Purpose of the Bill

The purpose of this bill is to regulate the activities of public adjusters in Minnesota. Public adjusters assist policyholders in preparing and negotiating insurance claims. This bill seeks to clarify and expand the list of prohibited practices for public adjusters, primarily to ensure ethical operations and protect consumers.

Main Provisions

• This bill amends Minnesota Statutes 2024, section 72B.135, subdivision 4.
• It adds a new restriction, prohibiting public adjusters from appearing as advocates or representatives in actions or proceedings before administrative tribunals, including arbitrations related to insurance claims.
• It reiterates existing prohibitions, such as:
  • Providing monetary incentives or gifts for the referral of clients.
  • Rebating parts of agreed fees to clients.
  • Initiating client contact outside of regular business hours (8 p.m. to 8 a.m.).
  • Splitting fees or paying others for services unless they are also licensed as public adjusters.
  • Holding interests in construction, salvage, or appraisal firms.
  • Misrepresenting facts or giving legal advice related to claims.
  • Making false statements about insurance companies or representatives.
  • Soliciting employment for claims already under contract with another adjuster.
  • Representing both the insurer and insured at the same time.
  • Advancing money to clients before a claim settlement if it affects the final claim amount.

Significant Changes

• The most significant change introduced by this bill is the explicit prohibition of public adjusters acting as advocates or representatives in any formal proceedings, including arbitration, which aims to delineate the roles between public adjusters and legal representatives more clearly.

Relevant Terms

public adjuster, advocate, administrative tribunal, arbitration, insurance claims, prohibited practices, consumer protection, ethical regulations, legal representatives.