The 'Claim Consultant' With a Contractor's License
In Bend, Oregon, a kitchen fire causes $96,000 in damage to Maria's home. She hires North Fork Restoration, whose project manager, Dale, holds a CCB contractor license but no insurance license. Dale gives Maria a written proposal offering to 'represent you with your insurer, prepare your claim, and negotiate the settlement' for 12% of the gross settlement. He meets the insurer's adjuster, disputes depreciation, and tells Maria he does not need a public adjuster license because he never signs the proof of loss and is 'just a contractor.' Maria has already paid a $3,000 'consulting' deposit. Her neighbor, a licensed Oregon public adjuster, hears about the arrangement and wonders whether Dale is engaged in unlicensed public adjusting, what a contractor may lawfully do, and whether she should intervene. The policy is an HO-3 with replacement cost dwelling coverage of $400,000 and a $2,500 deductible.
1. Does Dale's conduct require an Oregon public adjuster license? Apply the statutory definition rather than the labels Dale uses.
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Oregon licenses public adjusting by conduct, not by job title. A public adjuster is a person who, for compensation, acts on behalf of an insured to investigate, negotiate, or settle a first-party claim. Dale's written proposal expressly offers to represent Maria, prepare the claim, and negotiate the settlement; he met the insurer's adjuster and disputed depreciation; and his compensation is a percentage of the settlement. Those facts satisfy the core of public adjusting. His contractor license authorizes construction work, not insurance adjusting. The fact that he does not sign the proof of loss is not controlling-negotiation and claim preparation are enough. The $3,000 consulting deposit reinforces that he is being compensated for claim services. On these facts, Dale needs an Oregon public adjuster license, and his arrangement likely constitutes unlicensed activity.
2. What may North Fork lawfully do on this loss, and what should the licensed public adjuster do with what she knows?
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A contractor may lawfully inspect the damage, prepare a detailed repair scope and estimate, explain construction sequencing, and contract to perform repairs. Those activities support the repair, not the claim. What North Fork may not do for a fee is interpret coverage, advise Maria on what to claim, communicate with the insurer to negotiate depreciation or settlement, or solicit a public adjuster contract. The licensed public adjuster should avoid writing a competing contract while Maria is under an existing agreement, but she may give Maria factual information: public adjusters must be licensed by the Oregon Division of Financial Regulation; Dale's CCB license is not an insurance license; Maria can verify licensure and file a complaint. She should document what she heard and let Maria decide. She should not contact the insurer to interfere with the existing contract or disparage Dale. The insurer should also be cautious about negotiating with an unlicensed person.
3. If Dale were instead a licensed public adjuster, what contract and fee issues would the 12% contingency and $3,000 deposit raise?
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If Dale were licensed, the 12% contingency and $3,000 deposit would still need scrutiny. Oregon requires a written public adjuster contract with specified disclosures and terms; the fee must be clearly stated, and the insured must understand that compensation is contingent on the settlement. A nonrefundable advance deposit taken before any work, combined with a contingent percentage, can create an unfair or deceptive arrangement and may violate fee or contract rules. The adjuster should confirm the current statutory fee limits and required rescission and disclosure language, put all terms in a signed contract, give the required notices, and avoid collecting compensation that is not earned or permitted. If the contract does not comply, the safer course is to correct or cancel it and refund unearned money rather than enforce it.