72B.01 PURPOSE AND SCOPE.
It is the purpose of sections 72B.01 to 72B.14 to provide high quality service to insureds
and insurance claimants in the state of Minnesota by providing for well trained adjusters and
persons engaged in soliciting business for adjusters, who are qualified to deal with the public in
the interest of a fair resolution of insurance claims. Sections 72B.01 to 72B.14 shall apply to
all adjusters, and adjusters' solicitors, except as specifically stated to the contrary; but nothing
in sections 72B.01 to 72B.14 shall apply to:
(a) An attorney at law who is licensed or otherwise allowed to practice law in this state and
who does not hold out to be an adjuster, or adjuster's solicitor.
(b) A licensed agent of an authorized insurer who adjusts losses for such insurer solely under
policies issued by the agent or the agent's agency or on which the agent is the agent of record,
provided the agent receives no extra compensation for such services.
(c) Personnel of township mutual companies.
(d) Adjusters for crop hail and farm windstorm damage claims who are on the staff of
companies covering such risks.
(e) Persons who process life insurance annuity contract or accident and health insurance
claims.
(f) Persons processing or adjusting wet marine or inland transportation claims or losses.
History: 1971 c 704 s 1; 1979 c 141 s 1; 1986 c 444

72B.02 DEFINITIONS.
    Subdivision 1. Scope. For the purposes of sections 72B.01 to 72B.14 the terms defined in
this section have the meanings ascribed to them unless the context otherwise requires.
    Subd. 2. Person. "Person" means a natural person.
    Subd. 3. Commissioner. "Commissioner" means the commissioner of commerce or any
other person properly acting for the commissioner.
    Subd. 4. Adjuster. "Adjuster" means a person who on behalf of an insurer or an insured, for
compensation as an independent contractor or as an employee of such independent contractor, or
as an employee of an insurer, or for a fee or commission, investigates and evaluates claims arising
under insurance contracts and negotiates the settlement of such claims.
    Subd. 5. Independent adjuster. "Independent adjuster" means any person who for another
for money, commission or any other thing of value acts as an adjuster on behalf of more than one
insurer, or who holds out to do so.
    Subd. 6. Public adjuster. "Public adjuster" means an adjuster who hires out for employment
by members of the public for a fee, commission or any other thing of value, and who, when so
employed, acts solely to represent the interests of an insured named in an insurance policy.
    Subd. 7. Staff adjuster. "Staff adjuster" means an adjuster who is a salaried employee of an
insurance company and who is engaged in adjusting insured losses solely for that company or
other companies under common control or ownership.
    Subd. 8. Public adjuster solicitor. "Public adjuster solicitor" means any person who for
money, commission or any other thing of value solicits in any manner or aids in securing for a
public adjuster any contract or agreement for the adjustment of a loss.
    Subd. 9. Appraiser. "Appraiser" means any person engaged independently, for hire by the
public or on the staff of an insurer, in the process of evaluating motor vehicle physical damage,
who does not endeavor to determine liability or negotiate the settlement of claims arising under
automobile insurance contracts.
    Subd. 10.[Repealed, 1979 c 141 s 9]
    Subd. 11. Catastrophe or emergency situation. "Catastrophe or emergency situation"
means the occurrence of insured losses of such a number or severity that the ordinary staff adjuster
personnel complement of the insurer and the available independent adjusters could not adjust all
of the losses resulting from a common cause or related causes in a reasonable time.
    Subd. 12. Single loss. "Single loss" means a loss to a single insured, and does not necessarily
include all losses resulting from a common cause.
    Subd. 13. Appraiser identification. "Appraiser identification" means a writing including the
appraiser's name, place of business, business telephone number, and the name of the insurer or
other business entity employing the appraiser, if any.
    Subd. 14. Crop hail adjuster. "Crop hail adjuster" means a person who for money,
commission, or other thing of value acts as an adjuster in regard to insurance policies against
crop damage by hail.
History: 1971 c 704 s 2; 1980 c 456 s 1; 1983 c 289 s 114 subd 1; 1984 c 655 art 1 s 92;
1986 c 444; 1992 c 564 art 1 s 48

72B.03 LICENSES.
    Subdivision 1. Requirement; exceptions. Except as otherwise provided, no person shall act
as an independent adjuster, public adjuster, or public adjuster solicitor for money, a commission,
or any other thing of value, unless such person shall first obtain from the commissioner a license.
No license shall be required for:
(1) a person acting in a catastrophe or emergency situation, and who has registered with
the commissioner for that purpose;
(2) a nonresident adjuster who occasionally is in this state to adjust a single loss; provided,
however, that if a nonresident adjusts more than six losses in this state in one year the adjuster
must qualify for and receive a nonresident's license as provided in sections 72B.01 to 72B.14, and
provided the adjuster's domiciliary state affords a like privilege.
    Subd. 2. Classes of licenses. (a) There shall be four classes of licenses, as follows:
(1) independent adjuster's license;
(2) public adjuster's license;
(3) public adjuster solicitor's license; and
(4) crop hail adjuster's license.
(b) The independent adjuster and public adjuster licenses shall be issued in at least three
fields each, as follows:
(1) fire and allied lines, inland marine lines and including all perils under homeowners
policies;
(2) all lines written as casualty insurance under section 60A.06, and including workers'
compensation; and
(3) a combination of the fields described in clauses (1) and (2). Separate licenses shall be
required for each field, but the same person may obtain licenses in more than one field. No
person shall be licensed as both a public and independent adjuster. The license shall state the
class for which the person is licensed and, where applicable, the field in which the person is
licensed, and shall state the licensee's name and residence address, the date of issuance and the
date of expiration of the license and any other information prescribed by the commissioner which
is consistent with the purpose of the license.
    Subd. 3. Payment for services; unlawful practice. No insurer, agent, or other representative
of an insurer nor any adjuster shall pay any fee or other compensation to any person for acting as
an adjuster, or a public adjuster solicitor, except to a person duly licensed to so act or to a person
not required to be licensed by sections 72B.01 to 72B.14; and it shall be unlawful for any person
to act as an independent adjuster, a public adjuster or a public adjuster solicitor, who is not duly
licensed, or excluded from the licensing requirement.
History: 1971 c 704 s 3; 1975 c 359 s 23; 1979 c 141 s 2; 1986 c 444; 1992 c 564 art 1 s
49; 1994 c 485 s 58

72B.04 LICENSE PROCEDURE AND REQUIREMENTS; EXAMINATIONS; FEES.
    Subdivision 1. Application. A license to act as an adjuster, or public adjuster solicitor shall
only be granted by the commissioner to a qualified person upon request.
    Subd. 2. Qualifications. An applicant for licensing as an adjuster under sections 72B.01
to 72B.14 shall be at least 18 years of age. The applicant shall be competent and trustworthy
and shall not have been engaged in any practice which would be grounds for suspension or
revocation of a license under sections 72B.01 to 72B.14 within the three years next preceding
the date of the application.
An applicant for licensing as a public adjuster solicitor under sections 72B.01 to 72B.14 shall
be at least 18 years of age, shall be competent and trustworthy, and shall not have been engaged in
any practice which would be grounds for suspension or revocation of a license under sections
72B.01 to 72B.14 within the three years next preceding the date of the application.
In the case of any applicant who has been convicted of a felony within the ten years next
preceding the date of the application, and who in the judgment of the commissioner, meets the
other qualifications, the commissioner may impose the additional requirement of the filing of a
bond in accordance with the requirements of section 72B.08, subdivision 8.
    Subd. 3. Application. The application for any initial or renewal license under sections
72B.01 to 72B.14 or for a temporary permit shall be signed and sworn to by the applicant and
accompanied by the appropriate fee. An application for an initial license or temporary permit
shall state the applicant's name, age, residence address, business name and address, educational
background, previous experience in the field and class in which a license or permit is sought, the
class of license applied for, and, in the case of an applicant for an adjuster's license the field
in which the license is being sought, and such other information as the commissioner deems
appropriate to determine the applicant's trustworthiness and competency. The application for an
initial license or permit shall also state whether or not the application is being made on the basis
of an examination. If the application is not made on the successful completion of an examination,
it shall state the reasons why no examination is required. Renewal of a license or permit shall be
made on the basis of an application for renewal. All applicants for a license as a public adjuster
must attach to their application evidence that the bonding requirement has been satisfied.
    Subd. 4. Bonding. No initial or renewal public adjuster's license shall be issued to any
applicant unless there is on file with the commissioner a good and sufficient surety bond, issued
by an insurer authorized to do business in this state. The bond shall be in the amount of $10,000
with the state of Minnesota as obligee, conditioned for the prompt payment to any person entitled
thereto, other than a partner or associate of the applicant, of any amounts received by the applicant
or to protect any person other than a partner or associate of the applicant from loss resulting from
fraud, dishonesty, forgery or theft in connection with the applicant's duties under sections 72B.01
to 72B.14; provided, however, that the aggregate liability of the surety to all persons for all losses
shall, in no event, exceed the amount of such bond. The bond shall remain in effect during the
term of the license, or until the surety is released from liability by the commissioner, or until
canceled by the surety. The surety may cancel a bond, without prejudice to any liability which
occurred prior to the cancellation, by giving at least 30 days' written notice to the commissioner.
In the event that the required bond is terminated, the public adjuster's license shall automatically
be suspended until a new bond is filed with the commissioner.
    Subd. 5. Examinations. A person applying for a license under sections 72B.01 to 72B.14
must successfully complete an examination prescribed by the commissioner, which examination
shall be at least in part a written examination. Examinations shall be given at such time and place
as designated by the commissioner and there shall be different examinations for adjusters, public
adjuster solicitors, and applicants for temporary permits. Adjusters' examinations shall be given in
at least each of three fields: fire and allied lines, inland marine lines and including all perils under
homeowners policies; all lines written as casualty insurance under section 60A.06, and including
workers' compensation; and a combination of the two foregoing fields. Each examination shall
be, in the judgment of the commissioner with the advice of the advisory committee, sufficient to
require for a satisfactory score such knowledge of insurance, adjusting practices and appraisal
techniques, to the extent that such knowledge is necessary for the class of license applied for and
the field in which the applicant is being examined, that the people of Minnesota will receive
insurance claim service from persons who are sufficiently trained to make fair and well informed
judgments in the evaluation or settlement of insured losses. The examination for an applicant
for a temporary permit may be oriented to the specified fields, but shall be less exacting than the
examination for a license.
The commissioner may by rule determine the period of time between failure of an
examination and reexamination.
A person shall not be eligible to take an examination if that person's license as an adjuster or
public adjuster solicitor has been revoked in this or any other state within the three years next
preceding the date of the application.
No examination shall be required for the timely renewal of a license, unless the license has
been revoked.
    Subd. 6. Exceptions. A person who on January 1, 1972, meets all of the qualifications
specified in subdivision 2 with regard to the class of license applied for and, if experience is one
of the requisites, has gained the experience within the three years next preceding January 1, 1972,
shall be eligible for the issuance of a license without taking an examination.
A person who has held a license of any given class or in any field or fields within three years
prior to the application shall be entitled to a renewal of the license in the same class or in the
same fields without taking an examination.
A person applying for a license as a crop hail adjuster shall not be required to comply with
the requirements of subdivision 5.
The commissioner may issue a license under sections 72B.01 to 72B.14 without an
examination, if the applicant presents sufficient and satisfactory evidence of having passed a
similar examination in another state and if the commissioner, with the advice of the advisory
board, has determined that the standards of such other state are equivalent to those in Minnesota
for the class of license applied for. Any applicant who presents sufficient and satisfactory evidence
of having successfully completed all six parts of the Insurance Institute of America program in
adjusting or other programs approved by the commissioner shall be entitled to an adjuster's
license without taking the examination prescribed in subdivision 5.
    Subd. 7. License term. (a) Initial licenses issued under this section are valid for a period
not to exceed two years. Each initial license must expire on October 31 of the expiration year
assigned by the commissioner.
(b) Licenses issued under this section may be renewed upon the timely filing of an
application for renewal. Every renewal license is valid for a period of 24 months.
    Subd. 8. Renewal. An application for renewal of a license issued under sections 72B.01
to 72B.14 shall be on a form prescribed by the commissioner and shall be filed with the
commissioner with payment of the renewal fee prior to the expiration date of the license.
    Subd. 9. Notice of changes. Each licensee or holder of a temporary permit shall give written
notice to the commissioner of any change in name, or residence address not later than ten days
after such change. The commissioner may, upon receipt of such notice, issue an amendment to the
license incorporating such changes.
    Subd. 10. Fees. A fee of $50 is imposed for each initial license or temporary permit and
$50 for each renewal thereof or amendment thereto. A fee of $20 is imposed for the registration
of each nonlicensed adjuster who is required to register under section 72B.06. All fees shall be
transmitted to the commissioner and shall be payable to the Department of Commerce.
History: 1971 c 704 s 4; 1973 c 725 s 2; 1975 c 359 s 23; 1979 c 141 s 3-6; 1984 c 592
s 75,76; 1986 c 444; 1991 c 233 s 44; 1992 c 513 art 3 s 26; 1992 c 564 art 1 s 50; 1994 c
485 s 59; 1997 c 200 art 1 s 45; 1999 c 177 s 71; 1999 c 223 art 2 s 10; 2001 c 208 s 6,7;
1Sp2005 c 1 art 4 s 6

72B.05 NONRESIDENTS.
A nonresident person may become licensed under sections 72B.01 to 72B.14, provided
that the person meets all of the requirements of sections 72B.01 to 72B.14, and complies with
their provisions, and, on a form prescribed by the commissioner, appoints the commissioner as
the attorney upon whom may be served all legal process issued in connection with any action
or proceeding brought or pending in this state against or involving the licensee and relating to
transactions under the license; the appointment shall be irrevocable and shall continue so long as
any such action or proceeding could arise or exist.
Service of process must be made in compliance with section 45.028, subdivision 2.
History: 1971 c 704 s 5; 1986 c 444; 1995 c 258 s 54

72B.06 CATASTROPHE OR EMERGENCY SITUATIONS.
Any person acting as an independent adjuster in this state in a catastrophe or emergency
situation who is not a licensed adjuster, must register with the commissioner within 72 hours of
commencing any adjusting assignments. The registration shall be made on such form as the
commissioner shall prescribe and shall include the name of the registrant, permanent home
address and address for the period during which the registration is effective, the categories of
losses being adjusted by the registrant, the name of the licensed independent adjuster or staff
adjuster who will be supervising that adjuster, and the name of the insurer or insurers in whose
behalf the adjusting is being done. No person shall register or be allowed to adjust losses
under this provision unless that person is under the supervision of a staff adjuster or a licensed
independent adjuster. The supervising adjuster shall indicate on the registration filing the period of
time for which the registration is being made, and no unlicensed person shall undertake to adjust
losses after the termination of the registration.
Each registrant under this section shall promptly give written notice to the commissioner
of any change in address while in this state, or any other information stated in the registration
statement.
The commissioner may summarily suspend or revoke the right of any person adjusting in
this state under the authority of this section to continue to adjust in this state, if the commissioner
finds that that person has engaged in any of the practices forbidden to a licensed adjuster under
sections 72B.01 to 72B.14. Notice of such suspension or revocation may be given personally or
by mail sent to the temporary address stated in the registration. A duplicate copy of such notice
shall be given to the supervising adjuster.
History: 1971 c 704 s 6; 1986 c 444

72B.07 [Repealed, 1994 c 485 s 66]

72B.08 DENIAL, SUSPENSION AND REVOCATION OF LICENSES.
    Subdivision 1. Causes. The commissioner may suspend, revoke, or refuse to issue an initial
or renewal license or temporary permit for any of the following causes:
(a) failure to pass a required examination;
(b) material misrepresentation or fraud in obtaining or attempting to obtain a license or
a temporary permit;
(c) willful violation of any insurance law or of any provision of sections 72B.01 to 72B.14;
(d) misappropriation, conversion or illegal withholding of moneys required to be held in
a fiduciary capacity;
(e) materially misrepresenting the terms and effect of any insurance contract, with intent
to deceive, or engaging in, or attempting to engage in, any fraudulent transaction with respect
to a claim or loss that the licensee or holder of a temporary permit is adjusting and, in the case
of a public adjuster solicitor, misrepresenting the services offered or the fees or commission
to be charged;
(f) conviction of a felony under the laws of this state, any other state, the United States, or
any foreign country;
(g) the licensee or holder of a temporary permit has demonstrated incompetency or
untrustworthiness to act as an adjuster or public adjuster solicitor;
(h) refusal to comply with any lawful order of the commissioner.
    Subd. 2. Notice. If an application for a license or temporary permit is rejected by the
commissioner, the commissioner shall forthwith give written notice to the person concerned,
mailed to that person's last known address. The notice shall state the reason for the action.
    Subd. 3. Hearing. Except when an application is rejected for failure to pass a required
examination, the person aggrieved by the action of the commissioner shall be entitled to a hearing
before the commissioner or the commissioner's delegate, provided that such person files a
written request for such hearing with the commissioner prior to the expiration of 30 days from
the date of notice specified in subdivision 2. If no hearing is requested within 30 days from the
date of the notice, the action taken by the commissioner shall continue in effect until modified
or vacated. If a hearing is timely requested, the commissioner shall set a date for such hearing
not later than 30 days after the date of receipt of the request for hearing. Pending the hearing or
any judicial review of such hearing, the commissioner may modify or vacate the action taken or
extend it until final determination.
After the hearing, the commissioner shall enter an order either vacating the prior action,
confirming the prior action or otherwise disposing of the matter as the facts require.
    Subd. 4. Suspension or revocation of license or permit. When the commissioner has
information, which if true, would be grounds for suspension, revocation, or refusal to issue a
renewal license or a temporary permit, the commissioner may order the licensee or holder of the
temporary permit to appear for a hearing pursuant to chapter 14, to determine the facts of the case
and to determine whether the license or permit should be suspended or revoked, or whether it
should not be renewed. The order shall fix the time and place for the hearing. After the hearing,
the commissioner shall enter an order either dismissing the matter or suspending or revoking the
license or temporary permit, or otherwise disposing of the matter as the facts require. Pending the
results of the hearing, the licensee or permit holder may continue to act under the license or permit.
    Subd. 5. Judicial review. Any final order of the commissioner shall be subject to judicial
review.
    Subd. 6. Procedure. Any hearing or judicial review shall be in accordance with the contested
case provisions of chapter 14.
    Subd. 7. Voluntary action by licensee or holder of permit. The commissioner may
request a voluntary revocation or suspension of a license or temporary permit and may enter into
stipulations in accordance with the request whereby the licensee or holder of a temporary permit
shall waive all further right to a hearing or judicial review.
    Subd. 8. Bond. In the case of any licensee or permit holder who has had a license or permit
suspended or revoked or whose license renewal has been prohibited by a lawful order of the
commissioner, the commissioner may condition the issuance of a new license on the filing of a
surety bond in an amount not to exceed $10,000, made and conditioned in accordance with the
requirements of section 72B.04, subdivision 4, relating to public adjusters' bonds. Nothing in this
subdivision shall reduce or alter the bonding requirements for a public adjuster.
    Subd. 9. Civil and criminal liability. This section shall not relieve a person from civil
liability or from criminal prosecution under sections 72B.01 to 72B.14 or any other law of this
state.
History: 1971 c 704 s 8; 1979 c 141 s 7; 1982 c 424 s 130; 1986 c 444

72B.09 [Repealed, 1976 c 149 s 63]

72B.091 DAMAGE APPRAISALS; ADJUSTMENTS; DUTIES OF APPRAISERS,
ADJUSTERS, AND INSURERS.
    Subdivision 1. Appraiser's identification. Each appraiser while engaged in appraisal
duties shall carry appraiser identification and shall display it upon request to an owner whose
vehicle is being inspected, to the repair shop representative involved, or to any commissioner of
commerce's representative.
    Subd. 2. Appraisal; copies and content. The appraiser shall provide one legible copy of the
appraisal to the vehicle owner and one legible copy of the appraisal to the repair shop designated
by the owner if requested by the repair shop. The motor vehicle repair shop shall provide the
vehicle owner and the insurance company or companies involved in the loss one legible copy of
the appraisal. This appraisal shall include an itemized listing of those parts to be repaired and
those parts to be replaced by new, used, rebuilt, reconditioned or replated parts. The appraisal
shall contain the name of the insurance company ordering it, if any, the insurance company's
address and telephone number, its file number, the appraiser's name, telephone number, and the
proper identification of the vehicle being inspected. The appraisal shall indicate all significant
old and unrelated damages and shall include an itemized listing of all damages, specifying those
parts to be repaired and those parts to be replaced by new, used, rebuilt, reconditioned, or replated
parts. The appraisal must disclose to the vehicle owner any parts to be used, other than window
glass, which are not original equipment parts or which are not covered by the manufacturer's
warranty on such parts.
    Subd. 3. No specified repairer. No appraiser, adjuster, or that person's employer shall require
that repairs be made in any specified repair facility.
    Subd. 4. Reinspections. Each appraiser shall promptly reinspect damaged vehicles when
supplementary allowances are requested by the repair shop or when the amount or extent of
damages is in dispute. Reinspection of any damage on a damaged vehicle may be waived if
authorized by the insurer by any oral or written communication.
    Subd. 5. Auto salvage. No appraiser or adjuster for personal gain shall receive or trade in
auto salvage if the salvage is obtained as a result of that person's appraisals.
History: 1980 c 456 s 2; 1983 c 289 s 114 subd 1; 1984 c 655 art 1 s 92; 1986 c 444;
1987 c 64 s 2

72B.092 MOTOR VEHICLE INSURANCE ADJUSTMENTS; PROHIBITIONS.
    Subdivision 1. Prohibitions on insurer. No adjuster or insurer, director, officer, broker,
agent, attorney-in-fact, employee, or other representative of an insurer shall in collision cases:
(a) limit the freedom of an insured or claimant to choose the shop;
(b) require that an insured or claimant present the claim or the automobile for loss adjustment
or inspection at a "drive-in" claim center or any other similar facility solely under the control
of the insurer;
(c) engage in boycotts, intimidation or coercive tactics in negotiating repairs to damaged
motor vehicles which they insure or are liable to claimants to have repaired; or
(d) attempt to secure, except in an emergency, the insured's or claimant's signature
authorizing the party securing the signature to act in behalf of the insured or claimant in selection
of a repair shop facility.
    Subd. 2. Boycotts. No motor vehicle repair shop shall in any way coerce, or intimidate a
motor vehicle owner to boycott an insurer's "drive-in" claim center or similar facility.
    Subd. 3. Owner's signature. No motor vehicle repair shop shall attempt to secure, except in
an emergency, the vehicle owner's signature authorizing the party securing the signature to act in
behalf of the owner in selection of a repair shop.
    Subd. 4. Access to repair shop. An insurer's representative shall not be unreasonably denied
access to a motor vehicle repair shop during normal business hours for the purpose of inspecting
or reinspecting damaged vehicles.
    Subd. 5. Storage and towing charges. When a damaged vehicle is towed to a motor vehicle
repair shop, the storage and towing charges shall not exceed the usual and customary charges for
the towing and storage of undamaged vehicles in the area except if the vehicle, due to its damaged
condition, requires special handling in the towing or storage, an added charge may be made.
History: 1980 c 456 s 3; 1986 c 444

72B.10 STAFF ADJUSTERS.
A staff adjuster who adjusts losses or claims in this state shall not be subject to the
application, licensing, or examination requirements or other qualifications set forth in sections
72B.01 to 72B.14. Such a staff adjuster shall not, however, engage in any of the practices
forbidden to a licensee under section 72B.08, subdivision 1, clause (c), (d), (e), (f), (g) or (h). If
the commissioner has information, which if true, would establish that a staff adjuster has engaged
or is engaging in any such prohibited practices, the commissioner may issue an order for a hearing
to determine the facts involved. The order shall fix the time and place for hearing. The staff
adjuster and one or more representatives of the insurer or insurers employing the staff adjuster
shall make an appearance at the hearing unless the commissioner expressly waives the appearance
of one or more such parties. If, following the hearing, the commissioner determines that the staff
adjuster has engaged or is engaging in any prohibited practices, the commissioner may impose a
fine, not in excess of $500, on the staff adjuster or on the employing insurer or insurers, or on both
such parties. In addition, the commissioner may order the employing insurer to suspend the staff
adjuster from all duties for such period as the commissioner may deem appropriate.
Any final order of the commissioner shall be subject to judicial review. Any hearing or
judicial review under this section shall be in accordance with the contested case provisions of
chapter 14.
History: 1971 c 704 s 10; 1979 c 141 s 8; 1982 c 424 s 130; 1986 c 444

72B.11 PRODUCTION OF RECORDS.
The commissioner may, by order, require any licensee or permit holder to produce any
records relating to activities under that person's license or permit, and may examine persons under
oath to determine questions arising under a person's status as a licensee or permit holder.
History: 1971 c 704 s 11; 1986 c 444

72B.12 RULES.
The commissioner may promulgate rules to carry out the purpose of sections 72B.01
to 72B.14, pursuant to chapter 14.
History: 1971 c 704 s 12; 1982 c 424 s 130; 1985 c 248 s 70

72B.13 ACTING WITHIN CONTRACT AND LAW.
Every adjuster shall investigate or adjust every claim, damage or loss made or occurring
under an insurance contract in accordance with the terms and conditions of the contract and
of the applicable laws of this state.
History: 1971 c 704 s 13

72B.135 PUBLIC ADJUSTERS.
    Subdivision 1. Homeowner's right to cancel. A homeowner who has entered into a contract
with a public adjuster involving the business for which the person was licensed, has the right to
cancel the contract within 48 hours after the contract has been signed. Cancellation is evidenced
by the homeowner giving written notice of cancellation to the public adjuster at the address stated
in the contract. Notice of cancellation, if given by mail, is effective upon deposit in a mailbox,
properly addressed to the public adjuster and postage prepaid. Notice of cancellation need not
take a particular form and is sufficient if it indicates, by any form of written expression, the
intention of the homeowner not to be bound by the contract.
    Subd. 2. Writing required; notice of right to cancel; notice of cancellation. (a) Before
entering a contract referred to in subdivision 1, the public adjuster must:
(1) furnish the homeowner with a statement in boldface type of a minimum size of ten
points, in substantially the following form:
"You, the homeowner, may cancel this contract at any time within 48 hours after the
contract has been signed between the homeowner and the public adjuster. See attached notice of
cancellation form for an explanation of this right."; and
(2) furnish each homeowner, a fully completed form in duplicate, captioned, "NOTICE OF
CANCELLATION," which shall be attached to the contract and easily detachable, and which shall
contain in boldface type of a minimum size of ten points the following information and statements:

		(enter date of contract)

If you do not want to go forward with the contract with the public adjuster, you may cancel
the contract by mailing or delivering a signed and dated copy of this cancellation notice or any
other written notice, or send a telegram to (Name of Public Adjuster), at (Address of Public
Adjuster's Place of Business) not later than midnight of (Date). If you cancel, any payments made
by you under the contract will be returned within ten business days following receipt by the
public adjuster of your cancellation notice.

		I HEREBY CANCEL THIS TRANSACTION.
		(date)
		(Homeowner's signature)"

    Subd. 3. Return of payments; compensation. Within ten days after a contract referred to in
subdivision 1 has been canceled, the public adjuster must tender to the homeowner any payments
made by the homeowner and any note or other evidence of indebtedness. However, if the public
adjuster has performed any emergency services within the 48-hour period, the public adjuster is
entitled to compensation for such services. Emergency services shall mean the removal of water,
boarding up a building, and reconnecting lights and heat.
    Subd. 4. Prohibited practices. No public adjuster shall:
(1) pay money or give anything of value to a person in consideration of a direct or indirect
referral of a client or potential client;
(2) pay money or give anything of value to a person as an inducement to refer business
or clients;
(3) rebate to a client a part of a fee specified in an employment contract;
(4) initiate contact with a prospective client between the hours of 8 p.m. and 8 a.m.;
(5) split the fee received or pay money to a person for services rendered to a client unless the
other person is also licensed as a public adjuster;
(6) have an interest directly or indirectly in a construction firm, salvage firm, or appraisal
firm. "Firm" includes a corporation, partnership, association, or individual firm;
(7) in connection with the transaction of business as a public adjuster, make a willful or
knowing misrepresentation of facts or advise a person on questions of law;
(8) make willful or knowing false statements about an insurance company or its employees,
agents, or representatives;
(9) solicit employment of a client in connection with a loss that is the subject of an
employment contract with another public adjuster;
(10) represent both an insurer and insured simultaneously; or
(11) advance money to a client pending the settlement of a loss where the amount would be
included in a final settlement.
    Subd. 5. Disclosures. (a) A public adjuster shall disclose in writing to the client any interest
the public adjuster has in loss proceeds other than those acquired by the public adjuster's
employment contract.
(b) A public adjuster in soliciting a client for employment shall display a license and
immediately inform the client that the adjuster does not represent an insurance company or
insurance company adjusting firm. The adjuster shall inform the client that services are available
for a fee to be paid by the client and shall give the client a card identifying the public adjuster. The
public adjuster shall disclose in writing to the client the fee charged by the public adjuster.
    Subd. 6. Records; contracts. (a) A public adjuster shall maintain an office that contains
the records of all documents pertaining to the settlement of the claim and files of all clients. The
records must be available for inspection by an authorized examiner or employee of the Commerce
Department. The records will be kept by the public adjuster for at least five years after the end of
the contracted employment period.
(b) An employment contract used by a public adjuster is valid only if signed by an insured
and the property owner of the property involved, or an authorized agent or representative.
History: 1988 c 663 s 1; 1990 c 514 s 1-3

72B.14 VIOLATIONS.
A person who violates sections 72B.01 to 72B.14, or the terms of any license or permit under
sections 72B.01 to 72B.14, or any lawful order of the commissioner in accordance with sections
72B.01 to 72B.14, shall be subject to a fine imposed by the commissioner, not in excess of $500,
which may be imposed in addition to the penalties prescribed in the provisions dealing with the
suspension or revocation of licenses or permits.
History: 1971 c 704 s 14