Public insurance adjusters.

Existing law, the Public Insurance Adjusters Act, governs the regulation, licensing, and registration of public insurance adjusters, as defined, and requires the Insurance Commissioner to administer the act. The act prohibits a licensee from acting within this state as a public insurance adjuster without having first entered into a written contract, and governs the form and content of the contract. The act requires the contract terms to prohibit a public adjuster's fee, commission, or other valuable consideration from causing the insured to receive less than any amount paid to the insured by the insurer prior to the date of the written contract. The act also requires the contract to include a description of the services to be provided to the insured and a statement of the compensation to the licensee. The act prohibits the contract terms from allowing a licensee to collect the entire fee from the first payment issued by an insurer, rather than as a percentage of each payment issued by an insurer. A person who violates these provisions is guilty of a misdemeanor. This bill would instead prohibit the contract terms from allowing a licensee's fee, commission, or other valuable consideration to be for, or be based upon, (1) any amount paid to the insured by the insurer prior to the date of the written contract or (2) an insurer's payment for a specific claim or coverage to which the services do not apply. The bill would revise the description of the services to be provided to the insured and the statement of the compensation to the licensee, to include the specific claim and coverage to which the services or the compensation, respectively, apply. The bill would also make technical and clarifying changes. Because a violation of these provisions would be a crime, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.