AB357,7 16Section 7. Chapter 629 of the statutes is created to read:
AB357,3,1717 chapter 629
AB357,3,1818 Public adjusters
AB357,3,19 19629.01 Definitions. In this chapter:
AB357,3,23 20(1) “Adjusting service” means an act to assist an insured, in exchange for
21compensation, with the preparation, completion, or filing of a first-party claim,
22including by negotiating values, damages, or depreciation or by applying the loss
23circumstances to insurance policy provisions.
AB357,3,25 24(2) “Compensation” means anything of value received directly or indirectly in
25return for the performance of an adjusting service.
AB357,4,2
1(3) “First-party claim” means a claim for damage or loss to real or personal
2property located in this state that is filed by an insured.
AB357,4,4 3(4) “Insured” means a person whose real or personal property is insured under
4an insurance policy against which a claim is or will be made.
AB357,4,6 5(5) “Public adjuster” means an individual who is registered with the
6commissioner under s. 629.02.
AB357,4,9 7629.02 Registration. (1) Requirement to register. (a) No individual may
8engage in any of the following activities unless the individual is registered as a public
9adjuster under this section:
AB357,4,1110 1. Perform, offer to perform, or publicly represent himself or herself as
11performing an adjusting service with respect to a first-party claim.
AB357,4,1412 2. Directly or indirectly solicit business, investigate or adjust losses, or advise
13an insured about a first-party claim for a person engaged in the business of providing
14an adjusting service.
AB357,4,1615 (b) No person may utilize the adjusting services of an individual if the person
16knows, or should know, that the individual is not registered under this section.
AB357,4,1717 (c) A contract entered into in violation of this subsection is void.
AB357,4,23 18(2) Application. An individual may apply for the registration required under
19sub. (1) by completing a form prescribed by the commissioner. The form shall require
20the individual to provide the individual's social security number and all
21documentation the commissioner determines is necessary and appropriate. The
22commissioner shall approve the individual's registration application if the
23commissioner determines the individual satisfies all the following conditions:
AB357,4,2524 (a) The individual has not committed any act that warrants the denial,
25suspension, revocation, or nonrenewal of a registration under s. 629.13.
AB357,5,2
1(b) The individual provides proof that he or she is trustworthy, reliable,
2financially responsible, and of good reputation.
AB357,5,33 (c) The individual pays the fee under s. 601.31 (1) (z).
AB357,5,64 (d) The individual maintains a home office in the individual's state of residence
5and is available to the public at that office through reasonable appointment hours
6or regular business hours.
AB357,5,77 (e) The individual is at least 18 years of age.
AB357,5,88 (f) The individual meets the requirement of s. 629.03.
AB357,5,119 (g) The individual supplies a bond that meets specifications established by the
10commissioner to guarantee faithful performance of the individual's duties and
11obligations as a public adjuster.
AB357,5,1512 (h) If the individual is not a resident of this state, the individual agrees to be
13subject to the jurisdiction of the commissioner and the courts of this state and to the
14commissioner's rules and orders with service of process as provided under ss. 601.72
15and 601.73.
AB357,5,17 16(3) Exceptions. Subsection (1) does not apply to any of the following
17individuals:
AB357,5,1918 (a) An attorney admitted to practice in this state while acting in the
19professional capacity as an attorney.
AB357,5,2120 (b) An individual who negotiates or settles claims arising under a life or
21disability insurance policy or an annuity contract.
AB357,5,2422 (c) An individual employed solely for the purpose of obtaining facts
23surrounding a loss or furnishing technical assistance to a public adjuster, including
24a photographer, estimator, private investigator, engineer, or handwriting expert.
AB357,5,2525 (d) An individual who settles subrogation claims between insurers.
AB357,6,2
1(e) An individual who is licensed as an intermediary under s. 628.04 or 628.09
2while acting in the professional capacity as an intermediary.
AB357,6,10 3(4) Renewal. A registration under sub. (2) shall remain in effect for 2 years
4from the date of issuance, unless it is revoked or suspended by the commissioner
5under s. 629.13. An individual may renew a registration by submitting, prior to the
6registration's expiration date, a request for renewal to the commissioner in the form
7prescribed by the commissioner. The request shall include evidence of compliance
8with s. 629.11 and payment of the fee under s. 601.31 (1) (zb). An individual who fails
9to renew a registration prior to the expiration date may reapply for registration
10under sub. (2).
AB357,6,17 11629.03 Examination. (1) Prior to the commissioner approving an
12individual's registration under s. 629.02 (2), the individual shall pass a written
13examination that tests knowledge of the duties and responsibilities of a public
14adjuster and the insurance laws and regulations of this state. The examination shall
15be conducted as prescribed by the commissioner and require payment of the fee
16under s. 601.31 (1) (zc). The commissioner may contract with an outside testing
17service for administering the examination and collecting the fee.
AB357,6,23 18(2) An individual who is not a resident of this state and who is a licensed or
19registered public adjuster in the individual's state of residence and was required to
20pass a written examination to obtain that license or registration may request the
21commissioner to accept proof of the examination's passage as fulfilling the
22requirement under sub. (1). The commissioner may approve the request if the
23individual's license or registration in that state is in good standing.
AB357,7,3 24629.04 Contract requirements. (1) A public adjuster may not perform any
25adjusting service for an insured prior to entering into a contract with the insured.

1The contract shall be in writing, be titled “Public Adjuster Contract,” and be on a form
2filed with the commissioner under s. 631.20 (1m). The contract shall include all of
3the following:
AB357,7,64 (a) The public adjuster's full name, state of residence, permanent principal
5business street address, telephone number, and registration number assigned by the
6commissioner.
AB357,7,77 (b) The insured's full name, street address, insurer name, and policy number.
AB357,7,88 (c) A description of the loss and its location.
AB357,7,109 (d) The date and time the contract was signed by the public adjuster and the
10insured.
AB357,7,1211 (e) An attestation by the public adjuster that he or she is fully bonded pursuant
12to state law.
AB357,7,1413 (f) A disclosure of the compensation the public adjuster is to receive in
14accordance with s. 629.05.
AB357,7,1615 (g) A provision allowing the insured to void the contract in accordance with sub.
16(3).
AB357,7,1817 (h) A statement that the contract shall constitute the entire agreement
18between the public adjuster and the insured.
AB357,7,20 19(2) A contract under sub. (1) may not require the insured to do any of the
20following:
AB357,7,2121 (a) Authorize an insurer to issue a check only in the name of the public adjuster.
AB357,7,2222 (b) Pay collection costs or a late fee to the public adjuster.
AB357,7,2423 (c) Limit the insured's right to pursue any civil remedy against the public
24adjuster.
AB357,8,11
1(3) At the insured's option, the insured may void a contract under sub. (1) no
2later than 5 business days after the contract's execution, except that the insured may
3void a contract no later than 10 business days after execution if the contract is
4executed no later than 5 business days after conclusion of the loss-producing
5occurrence. The insured may void the contract by sending notice by registered or
6certified mail, return receipt requested, to the public adjuster at the address on the
7contract or by personally serving notice on the public adjuster at the place of business
8identified on the contract. The public adjuster shall return anything of value
9provided under the contract by the insured no later than 15 business days following
10receipt of the notice. Nothing in this subsection prevents an insured from pursuing
11any civil remedy against a public adjuster.
AB357,8,14 12(4) A contract under sub. (1) shall be executed in duplicate with an original
13provided to the public adjuster and to the insured. The public adjuster shall make
14the contract available to the commissioner at all times for inspection without notice.
AB357,8,18 15(5) A public adjuster shall include with the contract under sub. (1) a notice of
16the insured's right to file a complaint with the commissioner about an insurance
17problem. The notice shall be on a single piece of paper that is separate from the
18contract and shall include all of the following:
AB357,8,1919 (a) The information described in sub. (1) (a).
AB357,8,2020 (b) A clear statement of the insured's right to file a complaint.
AB357,8,2221 (c) Information on how the insured may obtain a complaint form by contacting
22the office of the commissioner or from the office's Internet site.
AB357,8,2423 (d) The office of the commissioner's mailing address and phone numbers and
24the address of the office's Internet site.
AB357,9,6
1629.05 Compensation. (1) In this section, “catastrophic disaster” means an
2event that results in large numbers of deaths and injuries, causes extensive damage
3or destruction of facilities that provide and sustain human needs, produces an
4overwhelming demand on state and local response resources, causes a severe
5long-term effect on general economic activity, and severely affects state, local, and
6private-sector capabilities to begin and sustain response activities.
AB357,9,8 7(2) The contract under s. 629.04 shall clearly disclose the compensation the
8public adjuster is to receive from the insured.
AB357,9,12 9(3) If an insurer pays, or commits in writing to pay, the policy limit no later than
105 business days after the date the loss is reported to the insurer, the only
11compensation a public adjuster may receive from the insured shall be compensation
12at a reasonable hourly rate for the time spent on the claim.
AB357,9,14 13(4) A public adjuster may not demand compensation from the insured prior to
14the insured receiving payment from the insurer.
AB357,9,17 15(5) If an insurer pays a claim in installments, the public adjuster shall receive
16the compensation in equal amounts prorated over the number of checks issued by the
17insurer and may not demand to be paid entirely from the first check issued.
AB357,9,20 18(6) A public adjuster may not receive compensation in excess of 10 percent of
19an insured's actual recovery under the insurance policy if the claim is due to a
20catastrophic disaster.
AB357,9,25 21629.06 Disclosure of additional compensation. A public adjuster may not
22directly or indirectly accept compensation or anything else of value from an insured
23and a person who provides estimates for work or performs work in conjunction with
24damage or loss under a claim subject to a contract under s. 629.04 unless the public
25adjuster provides the insured with prior written notice. The notice shall clearly and

1conspicuously disclose any direct or indirect financial interest that the public
2adjuster has in the other person and all amounts to be paid, directly or indirectly, by
3the other person to the public adjuster. The notice shall be in the form prescribed by
4the commissioner and be provided prior to the date the insured incurs an obligation
5to make any payment under the contract or to the other person.
AB357,10,10 6629.07 Assignment of proceeds prohibited. (1) A public adjuster may not
7request or accept an assignment of insurance policy proceeds from an insured with
8whom the public adjuster has entered into a contract under s. 629.04. An insurer
9may not be required to honor an assignment of insurance policy proceeds to a public
10adjuster.
AB357,10,13 11(2) A public adjuster may request that an insurer include both the public
12adjuster and the insured on a check paying all or part of the proceeds of an insurance
13policy if the contract under s. 629.04 permits joint payment of proceeds.
AB357,10,18 14629.08 Escrow of funds. A public adjuster who, on behalf of an insured,
15receives, accepts, or holds any funds for the settlement of a first-party claim shall
16deposit the funds in a noninterest-bearing escrow account in a federally insured
17financial institution that is located in the state in which the insured resides or the
18loss occurred.
AB357,10,23 19629.09 Contractors. A public adjuster may not require an insured to use a
20particular contractor or vendor and may not take any action that vests the effective
21authority with the public adjuster to choose a person to perform work on the insured's
22claim. A contract under s. 629.04 shall state that the insured may choose any
23contractor or vendor.
AB357,10,25 24629.10 Prohibitions. In addition to the other prohibitions in this chapter, a
25public adjuster may not engage in any of the following activities:
AB357,11,2
1(1) Solicit, or attempt to solicit, an insured during the progress of a
2loss-producing occurrence, as defined in the insured's insurance policy.
AB357,11,4 3(2) Allow an unregistered employee or representative to perform an adjusting
4service for which registration is required under this chapter.
AB357,11,7 5(3) Own a direct or indirect financial interest in any aspect of a claim, other
6than the compensation agreed to under s. 629.04 (1) (f), unless notification is
7provided to the insured under s. 629.06.
AB357,11,9 8(4) Acquire an interest in salvage of the insured's property unless obtaining
9written permission from the insured after settlement of the claim.
AB357,11,13 10(5) Refer the insured to a person in whom the public adjuster has a direct or
11indirect financial interest or from whom the public adjuster may directly or
12indirectly receive anything of value for the referral unless notification is provided to
13the insured under s. 629.06.
AB357,11,14 14(6) Solicit an insured outside the hours of 9 a.m. and 6 p.m.
AB357,11,17 15(7) Undertake an adjusting service without being competent and
16knowledgeable about the terms and conditions of the insured's insurance coverage
17or if the loss or coverage exceeds the public adjuster's expertise.
AB357,11,19 18(8) Knowingly make a false material statement regarding any person engaged
19in the business of insurance to a client or potential client.
AB357,11,21 20(9) Act as an adjuster for an insurer or independent adjuster while registered
21under s. 629.02.
AB357,11,23 22(10) Agree to a settlement without the insured's knowledge and written
23consent.
AB357,12,3 24629.11 Continuing education. (1) A public adjuster shall complete, on a
25biennial basis, a minimum of 15 credits of continuing education, including 3 credits

1of ethics. Each credit shall consist of at least 50 minutes of instruction and shall be
2approved by the commissioner. A public adjuster shall report the credits in
3conjunction with the registration renewal under s. 629.02 (4).
AB357,12,10 4(2) An individual who is not a resident of this state and who is a licensed or
5registered public adjuster in the individual's state of residence and complies with
6continuing education requirements in that state that are substantially similar to the
7requirements under sub. (1) may submit to the commissioner proof of compliance
8with that state's requirements. If the individual's state of residence provides credit
9to the residents of this state on a reciprocal basis, the commissioner shall accept the
10proof of compliance as meeting the requirement under sub. (1).
AB357,12,16 11629.12 Reporting of administrative and criminal actions. (1) A public
12adjuster shall report to the commissioner any administrative action related to the
13business of insurance that is taken against the public adjuster by a governmental
14agency or regulatory body. The report shall be made no later than 30 days after the
15final disposition of the matter and shall include a copy of the order, consent to order,
16or similar document.
AB357,12,21 17(2) A public adjuster shall report to the commissioner any criminal prosecution
18taken against the public adjuster in any jurisdiction. The report shall be made no
19later then 30 days after the date of the initial pretrial hearing and shall include a
20copy of the complaint, the order from the hearing, and any other information
21required by the commissioner.
AB357,12,25 22629.13 Denial, suspension, or revocation of registration. The
23commissioner may, after a hearing, deny, suspend, revoke, or refuse to renew an
24individual's registration under s. 629.02 (2) or (4) or may levy a civil penalty, or both,
25upon a finding that the individual has done any of the following:
AB357,13,2
1(1) Provided false, misleading, or incomplete information in the registration
2application.
AB357,13,3 3(2) Failed to comply with any provision in this chapter.
AB357,13,5 4(3) Violated any insurance law or rule or any subpoena or order of the
5commissioner or insurance regulatory body of another state.
AB357,13,7 6(4) Obtained, or attempted to obtain, registration as a public adjuster through
7misrepresentation or fraud.
AB357,13,9 8(5) Misappropriated or otherwise improperly handled money or property
9received in the course of doing business as a public adjuster.
AB357,13,10 10(6) Intentionally misrepresented the terms of an insurance policy.
AB357,13,12 11(7) Been convicted of a felony related to the duties and obligations of a public
12adjuster or the business of insurance.
AB357,13,14 13(8) Admitted to committing, or is found to have committed, any insurance
14unfair trade practice or insurance fraud.
AB357,13,17 15(9) Used fraudulent, coercive, or dishonest practices, or demonstrated
16incompetence, untrustworthiness, or financial irresponsibility, in the conduct of
17business in any jurisdiction.
AB357,13,19 18(10) Had an intermediary license or public adjuster license or registration
19denied, suspended, or revoked in any jurisdiction.
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