Standards of conduct.

A. All adjusters shall adhere to the following standards of conduct: (1) an adjuster shall not permit an unlicensed employee or representative of the adjuster to conduct business for which a license is required pursuant to the Insurance Code [Chapter 59A NMSA 1978]; (2) an adjuster shall not pay a commission, service fee or other valuable consideration to a person for investigating or settling claims in New Mexico if that person is required to be licensed pursuant to the Insurance Code and is not so licensed; (3) an adjuster shall not undertake the adjustment of any claim if the adjuster is not competent and knowledgeable as to the terms and conditions of the insurance coverage, or which otherwise exceeds the adjuster's current experience; (4) an adjuster shall not have a direct or indirect financial interest in any aspect of the claim, other than the salary, fee, commission or other consideration established in a written contract; unless, in the case of a public adjuster, full written disclosure has been made to the insured as set forth in Subsection G of Section 9 of this 2017 act; (5) an adjuster shall not acquire any interest in salvage of property subject to adjustment; unless, in the case of a public adjuster, written permission is obtained from the insured; and (6) an adjuster shall disclose to an insured if the adjuster has any interest or will be compensated by any construction firm, salvage firm, building appraisal firm, motor vehicle repair shop or any other business entity that performs any work in conjunction with damages caused by the insured loss. B. Public adjusters shall also adhere to the following standards of conduct: (1) a public adjuster is obligated, under the public adjuster's license, to serve with objectivity and complete loyalty in the interest of the public adjuster's client alone and to render to the insured such information, counsel and service, as within the knowledge, understanding and opinion in good faith of the public adjuster, as will best serve the insured's insurance claim needs and interest; (2) a public adjuster shall not solicit, or attempt to solicit, an insured during the progress of a loss-producing occurrence, as defined in the insured's insurance contract; (3) the public adjuster shall abstain from referring or directing the insured to get needed repairs or services in connection with a loss from any person, unless disclosed to the insured: (a) with whom the public adjuster has a financial interest; or (b) from whom the public adjuster may receive direct or indirect compensation for the referral; (4) any compensation or anything of value in connection with an insured's specific loss that will be received by a public adjuster shall be disclosed by the public adjuster to the insured in writing, including the source and amount of any such compensation; (5) a public adjuster shall not agree to any settlement without the insured's knowledge and consent; (6) no public adjuster, while so licensed by the superintendent, shall represent or act as a staff adjuster or an independent adjuster; (7) the contract shall not be construed to prevent an insured from pursuing any civil remedy after the three-business day revocation or cancellation period; and (8) a public adjuster shall ensure that all contracts for the public adjuster's services are in writing and set forth all terms and conditions of the engagement. C. A person shall not accept a commission, service fee or other valuable consideration for investigating or settling claims in New Mexico if that person is required to be licensed under the Insurance Code and is not so licensed.