KS Public Adjuster cheat sheet

Licensing authority is the Kansas Insurance Department (KID), acting through the Commissioner of Insurance, which issues, renews, suspends, revokes, and fines public adjuster licenses and adopts implementing regulations.

Kansas established a public adjuster license class in 2022; before that date no such license existed. Acting for compensation on a first-party claim without the license is unlicensed adjusting subject to KID enforcement.

Licensed activity covers soliciting, negotiating, and settling first-party claims on behalf of an insured. It does not cover representing insurers, adjusting third-party liability claims, or practicing law.

Application elements typically include a licensing exam, fingerprint-based criminal history check, fees, and a character-and-competence review; nonresidents may qualify through reciprocity or a uniform multistate application.

Contested licensing actions follow the Kansas Administrative Procedure Act: notice of charges, an opportunity for hearing, written findings, and appeal rights.

Licensees renew on the KID cycle, complete continuing education including an ethics component, and must report address changes and disciplinary actions promptly.

KID enforcement tools include fines, cease-and-desist orders, probation, suspension, and revocation for unlicensed activity, fee violations, misrepresentation, or dishonest dealing.

Contract, fee, and claim records must be retained and produced to KID on request during an examination or consumer complaint investigation.

Insurer claim conduct is separately governed by Kansas unfair claims settlement practices provisions; a public adjuster's own conduct is measured against the same fair-dealing standard even though the statutes address insurers.

Fiduciary duty: the public adjuster owes the insured loyalty, confidentiality, accurate accounting of claim funds and fees, and disclosure of any personal interest in a repair or restoration vendor.

Dual representation is prohibited: an adjuster may not act for the insurer and the insured on the same loss, and may not hold an insurer appointment covering the same claim.

Prohibited compensation includes referral fees, kickbacks, finder's fees, and fee splits with contractors, roofers, restoration firms, attorneys, or unlicensed persons.

Prohibited fee practices: charging a fee before a written contract is signed, collecting for services not performed, or accelerating the full fee on a partial payment without contractual basis.

No legal advice: explaining policy language and computing amounts is adjusting; drafting pleadings, advising on litigation strategy, or interpreting court orders is the practice of law.

No misrepresentation of policy terms, coverage, or the insurer's obligations, even to strengthen a negotiating position or to move a stalled claim.

The adjuster cannot settle, sign a release, endorse a payment, or bind the insured to an appraisal award without express written authority.

Solicitation at a loss scene or during a declared disaster is restricted; high-pressure, misleading, or after-hours door-to-door solicitation is treated as an unfair practice.

Accepting compensation from a contractor whose bid the adjuster is advocating creates an undisclosed conflict and undermines the credibility of the entire estimate.

HO-3: dwelling and other structures open peril, personal property named peril. HO-5: both open peril. The form controls which party bears the burden of proving an exclusion applies.

ACV = RCV - depreciation. Recoverable depreciation is withheld until repair or replacement is complete and documented within the policy deadline.

Percentage wind/hail deductibles in Kansas apply to the dwelling limit, not the claim amount: a 2% deductible on a $400,000 dwelling is $8,000, which can exceed a small claim.

Commercial coinsurance: recovery = (insurance carried / insurance required) x loss, capped at the policy limit, where insurance required = coinsurance percentage x value at time of loss.

Common exclusions: flood, earth movement, neglect, wear and tear, faulty workmanship, intentional acts. Ensuing-loss provisions can restore coverage for resulting damage from an excluded cause.

Duties after loss: prompt notice, protect the property from further damage, prepare an inventory, cooperate with investigation, submit a sworn proof of loss, and submit to examination under oath.

Loss of use covers additional living expense and fair rental value during the period of restoration, usually above the dwelling limit and subject to a time or dollar cap.

Appraisal resolves disputes about the amount of loss only; coverage disputes go to court. Suit-limitation clauses commonly run one to two years from the date of loss.

Limited additional coverages that are frequently missed: ordinance or law, debris removal, water backup, trees and shrubs, fire department service charges, and credit card or spoilage limits.

Document before disturbing the scene: wide shots, close-ups with a scale reference, moisture readings, a dimensioned sketch, and a photo log tied to timestamps and locations.

Separate cause from damage. Wind, flood, rot, and wear and tear can produce visually similar results, but only the covered peril triggers payment.

Preserve evidence. Do not discard damaged items until the insurer inspects or the adjuster has fully documented them; destruction of evidence can defeat the claim.

Corroborate the date of loss with NOAA or National Weather Service storm reports, utility outage logs, security footage, and neighbor statements.

Build a claim index: signed contract, complete policy, correspondence log, proof of loss, contents inventory, estimates, photos, expert reports, and payment ledger.

Contents inventory fields: item, quantity, age, purchase price, replacement cost, pre-loss condition, and supporting proof such as receipts, photos, or bank statements.

Retain experts in writing with a defined scope and credentials; engineer, industrial hygienist, and CPA reports anchor causation, scope, and business income valuation.

Track mitigation costs (water extraction, tarping, boarding, mold remediation) as separate line items with invoices, equipment logs, and dates of service.

RCV - depreciation = ACV; recoverable depreciation is released after completion. Holdback deadlines and notice requirements are policy-specific and often short.

Line-item estimating uses quantity x unit price plus material sales tax plus overhead and profit; compare insurer and adjuster estimates line by line rather than in total.

Overhead and profit is customarily 10% overhead plus 10% profit, applied to trades a general contractor would manage, not automatically to every line item.

Roof measurement: one square = 100 square feet; add a waste factor (commonly 10-15%) plus ridge, hip, valley, step flashing, and starter and drip edge quantities.

Depreciation methods include straight-line by age and expected useful life, and condition-based adjustment; state the method and the assumed useful life in the file.

Code-required upgrades such as current electrical service, guardrail height, or egress windows are payable only where ordinance or law coverage exists; otherwise the insurer owes like-kind replacement.

Business income equals actual loss sustained during the period of restoration, less continuing expenses saved, subject to coinsurance, a waiting period, and any monthly limit.

Salvage value, betterment, and prior unrepaired damage reduce the net payable amount; document the reasoning and the price basis for every deduction contested.

Negotiate from a documented scope comparison, not a lump-sum demand. Itemize each disputed line with measurements, code citations, photos, and manufacturer specifications.

Obtain written settlement authority from the insured before accepting any figure; the public adjuster cannot bind the client to an amount or to a release.

Calendar the proof-of-loss deadline and the suit-limitation date. A demand letter should state the deadline and expressly preserve the insured's rights.

Undisputed amounts should be paid while disputed items continue to be negotiated; withholding the entire claim over a partial dispute can be an unfair claims practice.

Review release language for scope: it should cover only the settled items and should not waive additional living expense, undiscovered damage, or future supplements.

Use appraisal when the only dispute is the amount of loss; use mediation or a KID consumer complaint when the insurer is unresponsive or delays payment.

Memorialize every offer, counteroffer, and payment in writing with date, amount, and items covered, so the negotiating history is reconstructable.

Track patterns of delay or repeated low offers; documented patterns support a statutory unfair-claims complaint and preserve the insured's bad-faith position.

The contract must be written, dated, signed by the insured, and state the fee as a specific percentage or amount of the recovery, including how the base is calculated and paid.

The insured has a short statutory right to cancel in writing within a set number of business days after signing, with refund of unearned fees or deposits.

The agreement must identify the insurer, the policy number, the loss location, the date of loss, and the services to be performed.

No assignment of the insured's rights and no power of attorney broader than representing the insured on the specified claim.

The fee is generally not owed on amounts the insured recovered independently, on payments made before the contract, or on undisputed amounts the adjuster did not help obtain.

Consumer disclosures should include KID contact information, the complaint process, and a clear statement that the public adjuster does not represent the insurer.

Furnish a fully signed copy to the insured at signing and retain one in the claim file; missing copies are a common audit finding.

Prohibited or unenforceable terms include waiver of the insured's right to sue, mandatory binding arbitration of fee disputes, and automatic acceleration of the full fee on a partial payment.

Declared catastrophe conditions: solicitation timing restrictions apply, license and photo identification must be displayed, and a written contract is required at first contact with the loss victim.

Fraud indicators: loss date inconsistent with weather records, receipts that do not match inventory, inflated quantities, staged or pre-existing damage, and multiple policies on one loss.

Document red flags factually and neutrally; avoid accusations in correspondence unless supported by evidence, because unfounded accusations expose the adjuster to liability.

Report suspected fraud to the insurer's special investigation unit and to the Kansas Insurance Department fraud division; good-faith reports are generally protected from civil liability.

Never submit or assist in submitting a statement known to be false; exposure includes criminal insurance fraud charges, restitution, and license revocation.

Verify the date of loss against weather data during catastrophe events, where consolidated and duplicate claims commonly surface.

Maintain surge-staffing records and confirm every representative handling a Kansas catastrophe claim holds a current Kansas license.

Cooperate with insurer investigations while keeping the insured informed of the process, their duties after loss, and the status of the claim.