Understanding the Role of the Public Adjuster under Pennsylvania Law
The role of public adjusters is clearly set forth under Pennsylvania Law. Public adjusters advise and assist the policyholder with their insurance claim. See 63 P.S. § 1601.
Public adjusters do not “represent” anyone. Public adjusters are not attorneys, nor are public adjusters representatives or employees of an insurance company.
The public adjuster-policyholder relationship is regulated by statute. Public adjusters must provide a written contract that discloses their fee, and that the fee will come from a portion of the payment from the insurance company with no additional fees. Public adjusters must inform policyholders of their ability to rescind the contract within three days after signature. They must also provide the policyholders copies of any estimates, reports of losses, and supporting documents sent to the insurance company on their behalf. See 63 P.S. § 1605.
Public adjusters cannot work on claims for personal injury or automobile property damage. Additionally, public adjusters cannot directly or indirectly perform any repair, replacement, restoration or demolition work at the damaged property before payment is received from the insurance company.
It is important to understand the role of public adjusters in an insurance claim. If you have any questions, or would like additional information, please contact a member of Timoney Knox’s Insurance Industry Practice Group. (March 31, 2020)