New Jersey Insurance Laws, Rules, and Regulations
This domain tests the statutory frame around public adjusting in New Jersey: who may adjust, what the contract must say, how claims must be handled, and what happens when rules are broken.
Licensing
Public adjusters are licensed under the Public Adjusters' Licensing Act, N.J.S.A. 17:22B-1 et seq., administered by the Department of Banking and Insurance. The license is personal, so a New Jersey insurance producer license does not authorize public adjusting, and a business entity must satisfy separate registration requirements. Keep the license number on contracts and advertising, and report name and address changes promptly.
Contract and compensation rules
Obtain a written contract signed by the insured that identifies the fee or its method, the adjuster's license number, and the fact that the adjuster represents the insured rather than the insurer. Compensation may not be shared with unlicensed persons, and the insured must be told of any right to rescind the contract.
Claims-practice standards
N.J.A.C. 11:2-17 governs unfair claim settlement practices, including acknowledgment, investigation, communication, and payment. The Insurance Fraud Prevention Act, N.J.S.A. 17:33A, makes knowingly presenting a false or inflated claim a crime and exposes licensees to civil penalties and license action.
Discipline
The Commissioner may fine, suspend, revoke, and order restitution. Unlicensed adjusting is itself a violation subject to civil penalties, and fees collected under it are vulnerable.
Worked example
An unlicensed consultant solicits a fire loss, signs a 12% contingency contract, and negotiates with the carrier. The agreement is unenforceable, fees may be ordered refunded, and penalties may follow. A licensed adjuster who let him use her license number faces revocation for aiding unlicensed activity.
Traps
- Assuming a producer license permits public adjusting.
- Charging a fee before a signed contract exists.
- Ignoring the fraud statute when a client wants undamaged items included.