§ 36-6216.2. Contract for services of public adjuster - Cancellation.

A.  The owner of damaged property has the right to cancel any compensation agreement entered into with a licensed public adjuster until midnight of the third business day after the day on which the agreement was signed.

B.  Cancellation occurs when the buyer gives written notice of cancellation to the licensed public adjuster at the address stated in the agreement between the parties.  Notice of cancellation may be given by mail and is given when deposited in a United States mail box properly addressed and postage prepaid.  Notice of cancellation must contain the written intention of the owner to cancel the agreement.  No liability accrues to the owner when the agreement is canceled within said period, except for reasonable expense incurred by the public adjuster in preserving the damaged premises during the said three-day period.

C.  Every contract for services to be rendered by a public adjuster shall contain the following statement.  It shall be in boldface ten-point or larger type and located conspicuously on the front face of the contract.  "THIS CONTRACT MAY BE CANCELED WITHIN THREE (3) DAYS AFTER THE OWNER OF THE DAMAGED PROPERTY HAS SIGNED THIS AGREEMENT".

D.  Every contract for services to be rendered by a public adjuster shall clearly indicate the time, date, and place of execution of the contract.  This information shall be part of the contract and shall be placed thereon before execution.

E.  The Insurance Commissioner reserves the right to approve forms of contracts containing language other than that specified in subsection A of this section if such language reasonably discloses to the insured the statutory rights under this section and is otherwise consistent with all other provisions of law and regulations promulgated.

Added by Laws 1993, c. 248, § 6, eff. Sept. 1, 1993.