Expired License, Unlicensed Technician, and a Mortgage Check

Owen is adjusting while his Georgia license is expired, which is unlicensed activity. Continuing to negotiate the two open claims, advertising himself as licensed, and holding himself out as a public adjuster all compound the problem. Ben is also performing public adjusting without a license. Meeting insureds, inspecting damage, discussing coverage, and telling an insurer that he is "authorized to settle" for a percentage of the claim are not clerical tasks. Clerical work includes scheduling, copying, filing, and transmitting documents; it does not include coverage advice, claim negotiation, or settlement authority. Owen cannot cure Ben's status by calling him a technician. The adjuster should stop all claim activity, remove the misleading advertising, and have no unlicensed person negotiate or settle claims. The insurer is entitled to deal only with authorized representatives, and the proof-of-loss request should be handled by a properly licensed adjuster or by the insured directly.

Continuing to adjust while expired exposes Owen to cease-and-desist orders, fines, license denial or revocation, and possible contract rescission. Contracts signed or performed during the lapse may be challenged, and the insurer may refuse to recognize his authority. Advertising that he is licensed when he is not is a separate misrepresentation. Owen should immediately stop negotiating both claims, notify the insureds in writing, and give them the opportunity to retain a properly licensed adjuster. He should complete the missing continuing-education requirements, apply for reinstatement or renewal under the Commissioner's procedures, and pay any late fees or penalties. He should correct the website and advertisements and retain proof of the corrections. If he has already received fees for work during the lapse, he should review whether those fees must be refunded or adjusted. He should not wait to "fix the license later" while continuing to act; the cure must precede any further adjusting activity.

The check is payable to the insured and the mortgage company, so Owen cannot unilaterally endorse it or deposit it into his operating account. He should explain that the insured and mortgagee must endorse according to the policy and lender requirements. If the public adjuster contract authorizes a fee, the fee should be calculated from the written contract and disclosed in a settlement statement. The adjuster should not ask the insured to divert the entire check or to pay the fee before the mortgagee's interest is addressed. If Owen handles client funds, he should use a trust or escrow account and obtain written authorization for any deduction. The insurer and mortgagee may require a separate endorsement or a direction to pay. Owen should coordinate with the mortgage company, provide the closing statement, and document all disbursements. Any fee taken during the period of expired licensure should be reviewed for refund or renegotiation, and the insured should receive a clear accounting of the settlement.