2022 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 under this chapter, the Commissioner may deny, revoke, suspend, refuse to renew, or impose a penalty on an applicant or licensee for violation of acts prohibited under this section.
(b) A licensed public adjuster is prohibited from doing any of the following:
(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 this 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.
(11) Advancing any money to a client pending the settlement of a loss where such amount would be included in the final settlement.
(c) (1) A violation of this section is all of the following:
a. A prohibited trade practice under Chapter 25 of Title 6.
b. A violation of the Unfair Trade Practices Act under Chapter 23 of this title.
(2) A violation of this section may constitute insurance fraud under § 2407 of this title.
(d) A public adjuster is also subject to the penalties applicable to licensees under Chapter 17 of this title.
74 Del. Laws, c. 178, § 1; 70 Del. Laws, c. 186, § 1; 83 Del. Laws, c. 283, § 24;
