Mississippi Code 1972 (2023) › Title 83 - INSURANCE (§§ 83-1-1 — 83-NEW-004) › Chapter 17 - INSURANCE AGENTS, SOLICITORS, OR ADJUSTERS (§§ 83-17-1 — 83-17-527) › Article 11 - LICENSING OF PUBLIC ADJUSTERS (§§ 83-17-501 — 83-17-527) › Section 83-17-523 - Written contract required; compensation; cancellation of contract; ethical requirements

(1)
Public adjusters shall ensure that all contracts for their services are in writing, signed by the insured and the public adjuster who solicited the contract, and a copy of the contract shall be provided to the insured upon execution. All such contracts shall be subject to the following provisions:
(a)
No public adjuster shall charge, agree to, or accept as compensation any payment, commission, fee or other thing of value equal to more than ten percent (10%) of any insurance settlement or the proceeds of any claim investigated.
(b)
No public adjuster shall require, demand or accept any fee, retainer, compensation, deposit or other thing of value, prior to partial or full settlement of a claim.
(c)
Any costs to be reimbursed to a public adjuster out of the proceeds of a settlement shall be specified by kind and estimated amounts.
(d)
A public adjuster's contract with the insured shall be revocable or cancelable by the insured without cause and without penalty or obligation for at least five (5) business days after the contract is executed by the insured. Nothing in this provision shall be construed to prevent an insured from pursuing any civil legal remedy to revoke or cancel the contract after the expiration of such cancellation period.
(e)
No public adjuster may require that an insured authorize an insurer to issue a check only in the name of the public adjuster.
(f)
No public adjuster shall be entitled to any payment, commission, fee or other thing of value of any insurance settlement or agreed settlement that was made between the insured and the insurance company before the public adjuster and the insured entered into a contract for services.
(g)
If an insurance company extends a written settlement offer to the insured before the insured enters into a contract with a public adjuster for services, then a public adjuster may only be entitled to an amount that is no more than ten percent (10%) of the settlement amount that is in excess of the amount that was offered in writing to the insured prior to entering into the contract with the public adjuster.
(2)
Public adjusters shall adhere to the following ethical requirements:
(a)
No public adjuster shall undertake the adjustment of any claim for which the public adjuster is not currently competent and knowledgeable as to the terms and conditions of the insurance coverage, or which otherwise exceeds the public adjuster's current expertise.
(b)
No public adjuster shall, as a public adjuster, represent any person or entity whose claim the public adjuster has previously adjusted while acting as an independent adjuster representing any insurer, either directly or through an independent adjusting firm retained by the insurer.
(c)
A public adjuster shall not knowingly make any oral or written material misrepresentations or statements to any insured or potential insured which are false and intended to injure any person engaged in the business of insurance.
(d)
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.
(e)
A public adjuster shall advise each 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.
(f)
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 his choice.
(g)
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 any attorney at law (i) for referring claims to the attorney, or (ii) in connection with any claim for which the public adjuster has performed or intends to perform services.
(h)
No public adjuster shall split any attorney's fee with any attorney at law.
(i)
A public adjuster shall not testify as an expert witness in any judicial or administrative proceeding while maintaining a pecuniary interest in the outcome of the proceeding, as otherwise permitted by Section
83-17-523(1)(a)
; provided, however, that a public adjuster may testify as an expert witness if pursuant to the terms of his contract his compensation is converted to a specified hourly rate, which rate (i) is subject to such limitations as may be prescribed by the commissioner, and (ii) is not subject to any contingencies. In the event of a conversion of the public adjuster's contract to an hourly rate agreement, the prior fee arrangement shall be inadmissible at trial.
(j)
A public adjuster shall not participate, directly or indirectly, in the reconstruction, repair or restoration of damaged property that is the subject of a claim adjusted by the adjuster.
(k)
A public adjuster shall not engage in any activities that may be reasonably construed as a conflict of interest, including, directly or indirectly, soliciting or accepting any remuneration of any kind or nature.
(l)
A public adjuster shall not have a financial interest in any salvage, repair or any other business entity that obtains business in connection with any claim that the public adjuster has a contract to adjust.
Laws, 2007, ch. 497, § 12, eff. 7/1/2007.
Amended by Laws, 2024, ch. 452, HB 819,§ 4, eff. 7/1/2024.