Out-of-State Adjuster, Unlicensed Assistant, and Disaster Advertising
Portsmouth, NH. After a tornado, a public adjuster licensed only in Maine opens a temporary office and advertises: 'Maine license honored in New Hampshire - no NH license needed for storm claims.' He says he handles only first-party claims, which he believes are exempt from New Hampshire licensing. His unlicensed college student inspects roofs, tells homeowners what their policies 'should pay,' and collects signed representation agreements. The adjuster negotiates one claim directly with a New Hampshire insurer and takes a 15% fee. He also pays a local roofer $500 for each homeowner lead. The adjuster has no New Hampshire license, no NH office address on his cards, and no written cancellation notice in his contract. A homeowner complains after learning about the licensing issue.
1. Is a New Hampshire public adjuster license required for this work? Explain which activities trigger licensing.
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Yes. New Hampshire licenses public adjusters, and an out-of-state license does not automatically authorize someone to adjust New Hampshire claims. The idea that 'first-party claims are exempt' is wrong; public adjusting is commonly defined around representing the insured for compensation in negotiating, investigating, or settling a first-party property claim. The adjuster crossed the line when he negotiated directly with the New Hampshire insurer and accepted a contingent fee. The unlicensed student's conduct is more nuanced: merely inspecting a roof may not itself be adjusting, but telling homeowners what their policies should pay and collecting signed representation agreements is claim handling and solicitation on behalf of the adjuster. The false advertising reinforces the violation because it misleads consumers about licensure. The adjuster should have obtained a New Hampshire license before soliciting or negotiating, and the student should not have been used for regulated activities.
2. What are the consequences of the contractor lead payments and the advertising claims?
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The $500-per-lead payments are unlawful rebates or inducements. They create a conflict of interest because the roofer is being paid to steer homeowners to the adjuster, and they may also violate rules against sharing compensation with unlicensed persons. The advertising is independently problematic: saying a Maine license is honored in New Hampshire is false and misleading, and omitting the New Hampshire license number or office address compounds the deception. Regulators can treat these facts as grounds for license denial, suspension, or revocation; issue cease-and-desist orders; impose fines; and order restitution. The insured's contract may also be unenforceable or subject to rescission because it was procured through unlicensed activity and misleading advertising. The adjuster should immediately stop the advertising, stop the lead payments, and not negotiate further New Hampshire claims until properly licensed.
3. What should the adjuster do to cure the violations, and what should the homeowner do?
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The adjuster should immediately cease all New Hampshire adjusting activity, withdraw the misleading advertisements, terminate the lead-payment arrangement, and apply for a New Hampshire public adjuster license if he intends to work in the state. He should also review every New Hampshire contract signed during the period, provide the required cancellation notices, and refund fees where required. The unlicensed student should be removed from any role involving coverage discussions or contract solicitation. The homeowner should request a copy of the contract and all claim documents, confirm in writing whether she wants to continue with the adjuster, and contact the New Hampshire Insurance Department about the unlicensed activity. If the claim is ongoing, she can deal directly with her insurer or hire a properly licensed New Hampshire public adjuster. The adjuster should not retaliate or discourage the complaint; doing so would worsen the regulatory exposure.