(1) The following disclosure shall be on the first page of a contract at the top of the page in no smaller than 12-point boldface type: "YOU DO NOT HAVE TO ENTER INTO THIS CONTRACT TO MAKE A CLAIM FOR LOSS OR DAMAGE ON A POLICY OF INSURANCE. YOU WILL BE CHARGED A FEE FOR THE PUBLIC ADJUSTER'S SERVICES."(2) A contract shall include a separate page that contains the following statements.
(a) The public adjuster you hire may not be paid to repair your damaged property, nor may the public adjuster receive a finder's fee from, or have a financial interest in, the company that does the repair work.
(b) A public adjuster may not act on behalf of an attorney by having you sign an attorney representation agreement.
(c) A public adjuster may not require you to sign a power of attorney.
(d) A public adjuster may not require you to refuse to cooperate with your insurer to settle your claim.
(e) 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.
(f) A public adjuster may not offer to pay an insured's deductible.
(g) A public adjuster may not assert that the insurer will waive the insured's deductible.
(h) A public adjuster may not offer to conduct a free inspection of property other than property that is the subject of an insured's claim;
(i) After being hired, a public adjuster may not sell you home repair, disaster clean up, or appraising services.
(j) If the contract is rescinded, the public adjuster must return anything of value to the claimant within 15 days.
(3) Immediately below the statements in Subsection (2), the following shall be set forth:
(a) the statement: "I acknowledge that I have read and understand the statements listed above"; and
(b) a date line and signature line for the insured.
R590-274-8. Required Disclosures Regarding a Public Adjuster's Compensation.
(1)(a) A public adjuster contract shall contain one of 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:
(A) shall state and display the exact percentage that will be applied to the settlement of the claim to calculate the amount payable to the public adjuster; and
(B) may not display a blank space; 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 adjuster.
(b) Notwithstanding the chosen payment method, a public adjuster may not:
(i) charge, agree to, or accept as compensation or reimbursement, a payment, commission, fee, or other thing of value equal to more than:
(A) 10% for a catastrophic insurance claim settlement; or
(B) 20% for a non-catastrophic insurance claim settlement; or
(ii) require, demand, or accept a fee, retainer, compensation, deposit, or other thing of value before the settlement of a claim.
(c) Notwithstanding the chosen payment method, a public adjuster shall provide to the insured, at the conclusion of a claim, an itemized invoice of each expense the public adjuster incurs during the process of resolving a claim.
(2) The following disclosures shall be included on the same page as the disclosures required in Subsection (1).
(a) 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.
(b) 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.
(c)(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.
(d) 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.
(e) The type of initial expenses, with dollar estimates, that the insured approves to reimburse the public adjuster from the proceeds of the claim payment.
(3) A public adjuster contract may not include the following compensation terms:
(a) a term allowing a public adjuster to collect the public adjuster's percentage fee when money is due from an insurance company but the insurance company has not paid;
(b) a term allowing a public adjuster to collect the entire fee from the first check an insurance company issues instead of a percentage of each check the insurance company issues;
(c) a term requiring an insured to authorize an insurance company to issue a check only in the name of the public adjuster;
