Ethics, Consumer Protection, and Georgia Insurance Law
What this domain tests
This domain tests the ethical duties of a Georgia public adjuster and the consumer-protection statutes enforced by the Commissioner. Expect questions on fiduciary responsibility, conflicts of interest, rebating, misrepresentation, contract disclosures, claim funds, privacy, and discipline.
Core rules
- A public adjuster owes the insured loyalty and honest dealing. Claim funds and client money must not be commingled with the adjuster's business or personal funds. Keep accurate records of fees, payments, and expenses.
- Prohibited conduct includes rebating, kickbacks, false advertising, misrepresenting policy terms, coercing an insured, unfair discrimination, sharing fees with unlicensed persons, and practicing law without a license. A referral arrangement with a contractor that pays the adjuster a percentage of the repair invoice is a conflict and a disguised fee split.
- Georgia's Unfair Trade Practices Act, O.C.G.A. Title 33, Chapter 6, prohibits misrepresentation, false advertising, coercion, and unfair claim settlement practices. Public adjusters are licensees and can be disciplined for conduct that would be prohibited for insurers or agents.
- The public adjuster contract must identify the parties, describe the services, state the compensation, disclose that the adjuster does not represent the insurer, and explain the insured's cancellation right. The adjuster must not imply state endorsement or an official title.
- Consumer protections include notice of cancellation and nonrenewal, premium refunds, access to the Department's complaint process, and privacy of personal information. Fraud should be reported and never assisted.
- Penalties include fines, suspension or revocation, restitution, cease-and-desist orders, and criminal referral for fraud. A contract obtained by misrepresentation may be rescinded.
Worked example
At a storm-damaged neighborhood, an adjuster says, I am with the state, and offers a gift card to anyone who signs immediately. The statement falsely implies government authority, the gift card is an unlawful inducement, and the pressure tactic undermines the cancellation right. The contract is vulnerable to rescission, and the adjuster faces discipline for misrepresentation and unethical solicitation. A compliant approach identifies the adjuster as a licensed public adjuster, explains the fee and cancellation right, and leaves the contract for the insured to review.
Traps
Do not assume a disclosed contractor referral fee is acceptable; fee sharing with unlicensed persons and conflicts of interest remain prohibited. Do not give legal advice, promise a claim outcome, or describe yourself as endorsed by the state. Never commingle claim proceeds with operating funds.