Iowa Code Title XIII. Commerce [Chs. 505-554D] § 522C.10. Public adjuster and insured--contract for services

2. If the insurer, no later than five calendar days after the date on which the insured's loss is reported to the insurer, either pays or commits in writing to pay to the insured the policy limit of the insured's insurance policy, the public adjuster shall:

3. A public adjuster contract shall not contain a provision that does any of the following:

4. Prior to execution of the contract, the public adjuster shall review the terms of the contract with the insured and provide the insured with a separate disclosure document regarding the claim process that shall include the following:

DISCLOSURE DOCUMENT REGARDING THE CLAIM PROCESS

1. PROPERTY INSURANCE POLICIES OBLIGATE THE INSURED TO PRESENT A CLAIM TO THE INSURED'S INSURER FOR CONSIDERATION.  THERE ARE THREE TYPES OF ADJUSTERS THAT MAY BE INVOLVED IN THAT PROCESS.  THE THREE TYPES ARE AS FOLLOWS:

(A) “STAFF ADJUSTER” IS DEFINED IN IOWA CODE SECTION 522C.2.  A STAFF ADJUSTER IS EMPLOYED BY THE INSURER.  THEY WILL NOT CHARGE THE INSURED A FEE.

(B) “INDEPENDENT ADJUSTER” IS DEFINED IN IOWA CODE SECTION 522C.2.  AN INDEPENDENT ADJUSTER IS CONTRACTED BY THE INSURER TO REPRESENT THE INSURER.  THEY WILL NOT CHARGE THE INSURED A FEE.

(C) “PUBLIC ADJUSTER” IS DEFINED IN IOWA CODE SECTION 522C.2.  A PUBLIC ADJUSTER IS NOT AN EMPLOYEE OR REPRESENTATIVE OF THE INSURER.  THEY ARE HIRED BY THE INSURED TO ASSIST IN THE PREPARATION, PRESENTATION, AND SETTLEMENT OF A CLAIM.

2. THE INSURED IS NOT REQUIRED TO HIRE A PUBLIC ADJUSTER TO HELP THE INSURED MEET THE INSURED'S OBLIGATIONS UNDER THE INSURED'S POLICY, BUT HAS THE RIGHT TO DO SO.

3. THE INSURED HAS THE RIGHT TO INITIATE DIRECT COMMUNICATIONS WITH THE INSURED'S ATTORNEY, THE INSURED'S INSURANCE COMPANY, THE INSURANCE COMPANY'S STAFF ADJUSTER OR INDEPENDENT ADJUSTER, THE INSURANCE COMPANY'S ATTORNEY, OR ANY OTHER PERSON REGARDING THE SETTLEMENT OF THE INSURED'S CLAIM.

4. THE INSURED MAY BE RESPONSIBLE FOR ANY AMOUNT PAYABLE TO A PUBLIC ADJUSTER RELATED TO ANY PORTION OF A CLAIM THAT WAS PREVIOUSLY PAID IN PART, IN FULL, OR SETTLED BY THE INSURER PRIOR TO A CONTRACT BEING ENTERED INTO BETWEEN THE PUBLIC ADJUSTER AND THE INSURED.

5. THE AMOUNT PAYABLE TO A PUBLIC ADJUSTER, WHICH CAN INCLUDE A SALARY, FEE, COMMISSION, OR OTHER CONSIDERATION AS OUTLINED IN THE CONTRACT, IS THE OBLIGATION OF THE INSURED, NOT THE INSURER.

6. THE INSURED MAY FILE A COMPLAINT WITH THE IOWA INSURANCE DIVISION BY CALLING (877) 955-1212 OR VISITING IID.IOWA.GOV.

5. An original copy of a completed contract shall be provided to the public adjuster and to the insured.  The commissioner may inspect the original contract in possession of the public adjuster at any time without prior notice.  A contract may be executed electronically if done so in compliance with chapter 554D.

6. Within seventy-two hours of executing a contract with an insured under this section, the public adjuster shall provide the insured's insurer a notification letter, which has been signed by the insured, authorizing the public adjuster to represent the insured's interest.  The insurer shall verify that the public adjuster is currently licensed with the division.

7. A contract between a public adjuster and an insured executed on a form in violation of subsection 1, paragraph “a”, shall not be enforceable in this state.