Utah Code 31A-26-401. Required contracts

31A-26-401. Required contracts.

(1)

A public adjuster may not, directly or indirectly, act within this state as a public adjuster without having first entered into a contract, in writing, on a form filed with the department in accordance with Section 31A-21-201, executed in duplicate by the public adjuster and the insured or the insured’s duly authorized representative. A public adjuster may not use a form of contract that is not filed with the department.

Terms Used In Utah Code 31A-26-401

Contract: A legal written agreement that becomes binding when signed.
Department: means the Insurance Department. See Utah Code 31A-1-301
Filed: means that a filing is:

(i)	submitted to the department as required by and in accordance with applicable statute, rule, or filing order;

(ii)	received by the department within the time period provided in applicable statute, rule, or filing order; and

(iii)

accompanied by the appropriate fee in accordance with:

(A)	Section 31A-3-103; or

(B)

rule. See Utah Code 31A-1-301

Form: means one of the following prepared for general use:

(i)

a policy;

(ii)	a certificate;

(iii)

an application;

(iv)	an outline of coverage; or

(v)

an endorsement. See Utah Code 31A-1-301

Insured: means a person to whom or for whose benefit an insurer makes a promise in an insurance policy and includes:

(i)	a policyholder;

(ii)	a subscriber;

(iii)

a member; and

(iv)

a beneficiary. See Utah Code 31A-1-301

Public adjuster: means a person required to be licensed under Section 31A-26-201, who engages in insurance adjusting as a representative of insureds and claimants under insurance policies. See Utah Code 31A-26-102

State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5

Writing: includes :Utah Code 68-3-12.5

(2)

A contract described in Subsection (1) is subject to recision in accordance with Section 31A-26-311.

(3)

(a)	A contract described in Subsection (1) shall include a prominently displayed notice in 12-point boldface type that states “WE REPRESENT THE INSURED ONLY.”

(b)	The commissioner by rule, made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, may require additional prominently displayed notice requirements in the contract as the commissioner considers necessary.

(4)

A public adjuster shall keep at the public adjuster’s principal place of business a copy of each contract entered into in this state for the current year plus three years, and each contract shall be available at all times for inspection, without notice, by the commissioner or the commissioner’s authorized representative.

(5)	A public adjuster may not enter into a contract with an insured and collect compensation as provided in the contract without actually performing the services customarily provided by a licensed public adjuster for the insured.

Enacted by Chapter 168, 2017 General Session

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