CODE OF VIRGINIA

CONTRACT BETWEEN PUBLIC ADJUSTER AND INSURED (§ 38.2-1845.13)

A. Public adjusters shall ensure that all contracts for their services are in
writing and contain the following terms:

   1.  Legible full name of the public adjuster signing the contract, as
   specified in the records of the Commission;

   2.  Public adjuster’s permanent home state business address and phone
   number;

   3.  Public adjuster’s license number, as specified in the records of the
   Commission;

   4.  Title “Public Adjuster Contract”;

   5.  The insured’s full name and street address and the insurance
   company’s name and policy number;

   6.  A description of the loss and a description of the location of the loss,
   if applicable;

   7.  A description of services to be provided to the insured by the public
   adjuster and all terms and conditions of the engagement;

   8.  Signatures of the public adjuster and the insured;

   9.  The date the contract was signed by the public adjuster and the date the
   contract was signed by the insured;

   10.  Attestation language stating that the public adjuster is fully bonded
   pursuant to state law;

   11.  The full salary, fee, commission, compensation, or other consideration
   the public adjuster is to receive for services, subject to the provisions of
   § 38.2-1845.14; and

   12.  The right to rescind the contract within three business days after the
   contract has been signed by the insured or, in the event of a catastrophic
   disaster, the right to rescind the contract within five business days after
   the contract has been signed by the insured. Such rescission shall be in
   writing and mailed or delivered to the public adjuster at the address shown in
   the contract. Within 15 business days following receipt of the notice to
   rescind, the public adjuster shall return to the insured anything of value
   given by the insured under the contract.

B. The public adjuster shall provide a separate disclosure document to the
insured stating (i) the insured is not required to hire a public adjuster but
has the right to do so; (ii) the public adjuster is not an employee or
representative of the insurer; (iii) the salary, fee, commission, or other
consideration is the obligation of the insured, not the insurer; (iv) property
insurance policies obligate the insured to present a claim to the insurer for
consideration; (v) the insured has the right to initiate direct communications
with the insured’s attorney, the insurer, the insurer’s adjuster,
the insurer’s attorney, and any other person regarding the settlement of
the insured’s claim; and (vi) the insured may contact the Commission for
the licensing status of the public adjuster.

C. A public adjuster shall provide the insurer with a notification letter, which
has been signed by the insured, authorizing the public adjuster to represent the
insured’s interest.

D. No public adjuster shall enter into a contract that prevents an insured from
pursuing any civil remedy after the revocation or cancellation period set forth
in subdivision A 12.

HISTORY: 2012, cc. 734, 735.