Rule 19-1-36.10 - Written Contracts and Ethical RequirementsA. Written Contracts - all contracts shall be in writing, signed by the insured and the public adjuster who solicits the contract, and a copy of the contract shall be provided to the insured upon execution. Furthermore, all contracts must meet the following requirements: 1. A public adjuster may only receive compensation, payment, commission, fee or other thing of value of no more than ten percent (10%) of any insurance settlement or the proceeds of any claim investigated. The contract must expressly state that this may include monies from any previously proposed or received offers of settlement.2. No public adjuster may require, demand or accept any fee, retainer, and compensation, deposit of other thing of value, prior to partial or full settlement of the claim.3. Any additional costs to be reimbursed to the public adjuster shall be out of the proceeds of a settlement and shall be specified by kind and estimated amounts.4. The insured shall have the right to revoke the contract within five (5) business days after execution. The insured may also pursue any civil legal remedy to revoke or cancel the contract after the expiration of the cancellation period.5. A copy of the written contract shall be kept for at least five (5) years after the termination of the transaction and shall be open to the examination by the Commissioner at all times.6. Exhibit "B" is attached hereto containing all required provisions for use by public adjusters in their contracts.B. Ethical Requirements - A violation of the following may result in administrative action being taken by the Department against the public adjuster pursuant to the Act and Section 9 of this Regulation:1. No public adjuster shall undertake to adjust a claim for which he is not competent and knowledgeable to the terms and conditions of the insurance coverage or which otherwise exceeds the public adjuster's current expertise.2. No public adjuster may represent a person or entity for which the public adjuster previously adjusted a claim as an independent adjuster, either directly or indirectly.3. No public adjuster shall knowingly make any oral or written misrepresentations or statements to any insured or potential insured which are false and intended to injure any person engaged in the business of insurance.4. No public adjuster shall knowingly enter into a contract to adjust a residential property claim subsequent to a declaration of total loss by an insurer, unless the services to be provided by the public adjuster can reasonably be expected to result in the insured obtaining an insurance settlement, net of the public adjuster's compensation, in excess of the amount the insured would have obtained without the services of the public adjuster.5. At the time of entering into the contract, the public adjuster advise the insured that the insured has the right to retain an attorney at law of his choice throughout the public adjuster's investigation and adjustment of the claim.6. If the claim is not settled by the public adjuster, the public adjuster shall advise the insured that the insured has the right to retain an attorney at law of the insured's choice.7. No public adjuster shall contract for, agree to, or receive anything of value from any attorney at law or other person acting in concert with an attorney at law for referring claims to the attorney, or in connection with any claim for which the public adjuster has performed or intends to perform services.8. No public adjuster shall split any attorney's fee with any attorney at law.9. No public adjuster shall testify as an expert witness in any judicial or administrative action while maintaining a pecuniary interest in the proceeding. A public adjuster may testify as an expert witness if:a. His contract is converted to a specific hourly rate which constitutes reasonable, fair market value for the services provided as agreed upon by the parties; and,b. His contract is not subject to any contingency arrangement. Furthermore, the prior fee agreement between the insured and the public adjuster shall be inadmissible at trial.
19 Miss. Code. R. 1-36.10
Miss. Code Ann. §§ 83-5-1; 83-17-523 (Rev. 2011)