MN Public Adjuster cheat sheet

The Minnesota Department of Commerce regulates insurance producers, adjusters, and public adjusters; the Commissioner of Commerce administers the licensing system under Minnesota Statutes chapter 60K.

Insurance producer and adjuster licenses are issued for a term of two years and expire on October 31 of odd-numbered years unless renewed earlier.

A license must be renewed before expiration; a late renewal is permitted only within a grace period set by statute, and the licensee may not transact insurance during any lapse.

Continuing education: resident producers and adjusters must complete 24 credit hours per two-year license term, including at least 3 hours of ethics.

Prelicensing education is required for resident applicants; public adjuster applicants must complete the state-required prelicensing course before examination.

The Commissioner may deny, suspend, revoke, or fine a licensee for violations including misrepresentation, fraudulent claims practices, rebating, and failure to remit premiums.

Administrative actions are subject to the Minnesota Administrative Procedure Act; a licensee may request a contested-case hearing before an administrative law judge.

Minnesota law requires notification to the Commissioner of a change of name or address within a set period after the change, and of any administrative action taken by another state.

A public adjuster is a person who, for compensation, acts on behalf of an insured to negotiate or settle a first-party claim; the license is separate from the company/producer adjuster license.

Applicant must be at least 18 years old, complete the required prelicensing education, pass the public adjuster examination, and submit a fingerprint-based criminal history background check.

Applicant must not have a disqualifying criminal conviction or prior license revocation that bars licensure under Minnesota Statutes chapter 60K.

A surety bond is required in the amount set by statute, conditioned on faithful performance and accounting for funds received on behalf of insureds.

The license is issued for the standard two-year term and must be renewed with continuing education including ethics credits.

A public adjuster may not also hold a company adjuster or producer license that creates a conflict of interest in the same claim.

Nonresident applicants must hold a comparable license in good standing in their home state and comply with Minnesota reciprocity requirements.

Licensees must report changes in business address, name, and any disciplinary action in another jurisdiction to the Commissioner.

A written contract is required before the public adjuster provides services; the contract must be signed by the insured and disclose the fee or percentage and the method of calculation.

The compensation must be reasonable and disclosed in writing; Minnesota caps the public adjuster fee as a percentage of the insurance recovery as set by statute.

The contract must state that the public adjuster represents the insured, not the insurer, and must disclose that the insured may cancel within the statutory cancellation period.

The public adjuster must provide a copy of the signed contract to the insured at the time of signing and maintain records for the statutory retention period.

The adjuster must not advance funds to the insured or accept compensation contingent on an undisclosed arrangement with a contractor or vendor.

On settlement, the adjuster must account for funds received and remit the insured's portion promptly; commingling of client funds with the adjuster's own funds is prohibited.

The adjuster must not settle a claim without the insured's written authorization and must keep the insured informed of material developments.

Solicitation rules prohibit contacting an insured during a declared disaster emergency before the statutory waiting period, and prohibit misrepresenting the adjuster's authority.

Minnesota Statutes chapter 72A governs the business of insurance; chapter 60A contains the Unfair Insurance Practices Act and prohibited claim settlement practices.

Prohibited practices include misrepresentation of policy provisions, unreasonable delay in claim payment, failure to act promptly on communications, and offering inducements not specified in the policy.

A public adjuster must not engage in rebating, sharing commissions with unlicensed persons, or receiving compensation from both the insured and the insurer on the same claim.

Fiduciary duty: funds received on behalf of an insured are held in trust and must be accounted for and disbursed as directed.

The adjuster must protect confidential insured information and may not disclose claim details except as authorized or required by law.

Fraudulent claim activity, including knowingly presenting a false claim or assisting an insured in inflating a loss, is a crime and grounds for license revocation.

The adjuster must not misrepresent their license status, credentials, or relationship with the insurer, and must identify themselves accurately in all communications.

Recordkeeping and cooperation with Department of Commerce market conduct examinations is required; obstruction or false statements to the Commissioner are violations.