                                 CODE OF VIRGINIA

FEES (§ 38.2-1845.14)

A. No public adjuster shall require, demand, or accept any fee, retainer,
compensation, deposit, or thing of value prior to the settlement of a claim.

B. Except as provided in subsection C, no public adjuster shall charge, agree
to, or accept as compensation or reimbursement any payment, commission, fee, or
other thing of value that is not fair and reasonable in relation to the work
performed. Any such commission, fee, or other thing of value shall include any
expenses incurred by the public adjuster in the estimating and settlement of any
claim.

C. In the event of a catastrophic disaster, no public adjuster shall charge,
agree to, or accept as compensation or reimbursement any payment, commission,
fee, or other thing of value equal to more than 10 percent of any insurance
settlement proceeds. Any such commission, fee, or other thing of value shall
include any expenses incurred by the public adjuster as part of the estimating
and settlement of any claim.

D. No public adjuster shall charge a fee, commission, or other valuable
consideration based, in whole or in part, on an amount paid to the insured by
the insurer prior to the date of the written contract between the insured and
the public adjuster.

E. A public adjuster&#8217;s contract may not contain a provision that allows
the public adjuster&#8217;s percentage fee to be collected when money is due
from an insurer, but not paid, or that allows a public adjuster to collect the
entire fee from the first check issued by an insurer, rather than as a
percentage of each check issued by an insurer.

F. A public adjuster&#8217;s contract may not contain a provision that requires
the insured to authorize an insurer to issue a check only in the name of the
public adjuster.

G. A public adjuster&#8217;s contract may not contain a provision that imposes
collection costs or late fees.

H. The public adjuster&#8217;s contract may specify that the public adjuster
shall be named as a copayee on an insurer&#8217;s payment of a claim, provided
that (i) if the compensation is based on a share of the insurance settlement,
the exact percentage shall be specified and (ii) initial expenses to be
reimbursed to the public adjuster from the proceeds of the claim payment shall
be specified by type, with dollar estimates set forth in the contract and with
any additional expenses first approved by the insured.

I. If 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, the public adjuster shall (i) not
receive a commission consisting of a percentage of the total amount paid by an
insurer to resolve a claim, (ii) inform the insured that the loss recovery
amount represents the maximum amount recoverable under the policy, and (iii) be
entitled only to reasonable compensation from the insured for services provided
by the public adjuster on behalf of the insured, based on the time spent on a
claim and expenses incurred by the public adjuster.

HISTORY: 2012, cc. 734, 735.