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HF2608 (Legislative Session 94 (2025-2026))

Public adjuster prohibited from appearing as an advocate in any action or proceeding.

Related bill: SF2869

AI Generated Summary

Purpose of the Bill

The bill aims to regulate the activities of public adjusters in Minnesota to ensure ethical practices and prevent conflicts of interest.

Main Provisions

  • Prohibited Practices: The bill expands upon the existing rules by specifying additional prohibited actions for public adjusters. It bars them from:
    • Appearing as an advocate or representative in any legal action or proceeding before an administrative tribunal, including arbitration.
    • Engaging in practices such as paying for client referrals, rebating fees, or making false statements about insurance companies or their personnel.
    • Simultaneously representing both an insurer and an insured, which would pose a conflict of interest.
    • Initiating client contact during unsociable hours (before 8 a.m. or after 8 p.m.).
    • Having a financial interest in related businesses like construction, salvage, or appraisal firms, unless appropriately licensed.

Significant Changes to Existing Law

  • The major change introduced in this bill is the prohibition of public adjusters from acting as advocates in legal or administrative proceedings. This alters the scope of activities they can perform, focusing on maintaining impartiality and reducing potential conflicts of interest.

Relevant Terms

public adjuster, conflict of interest, ethical practices, administrative tribunal, arbitration, false statements, insurance advocacy

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 19, 2025HouseFloorActionIntroduction and first reading, referred toCommerce Finance and Policy

Citations

 
[
  {
    "analysis": {
      "added": [
        "Prohibits public adjusters from appearing as advocates in any action or proceeding, including administrative tribunals and arbitrations per section 65B.525."
      ],
      "removed": [],
      "summary": "This bill amends prohibitions on practices by public adjusters under section 72B.135.",
      "modified": []
    },
    "citation": "72B.135"
  },
  {
    "analysis": {
      "added": [
        "Referenced as part of new prohibitions on where public adjusters cannot act as advocates."
      ],
      "removed": [],
      "summary": "Referenced in relation to prohibiting public adjusters from participating in arbitrations.",
      "modified": []
    },
    "citation": "65B.525"
  }
]

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