N.J. Admin. Code § 11:1-37.13

Current through Register Vol. 56, No. 9, May 6, 2024

Section 11:1-37.13 - Right to compensation

(a) No individual, firm, partnership, association or corporation licensed under this subchapter shall have any right to compensation from any insured for or on account of services rendered to an insured as a public adjuster unless the right to compensation is based upon a written contract or memorandum between the adjuster and the insured and specifying or clearly defining the services to be rendered and the amount or extent of the compensation.

(b) The written memorandum or contract between a licensed public adjuster and an insured:

1. Shall be executed in duplicate and a fully executed copy shall be provided to the insured upon execution;

2. Shall be kept on file by the public adjuster, available at all times for inspection without notice by the Commissioner; and

3. Shall contain the following:

i. The signatures of the insured and the public adjuster;

ii. A list of services to be rendered and the maximum fees to be charged, which fees shall be reasonably related to services rendered; and

iii. The time and date of execution of the contract (day, month, year) by each party;

4. Shall conform to the requirements of the Consumer Contracts Act at 56:12-1 et seq. and, as applicable, the Federal Trade Commission Act as set forth at 15 U.S.C. 41, and 16 C.F.R. subsection 429.1 (1993).

5. Shall prominently include a section which specifies:

i. The procedures to be followed by the insured if he or she seeks to cancel the contract, including any requirement for a written notice;

ii. The rights and obligations of the parties if the contract is cancelled at any time; and

iii. The costs to the insured or the formula for the calculation of costs to the insured for services rendered in whole or in part.

(c) No public adjuster shall solicit the adjustment of a loss or damage occurring in this State from an insured, whether by personal interview, by telephone, or by any other method, between the hours of 6:00 P.M. and 8:00 A.M. during the 24 hours after the loss has occurred.

(d) No public adjuster shall enter into any contract or agreement, oral or written, with an insured, to negotiate or settle claims for loss or damage occurring in this State between the hours of 6:00 P.M. and 8:00 A.M. during the 24 hours after the loss has occurred.

N.J. Admin. Code § 11:1-37.13

Amended by R.2012 d.136, effective 7/16/2012.
See: 44 N.J.R. 32(a), 44 N.J.R. 1979(a).
Added new (c); and recodified former (c) as (d).
Petition for Rulemaking.
See: 46 N.J.R. 1654(c), 1826(b), 2288(a).