2001 Minnesota Statutes

CHAPTER 72B. Insurance adjusters

     72B.01 Purpose and scope. 

    It is the purpose of sections 72B.01 to 72B.14 to provide 
 high quality service to insureds and insurance claimants in the 
 state of Minnesota by providing for well trained adjusters and 
 persons engaged in soliciting business for adjusters, who are 
 qualified to deal with the public in the interest of a fair 
 resolution of insurance claims.  Sections 72B.01 to 72B.14 shall 
 apply to all adjusters, and adjusters' solicitors, except as 
 specifically stated to the contrary; but nothing in sections 
 72B.01 to 72B.14 shall apply to: 

    (a) An attorney at law who is licensed or otherwise allowed 
 to practice law in this state and who does not hold out to be an 
 adjuster, or adjuster's solicitor. 

    (b) A licensed agent of an authorized insurer who adjusts 
 losses for such insurer solely under policies issued by the 
 agent or the agent's agency or on which the agent is the agent 
 of record, provided the agent receives no extra compensation for 
 such services. 

    (c) Personnel of township mutual companies. 

    (d) Adjusters for crop hail and farm windstorm damage 
 claims who are on the staff of companies covering such risks. 

    (e) Persons who process life insurance annuity contract or 
 accident and health insurance claims. 

    (f) Persons processing or adjusting wet marine or inland 
 transportation claims or losses. 

    HIST: 1971 c 704 s 1; 1979 c 141 s 1; 1986 c 444 

     72B.02 Definitions. 

    Subdivision 1.    Scope.  For the purposes of sections 
 72B.01 to 72B.14 the terms defined in this section have the 
 meanings ascribed to them unless the context otherwise requires. 

    Subd. 2.    Person.  "Person" means a natural person.  

    Subd. 3.    Commissioner.  "Commissioner" means the 
 commissioner of commerce or any other person properly acting for 
 the commissioner.  

    Subd. 4.    Adjuster.  "Adjuster" means a person who on 
 behalf of an insurer or an insured, for compensation as an 
 independent contractor or as an employee of such independent 
 contractor, or as an employee of an insurer, or for a fee or 
 commission, investigates and evaluates claims arising under 
 insurance contracts and negotiates the settlement of such claims.

    Subd. 5.    Independent adjuster.  "Independent 
 adjuster" means any person who for another for money, commission 
 or any other thing of value acts as an adjuster on behalf of 
 more than one insurer, or who holds out to do so.  

    Subd. 6.    Public adjuster.  "Public adjuster" means an 
 adjuster who hires out for employment by members of the public 
 for a fee, commission or any other thing of value, and who, when 
 so employed, acts solely to represent the interests of an 
 insured named in an insurance policy.  

    Subd. 7.    Staff adjuster.  "Staff adjuster" means an 
 adjuster who is a salaried employee of an insurance company and 
 who is engaged in adjusting insured losses solely for that 
 company or other companies under common control or ownership.  

    Subd. 8.    Public adjuster solicitor.  "Public adjuster 
 solicitor" means any person who for money, commission or any 
 other thing of value solicits in any manner or aids in securing 
 for a public adjuster any contract or agreement for the 
 adjustment of a loss.  

    Subd. 9.    Appraiser.  "Appraiser" means any person 
 engaged independently, for hire by the public or on the staff of 
 an insurer, in the process of evaluating motor vehicle physical 
 damage, who does not endeavor to determine liability or 
 negotiate the settlement of claims arising under automobile 
 insurance contracts.  

    Subd. 10. Repealed, 1979 c 141 s 9 

    Subd. 11.    Catastrophe or emergency situation.  
 "Catastrophe or emergency situation" means the occurrence of 
 insured losses of such a number or severity that the ordinary 
 staff adjuster personnel complement of the insurer and the 
 available independent adjusters could not adjust all of the 
 losses resulting from a common cause or related causes in a 
 reasonable time.  

    Subd. 12.    Single loss.  "Single loss" means a loss to 
 a single insured, and does not necessarily include all losses 
 resulting from a common cause.  

    Subd. 13.    Appraiser identification.  "Appraiser 
 identification" means a writing including the appraiser's name, 
 place of business, business telephone number, and the name of 
 the insurer or other business entity employing the appraiser, if 
 any.  

    Subd. 14.    Crop hail adjuster.  "Crop hail adjuster" 
 means a person who for money, commission, or other thing of 
 value acts as an adjuster in regard to insurance policies 
 against crop damage by hail. 

    HIST: 1971 c 704 s 2; 1980 c 456 s 1; 1983 c 289 s 114 subd 1; 
 1984 c 655 art 1 s 92; 1986 c 444; 1992 c 564 art 1 s 48 

     72B.03 Licenses. 

    Subdivision 1.    Requirement; exceptions.  Except as 
 otherwise provided, no person shall act as an independent 
 adjuster, public adjuster, or public adjuster solicitor for 
 money, a commission, or any other thing of value, unless such 
 person shall first obtain from the commissioner a license.  No 
 license shall be required for: 

    (1) a person acting in a catastrophe or emergency 
 situation, and who has registered with the commissioner for that 
 purpose; 

    (2) a nonresident adjuster who occasionally is in this 
 state to adjust a single loss; provided, however, that if a 
 nonresident adjusts more than six losses in this state in one 
 year the adjuster must qualify for and receive a nonresident's 
 license as provided in sections 72B.01 to 72B.14, and provided 
 the adjuster's domiciliary state affords a like privilege. 

    Subd. 2.    Classes of licenses.  (a) There shall be 
 four classes of licenses, as follows: 

    (1) independent adjuster's license; 

    (2) public adjuster's license; 

    (3) public adjuster solicitor's license; and 

    (4) crop hail adjuster's license. 

    (b) The independent adjuster and public adjuster licenses 
 shall be issued in at least three fields each, as follows: 

    (1) fire and allied lines, inland marine lines and 
 including all perils under homeowners policies; 

    (2) all lines written as casualty insurance under section 
 60A.06, and including workers' compensation; and 

    (3) a combination of the fields described in clauses (1) 
 and (2).  Separate licenses shall be required for each field, 
 but the same person may obtain licenses in more than one field.  
 No person shall be licensed as both a public and independent 
 adjuster.  The license shall state the class for which the 
 person is licensed and, where applicable, the field in which the 
 person is licensed, and shall state the licensee's name and 
 residence address, the date of issuance and the date of 
 expiration of the license and any other information prescribed 
 by the commissioner which is consistent with the purpose of the 
 license. 

    Subd. 3.    Payment for services; unlawful practice.  No 
 insurer, agent, or other representative of an insurer nor any 
 adjuster shall pay any fee or other compensation to any person 
 for acting as an adjuster, or a public adjuster solicitor, 
 except to a person duly licensed to so act or to a person not 
 required to be licensed by sections 72B.01 to 72B.14; and it 
 shall be unlawful for any person to act as an independent 
 adjuster, a public adjuster or a public adjuster solicitor, who 
 is not duly licensed, or excluded from the licensing requirement.

    HIST: 1971 c 704 s 3; 1975 c 359 s 23; 1979 c 141 s 2; 1986 c 
 444; 1992 c 564 art 1 s 49; 1994 c 485 s 58 

     72B.04 License procedure and requirements; examinations; 
  fees. 

    Subdivision 1.    Application.  A license to act as an 
 adjuster, or public adjuster solicitor shall only be granted by 
 the commissioner to a qualified person upon request. 

    Subd. 2.    Qualifications.  An applicant for licensing 
 as an adjuster under sections 72B.01 to 72B.14 shall be at least 
 18 years of age.  The applicant shall be competent and 
 trustworthy and shall not have been engaged in any practice 
 which would be grounds for suspension or revocation of a license 
 under sections 72B.01 to 72B.14 within the three years next 
 preceding the date of the application. 

    An applicant for licensing as a public adjuster solicitor 
 under sections 72B.01 to 72B.14 shall be at least 18 years of 
 age, shall be competent and trustworthy, and shall not have been 
 engaged in any practice which would be grounds for suspension or 
 revocation of a license under sections 72B.01 to 72B.14 within 
 the three years next preceding the date of the application. 

    In the case of any applicant who has been convicted of a 
 felony within the ten years next preceding the date of the 
 application, and who in the judgment of the commissioner, meets 
 the other qualifications, the commissioner may impose the 
 additional requirement of the filing of a bond in accordance 
 with the requirements of section 72B.08, subdivision 8. 

    Subd. 3.    Application.  The application for any 
 initial or renewal license under sections 72B.01 to 72B.14 or 
 for a temporary permit shall be signed and sworn to by the 
 applicant and accompanied by the appropriate fee.  An 
 application for an initial license or temporary permit shall 
 state the applicant's name, age, residence address, business 
 name and address, educational background, previous experience in 
 the field and class in which a license or permit is sought, the 
 class of license applied for, and, in the case of an applicant 
 for an adjuster's license the field in which the license is 
 being sought, and such other information as the commissioner 
 deems appropriate to determine the applicant's trustworthiness 
 and competency. The application for an initial license or permit 
 shall also state whether or not the application is being made on 
 the basis of an examination.  If the application is not made on 
 the successful completion of an examination, it shall state the 
 reasons why no examination is required.  Renewal of a license or 
 permit shall be made on the basis of an application for 
 renewal.  All applicants for a license as a public adjuster must 
 attach to their application evidence that the bonding 
 requirement has been satisfied. 

    Subd. 4.    Bonding.  No initial or renewal public 
 adjuster's license shall be issued to any applicant unless there 
 is on file with the commissioner a good and sufficient surety 
 bond, issued by an insurer authorized to do business in this 
 state.  The bond shall be in the amount of $10,000 with the 
 state of Minnesota as obligee, conditioned for the prompt 
 payment to any person entitled thereto, other than a partner or 
 associate of the applicant, of any amounts received by the 
 applicant or to protect any person other than a partner or 
 associate of the applicant from loss resulting from fraud, 
 dishonesty, forgery or theft in connection with the applicant's 
 duties under sections 72B.01 to 72B.14; provided, however, that 
 the aggregate liability of the surety to all persons for all 
 losses shall, in no event, exceed the amount of such bond.  The 
 bond shall remain in effect during the term of the license, or 
 until the surety is released from liability by the commissioner, 
 or until canceled by the surety.  The surety may cancel a bond, 
 without prejudice to any liability which occurred prior to the 
 cancellation, by giving at least 30 days' written notice to the 
 commissioner.  In the event that the required bond is 
 terminated, the public adjuster's license shall automatically be 
 suspended until a new bond is filed with the commissioner. 

    Subd. 5.    Examinations.  A person applying for a 
 license under sections 72B.01 to 72B.14 must successfully 
 complete an examination prescribed by the commissioner, which 
 examination shall be at least in part a written examination.  
 Examinations shall be given at such time and place as designated 
 by the commissioner and there shall be different examinations 
 for adjusters, public adjuster solicitors, and applicants for 
 temporary permits.  Adjusters' examinations shall be given in at 
 least each of three fields:  fire and allied lines, inland 
 marine lines and including all perils under homeowners policies; 
 all lines written as casualty insurance under section 60A.06, 
 and including workers' compensation; and a combination of the 
 two foregoing fields.  Each examination shall be, in the 
 judgment of the commissioner with the advice of the advisory 
 committee, sufficient to require for a satisfactory score such 
 knowledge of insurance, adjusting practices and appraisal 
 techniques, to the extent that such knowledge is necessary for 
 the class of license applied for and the field in which the 
 applicant is being examined, that the people of Minnesota will 
 receive insurance claim service from persons who are 
 sufficiently trained to make fair and well informed judgments in 
 the evaluation or settlement of insured losses.  The examination 
 for an applicant for a temporary permit may be oriented to the 
 specified fields, but shall be less exacting than the 
 examination for a license. 

    The commissioner may by rule determine the period of time 
 between failure of an examination and reexamination. 

    A person shall not be eligible to take an examination if 
 that person's license as an adjuster or public adjuster 
 solicitor has been revoked in this or any other state within the 
 three years next preceding the date of the application. 

    No examination shall be required for the timely renewal of 
 a license, unless the license has been revoked. 

    Subd. 6.    Exceptions.  A person who on January 1, 
 1972, meets all of the qualifications specified in subdivision 2 
 with regard to the class of license applied for and, if 
 experience is one of the requisites, has gained the experience 
 within the three years next preceding January 1, 1972, shall be 
 eligible for the issuance of a license without taking an 
 examination. 

    A person who has held a license of any given class or in 
 any field or fields within three years prior to the application 
 shall be entitled to a renewal of the license in the same class 
 or in the same fields without taking an examination. 

    A person applying for a license as a crop hail adjuster 
 shall not be required to comply with the requirements of 
 subdivision 5. 

    The commissioner may issue a license under sections 72B.01 
 to 72B.14 without an examination, if the applicant presents 
 sufficient and satisfactory evidence of having passed a similar 
 examination in another state and if the commissioner, with the 
 advice of the advisory board, has determined that the standards 
 of such other state are equivalent to those in Minnesota for the 
 class of license applied for.  Any applicant who presents 
 sufficient and satisfactory evidence of having successfully 
 completed all six parts of the insurance institute of America 
 program in adjusting or other programs approved by the 
 commissioner shall be entitled to an adjuster's license without 
 taking the examination prescribed in subdivision 5. 

    Subd. 7.    License term.  (a) Initial licenses issued 
 under this section are valid for a period not to exceed two 
 years.  Each initial license must expire on October 31 of the 
 expiration year assigned by the commissioner. 

    (b) Licenses issued under this section may be renewed upon 
 the timely filing of an application for renewal.  Every renewal 
 license is valid for a period of 24 months. 

    Subd. 8.    Renewal.  An application for renewal of a 
 license issued under sections 72B.01 to 72B.14 shall be on a 
 form prescribed by the commissioner and shall be filed with the 
 commissioner with payment of the renewal fee prior to the 
 expiration date of the license. 

    Subd. 9.    Notice of changes.  Each licensee or holder 
 of a temporary permit shall give written notice to the 
 commissioner of any change in name, or residence address not 
 later than ten days after such change.  The commissioner may, 
 upon receipt of such notice, issue an amendment to the license 
 incorporating such changes. 

    Subd. 10.    Fees.  A fee of $80 is imposed for each 
 initial license or temporary permit and $80 for each renewal 
 thereof or amendment thereto.  A fee of $20 is imposed for the 
 registration of each nonlicensed adjuster who is required to 
 register under section 72B.06.  All fees shall be transmitted to 
 the commissioner and shall be payable to the department of 
 commerce. 

    HIST: 1971 c 704 s 4; 1973 c 725 s 2; 1975 c 359 s 23; 1979 c 
 141 s 3-6; 1984 c 592 s 75,76; 1986 c 444; 1991 c 233 s 44; 1992 
 c 513 art 3 s 26; 1992 c 564 art 1 s 50; 1994 c 485 s 59; 1997 c 
 200 art 1 s 45; 1999 c 177 s 71; 1999 c 223 art 2 s 10; 2001 c 
 208 s 6,7 

     72B.05 Nonresidents. 

    A nonresident person may become licensed under sections 
 72B.01 to 72B.14, provided that the person meets all of the 
 requirements of sections 72B.01 to 72B.14, and complies with 
 their provisions, and, on a form prescribed by the commissioner, 
 appoints the commissioner as the attorney upon whom may be 
 served all legal process issued in connection with any action or 
 proceeding brought or pending in this state against or involving 
 the licensee and relating to transactions under the license; the 
 appointment shall be irrevocable and shall continue so long as 
 any such action or proceeding could arise or exist.  

    Service of process must be made in compliance with section 
 45.028, subdivision 2.  

    HIST: 1971 c 704 s 5; 1986 c 444; 1995 c 258 s 54 

     72B.06 Catastrophe or emergency situations. 

    Any person acting as an independent adjuster in this state 
 in a catastrophe or emergency situation who is not a licensed 
 adjuster, must register with the commissioner within 72 hours of 
 commencing any adjusting assignments.  The registration shall be 
 made on such form as the commissioner shall prescribe and shall 
 include the name of the registrant, permanent home address and 
 address for the period during which the registration is 
 effective, the categories of losses being adjusted by the 
 registrant, the name of the licensed independent adjuster or 
 staff adjuster who will be supervising that adjuster, and the 
 name of the insurer or insurers in whose behalf the adjusting is 
 being done.  No person shall register or be allowed to adjust 
 losses under this provision unless that person is under the 
 supervision of a staff adjuster or a licensed independent 
 adjuster.  The supervising adjuster shall indicate on the 
 registration filing the period of time for which the 
 registration is being made, and no unlicensed person shall 
 undertake to adjust losses after the termination of the 
 registration. 

    Each registrant under this section shall promptly give 
 written notice to the commissioner of any change in address 
 while in this state, or any other information stated in the 
 registration statement. 

    The commissioner may summarily suspend or revoke the right 
 of any person adjusting in this state under the authority of 
 this section to continue to adjust in this state, if the 
 commissioner finds that that person has engaged in any of the 
 practices forbidden to a licensed adjuster under sections 72B.01 
 to 72B.14.  Notice of such suspension or revocation may be given 
 personally or by mail sent to the temporary address stated in 
 the registration.  A duplicate copy of such notice shall be 
 given to the supervising adjuster.  

    HIST: 1971 c 704 s 6; 1986 c 444 

  72B.07 Repealed, 1994 c 485 s 66 

     72B.08 Denial, suspension and revocation of licenses. 

    Subdivision 1.    Causes.  The commissioner may suspend, 
 revoke, or refuse to issue an initial or renewal license or 
 temporary permit for any of the following causes: 

    (a) Failure to pass a required examination; 

    (b) Material misrepresentation or fraud in obtaining or 
 attempting to obtain a license or a temporary permit; 

    (c) Willful violation of any insurance law or of any 
 provision of sections 72B.01 to 72B.14; 

    (d) Misappropriation, conversion or illegal withholding of 
 moneys required to be held in a fiduciary capacity; 

    (e) Materially misrepresenting the terms and effect of any 
 insurance contract, with intent to deceive, or engaging in, or 
 attempting to engage in, any fraudulent transaction with respect 
 to a claim or loss that the licensee or holder of a temporary 
 permit is adjusting and, in the case of a public adjuster 
 solicitor, misrepresenting the services offered or the fees or 
 commission to be charged. 

    (f) Conviction of a felony under the laws of this state, 
 any other state, the United States, or any foreign country. 

    (g) The licensee or holder of a temporary permit has 
 demonstrated incompetency or untrustworthiness to act as an 
 adjuster or public adjuster solicitor; 

    (h) Refusal to comply with any lawful order of the 
 commissioner. 

    Subd. 2.    Notice.  If an application for a license or 
 temporary permit is rejected by the commissioner, the 
 commissioner shall forthwith give written notice to the person 
 concerned, mailed to that person's last known address.  The 
 notice shall state the reason for the action.  

    Subd. 3.    Hearing.  Except when an application is 
 rejected for failure to pass a required examination, the person 
 aggrieved by the action of the commissioner shall be entitled to 
 a hearing before the commissioner or the commissioner's 
 delegate, provided that such person files a written request for 
 such hearing with the commissioner prior to the expiration of 30 
 days from the date of notice specified in subdivision 2.  If no 
 hearing is requested within 30 days from the date of the notice, 
 the action taken by the commissioner shall continue in effect 
 until modified or vacated.  If a hearing is timely requested, 
 the commissioner shall set a date for such hearing not later 
 than 30 days after the date of receipt of the request for 
 hearing.  Pending the hearing or any judicial review of such 
 hearing, the commissioner may modify or vacate the action taken 
 or extend it until final determination.  

    After the hearing, the commissioner shall enter an order 
 either vacating the prior action, confirming the prior action or 
 otherwise disposing of the matter as the facts require. 

    Subd. 4.    Suspension or revocation of license or permit. 
  When the commissioner has information, which if true, would 
 be grounds for suspension, revocation, or refusal to issue a 
 renewal license or a temporary permit, the commissioner may 
 order the licensee or holder of the temporary permit to appear 
 for a hearing pursuant to chapter 14, to determine the facts of 
 the case and to determine whether the license or permit should 
 be suspended or revoked, or whether it should not be renewed.  
 The order shall fix the time and place for the hearing.  After 
 the hearing, the commissioner shall enter an order either 
 dismissing the matter or suspending or revoking the license or 
 temporary permit, or otherwise disposing of the matter as the 
 facts require.  Pending the results of the hearing, the licensee 
 or permit holder may continue to act under the license or permit.

    Subd. 5.    Judicial review.  Any final order of the 
 commissioner shall be subject to judicial review.  

    Subd. 6.    Procedure.  Any hearing or judicial review 
 shall be in accordance with the contested case provisions of 
 chapter 14. 

    Subd. 7.    Voluntary action by licensee or holder of 
 permit.  The commissioner may request a voluntary revocation 
 or suspension of a license or temporary permit and may enter 
 into stipulations in accordance with the request whereby the 
 licensee or holder of a temporary permit shall waive all further 
 right to a hearing or judicial review.  

    Subd. 8.    Bond.  In the case of any licensee or 
 permit holder who has had a license or permit suspended or 
 revoked or whose license renewal has been prohibited by a lawful 
 order of the commissioner, the commissioner may condition the 
 issuance of a new license on the filing of a surety bond in an 
 amount not to exceed $10,000, made and conditioned in accordance 
 with the requirements of section 72B.04, subdivision 4, relating 
 to public adjusters' bonds.  Nothing in this subdivision shall 
 reduce or alter the bonding requirements for a public adjuster.  

    Subd. 9.    Civil and criminal liability.  This section 
 shall not relieve a person from civil liability or from criminal 
 prosecution under sections 72B.01 to 72B.14 or any other law of 
 this state.  

    HIST: 1971 c 704 s 8; 1979 c 141 s 7; 1982 c 424 s 130; 1986 c 
 444 

  72B.09 Repealed, 1976 c 149 s 63 

     72B.091 Damage appraisals; adjustments; duties of 
  appraisers, adjusters, and insurers. 

    Subdivision 1.    Appraiser's identification.  Each 
 appraiser while engaged in appraisal duties shall carry 
 appraiser identification and shall display it upon request to an 
 owner whose vehicle is being inspected, to the repair shop 
 representative involved, or to any commissioner of commerce's 
 representative. 

    Subd. 2.    Appraisal; copies and content.  The 
 appraiser shall provide one legible copy of the appraisal to the 
 vehicle owner and one legible copy of the appraisal to the 
 repair shop designated by the owner if requested by the repair 
 shop.  The motor vehicle repair shop shall provide the vehicle 
 owner and the insurance company or companies involved in the 
 loss one legible copy of the appraisal.  This appraisal shall 
 include an itemized listing of those parts to be repaired and 
 those parts to be replaced by new, used, rebuilt, reconditioned 
 or replated parts.  The appraisal shall contain the name of the 
 insurance company ordering it, if any, the insurance company's 
 address and telephone number, its file number, the appraiser's 
 name, telephone number, and the proper identification of the 
 vehicle being inspected.  The appraisal shall indicate all 
 significant old and unrelated damages and shall include an 
 itemized listing of all damages, specifying those parts to be 
 repaired and those parts to be replaced by new, used, rebuilt, 
 reconditioned, or replated parts.  The appraisal must disclose 
 to the vehicle owner any parts to be used, other than window 
 glass, which are not original equipment parts or which are not 
 covered by the manufacturer's warranty on such parts. 

    Subd. 3.    No specified repairer.  No appraiser, 
 adjuster, or that person's employer shall require that repairs 
 be made in any specified repair facility.  

    Subd. 4.    Reinspections.  Each appraiser shall 
 promptly reinspect damaged vehicles when supplementary 
 allowances are requested by the repair shop or when the amount 
 or extent of damages is in dispute.  Reinspection of any damage 
 on a damaged vehicle may be waived if authorized by the insurer 
 by any oral or written communication.  

    Subd. 5.    Auto salvage.  No appraiser or adjuster for 
 personal gain shall receive or trade in auto salvage if the 
 salvage is obtained as a result of that person's appraisals.  

    HIST: 1980 c 456 s 2; 1983 c 289 s 114 subd 1; 1984 c 655 art 
 1 s 92; 1986 c 444; 1987 c 64 s 2 

     72B.092 Motor vehicle insurance adjustments; 
  prohibitions. 

    Subdivision 1.    Prohibitions on insurer.  No adjuster 
 or insurer, director, officer, broker, agent, attorney-in-fact, 
 employee, or other representative of an insurer shall in 
 collision cases: 

    (a) Limit the freedom of an insured or claimant to choose 
 the shop; 

    (b) Require that an insured or claimant present the claim 
 or the automobile for loss adjustment or inspection at a 
 "drive-in" claim center or any other similar facility solely 
 under the control of the insurer; 

    (c) Engage in boycotts, intimidation or coercive tactics in 
 negotiating repairs to damaged motor vehicles which they insure 
 or are liable to claimants to have repaired; or 

    (d) Attempt to secure, except in an emergency, the 
 insured's or claimant's signature authorizing the party securing 
 the signature to act in behalf of the insured or claimant in 
 selection of a repair shop facility.  

    Subd. 2.    Boycotts.  No motor vehicle repair shop 
 shall in any way coerce, or intimidate a motor vehicle owner to 
 boycott an insurer's "drive-in" claim center or similar facility.

    Subd. 3.    Owner's signature.  No motor vehicle repair 
 shop shall attempt to secure, except in an emergency, the 
 vehicle owner's signature authorizing the party securing the 
 signature to act in behalf of the owner in selection of a repair 
 shop.  

    Subd. 4.    Access to repair shop.  An insurer's 
 representative shall not be unreasonably denied access to a 
 motor vehicle repair shop during normal business hours for the 
 purpose of inspecting or reinspecting damaged vehicles.  

    Subd. 5.    Storage and towing charges.  When a damaged 
 vehicle is towed to a motor vehicle repair shop, the storage and 
 towing charges shall not exceed the usual and customary charges 
 for the towing and storage of undamaged vehicles in the area 
 except if the vehicle, due to its damaged condition, requires 
 special handling in the towing or storage, an added charge may 
 be made.  

    HIST: 1980 c 456 s 3; 1986 c 444 

     72B.10 Staff adjusters. 

    A staff adjuster who adjusts losses or claims in this state 
 shall not be subject to the application, licensing, or 
 examination requirements or other qualifications set forth in 
 sections 72B.01 to 72B.14.  Such a staff adjuster shall not, 
 however, engage in any of the practices forbidden to a licensee 
 under section 72B.08, subdivision 1, clause (c), (d), (e), (f), 
 (g) or (h).  If the commissioner has information, which if true, 
 would establish that a staff adjuster has engaged or is engaging 
 in any such prohibited practices, the commissioner may issue an 
 order for a hearing to determine the facts involved.  The order 
 shall fix the time and place for hearing.  The staff adjuster 
 and one or more representatives of the insurer or insurers 
 employing the staff adjuster shall make an appearance at the 
 hearing unless the commissioner expressly waives the appearance 
 of one or more such parties.  If, following the hearing, the 
 commissioner determines that the staff adjuster has engaged or 
 is engaging in any prohibited practices, the commissioner may 
 impose a fine, not in excess of $500, on the staff adjuster or 
 on the employing insurer or insurers, or on both such parties.  
 In addition, the commissioner may order the employing insurer to 
 suspend the staff adjuster from all duties for such period as 
 the commissioner may deem appropriate. 

    Any final order of the commissioner shall be subject to 
 judicial review.  Any hearing or judicial review under this 
 section shall be in accordance with the contested case 
 provisions of chapter 14. 

    HIST: 1971 c 704 s 10; 1979 c 141 s 8; 1982 c 424 s 130; 1986 
 c 444 

     72B.11 Production of records.  

    The commissioner may, by order, require any licensee or 
 permit holder to produce any records relating to activities 
 under that person's license or permit, and may examine persons 
 under oath to determine questions arising under a person's 
 status as a licensee or permit holder.  

    HIST: 1971 c 704 s 11; 1986 c 444 

     72B.12 Rules.  

    The commissioner may promulgate rules to carry out the 
 purpose of sections 72B.01 to 72B.14, pursuant to chapter 14.  

    HIST: 1971 c 704 s 12; 1982 c 424 s 130; 1985 c 248 s 70 

     72B.13 Acting within contract and law.  

    Every adjuster shall investigate or adjust every claim, 
 damage or loss made or occurring under an insurance contract in 
 accordance with the terms and conditions of the contract and of 
 the applicable laws of this state.  

    HIST: 1971 c 704 s 13 

     72B.135 Public adjusters. 

    Subdivision 1.    Homeowner's right to cancel.  A 
 homeowner who has entered into a contract with a public adjuster 
 involving the business for which the person was licensed, has 
 the right to cancel the contract within 48 hours after the 
 contract has been signed.  Cancellation is evidenced by the 
 homeowner giving written notice of cancellation to the public 
 adjuster at the address stated in the contract.  Notice of 
 cancellation, if given by mail, is effective upon deposit in a 
 mailbox, properly addressed to the public adjuster and postage 
 prepaid.  Notice of cancellation need not take a particular form 
 and is sufficient if it indicates, by any form of written 
 expression, the intention of the homeowner not to be bound by 
 the contract. 

    Subd. 2.    Writing required; notice of right to cancel; 
 notice of cancellation.  (a) Before entering a contract 
 referred to in subdivision 1, the public adjuster must: 

    (1) furnish the homeowner with a statement in bold face 
 type of a minimum size of ten points, in substantially the 
 following form: 

    "You, the homeowner, may cancel this contract at any time 
 within 48 hours after the contract has been signed between the 
 homeowner and the public adjuster.  See attached notice of 
 cancellation form for an explanation of this right."; and 

    (2) furnish each homeowner, a fully completed form in 
 duplicate, captioned, "NOTICE OF CANCELLATION," which shall be 
 attached to the contract and easily detachable, and which shall 
 contain in bold face type of a minimum size of ten points the 
 following information and statements: 

                     "NOTICE OF CANCELLATION

                      ......................

                     (enter date of contract)

    If you do not want to go forward with the contract with the 
 public adjuster, you may cancel the contract by mailing or 
 delivering a signed and dated copy of this cancellation notice 
 or any other written notice, or send a telegram to (Name of 
 Public Adjuster), at (Address of Public Adjuster's Place of 
 Business) not later than midnight of (Date).  If you cancel, any 
 payments made by you under the contract will be returned within 
 ten business days following receipt by the public adjuster of 
 your cancellation notice. 

      I HEREBY CANCEL THIS TRANSACTION. 

      ........... 

           (date) 

      ..............................

           (Homeowner's signature)"

    Subd. 3.    Return of payments; compensation.  Within 
 ten days after a contract referred to in subdivision 1 has been 
 canceled, the public adjuster must tender to the homeowner any 
 payments made by the homeowner and any note or other evidence of 
 indebtedness.  However, if the public adjuster has performed any 
 emergency services within the 48-hour period, the public 
 adjuster is entitled to compensation for such services.  
 Emergency services shall mean the removal of water, boarding up 
 a building, and reconnecting lights and heat. 

    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.  

    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.  

    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. 

    HIST: 1988 c 663 s 1; 1990 c 514 s 1-3 

     72B.14 Violations.  

    A person who violates sections 72B.01 to 72B.14, or the 
 terms of any license or permit under sections 72B.01 to 72B.14, 
 or any lawful order of the commissioner in accordance with 
 sections 72B.01 to 72B.14, shall be subject to a fine imposed by 
 the commissioner, not in excess of $500, which may be imposed in 
 addition to the penalties prescribed in the provisions dealing 
 with the suspension or revocation of licenses or permits.  

    HIST: 1971 c 704 s 14