PUBLIC INSURANCE ADJUSTER FEE PROVISIONS 50 STATE SURVEY AS OF 6/29/07. LIKELY YES [Cal. Ins. Code 15027]

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1 Alabama Alaska Arizona Arkansas California [Cal. Ins. Code 15027] ] Colorado [Cal. Ins. Code 15027] Connecticut Delaware of the actual or final settlement of a loss [Conn. Ins. Code 38a-788-8] 2.5% of the first $25,000 of total insurance recovery; 12% of total insurance recovery that exceeds $25,000 [DE. Ins. Code Title ] [Conn. Ins. Code 38a-788-6] [DE. Ins. Code Title ] [Fees to be assigned from settlement.] [DE. Ins. Code Title ] District of Columbia of the total invoice recovery [D.C. Code Title ] [Fees to be assigned from settlement.] [D.C. Code Title ] Florida of total insurance recovery [Id.; see also FL Admin. Code Tit O ] [No fees before payment of claim.] Georgia Hawaii Idaho Page 1 of 6

2 All public adjusters must file a Rate Schedule of Charges for [Rate Schedule of Services. Charges must be [Ill. Adm. Code Tit. 50 approved by Illinois ] Commissioner.] Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan of amount paid by the insurance in settlement of the loss [Mich. Ins. Code (3)] [Mass. Gen. Laws Ch ] [Mich. Ins. Code (4)] [Ill. St. Ch /512.58] [Mass. Gen. Laws Ch ] [Mich. Ins. Code (4)] Page 2 of 6

3 Minnesota [Minn. St. 72B.135] 7% for "emergency public adjusters" who adjust claims from Hurricane Katrina as of July 1, 2007 when licensing law takes effect [No fees before payment of claim.] Mississippi [Mo. Ins. Code Tit Missouri 2.300] Montana Nebraska Nevada ] [Mo. Ins. Code Tit ] [N.H. Rev. Stat. 402-D:6] New Hampshire [N.H. Rev. Stat. 402-D:5] Contract must state the maximum fees to be charged [NJ Admin Code 11:1- [N.J. ST 17:22B-13] New Jersey 37.13(b)(3)(ii)] [N.J. Admin. Code 11: ] New Mexico 1 Bulletin No , passed in September, 2005, regulates "emergency" public adjusters in the aftermath of Hurricane Katrina. Page 3 of 6

4 New York 12.5% of recovery [N.Y. Comp. Codes R. & Regs. Tit ] [McKinney's Insurance Law 2108] [N.Y. Comp. Codes R. & Regs. Tit , 12 and 13] North Carolina on non-catastrophic losses Proposed regulations would limit to of any insurance settlement on proceeds 4 during catastrophic disasters [11 NC Admin. Code 6A.0902] [17 NC Admin. Code 650 (proposed)] [11 NC Admin. Code 06A.0905 (proposed)] North Dakota Ohio Oklahoma Oregon more than of settlement. Proposed effective date is 2/1/06. 4 Id. ] [OH Admin. Code ] [36 Okl. St ] ] [OH Admin. Code ] [36 Okl. St ] 2 On December 22, 2003, the Office of the General Counsel of the Insurance Department issued an opinion stating that Public Adjuster Retainer Agreements violated N.Y. Comp. Codes R. & Regs. Tit. 11, Section because they violated a provision which states that in the event of cancellation of the contract, a public adjuster shall not be entitled to any compensation for any services performed pursuant to a compensation agreement prior to its cancellation. However, the opinion does not state whether retainers are completely prohibited. Rather it seems to indicate that such retainers must contain language absolving the insured of any liability in case of cancellation. 3 Proposed Rule 11 NC ADC 06A.0905 (proposed in 10/2005) would prevent public adjusters, during catastrophic disasters, from collecting prepaid fees and charging Page 4 of 6

5 Pennsylvania on Non-Catastrophic Proposed regulations would limit at in event of catastrophic [63 P.S. 1605] [31 PA Admin. Code 115.2] [No fees before payment of claim.] [63 P.S. 1605] Rhode Island disaster 6 South Carolina [S.C. Code ] South Dakota Proposed bills would regulate [Proposed Bill approval SB0671/HB0474] recommended. Fee 15% for total amount 25% on [Proposed Bill caps must be Tennessee supplemental SB0670/HB0473] of claim settlement [SB 127 (2003)] [Tex. Admin. Cod tit ] [SB 127 (2003)] [Tex. Admin. Code tit ] Fee payment methods navigated (hourly, flat fee or percentage of settlement).] [Tex. St ] Texas Utah Vermont Virginia 5 The Rhode Island Department of Business Regulation began hearings on January 11, 2006, concerning proposed Insurance Regulation 43 10(c) that would prohibit, in event of catastrophic disaster, all public adjusters from collecting prepaid fees and collecting reimbursement above of any settlement. 6 Id. Page 5 of 6

6 Washington West Virginia [WV Admin. Code ] Wisconsin Wyoming Page 6 of 6