Bill Text: PA HB424 | 2011-2012 | Regular Session | Amended

---

Bill Title: Further providing for definitions and for license; providing for application for public adjuster license, for licensing, for issuance and term of license, for license renewals and for reciprocal licensing; further providing for fees, for bond and for contract; providing for written disclosure of financial interest; further providing for revocation, etc., of license and for violations; providing for civil remedy; further providing for administration and enforcement; and providing for persons licensed as public adjuster solicitors.

Spectrum: Slight Partisan Bill (Republican 8-3)

Status: (Passed) 2012-04-03 - Act No. 21 [HB424 Detail]

Download: Pennsylvania-2011-HB424-Amended.html

---

SENATE AMENDED
PRIOR PRINTER'S NOS. 390, 1946, 2082, 2655 PRINTER'S NO. 3197
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 424 Session of2011
INTRODUCED BY GODSHALL, MICOZZIE, CALTAGIRONE, DeLUCA, HENNESSEY, SWANGER, TAYLOR, KORTZ, MILLER, HESS AND FLECK, FEBRUARY 3, 2011
AS AMENDED ON THIRD CONSIDERATION, MARCH 12, 2012
AN ACT
Amending the act of December 20, 1983 (P.L.260, No.72), entitled
"An act providing for the licensing and regulating of public
adjusters and public adjuster solicitors," further providing
for definitions and for license; providing for application
for public adjuster license, for licensing, for issuance and
term of license, for license renewals and for reciprocal
licensing; further providing for fees, for bond and for
contract; providing for written disclosure of financial
interest; further providing for revocation, etc., of license
and for violations; providing for civil remedy; further
providing for administration and enforcement; and providing
for persons licensed as public adjuster solicitors.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Sections 1 and 2 of the act of December 20, 1983
(P.L.260, No.72), referred to as the Public Adjuster Licensing
Law, are amended to read:
Section 1. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Application." A form approved by the Insurance Department
to be used to apply for a public adjuster license.
"Business entity." A corporation, partnership, association,
limited liability company or limited liability partnership.
"Business entity application." A form approved by the
department to be used by a business entity to apply for a public
adjuster license.
"Department." The Insurance Department of the Commonwealth.
"Home state." The District of Columbia, a state,
commonwealth or territory of the United States in which a public
adjuster resides and is licensed to act as a resident public
adjuster.
"Licensee." A person licensed by the Insurance Department as
a public adjuster.
"Nonresident public adjuster." A public adjuster whose home
state is not this Commonwealth.
"Public adjuster." Any person[, partnership, association or
corporation] advertising,] soliciting business or holding <--
himself [or itself] out to the public as an adjuster of claims
for losses or damages arising out of policies of insurance,
surety or indemnity upon property, persons or insurable business
interests within this Commonwealth, and receiving any
compensation or reward for the giving of advice or assistance to
the insured in the adjustment of claims for such losses, or who
for compensation or reward, whether by way of salary or
commission or otherwise, directly or indirectly, [solicit]
solicits business, [investigate] investigates or [adjust]
adjusts losses or [advise] advises the insured with reference to
claims for losses on behalf of any other person[, partnership,
association or corporation] engaged in the business of adjusting
losses. The term does not include an agent or employee of an
20110HB0424PN3197 - 2 -
insurance company, association or an exchange, through whom a
policy of insurance was written, in adjusting loss or damage
under such policy, nor does it include [a broker or agent] an
insurance producer acting as an adjuster if the services of the
[agent or broker] insurance producer in the adjustment are
without compensation.
["Public adjuster solicitor." Any person, partnership,
association or corporation, who or which solicits, directly or
indirectly, for a fee, or in any manner aids in securing for a
public adjuster a contract for the adjustment of a loss.]
"Repairs." Shall not include temporary or emergency repairs
made for the purpose of protecting the insured property or to
comply with policy terms and conditions.
Section 2. License.
(a) License required.--No person[, partnership, association
or corporation] shall, directly or indirectly, act within the
Commonwealth as a public adjuster [or a public adjuster
solicitor] without first procuring from the Insurance
Commissioner a license as a public adjuster [or public adjuster
solicitor, respectively].
(b) [Insurance Commissioner to issue licenses.--The
Insurance Commissioner may issue a license as a public adjuster
or public adjuster solicitor to any person of at least 18 years
of age and to any partnership, association or corporation which
maintains a bona fide office in the Commonwealth, readily
accessible to the general public. No license shall be granted to
any corporation unless, by provisions of its charter, it is
authorized to engage in the business of insurance claim
adjusting and unless individual licenses are also secured for
each active officer of such corporation. No license shall be
20110HB0424PN3197 - 3 -
granted to a partnership or association unless individual
licenses are also secured for each active member of such
partnership or association. Before any such license is granted,
the applicant shall first make answer, in writing and under
oath, to interrogatories on forms and supplements such as the
Insurance Commissioner shall prepare: Provided, That any
applicant who shall have held such a license for a period of at
least two years prior to the effective date of this act shall be
entitled, upon proper application, to receive a license without
the necessity of submitting to an examination. When the
Insurance Commissioner is satisfied that the applicant is
trustworthy and competent to transact business as a public
adjuster and public adjuster solicitor, respectively, in such
manner as to safeguard the interest of the public, he shall
issue a license.] (Reserved).
(c) [Nonresident public adjusters and public adjuster
solicitors.--The Insurance Commissioner may issue a license as
public adjuster or public adjuster solicitor to a person not a
resident of this Commonwealth, upon compliance with the
applicable provisions of this act, if the State or the Province
of Canada of such person's residence will accord the same
privilege to a resident of this Commonwealth. The provisions of
this subsection relating to noneligibility for licensure shall
not apply to any nonresident public adjusters and public
adjuster solicitors who did business in Pennsylvania as licensed
public adjusters or public adjuster solicitors prior to the
effective date of this act.
(1) The Insurance Commissioner may enter into reciprocal
agreements with the appropriate official of any such other
state or province waiving the written examination of any
20110HB0424PN3197 - 4 -
applicant resident in such other state if:
(i) a written examination is required of applicants
for an insurance public adjuster or public adjuster
solicitor license in such other state or province;
(ii) the appropriate official of the other state or
province certifies that the applicant holds a currently
valid license as a public adjuster or public adjuster
solicitor in such other state or province and either
passed such a written examination or was the holder of an
insurance agent's license prior to the time a written
examination was required; and
(iii) that in such other state or province a
resident of this Commonwealth is privileged to procure a
public adjuster or public adjuster solicitor license upon
the foregoing conditions and without discrimination as to
fees otherwise in favor of the residents of such other
state or province.] (Reserved).
(d) License not to be issued to certain persons.--No license
as a public adjuster [or public adjuster solicitor] shall be
issued to any person[, partnership, association or corporation]
engaged or interested in, or receiving any profit from, nor
shall the holder of any such license engage or be interested in,
or receive any profit from, any salvage or similar business.
Section 2. The act is amended by adding sections to read:
Section 2.1. Application for public adjuster license.
(a) Individuals.--An individual who is a resident of this
Commonwealth may apply to the department for a resident public
adjuster license. An individual who is not a resident of this
Commonwealth may apply for a nonresident public adjuster
license. To apply for a public adjuster license, an individual
20110HB0424PN3197 - 5 -
shall submit to the department:
(1) a completed application on forms approved by the
department;
(2) the applicant's fingerprints, for the department to
receive national criminal history records information from
the Criminal Justice Information Services Division of the
Federal Bureau of Investigation;
(3) documentation verifying the applicant passed or is
exempt from the public adjuster licensing examination; and
(4) the required license fee and fees for obtaining
national criminal history records information.
(b) Business entities.--Upon designating one or more
officers or partners licensed under this act to be responsible
for the business entity's compliance with the insurance laws and
regulations of the Commonwealth, a business entity may apply to
the department for a public adjuster license. A business entity
with an office in this Commonwealth shall apply for a resident
public adjuster license. A business entity that does not have an
office in this Commonwealth shall apply for a nonresident public
adjuster license. The designated licensees of the business
entity shall submit to the department:
(1) a completed business entity application on forms
approved by the department;
(2) proof of the public adjuster license held by the
designated licensees; and
(3) the required license fee.
(c) License fee.--A nonrefundable $200 fee shall accompany a
completed application for a resident or nonresident public
adjuster license until modified by the department by regulation.
Section 2.2. Licensing.
20110HB0424PN3197 - 6 -
(a) Individuals.--The department shall review each
application and may conduct an investigation of each individual
who applies for a license in accordance with this act. The
department shall issue a resident or nonresident public adjuster
license, as appropriate, to the applicant when the department is
satisfied the following criteria have been met:
(1) the applicant has reached 18 years of age;
(2) the applicant has not committed any act which is
prohibited under this act;
(3) the applicant has passed or is exempt from the
public insurance adjuster licensing examination;
(4) the applicant has paid the applicable fees
established under this act;
(5) the applicant possesses the general fitness,
competence and reliability sufficient to satisfy the
department the applicant is worthy of licensure; and
(6) other criteria as the department may establish.
(b) Business entities.--The department shall review each
business entity application and may conduct an investigation of
each business entity seeking licensure and its designated
licensees. The department shall issue a resident or nonresident
public adjuster license, as appropriate, to the business entity
when the department is satisfied the following criteria have
been met:
(1) the business entity has one or more designated
licensees who are responsible for the business entity's
compliance with the insurance laws and regulations of this
Commonwealth;
(2) the business entity's designated licensees and
officers, partners or members are licensees in good standing
20110HB0424PN3197 - 7 -
with the department;
(3) if a corporation or limited liability company,
individual public adjuster licenses shall be held by or
secured for each officer of the corporation or limited
liability company;
(4) if a partnership, limited liability partnership or
association, individual public adjuster licenses shall be
held by or secured for each partner or member of the
association;
(5) the business entity or its designated licensees have
not committed an act which is prohibited under this act;
(6) the business entity is owned, operated and managed
by persons possessing the general fitness, competence and
reliability sufficient to satisfy the department that the
business entity is worthy of licensure;
(7) the business entity has paid the applicable fees
established under this act; and
(8) other criteria as the department may establish.
Section 2.3. Issuance and term of license.
A public adjuster license issued by the department shall be:
(1) issued only in the name of the individual or
business entity. If a licensee is doing business under a
fictitious name other than the name appearing on the public
adjuster license, the licensee is required to notify the
department in writing prior to using the fictitious name;
(2) issued in paper or electronic form;
(3) nontransferable; and
(4) issued for a period not to exceed two years.
Section 2.4. License renewals.
(a) General rule.--A licensee may request renewal of the
20110HB0424PN3197 - 8 -
license. The licensee shall submit to the department a completed
renewal form, the required fee and verification the licensee has
completed the continuing education required by this act. Upon
receipt and review, the department shall renew the license
unless it determines the licensee is not in compliance with this
act.
(b) Continuing education.--A licensee who is not a business
entity shall successfully complete 24 credit hours of approved
continuing education for each two-year license period as a
condition for license renewal unless modified by the department
by regulation. A licensee may carry forward excess continuing
education credit hours up to 24 credit hours from one licensing
period to the next licensing period.
(c) Lapses.--A licensee who allows his license to lapse by
failing to timely renew the license, pay the fee required by
this act or complete the continuing education required by this
act may within 60 days of the license renewal date request the
department to reinstate the license. Persons requesting
reinstatement of a lapsed license shall submit a completed
renewal form, the fee required by this act and verification the
person has completed all continuing education required by
subsection (b) for the previously licensed and lapsed periods.
If the department receives a request for reinstatement together
with a completed renewal application, payment of the lapsed
license fee and proof of continuing education compliance within
60 days after the license lapsed, the department shall reinstate
the license retroactively with the reinstatement effective on
the date the license lapsed. Except as set forth in subsection
(d), if a person applies for reinstatement more than 60 days
after the lapse date, the person shall reapply for a license
20110HB0424PN3197 - 9 -
under this act.
(d) Extenuating circumstances.--A licensee who is unable to
timely comply with the requirements of subsection (a) as a
result of military service or other extenuating circumstance may
request the department to waive the requirements of completing
continuing education for the period in which the license had
lapsed and payment of the lapsed license fee. The request shall
include sufficient detail and supporting documentation to
determine the necessity of the waiver. If the department
determines that there is good cause for noncompliance, the
department shall grant the waiver and permit the licensee to
request renewal of the license in accordance with this act.
(e) Renewal fees.--The following nonrefundable fees shall
accompany an application for renewal of a public adjuster
license unless modified by the department by regulation:
(1) Resident or nonresident renewal fee, $200.
(2) Lapsed license renewal fee, $400.
Section 2.5. Reciprocal licensing.
(a) Nonresident individuals.--
(1) An individual who is currently licensed as a
resident public adjuster in another state or territory may
apply to the department for a nonresident public adjuster
license. The individual shall submit to the department a
completed application, proof of the individual's current home
state license in a form or manner determined acceptable by
the department and the required license fee.
(2) Upon receipt and review of the application, proof of
the home state license in a form or manner determined
acceptable by the department and the fee, the department
shall issue a nonresident public adjuster license to the
20110HB0424PN3197 - 10 -
individual. The department may deny the application if the
individual's home state does not award nonresident public
adjuster licenses to resident licensees of this Commonwealth
on the same basis.
(b) Nonresident business entities.--
(1) Upon designating one or more individuals licensed
under this act to be responsible for the business entity's
compliance with the insurance laws and regulations of this
Commonwealth, a business entity which is currently licensed
as a resident public adjuster in another state or territory
may apply to the department for a nonresident public adjuster
license. The designated licensees of the business entity
shall remit to the department a completed business entity
application, proof of the business entity's current home
state license in a form or manner determined acceptable by
the department and the required license fee.
(2) Upon receipt and review of the application, proof of
the home state license in a form or manner determined
acceptable by the department and the fee, the department
shall issue a nonresident public adjuster license to the
business entity if the department determines that the
business entity, its partners, members or officers, and its
designated licensees are licensees in good standing in the
business entity's home state. The department may deny the
application if the business entity's home state does not
award nonresident public adjuster licenses to resident
licensees of this Commonwealth on the same basis.
Section 3. Section 3 of the act is amended to read:
Section 3. [Fees.
(a) Public adjuster's license.--A fee shall be paid to the
20110HB0424PN3197 - 11 -
Insurance Commissioner by the applicant for a public adjuster's
license at the time application is made, and annually thereafter
for the renewal thereof, of $100. If the applicant is a
corporation, partnership or association, such fee shall be paid
for each person specified in the license.
(b) Public adjuster solicitor's license.--A fee shall be
paid to the Insurance Commissioner by the applicant for a public
adjuster solicitor's license at the time application is made,
and annually thereafter for the renewal thereof, of $50. If the
applicant is a corporation, partnership, or association, such
fee shall be paid for each person specified in the license.]
(Reserved).
Section 4. The act is amended by adding a section to read:
Section 3.1. Written disclosure of financial interest.
(a) Requirement.--A public adjuster shall provide the
insured a written disclosure concerning a direct or indirect
financial interest the public adjuster has with another party
involved in an aspect of the claim other than the salary, fee,
commission or other consideration established in the written
contract with the insured, including ownership of or
compensation expected to be received from a construction firm,
building appraisal firm, motor vehicle repair shop or another
firm that provides estimates for work or that performs work in
conjunction with damages caused by the insured loss on which the
public adjuster is engaged.
(b) Definition.--As used in this section, the term "firm"
shall include a corporation, partnership, association, joint-
stock company or person.
Section 5. Sections 4, 5, 6 and 7 of the act are amended to
read:
20110HB0424PN3197 - 12 -
Section 4. Bond.
(a) Public adjuster's bond.--Each person[, partnership,
association or corporation] receiving a public adjuster's
license shall, before transacting any business thereunder,
execute and deliver to the Insurance Commissioner a bond in the
minimum penal sum of [$40,000] $20,000 with such sureties as the
Insurance Commissioner may approve.
(b) [Public adjuster solicitor's bond.--Each person,
partnership, association or corporation receiving a public
adjuster solicitor's license shall, before transacting any
business thereunder, execute and deliver to the Insurance
Commissioner a bond in the minimum penal sum of $8,000 with such
sureties as the Insurance Commissioner may approve.] (Reserved).
(c) Condition of bond.--The bond of the public adjuster [and
the public adjuster solicitor] shall be conditioned that said
public adjuster [or public adjuster solicitor] will faithfully
comply with all the requirements of this act and shall not
embezzle, take, secrete or otherwise dispose of or fraudulently
withhold, appropriate, lend, invest or otherwise use or apply
any money or substitutes for money or any salvage, goods or
property received by him as such public adjuster [or public
adjuster solicitor] or employee of a public adjuster, contrary
to the instructions or without the consent of the assured or his
legal representative. Any person, firm or corporation who has
entered into a contract with a public adjuster, as provided in
section 5, and who shall suffer loss by reason of the failure of
the public adjuster to comply with this act and faithfully
perform his duties shall have the right to intervene and be made
a party to any action instituted by the Commonwealth on the bond
of the public adjuster and to have his, her or its rights and
20110HB0424PN3197 - 13 -
claims adjudicated in such action and judgment rendered thereon,
subject, however, to the priority of the claim and judgment of
the Commonwealth. If the amount of the liability of the surety
on said bond is sufficient to pay the full amount due the
Commonwealth, the remainder shall be distributed pro rata among
said intervenors. If no suit should be brought by the
Commonwealth of Pennsylvania, upon application therefore and
furnishing affidavit to the Insurance Department that loss has
been suffered by reason of failure of the public adjuster to
comply with this act or faithfully perform his duties, such
insured shall be furnished with a certified copy of said bond,
upon which he, she or it shall have a right of action, and shall
be and are hereby authorized to bring suit in the name of the
Commonwealth for his, her or its use and benefit against said
public adjuster and his sureties and to prosecute the same to
final judgment and execution. Where suit is instituted by any
such insureds on the bond of the public adjuster, it shall be
commenced within one year after the performance and final
settlement of said contract, and not later. Where suit is so
instituted by an insured or insureds, no other action shall be
brought by any other claimant, but any other claimant may file
his claim in the action first brought and be made party thereto
within one year from the completion of the work under said
contract, and not later. If two or more actions be brought on
the same day, the action in which the largest claim is demanded
shall be regarded as the first action. Any creditor who has
brought an action within one year as aforesaid, but after suit
brought by another creditor or on the same day, may intervene in
the suit first brought within the year, notwithstanding the fact
that the intervention in such case be after the expiration of
20110HB0424PN3197 - 14 -
the year, provided said intervention be made within 30 days
after the expiration of the year. If the recovery on the bond
should be inadequate to pay the amounts found due to all of said
creditors, judgment shall be given to each creditor pro rata of
the amount of the recovery. The surety on said bond may pay into
the court, for distribution among said claimants and creditors,
the full amount of the surety's liability, to wit, the penalty
named in the bond, less any amount which said surety may have
had to pay to the Commonwealth by reason of the execution of
said bond, and, upon so doing, the surety will be relieved from
further liability. In all suits instituted under the provisions
of this act, such personal notice of the pendency of such suits,
informing them of their right to intervene, as the court may
order, shall be given to all known creditors and, in addition
thereto, notice shall be given by publication in newspapers of
general circulation, published in the county or municipality
where the contract was performed, once a week for at least three
successive weeks: Provided, however, That, when such suit has
begun within three weeks of the end of the year within which
suit may be brought, said notice by publication shall be only
for the period intervening between the time of instituting such
suit and the end of the year.
Section 5. Contract.
(a) Written contract required.--No public adjuster shall,
directly or indirectly, act within this Commonwealth as a public
adjuster without having first entered into a contract, in
writing, on a form approved by the [Insurance Commissioner]
department and executed in duplicate by the public adjuster and
the insured or a duly authorized representative. One copy of
this contract shall be kept on file by the public adjuster,
20110HB0424PN3197 - 15 -
available at all times for inspection[, without notice,] by the
[Insurance Commissioner or his duly authorized representative.
No public adjuster or public adjuster solicitor shall solicit a
client for employment within 24 hours of a fire or other
catastrophe or occurrence which is the basis of the
solicitation. With respect to a fire, the 24-hour period shall
begin at such time as the fire department in charge determines
that the fire is extinguished. Any contract with a public
adjuster may be rescinded by any person signing the contract.
Such action must be taken within four calendar days after
signature. The Insurance Commissioner may issue regulations to
assure the implementation of this section. No public adjuster
solicitor shall use any form of contract other than that
approved for the public adjuster for whom he is soliciting, nor
shall he make any contracts or agreements for himself or for the
public adjuster other than such as are specified in the approved
contract.] department. The department shall disapprove a
contract form if, in the department's opinion, the contract or
its provisions:
(1) Fail to comply with this section.
(2) Are unreasonable.
(3) Are contrary to the interests of the public.
(4) Are misleading or unfair to the insured.
At the department's discretion, the department may also require
the submission of advertising or solicitation material.
(a.1) Rescission.--A contract with a public adjuster may be
rescinded by any person signing the contract.
(a.2) Disclosure.--The contracts shall disclose the
following items with each of these items separately signed or
initialed by the insured and the public adjuster:
20110HB0424PN3197 - 16 -
(1) That the insured has the right to rescind the
contract within five business three calendar days after <--
signature.
(2) Fees to be charged or assessed by the public
adjuster together with an explanation about how the fees will
come from a portion of the claims payment, if any, made by
the insurer under the policy and are not in addition to the
payments.
(3) That the adjuster will provide the insured a copy of
an estimate or report of losses and, upon the insured's <--
request, any supporting documentation it sends to the
insurer.
(4) That the public adjuster is not a representative or
employee of the insurer and the insureds are not required to <--
hire a public adjuster but have the right to do so and is an <--
independent licensee of the department.
(a.3) Regulations.--The Insurance Commissioner may issue
regulations to assure the implementation of this section.
(b) Contracts only authorized by insured against his own
carrier.--No public adjuster [or public adjuster solicitor] may
adjust or solicit a contract for the adjustment of any claim for
losses or damages on behalf of any person except claims by an
insured against his own insurance carrier.
(c) Personal injury and automobile property damage claims
prohibited.--No public adjuster [or public adjuster solicitor]
shall act in any manner in relation to claims for personal
injury or automobile property damage.
(d) Contracts limited to adjustment of insurance losses.--No
public adjuster [or public adjuster solicitor] shall, directly
or indirectly, through or with any person, partnership,
20110HB0424PN3197 - 17 -
corporation or association in which it has an indirect or
beneficial interest, enter into any contract with any insured
for the repair, replacement, restoration, renovation or
demolition of damaged property, real or personal, at any time
prior to the date a verdict or award is entered or payment is
received from the insurance carrier, whichever event shall occur
first.
Section 6. Revocation, etc., of license.
(a) Grounds for fines, suspensions or revocations.--
Committing any of the following acts shall be grounds for fine,
suspension or revocation of a public adjuster's [or public
adjuster solicitor's] license:
(1) Material misrepresentation of the terms and effect
of any insurance contract.
(2) Engaging in, or attempting to engage in, any
fraudulent [transaction] or misleading conduct with respect
to a claim or loss that the licensee is adjusting. Misleading
conduct shall not be considered a felony unless the conduct
constitutes fraud.
(3) Misrepresentation of the services offered or the
fees or commission to be charged.
(4) Conviction by any court of or a plea of nolo
contendere to a felony under the laws of this Commonwealth,
any other state, the United States or any territory or
foreign country.
(5) Misappropriation, conversion to his own use or
improper withholding of moneys held on behalf of another
party to the contract.
(6) [To pay or cause] Paying or causing to be paid any
commission or any other compensation or thing of value
20110HB0424PN3197 - 18 -
whatsoever to any agent, broker, attorney, partner, clerk,
servant, employee or any other person, whosoever hired by or
employed by or with any insured named in any policy of
insurance as an inducement or solicitation to influence the
contracting of services for the services of public adjuster
[or public adjuster solicitor] with any insured. A public
adjuster may utilize the services of any person authorized by
the insurer to assist in connection with an insurance claim:
Provided, That said services must not conflict with the
services required to be rendered by a public adjuster.
(7) [To receive] Receiving, directly or indirectly, any
compensation, commission or thing of value or profit from any
person, partnership, association or corporation engaged or
interested in the business of salvage, repair, replacement,
restoration, renovation or demolition of damaged property,
real or personal, unless such compensation, commission or
thing of value or profit is disclosed to the insured and
agreed to in the contract.
(8) [Removal of a public adjuster's or a public adjuster
solicitor's office, accounts or records from the
Commonwealth] (Reserved).
(9) [The closure] Closing of a licensee's office for a
period in excess of 30 days, unless granted permission by the
Insurance Commissioner to close the office for a longer
period.
(10) Violation of any provision of this act or any rule
or regulation promulgated, published and adopted thereunder.
(11) Making a material misstatement in the application
for any such license.
(12) The commission of fraudulent practices.
20110HB0424PN3197 - 19 -
(13) [Has] Demonstrating, in the judgment of the
Insurance Commissioner, [demonstrated] his incompetency or
untrustworthiness to transact the business of a public
adjuster.
(14) Having a public adjuster license or other
professional license, or its equivalent, denied, suspended or
revoked by a governmental entity or self-regulating
professional association.
(15) Failing to comply with an administrative or court
order imposing a child support obligation.
(16) Failing to pay State income tax or comply with any
administrative or court order directing the payment of State
income tax.
(17) Committing a misdemeanor that involves the misuse
or theft of money or property belonging to another person.
(18) Failing to notify the department of a change of
address within 30 days.
(19) Soliciting business during the progress of a loss-
producing occurrence such as a fire, tornado, severe storm or
other catastrophe where the immediate safety and security of
persons and property is paramount. For purposes of this
paragraph, it shall be presumed that the loss-producing
occurrence is still in progress while emergency responders
are present at the scene, unless the emergency responders
have determined that the emergency status of the event has
ended.
(20) Interfering with or seeking to prohibit Prohibiting <--
communication or any form of contact between the insurer and <--
the insured.
(21) Failing to notify the insured's insurer within two <--
20110HB0424PN3197 - 20 -
calendar days of entering into a contract.
(b) Civil penalty.--Regardless of whether the public
adjuster [or public adjuster solicitor] was licensed or not, the
Insurance Commissioner may, at his discretion, in cases
warranting such action, impose a civil penalty of not more than
[$1,000] $5,000 for each and every violation of this act.
(c) Notice and hearing.--Before the Insurance Commissioner
shall take any action as above set forth, he shall give written
notice to the person[, partnership, association or corporation]
accused of violating the law, stating specifically the nature of
such alleged violation and fixing a time and place, at least ten
days thereafter, when a hearing of the matter shall be held.
After such hearing or upon failure of the accused to appear at
such a hearing, the Insurance Commissioner shall impose such of
the above penalties as he deems advisable. When the Insurance
Commissioner shall have taken any actions as above set forth,
the party aggrieved may appeal therefrom to the Commonwealth
Court.
(d) Adjusters [and solicitors] responsible for conduct of
employees.--Any public adjuster [or public adjuster solicitor]
employing, or using the services of, any person to solicit
business shall be held fully responsible for the conduct of that
person in connection with business dealings, including, but not
limited to, making certain that such person has a valid license
as a public adjuster [or public adjuster solicitor].
Section 7. Violations.
[Any person, partnership, association or corporation
violating any of the provisions of this act shall be guilty of a
misdemeanor and, upon conviction thereof, shall be sentenced to
pay a fine of not less than $500 nor more than $1,000 for each
20110HB0424PN3197 - 21 -
violation and conviction. Prosecution for any violation under
this section may be instituted by the Insurance Commissioner or
his duly authorized representative.] A person, partnership, <--
association or corporation that willfully violates section 6(a)
(1), (2), (3), (5), (6) or (12) shall be guilty of a felony of
the third degree. A violation of another provision of this act
shall constitute a misdemeanor and, upon conviction, a violator
shall be sentenced to pay a fine of not less than $500 nor more
than $1,000 for each violation and conviction.
Section 6. The act is amended by adding a section to read:
Section 7.1. Civil remedy.
In addition to the authority of the Attorney General under
Article XI of the act of May 17, 1921 (P.L.789, No.285), known
as The Insurance Department Act of 1921, and 18 Pa.C.S. § 4117
(relating to motor vehicle insurance fraud), if the Attorney
General finds that there has been a violation of this act, the
Attorney General may bring an action to impose a civil penalty
and to seek other relief, including injunctive relief, under the
act of December 17, 1968 (P.L.1224, No.387), known as the Unfair
Trade Practices and Consumer Protection Law.
Section 7. Section 8 of the act is amended to read:
Section 8. Administration and enforcement.
(a) Insurance Commissioner to administer and enforce act.--
The Insurance Commissioner is hereby charged with the
administration and enforcement of this act and shall prescribe,
publish, adopt and promulgate rules and regulations in
connection herewith.
(b) Insurance Commissioner may bring actions.--The Insurance
Commissioner or a duly authorized representative may maintain an
action for an injunction or other process against any person[,
20110HB0424PN3197 - 22 -
partnership, association, corporation] or other entity to
restrain and prevent any of the foregoing from transacting
business as a public adjuster [or public adjuster solicitor]
without a license. Any such action shall be instituted in the
court of common pleas in any county where the alleged unlicensed
activity occurred. Such court may issue a temporary restraining
order or injunction under this act but shall determine any such
action on its merits as soon as possible whether in term time or
in vacation. No bond shall be required of and no costs shall be
taxed against the Insurance Commissioner, his duly authorized
representative or the Insurance Department on account of any
such action.
(c) Act to be supplementary.--The provisions of this act
shall be constructed as supplementary to all other acts dealing
with the same subject matter. No action brought under the
provisions of this act shall prevent the prosecution or
institution of any civil or criminal action otherwise provided
by law for violation of any licensing act or departmental rule
or regulation promulgated thereunder.
Section 8. A person licensed as a public adjuster solicitor
prior to the effective date of this section shall be licensed as
a public adjuster in accordance with the act.
Section 9. Regulations which are inconsistent with the
provisions of this act are hereby abrogated to the extent of
their inconsistency.
Section 10. This act shall take effect in 180 days.
20110HB0424PN3197 - 23 -