Minnesota Session Laws - 1990, Regular Session

  

                         Laws of Minnesota 1990 

                        CHAPTER 514-S.F.No. 2130 
           An act relating to insurance; regulating the practices 
          and record keeping of, and disclosures by, public 
          adjusters; amending Minnesota Statutes 1988, section 
          72B.135, by adding subdivisions.  
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:  
    Section 1.  Minnesota Statutes 1988, section 72B.135, is 
amended by adding a subdivision to read:  
    Subd. 4.  [PROHIBITED PRACTICES.] No public adjuster shall: 
    (1) pay money or give anything of value to a person in 
consideration of a direct or indirect referral of a client or 
potential client; 
    (2) pay money or give anything of value to a person as an 
inducement to refer business or clients; 
    (3) rebate to a client a part of a fee specified in an 
employment contract; 
    (4) initiate contact with a prospective client between the 
hours of 8 p.m. and 8 a.m.; 
    (5) split the fee received or pay money to a person for 
services rendered to a client unless the other person is also 
licensed as a public adjuster; 
    (6) have an interest directly or indirectly in a 
construction firm, salvage firm, or appraisal firm.  "Firm" 
includes a corporation, partnership, association, or individual 
firm; 
    (7) in connection with the transaction of business as a 
public adjuster, make a willful or knowing misrepresentation of 
facts or advise a person on questions of law; 
    (8) make willful or knowing false statements about an 
insurance company or its employees, agents, or representatives; 
    (9) solicit employment of a client in connection with a 
loss that is the subject of an employment contract with another 
public adjuster; 
    (10) represent both an insurer and insured simultaneously; 
or 
    (11) advance money to a client pending the settlement of a 
loss where the amount would be included in a final settlement.  
    Sec. 2.  Minnesota Statutes 1988, section 72B.135, is 
amended by adding a subdivision to read:  
    Subd. 5.  [DISCLOSURES.] (a) A public adjuster shall 
disclose in writing to the client any interest the public 
adjuster has in loss proceeds other than those acquired by the 
public adjuster's employment contract.  
    (b) A public adjuster in soliciting a client for employment 
shall display a license and immediately inform the client that 
the adjuster does not represent an insurance company or 
insurance company adjusting firm.  The adjuster shall inform the 
client that services are available for a fee to be paid by the 
client, and shall give the client a card identifying the public 
adjuster.  The public adjuster shall disclose in writing to the 
client the fee charged by the public adjuster.  
    Sec. 3.  Minnesota Statutes 1988, section 72B.135, is 
amended by adding a subdivision to read:  
    Subd. 6.  [RECORDS; CONTRACTS.] (a) A public adjuster shall 
maintain an office that contains the records of all documents 
pertaining to the settlement of the claim and files of all 
clients.  The records must be available for inspection by an 
authorized examiner or employee of the commerce department.  The 
records will be kept by the public adjuster for at least five 
years after the end of the contracted employment period.  
    (b) An employment contract used by a public adjuster is 
valid only if signed by an insured and the property owner of the 
property involved, or an authorized agent or representative. 
    Presented to the governor April 24, 1990 
    Signed by the governor April 26, 1990, 10:06 p.m.