Section R590-274-7 - Required Disclosures(1) The following separate disclosures shall be located on the signature page of the contract in no smaller than 12-point boldface type: (a) "WE REPRESENT THE INSURED ONLY";(b) "THIS CONTRACT MAY BE RESCINDED IN WRITING WITHIN 10 DAYS OF ENTERING INTO THE CONTRACT"; and(c) "YOU ARE ENTERING INTO A CONTRACT OF SERVICE. YOU ARE BEING CHARGED A FEE FOR THIS SERVICE. YOU DO NOT HAVE TO ENTER INTO THIS CONTRACT TO MAKE A CLAIM FOR LOSS OR DAMAGE ON A POLICY OF INSURANCE."(2) A contract shall contain the following statements in substantially the following form: (a) A public adjuster may not participate directly or indirectly in the reconstruction, repair, or restoration of damaged property, or engage in any other activities that may reasonably be construed as presenting a conflict of interest, including soliciting or accepting any remuneration from, or having a financial interest in, any salvage firm, construction firm, repair firm, or other firm that obtains business in connection with any claim the public insurance adjuster has a contract or agreement to adjust.(b) A public adjuster may not act on behalf of an attorney by having you sign an attorney representation agreement.(c) A public adjuster cannot require you to sign a power of attorney.(d) A public adjuster cannot require you to refuse to work with your insurer.(e) Your insurance policy requires you to cooperate with your insurer to settle your claim.(f) IMPORTANT NOTICE: You may contact the Utah Insurance Department to verify that the public adjuster is licensed to do business in Utah, what your rights are as a consumer, or for information about filing a complaint, by calling 801-957-9305 or toll free at 800-439-3805, or by visiting the department's website, https://insurance.utah.gov.(g) A public adjuster may not enter into a contract with an insured and collect compensation as provided in the contract without actually performing the service customarily provided by a licensed public adjuster for the insured.(3)(a) A public adjuster shall contain the following compensation disclosures in a clear and prominent statement:(i) if an hourly rate, the contract shall state the hourly rate and how it will be applied to hours of service provided by the public adjuster to calculate the amount payable;(ii) if a flat fee, the contract shall state the amount payable to the public adjuster;(iii) if a percentage, the contract shall state the exact percentage that will be applied to the settlement of the claim to calculate the amount payable to the public insurance adjuster; or(iv) if another method of calculation is chosen, the contract shall include a detailed explanation of how the amount payable will be determined based on service provided by the public adjuster.(b) A public adjuster may not receive compensation for referring the insured to a particular attorney, appraiser, umpire, construction company, contractor, repair firm, or salvage company.(c) A public adjuster may not receive compensation for a claim if the insurer pays or commits in writing to pay the policy limits within 72 hours of the loss report.(d)(i) Except for direct payment of compensation by the insured, any draft or check shall include the insured as a payee and shall require the written signature or endorsement of the insured.(ii) A public adjuster may not sign or endorse any payment draft or check on behalf of the insured.(e) A public adjuster may not enter into a contract with an insured or collect compensation as provided in the contract without performing the service customarily provided by a licensed public adjuster for the insured.Utah Admin. Code R590-274-7
Adopted by Utah State Bulletin Number 2017-18, effective 8/23/2017Adopted by Utah State Bulletin Number 2023-15, effective 7/25/2023