KS Public Adjuster flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Kansas public adjuster license

A license issued by the Kansas Insurance Department under the state's public adjuster statute enacted in 2022, required before anyone may solicit, negotiate, or settle a first-party claim for an insured for compensation.

Commissioner of Insurance

Kansas's elected insurance regulator, who heads the Kansas Insurance Department and holds authority to issue, suspend, revoke, and fine public adjuster licenses and to adopt implementing regulations.

Unlicensed adjusting

Negotiating or settling a first-party property claim on behalf of an insured for compensation without holding a Kansas public adjuster license; a violation subject to cease-and-desist orders and civil penalties.

Nonresident licensing

Kansas may license applicants who reside in other states, typically through reciprocity or a uniform multistate application, but the applicant must still satisfy Kansas examination, background, and fee requirements.

Fiduciary duty

The public adjuster's obligation to act solely in the insured's interest, disclose conflicts of interest, account accurately for claim funds and fees, and never take a position adverse to the client without consent.

Referral fee prohibition

Paying or accepting compensation for steering a claim to a contractor, roofer, restoration firm, attorney, or another adjuster is prohibited; such payments create an undisclosed conflict and can result in license discipline.

Dual representation

Acting for both the insurer and the insured on the same loss is prohibited; an adjuster may not hold an insurer appointment covering a claim the adjuster is handling for the policyholder.

Unauthorized practice of law

A public adjuster may explain policy terms and negotiate claim amounts but may not give legal advice, draft pleadings, or represent the insured in litigation; those activities are reserved for licensed attorneys.

Replacement cost value

The cost to repair or replace damaged property with new materials of comparable kind and quality, without deduction for depreciation, usually subject to policy limits and a duty to actually repair or replace.

Actual cash value

Replacement cost minus depreciation, reflecting the pre-loss value of the damaged property; Kansas policies define the term, and some use market value for older or unique structures.

Coinsurance formula

Recovery equals insurance carried divided by insurance required, multiplied by the loss, where insurance required equals the coinsurance percentage stated in the policy times the property's value at loss.

Appraisal clause

A policy provision allowing either party to demand appraisal when they disagree only on the amount of loss; each side selects a competent appraiser and the two appraisers choose an umpire.

Sworn proof of loss

A signed, notarized statement from the insured itemizing the loss, its cause, and the amount claimed; insurers may require it, and it must be accurate and timely to avoid denial.

Examination under oath

A recorded, sworn interview of the insured conducted by the insurer after a loss; the policy requires cooperation, and answers can be used to test the consistency of the claim.

Chain of custody

A documented record showing who handled evidence, such as damaged parts or material samples, and when; it protects the evidentiary value of items removed from the loss site.

Cause and origin

The forensic determination of what started the loss, such as a faulty appliance or lightning strike, and where it began; it decides whether a covered peril or an exclusion applies.

Line-item estimate

A room-by-room, quantity-times-unit-price estimate of repairs with labor, material, waste, tax, and overhead components, used to compare scopes and support negotiation of disputed items.

Overhead and profit

A percentage added to a repair estimate to cover a general contractor's indirect costs and margin, commonly ten percent each for overhead and profit on complex or multi-trade losses.

Recoverable depreciation

The withheld portion of replacement cost that the insurer releases after the insured completes repairs or replacement and submits proof, typically within a policy-specified time limit.

Betterment

An improvement over pre-loss condition, such as upgraded roofing or flooring; insurers may deduct its value because the insured is left with property newer or better than before the loss.

Settlement authority

Written permission from the insured allowing the public adjuster to accept a specific amount; without it, an adjuster cannot bind the client to a settlement or release.

Scope dispute

A disagreement over what repairs are necessary rather than what they cost; it is resolved by documented measurements, photographs, code citations, manufacturer specifications, and expert opinions.

Release of claims

A document ending the insurer's liability for the loss in exchange for payment; it should be reviewed to confirm it covers only items actually settled and does not waive undiscovered damage.

Suit limitation period

The contractual deadline, often one to two years after the loss, for filing suit when a claim is not resolved; missing it can bar the claim regardless of its merit.

Right to rescind

The insured's limited window, measured in business days after signing the public adjuster contract, to cancel in writing without penalty and recover any deposit or fee already paid.

Fee disclosure

The contract must state the public adjuster's compensation as a specific percentage or amount, explain how it is calculated, and disclose that it is paid from claim proceeds.

Contingent fee

Compensation tied to the amount recovered, so the adjuster is paid only when the claim pays; the percentage and the base amount it applies to must be spelled out.

Unconscionable contract terms

Provisions that unfairly limit the insured's rights, such as waiving the right to sue or granting the adjuster broad power of attorney, may be unenforceable and violate consumer protection rules.

Catastrophe solicitation

After a declared disaster, unsolicited door-to-door contact with loss victims is restricted; the public adjuster generally must wait for the insured to request help or comply with state timing rules.

Red flag indicators

Facts suggesting possible fraud, including a loss date that conflicts with weather records, altered or missing receipts, inflated inventories, or damage inconsistent with the reported cause.

Fraud referral duty

A public adjuster who suspects a fraudulent claim should document the factual basis and report it to the insurer's investigation unit and the Kansas Insurance Department fraud division rather than submit it.

Good-faith immunity

Kansas law generally protects a person who reports suspected insurance fraud in good faith from civil liability, which encourages reporting without fear of a defamation lawsuit.