Public adjuster duties, ethics, and consumer protection
A public adjuster is the insured's advocate, and Oregon treats that role as fiduciary: the client's interest comes before the adjuster's fee, the contractor's bid, or the pace of the file.
Contract and disclosure
The engagement must be in writing and signed by the insured, and it must state the adjuster's name and license number, the scope of services, the compensation method (contingency percentage or hourly), and the insured's right to rescind within the statutory period after signing. The insured - not the adjuster - signs. A public adjuster cannot sign the contract, a proof of loss, or a release on the insured's behalf without written authority.
Conflicts and prohibited conduct
No fee splitting or undisclosed referral payments with contractors, restoration firms or public entities; no acting as contractor on the same loss; no representing both insurer and insured; no contingent interest in claim proceeds beyond the stated fee; no prohibited solicitation at a loss scene or during a declared disaster emergency. Claim funds held for the insured must be handled transparently and remitted promptly.
Consumer protection overlay
Beyond the Insurance Code, Oregon's Unfair Trade Practices Act (ORS 646.605 et seq.) reaches deceptive acts in trade or commerce, and DFR accepts complaints from insureds, including elders and vulnerable adults. Misrepresenting coverage, inflating damage, or pressuring a homeowner into a contract all invite licensing action.
Worked example
An adjuster meets a homeowner at the curb the night of a fire, obtains a 20% contingency signature, and later accepts a $4,000 "marketing" payment from the restoration company that won the job. The solicitation, the undisclosed referral fee, and the conflict each breach the adjuster's duties; the fee may be reduced or forfeited, and DFR can fine or revoke the license.
Traps
Assuming the adjuster can negotiate away the insured's deductible; assuming a public adjuster may also serve as the appraiser or contractor; signing documents for the client.