concurrent and noncurrent apportionment,coinsurance, and contribution.
(b) The commissioner of insurance may issue a public adjuster'scertificate of authority without examination to any individual orcorporation who, or which, has transacted the business of adjusting,as a public adjuster, losses covered by policies of insurance within
Indiana as his or its principal occupation or business for a period ofat least one (1) year immediately preceding the date of applicationfor such certificate of authority, and who, or which, thecommissioner determines to be competent to act as a public adjuster.Examination shall not be required for an applicant for renewal of acertificate of authority in effect at the date the application forrenewal thereof is filed.
As added by P.L.257-1983, SEC.1.
IC 27-1-27-7
Disciplinary sanctions and proceedings
Sec. 7. (a) As used in this section, "practitioner" means anindividual or corporation who or which holds a certificate ofauthority under this chapter.
(b) A practitioner shall conduct the practice of public adjusting inaccordance with the standards established by the commissioner ofinsurance under section 8 of this chapter and is subject to theexercise of the disciplinary sanctions under subsection (e), if after ahearing, the commissioner finds:
(1) the practitioner has employed or knowingly cooperated infraud or material deception in order to obtain a certificate topractice public adjusting, or has engaged in fraud or materialdeception in the course of professional services or activities, orhas advertised services in a false or misleading manner;
(2) the practitioner has been convicted of a crime which hasdirect bearing on the practitioner's ability to continue to practicecompetently;
(3) a practitioner has knowingly violated any rule adopted bythe commissioner under section 8 of this chapter;
(4) a practitioner has continued to practice although he hasbecome unfit to practice public adjusting due to:
(A) professional incompetence;
(B) failure to keep abreast of current professional theory orpractice;
(C) physical or mental disability; or
(D) addiction or severe dependency upon alcohol or otherdrugs which endangers the public by impairing apractitioner's ability to practice safely;
(5) a practitioner has engaged in a course of lewd or immoralconduct in connection with the delivery of services to clients;or
(6) a practitioner has allowed his name or a certificate issued tohim under this chapter to be used in connection with anyindividual who renders public adjusting services beyond thescope of his training, experience, or competence.
(c) The commissioner of insurance may order a practitioner tosubmit to a reasonable physical or mental examination if his physicalor mental capacity to practice safely is at issue in a disciplinaryproceeding.
(d) Failure to comply with an order under subsection (c) shall
render a practitioner liable to the summary revocation proceduresunder subsection (f).
(e) The commissioner of insurance may impose any of thefollowing sanctions, singly or in combination, when he finds that apractitioner is guilty of any offense under subsection (b):
(1) Permanently revoke a practitioner's certificate.
(2) Suspend a practitioner's certificate.
(3) Censure a practitioner.
(4) Issue a letter of reprimand.
(5) Place a practitioner on probation status and require thepractitioner to:
(A) report regularly to the commissioner upon the matterswhich are the basis of probation;
(B) limit practice to those areas prescribed by thecommissioner; or
(C) continue or renew professional education under apractitioner approved by the commissioner until asatisfactory degree of skill has been attained in those areaswhich are the basis of the probation.
The commissioner may withdraw a probation order if he findsthat the deficiency which required disciplinary action has beenremedied.
(f) The commissioner of insurance may summarily suspend apractitioner's certificate for a period of ninety (90) days in advanceof a final adjudication or during the appeals process if thecommissioner finds that a practitioner represents a clear andimmediate danger to the public health and safety if he is allowed tocontinue to practice. The summary suspension may be renewed upona hearing before the commissioner, and each renewal may be for aperiod of ninety (90) days or less.
(g) The commissioner of insurance may reinstate a certificatewhich has been suspended under this chapter if, after a hearing, thecommissioner is satisfied that the applicant is able to practice publicadjusting with reasonable skill and safety to clients. As a conditionof reinstatement, the commissioner may impose disciplinary orcorrective measures authorized under this chapter.
(h) The commissioner of insurance shall seek to achieveconsistency in the application of the sanctions authorized in thissection, and significant departures from prior decisions involvingsimilar conduct shall be explained in the commissioner's findings ororders.
(i) The commissioner of insurance may initiate proceedings underthis section on his own motion or on the verified written complaintof any interested person. All such proceedings shall be conducted inaccordance with IC 4-21.5.
As added by P.L.257-1983, SEC.1. Amended by P.L.7-1987,SEC.142.
IC 27-1-27-8
Professional standards; adoption Sec. 8. The commissioner of insurance shall, in the mannerprescribed by IC 4-22-2, adopt standards for the competent practiceof public adjusting appropriate to establish and maintain a highstandard of integrity and dignity in the profession of public adjusting.
As added by P.L.257-1983, SEC.1.
IC 27-1-27-9
Practice of law prohibited
Sec. 9. A public adjuster may not:
(1) engage in the practice of law;
(2) deal directly with any claimant represented by an attorneyat law without the consent of the attorney;
(3) advise a claimant to refrain from seeking legal advice orretaining counsel; or
(4) in the case where legal counsel is desired by claimants,advise the retention of specific attorneys or law firms.
As added by P.L.257-1983, SEC.1.
IC 27-1-27-10
Validity of resident certificates of authority
Sec. 10. A resident certificate of authority issued to a personclaiming residency is void if that person:
(1) holds a resident certificate of authority issued by anotherstate;
(2) makes application for a resident certificate of authority fromanother state; or
(3) ceases to be a resident of Indiana.
As added by P.L.257-1983, SEC.1.
IC 27-1-27-11
Violations
Sec. 11. (a) A person who adjusts an insurance loss withouthaving obtained the required certificate of authority or who adjustsan insurance loss after his certificate of authority has been cancelled,suspended, or revoked by the commissioner of insurance commits aClass B infraction.
(b) A person who makes any false statement pertaining to anymatter or thing required by this chapter to be made commits a ClassB infraction.
(c) A contract or agreement for compensation or services madebetween any insured and a public adjuster for any loss suffered bythe insured which occurred in Indiana is void unless the publicadjuster, at the time of the making of the contract or agreement, hasa certificate of authority issued by the commissioner of insuranceunder this chapter.
(d) This section does not limit the authority of the commissionerof insurance to suspend, revoke, place on probation, or refuse toissue a certificate of authority.
As added by P.L.257-1983, SEC.1.