Review of Maryland’s Public Adjusting Laws

BULLETIN No. 20-23 DATE: May 14, 2020 TO: All Public Adjusters and Insurers RE: Review of Maryland’s Public Adjusting Laws Based on recent referrals and complaints, the Administration has found that some public adjusters are engaging in activities that are not in compliance with Maryland law. This bulletin is issued to clarify some of the requirements under Maryland law pertaining to public adjusters and to make public adjusters aware of a new requirement effective 10/1/2020 set forth in §10-414. Please be advised of the following provisions in the Maryland Insurance Article governing the conduct of public adjusters: o A public adjuster solicits business to the public as an adjuster of first party claims for a loss or damage covered by insurance and receives compensation for their public adjusting services (§10-401). o The public adjuster must maintain a complete record of each transaction for five years after the transaction has been completed, and the records must always be open to examination by the Commissioner (§10-413). o The public adjuster is obligated to serve the interest of the client with objectivity and complete loyalty (§10-414). o The public adjuster may not enter a contract or accept a power of attorney that vests in the public adjuster the authority to choose who shall perform any repair work (§10-415). o When the public adjuster receives, accepts, or holds any funds on behalf of an insured, the money shall be deposited in a noninterest-bearing escrow or trust AL REDMER, JR. Commissioner JAY A. COON Deputy Commissioner LARRY HOGAN Governor BOYD K. RUTHERFORD Lt. Governor 200 St. Paul Place, Suite 2700, Baltimore, Maryland 21202 Direct Dial: 410-468-2007 Fax: 410-468-2020 1-800-492-6116 TTY: 1-800-735-2258 www.insurance.maryland.gov