2016 Delaware Code
Title 18 - Insurance Code
CHAPTER 17A. LICENSING OF PUBLIC ADJUSTERS
§ 1758. Prohibited acts.

(a) Notwithstanding any other grounds for disciplinary action provided for in this chapter, the Commissioner may deny, revoke, suspend, refuse to renew or impose a penalty on an applicant or licensee for violation of the prohibited acts set out in this section.

(b) A licensed public adjuster is prohibited from:

(1) Paying any money or giving anything of value to any person in consideration of a direct or indirect referral of a client or potential client;

(2) Paying any money or giving anything of value to any person in consideration as an inducement to refer business or clients;

(3) Charging, collecting, or receiving any money or anything of value from any person providing services to an insured, either directly or on behalf of the public adjuster, in connection with the business of adjusting insurance claims, without the prior written disclosure of the fee or benefit to the insured;

(4) Rebating to any client any part of a fee specified in the employment contract;

(5) Splitting the licensed public adjuster's fees or paying any money to any person for services rendered to a client unless such other person is also licensed as a public adjuster;

(6) Having any interest directly or indirectly in any home improvement, restoration, construction, salvage, appraisal, loss mitigation, cleaning or environmental restoration business that conducts business in the State;

(7) In connection with the licensee's conduct of business as public adjuster, making any misrepresentation of facts or advising any person on any question of law;

(8) Making false statements about any insurance company or its employees, agents or representatives;

(9) Soliciting the employment by a client in connection with any loss which is the subject of an employment contract involving the client and another public adjuster;

(10) Representing both the insurer and the insured; or

(11) Advancing any money to a client pending the settlement of a loss where such amount would be included in the final settlement.

(c) A violation of § 1758 of this title shall be construed to be a violation of the applicable provisions of the Delaware Unfair Trade Practices Act [Chapter 25 of Title 6] and the Unfair Claims Settlement Practices Act [Chapter 23 of this title] and may constitute a violation of the Delaware Insurance Fraud Statute [§ 2407 of this title].

(d) A public adjuster shall also be subjected to the penalties applicable to licensees under Chapter 17 of this title.

74 Del. Laws, c. 178, § 1; 70 Del. Laws, c. 186, § 1.;