NE Code § 44-9214 (2021)
2021 Nebraska Revised Statutes|Chapter 44 - Insurance|44-9214 - Contracts; contents; prohibited terms; separate disclosure document; public adjuster; duties; written notice of rights; right to rescind.

44-9214.  Contracts; contents; prohibited terms; separate disclosure document; public adjuster; duties; written notice of rights; right to rescind.(1) Public adjusters shall ensure that all contracts for their services are in writing and contain the following terms:(a) Legible full name of the public adjuster signing the contract, as specified in director records;(b) Home state, business address, and telephone number;(c) Public adjuster license number;(d) Title of "Public Adjuster Contract";(e) Insured’s full name, street address, insurer name, and insurance policy number, if known or upon notification;(f) Description of the loss and its location, if applicable;(g) Description of services to be provided to the insured;(h) Signatures of the public adjuster and the insured;(i) Date contract was signed by the public adjuster and date the contract was signed by the insured;(j) Attestation language stating that the public adjuster is fully bonded pursuant to state law; and(k) The specific amount of compensation, including, but not limited to, the full salary, fee, commission, or other consideration the public adjuster is to receive for services.(2)(a) The contract may specify that the public adjuster shall be named as a co-payee on an insurer’s payment of a claim.(b) If the compensation is based on a share of the insurance settlement, the exact percentage shall be specified.(c) Initial expenses to be reimbursed to the public adjuster from the proceeds of the claim payment shall be specified by type and the dollar estimates shall be set forth in the contract. Any additional expenses shall be approved in writing by the insured.(d) Compensation provisions in a public adjuster contract shall not be redacted in any copy of the contract provided to the director.(3) If the insurer, not later than seventy-two hours after the date on which the loss is reported to the insurer, either pays or commits in writing to pay to the insured the policy limit of the insurance policy, the public adjuster shall:(a) Not receive a commission that consists of a percentage of the total amount paid by an insurer to resolve a claim;(b) Inform the insured that the loss recovery amount might not be increased by the insurer; and(c) Be entitled only to reasonable compensation from the insured for services provided by the public adjuster on behalf of the insured, based on the time spent on a claim and expenses incurred by the public adjuster, until the claim is paid or the insured receives a written commitment to pay from the insurer.(4) A public adjuster contract may not contain any contract term that:(a) Allows a percentage fee to be collected by the public adjuster when money is due from an insurer, but not paid, or that allows a public adjuster to collect the entire fee from the first check issued by an insurer, rather than as a percentage of each check issued by an insurer;(b) Requires the insured to authorize an insurer to issue a check only in the name of the public adjuster;(c) Imposes collection costs or late fees; or(d) Precludes a public adjuster from pursuing civil remedies.(5) Prior to the signing of the contract the public adjuster shall provide the insured with a separate disclosure document regarding the claim process that states:(a) Property insurance policies obligate the insured to present a claim to his or her insurer for consideration;(b) There are three types of adjusters that could be involved in the claim process. The definitions of the three types are as follows:(i) Company adjuster means an insurance adjuster who is an employee of an insurer. He or she represents the interest of the insurer, is paid by the insurer, and will not charge the insured a fee;(ii) Independent adjuster means an insurance adjuster who is hired on a contract basis by an insurer to represent the interest of the insurer in the settlement of the claim. He or she is paid by the insurer and will not charge the insured a fee; and(iii) Public adjuster means an insurance adjuster who does not work for any insurer. He or she works for the insured to assist in the preparation, presentation, and settlement of the claim. The insured hires a public adjuster by signing a contract agreeing to pay a fee or commission based on a percentage of the settlement or other method of compensation;(c) The insured is not required to hire a public adjuster to help the insured meet the insured’s obligations under the policy, but has the right to do so;(d) The insured has the right to initiate direct communications with the insured’s attorney, the insurer, the company adjuster, and the insurer’s attorney, or any other person regarding the settlement of the insured’s claim;(e) The public adjuster is not a representative or employee of the insurer; and(f) The salary, fee, commission, or other consideration to be paid to a public adjuster is the obligation of the insured, not the insurer.(6) The contract shall be executed in duplicate to provide an original contract to the public adjuster and an original contract to the insured. The original contract retained by the public adjuster shall be available at all times for inspection without notice by the department.(7) The public adjuster shall provide the insurer a notification letter, which has been signed by the insured, authorizing the public adjuster to represent the insured’s interest.(8) The public adjuster shall give the insured written notice of the insured’s rights as provided in this section.(9) The insured has the right to rescind the contract within three business days after the date the contract was signed. The rescission shall be in writing and mailed or delivered to the public adjuster at the address in the contract within the three-business-day period.(10) If the insured exercises the right to rescind the contract, anything of value given by the insured under the contract will be returned to the insured within fifteen days following the receipt by the public adjuster of the rescission notice.(11) The director may require a public adjuster to file a contract with the department in a manner prescribed by the director.Source Laws 2018, LB743, § 14.