MS Public Adjuster cheat sheet

Mississippi licenses public adjusters under Miss. Code Ann. § 83-17-501 et seq.; a public adjuster represents the insured for compensation, while a company or independent adjuster represents the insurer.

Public adjuster license applicants must be at least 18, pass the state exam, submit fingerprints for a background check, and pay the prescribed fee; a surety bond or proof of financial responsibility is required.

A public adjuster license must be renewed biennially; continuing education (including ethics hours) must be completed before expiration or the license lapses and cannot be used until reinstated.

A public adjuster may not solicit a client within a statutory cooling-off period after a loss event; solicitation at the scene of a loss or during declared emergencies is restricted.

Compensation must be a stated percentage of the claim recovery and must be disclosed in a written contract signed by the insured; fees on undisputed policy proceeds are capped by statute.

A public adjuster contract must contain a right of rescission allowing the insured to cancel within a set number of days after signing, and the adjuster must give the insured a copy.

Licensees must report administrative actions, criminal charges, and changes of address to the Mississippi Department of Insurance within the statutory time frame.

Acting as a public adjuster without a license, or aiding an unlicensed person, is a violation subject to fines, restitution, and license revocation.

Indemnity principle: the insured should be restored to pre-loss financial position, no better; valued-policy and replacement-cost endorsements modify this baseline.

Insurable interest must exist at the time of loss for property coverage and at inception for life coverage; absence of insurable interest voids recovery.

Declarations page states named insured, policy period, limits, deductibles, and forms; the insuring agreement grants coverage, and exclusions remove it.

Duties after loss typically include prompt notice, proof of loss, protection of property, cooperation, and submission to examination under oath.

Coinsurance formula for property: (insurance carried ÷ insurance required) × loss = recovery, subject to the policy limit and deductible.

Actual cash value = replacement cost − depreciation; replacement cost pays new-for-old without depreciation, usually after repair or replacement occurs.

Utmost good faith imposes disclosure duties on both parties; material misrepresentation in the application can allow rescission of the policy.

Subrogation lets the insurer pursue third parties after paying a claim; the insured must not impair that right, and recovery is shared per policy terms.

Dwelling policies (DP-1, DP-2, DP-3) differ by perils covered: DP-1 basic named perils, DP-2 broad named perils, DP-3 open peril on the dwelling.

HO-3 covers the dwelling on an open-peril basis and personal property on a named-peril basis; HO-5 covers both on open peril.

Standard property exclusions include earth movement, flood, ordinance or law, intentional loss, neglect, and wear and tear; flood requires a separate policy or endorsement.

Loss settlement: apply deductible first, then coinsurance penalty if applicable, then policy limit; recoverable depreciation is released after proof of repair.

Additional coverages commonly include debris removal, reasonable repairs, trees and shrubs, and loss of use (fair rental value or additional living expense).

Proof of loss is a sworn statement of amounts claimed; failure to submit within the policy period can bar the claim unless the insurer waives the requirement.

Business income coverage pays net income loss plus continuing expenses during the period of restoration, typically with a 72-hour waiting period for civil authority.

Mortgagee clause gives the lender rights to receive loss payment and notice; the insured's acts do not always defeat the mortgagee's interest.

CGL occurrence-form policies cover bodily injury and property damage during the policy period; claims-made forms cover claims reported during the period, subject to retroactive date.

Liability determination requires duty, breach, proximate cause, and damages; the adjuster evaluates both liability exposure and damages exposure.

Comparative and contributory negligence rules vary by jurisdiction and reduce or bar recovery; joint and several liability rules affect allocation among defendants.

Limits structure: each occurrence limit, general aggregate, products-completed operations aggregate, and personal and advertising injury limit apply separately.

Additional insured endorsements extend coverage to parties such as landlords or general contractors, usually limited to liability arising from the named insured's work.

Medical payments coverage pays reasonable medical expenses regardless of fault, subject to a per-person limit, without requiring a liability determination.

Workers' compensation provides statutory benefits (medical, indemnity, death) on a no-fault basis; the exclusive remedy doctrine generally bars employee tort suits against the employer.

Reserves for casualty claims reflect estimated indemnity plus allocated loss adjustment expense; reserve adequacy is reviewed as liability and damages information develops.

Unfair claim settlement practices include misrepresenting policy provisions, failing to investigate promptly, and offering substantially less than the amount owed without a reasonable basis.

The adjuster must acknowledge the claim, begin investigation within statutory time frames, and communicate material status updates to the insured in writing.

A reservation-of-rights letter preserves the insurer's coverage defenses while investigation continues; it is not a denial and must state the specific issues.

Settlement offers must be based on documented damages; the adjuster should explain the basis of the valuation and provide copies of estimates and reports on request.

Conflicts of interest must be disclosed; a public adjuster cannot represent both the insured and the insurer on the same claim or accept referral fees from contractors.

Claim files must document every contact, decision, and payment; contemporaneous notes support the insurer's burden to show a reasonable investigation.

Bad-faith exposure arises from unreasonable delay or denial without a reasonable basis; documented, prompt, and consistent handling is the primary defense.

Privacy rules require safeguarding nonpublic personal information; disclosure to third parties is limited to claim-related needs and authorized recipients.