HLS 10RS-3015 ORIGINAL
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2010
HOUSE BILL NO. 1475 (Substitute for House Bill No. 1210 by Representative
Schroder)
BY REPRESENTATIVE SCHRODER
INSURANCE: Authorizes a public adjuster to charge a specified percentage fee for their
services
AN ACT1
To amend and reenact R.S. 22:1703(A), relative to public adjuster fees; to require public2
adjuster contracts to be in writing and signed by the parties; to authorize a public3
adjuster to charge a certain percentage fee for their services; and to provide for4
related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 22:1703(A) is hereby amended and reenacted to read as follows: 7
ยง1703. Public adjuster fees; contract for services8
A.(1) A public adjuster may charge the insured a reasonable fee. A public9
adjuster shall not solicit for or enter into any contract or arrangement between an10
insured and a public adjuster which provides for payment of a fee to the public11
adjuster which is contingent upon, or calculated as a percentage of, the amount of12
any claim or claims paid to or on behalf of an insured by the insurer and any such13
contract shall be against public policy and is null and void. Public adjusters shall14
ensure that all contracts for their services are in writing, signed by the insured and15
the public adjuster who solicited the contract, and a copy of the contract be provided16
to the insured upon execution. All such contracts shall be subject to the following17
provisions:18 HLS 10RS-3015 ORIGINAL
HB NO. 1475
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(a) For owner-occupied, residential properties, no public adjuster shall1
charge, agree to, or accept as compensation any payment, commission, fee or other2
thing of value equal to more than fifteen percent of any insurance settlement or the3
proceeds of any claim investigated. For all other properties, no public adjuster shall4
charge, agree to, or accept as compensation any payment, commission, fee or other5
thing of value equal to more than ten percent of any insurance settlement or the6
proceeds of any claim investigated.7
(b) No public adjuster shall require, demand or accept any fee, retainer,8
compensation, deposit or other thing of value, prior to partial or full settlement of a9
claim.10
(c) Any costs to be reimbursed to a public adjuster out of the proceeds of a11
settlement shall be specified by kind and estimated amounts.12
(2) For owner-occupied, residential properties, when an owner has received13
an offer, in writing, from the owner's insurer but has rejected such offer and the14
owner then contracts with a public adjuster, the public adjuster shall only be entitled15
to charge, agree to, or accept as compensation any payment, commission, fee or16
other thing of value equal to or less than twenty percent of the amount of the ultimate17
recovery from the insurer which exceeds the amount of the offer made to the owner18
prior to the hiring of the public adjuster.19
(3) For owner-occupied, residential properties, when the property owner has20
already received insurance proceeds on a covered property loss, and then, at a later21
time, has discovered further damage or loss resulting from the same covered loss,22
and the owner retains the services of a public adjuster, the public adjuster shall only23
be entitled to charge, agree to, or accept as compensation any payment, commission,24
fee or other thing of value equal to or less than twenty percent of the amount of the25
policy proceeds paid to the property owner which exceed the proceeds paid to such26
owner on the original claim.27
* * *28 HLS 10RS-3015 ORIGINAL
HB NO. 1475
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Schroder HB No. 1475
Abstract: Allows a public adjuster to charge a specific percentage fee.
Present law provides that a public adjuster may charge the insured a reasonable fee. Further,
provides that a public adjuster cannot solicit for or enter into any contract or arrangement
between an insured and a public adjuster that provides for payment of a fee to the public
adjuster which is contingent upon, or calculated as a percentage of, the amount of any claim
or claims paid to or on behalf of an insured by the insurer and any such contract is against
public policy and is null and void.
Proposed law removes present law.
Proposed law requires that public adjusters ensure that all contracts for their services are in
writing and signed by the insured and the public adjuster who solicited the contract. Also,
requires that a copy of the contract be provided to the insured upon execution.
Proposed law provides that all public adjuster contracts are subject to the following
provisions:
(1) For owner-occupied, residential properties, no public adjuster can charge, agree to,
or accept as compensation any payment, commission, fee or other thing of value
equal to more than 15% of any insurance settlement or the proceeds of any claim
investigated. For all other properties, no public adjuster can charge, agree to, or
accept as compensation any payment, commission, fee or other thing of value equal
to more than 10% of any insurance settlement or the proceeds of any claim
investigated.
(2) No public adjuster can require, demand or accept any fee, retainer, compensation,
deposit or other thing of value, prior to partial or full settlement of a claim.
(3) Any costs to be reimbursed to a public adjuster out of the proceeds of a settlement
shall be specified by kind and estimated amounts.
Proposed law provides that for owner-occupied, residential properties, when an owner has
received an offer, in writing, from the owner's insurer but has rejected the offer and the
owner then contracts with a public adjuster, the public adjuster can only charge, agree to, or
accept as compensation any payment, commission, fee or other thing of value equal to or
less than 20% of the amount of the ultimate recovery from the insurer which exceeds the
amount of the offer made to the owner prior to the hiring of the public adjuster.
Proposed law provides that for owner-occupied, residential properties, when the property
owner has already received insurance proceeds on a covered property loss, and then, at a
later time, has discovered further damage or loss resulting from the same covered loss, and
the owner retains the services of a public adjuster, the public adjuster can only charge, agree
to, or accept as compensation any payment, commission, fee or other thing of value equal
to or less than 20% of the amount of the policy proceeds paid to the property owner which
exceed the proceeds paid to such owner on the original claim.
(Amends R.S. 22:1703(A))