Jurris.COM
Section 15027 Of Article 3. Regulation, Licensing, And Registration From California Insurance Code >> Division 5. >> Chapter 2. >> Article 3.
15027
. (a) No licensee shall, directly or indirectly, act within
this state as a public insurance adjuster without having first
entered into a contract, in writing, on a form approved by the
insurance commissioner and executed in duplicate by the public
adjuster and the insured or a duly authorized representative. One
original contract shall be kept on file by the licensee, available at
all times for inspection, without notice, by the commissioner or his
or her duly authorized representative, and one original contract
shall be given to the insured.
(b) The written contract between the licensee and the insured shall contain each of the following:
(1) Title of "Public Adjuster Contract."
(2) The name, business name, license number, telephone number, and address of the licensee.
(3) The name and address of the insured.
(4) A description of the loss and its location, if applicable.
(5) The name of the insurer and the policy number, if known.
(6) The full salary, fee, commission, or other consideration the licensee is to receive for services under the contract.
(7) A description of the services to be provided to the insured.
(8) Signatures of the licensee and the insured.
(9) The date the contract was signed by the licensee and the date the contract was signed by the insured.
(10) The following statement: "As a public adjuster, I am required by the California Insurance Code to post a surety bond in the sum of $20,000 to cover certain kinds of claims made by you, the insured. If you have any questions concerning the surety bond, you may contact the California Department of Insurance Producer Licensing Call Center at 1-800-967-9331 or www.insurance.ca.gov."
(11) A statement of the compensation to the licensee, including the percentage and base to which the percentage applies.
(12) A statement that the insured has the right to rescind the contract within three business days of signing it.
(c) A contract covered by this section shall not contain a contract term that does any of the following:
(1) Allows the licensee's fee to be collected when money is due from an insurer, but not paid, or allows 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.
(2) Requires the insured to authorize an insurer to issue a payment only in the name of the licensee.
(3) Imposes late fees or collection costs on the insured.
(d) No licensee shall solicit or attempt to solicit a client for employment during the progress of a loss-producing occurrence.
(e) No licensee or any other person or entity offering, for a fee, service regulated by this chapter shall solicit a client for employment or initiate any contact with a policyholder between the hours of 6 p.m. and 8 a.m.
(f) No licensee shall use any form of contract other than that approved by the commissioner and which contains each of the following:
(1) A provision allowing the client to rescind the contract by written notice sent or delivered by certified mail, return receipt requested, or other form of mailing which provides proof of mailing, to the licensee by midnight of the third business day after the day on which the client signs a contract which complies with this section. Each copy of the contract shall contain a completed form, captioned "Notice of Cancellation," which shall be placed at the end of the contract and be separated from the remainder of the contract by a printed line. Nothing shall be printed on the reverse side of the notice form. The notice form shall be completed by the licensee, and shall contain in type of at least 10-point the following statement written in the same language, e.g., Spanish, as used in the contract: Notice of Cancellation
(b) The written contract between the licensee and the insured shall contain each of the following:
(1) Title of "Public Adjuster Contract."
(2) The name, business name, license number, telephone number, and address of the licensee.
(3) The name and address of the insured.
(4) A description of the loss and its location, if applicable.
(5) The name of the insurer and the policy number, if known.
(6) The full salary, fee, commission, or other consideration the licensee is to receive for services under the contract.
(7) A description of the services to be provided to the insured.
(8) Signatures of the licensee and the insured.
(9) The date the contract was signed by the licensee and the date the contract was signed by the insured.
(10) The following statement: "As a public adjuster, I am required by the California Insurance Code to post a surety bond in the sum of $20,000 to cover certain kinds of claims made by you, the insured. If you have any questions concerning the surety bond, you may contact the California Department of Insurance Producer Licensing Call Center at 1-800-967-9331 or www.insurance.ca.gov."
(11) A statement of the compensation to the licensee, including the percentage and base to which the percentage applies.
(12) A statement that the insured has the right to rescind the contract within three business days of signing it.
(c) A contract covered by this section shall not contain a contract term that does any of the following:
(1) Allows the licensee's fee to be collected when money is due from an insurer, but not paid, or allows 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.
(2) Requires the insured to authorize an insurer to issue a payment only in the name of the licensee.
(3) Imposes late fees or collection costs on the insured.
(d) No licensee shall solicit or attempt to solicit a client for employment during the progress of a loss-producing occurrence.
(e) No licensee or any other person or entity offering, for a fee, service regulated by this chapter shall solicit a client for employment or initiate any contact with a policyholder between the hours of 6 p.m. and 8 a.m.
(f) No licensee shall use any form of contract other than that approved by the commissioner and which contains each of the following:
(1) A provision allowing the client to rescind the contract by written notice sent or delivered by certified mail, return receipt requested, or other form of mailing which provides proof of mailing, to the licensee by midnight of the third business day after the day on which the client signs a contract which complies with this section. Each copy of the contract shall contain a completed form, captioned "Notice of Cancellation," which shall be placed at the end of the contract and be separated from the remainder of the contract by a printed line. Nothing shall be printed on the reverse side of the notice form. The notice form shall be completed by the licensee, and shall contain in type of at least 10-point the following statement written in the same language, e.g., Spanish, as used in the contract: Notice of Cancellation
