33-23-43.3. Compensation of adjusters; criteria for written endorsement of payment.

Except as provided by subsection (b) of this Code section, an adjuster may receive a commission for service provided under this article consisting of an hourly fee, a flat rate, a percentage of the total amount paid by an insurer to resolve a claim, or another method of compensation. A public adjuster may not charge the insured an unreasonable fee, and the total commission received shall not exceed 33.3 percent of the amount of the insurance settlement of the claim.#

An adjuster shall not receive a commission consisting of a percentage of the total amount paid by an insurer to resolve a claim on a claim on which the insurer, not later than 72 hours after the date on which the loss is reported to the insurer, either pays or commits in writing to pay to the insured the policy limit of the insurance policy. A public adjuster is entitled to reasonable compensation from the insured for services provided by such adjuster on behalf of the insured, based on the time spent on a claim that is subject to this Code section and expenses incurred by such adjuster, until the claim is paid or the insured receives a written commitment to pay from the insurer.#

Except for the payment of a commission by the insured, all persons paying proceeds of a policy of insurance or making any payment affecting an insured’s rights under a policy of insurance shall:#

1. (1)

   Include the insured as a payee on the payment draft or check; and#

2. (2)

   Require the written signature and endorsement of the insured on the payment draft or check.#

An adjuster shall not accept any payment that violates the provisions of this Code section.#

A public adjuster may sign or endorse a payment, draft, or check issued on behalf of an insured if authorized in writing by each insured payee, and only if such written endorsement meets the following criteria:#

1. (1)

   The authorization limits the public adjuster to endorse the check or payment for deposit only into the public adjuster’s escrow or trust account and such authorization states that the check or payment will be distributed in the percentages or amounts agreed upon in the public adjuster contract;#

2. (2)

   The authorization requires that the insured be notified of the deposit of funds, and states that any distribution of such funds to the insured or the public adjuster will be accompanied by a detailed breakdown of the funds distributed; and#

3. (3)

   The authorization form states that such authorization may be revoked at any time by the insured upon written notice of such revocation to the public adjuster.#