Public Adjuster Regulation and Ethics (Professional Responsibility)
Professional responsibility in practice
Maryland's public adjuster rules are tested through scenarios, not just definitions. The adjuster owes the client loyalty, but also owes the insurer and the MIA accurate information. Prohibited conduct includes unlicensed adjusting, misrepresenting policy provisions, submitting altered invoices, and accepting compensation from both the insured and the insurer for the same claim.
Records and communication
Keep a claim file with the policy, correspondence, photographs, estimates, inventories, and signed authorizations. Communicate material developments to the client. Explain that the adjuster cannot decide coverage; the insurer does, subject to the policy and Maryland law. If a dispute arises, the appraisal clause or the MIA complaint process may be available.
Worked example
A client wants to add items that were not damaged to the contents inventory because "the insurer always cuts the first offer." Including them is a material misrepresentation. The correct response is to document only damaged items, explain the consequence of fraud, and pursue the legitimate claim fully. If the adjuster submits the false inventory, the license and the claim are both at risk.
Traps that cost marks
- Promising a settlement percentage or amount.
- Signing a contract on behalf of the insured.
- Failing to disclose a fee or a conflict.
- Advising the insured to skip the insurer's requested proof of loss.
- Sharing the client's claim information without authorization.