Public Adjuster Contracting, Ethics, and Consumer Protection
Contract requirements
A public adjuster contract must be written and signed, identify the insured and the loss, describe the services, state the compensation clearly, and disclose the insured's right to cancel within three business days. The fee should identify whether the percentage is calculated on the gross or net claim payment and how it is earned. The adjuster should give the insured a copy and keep accurate records. Oral agreements, blank contracts, and undisclosed fees are recurring sources of discipline.
Ethics and consumer protection
The public adjuster represents the insured, not the insurer, and owes a fiduciary duty. The adjuster must not misrepresent an affiliation with the insurer, promise a specific settlement, give legal advice, or steer repairs to a company in which the adjuster has a financial interest without disclosure. North Carolina law restricts unlicensed solicitation and imposes penalties for fraudulent or deceptive conduct. Public adjusters are also subject to the state's consumer protection and unfair trade practices framework.
Worked example
After a fire, an insured signs a one-page contract that names a 15% fee, omits the cancellation notice, and says the adjuster is working with the insurance company. The contract violates disclosure and cancellation requirements, and the affiliation statement is misleading. The insured may cancel within the statutory period, and the adjuster faces licensing discipline even if no claim payment has been made.
Traps
Do not describe the public adjuster as the insurer's representative. Do not calculate a fee on a recovery the insured never receives without clear contractual authority. Do not solicit at a disaster scene in a way that violates emergency rules. Keep the fee disclosure and cancellation notice conspicuous, not buried in fine print.