Public Adjusters

Utah Code tit. 31A, ch. 31A-26, pt. 31A-26-P4

in effect

Utah Code § 31A-26-401 Required contracts.

31A-26-401. Required contracts. (1) (a) 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 a public adjuster files with the department in accordance with Section 31A-21-201, that the public adjuster and the insured or the insured's duly authorized representative executes in duplicate. (b) A public adjuster shall provide a signed copy of the contract to the insured at the time of signing. (c) A public adjuster may not use a form of contract that the public adjuster has not filed with the department. (d) A public adjuster may not redact a compensation provision from a contract form the public adjuster files with the department. (2) (a) An insured may rescind a contract described in Subsection (1) in accordance with Section 31A-26-311. (b) If an insured rescinds a contract, the public adjuster shall return to the insured anything of value the insured gives to the public adjuster under the terms of the contract within 15 business days after the day on which the public adjuster receives the notice of rescission. (3) A contract described in Subsection (1): (a) shall include each notice and statement that the commissioner: (i) deems necessary; and (ii) requires by rule in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; and (b) may not include a term that: (i) allows a public adjuster to collect the public adjuster's percentage fee when money is due from an insurance company but the insurance company has not paid; (ii) allows a public adjuster to collect the entire fee from the first check an insurance company issues instead of a percentage of each check the insurance company issues; (iii) requires an insured to authorize an insurance company to issue a check only in the name of the public adjuster; (iv) imposes a collection cost or a late fee; or (v) prevents an insured from pursuing a civil remedy. (4) (a) A public adjuster shall provide to the insurer a notification letter, that the insured signs, authorizing the public adjuster to represent the insured's interest. (b) After receiving the letter described in Subsection (4)(a), an insurer shall verify with the department that the public adjuster holds a valid license. (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 a licensed public adjuster customarily provides the insured. Amended by Chapter 45, 2026 General Session

Utah Code § 31A-26-402 Compensation.

31A-26-402. Compensation. (1) Except as provided by Subsection (4), a public adjuster may receive compensation for service a public adjuster provides under this chapter consisting of: (a) an hourly fee; (b) a flat rate; (c) a percentage of the total amount an insurer pays to resolve a claim; or (d) another method of compensation. (2) (a) If a person compensates a public adjuster at an hourly rate, the contract between the person and public adjuster shall state: (i) the hourly rate; and (ii) how the hourly rate applies to the hours of service the public adjuster provides to calculate the amount payable to the public adjuster. (b) If a person compensates a public adjuster on a flat fee basis, the contract between the person and public adjuster shall state the amount payable to the public adjuster. (c) If a person compensates a public adjuster on a percentage basis, the contract between the person and the public adjuster shall state the exact percentage that applies to the settlement of a claim to calculate the amount payable to the public adjuster. (d) If a person uses a method of calculation not described in Subsections (2)(a) through (c) to determine a public adjuster's compensation, the contract between the person and the public adjuster shall include a detailed explanation of how the person determines the amount payable to the public adjuster based on the service the public adjuster provides. (3) (a) A contract between an insured and a public adjuster for compensation under this section shall state the type of initial expenses, with dollar estimates, that the insured approves to reimburse the public adjuster from the proceeds of the claim payment. (b) A public adjuster shall provide an itemized invoice of each expense the public adjuster incurs during the process of resolving a claim to the insured at the conclusion of a claim. (4) (a) A public adjuster may not receive a compensation consisting of a percentage of the total amount an insurer pays to resolve a claim on a claim on which the insurer, not later than 72 hours after the day 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. (b) Subject to Subsection (6), a public adjuster is entitled to reasonable compensation from the insured for services the public adjuster provides on behalf of the insured, based on the time spent on a claim that is subject to this Subsection (4) and expenses the public adjuster incurs, until the claim is paid or the insured receives a written commitment to pay from the insurer. (5) Except for the payment of compensation by the insured, a person paying proceeds of a policy of insurance or making a payment affecting an insured's rights under a policy of insurance shall: (a) include the insured as a payee on the payment draft or check; and (b) require the written signature and endorsement of the insured on the payment draft or check. (6) A public adjuster may not: (a) accept a payment that violates this section notwithstanding a written authorization that the insured gives to the public adjuster; (b) sign and endorse a payment draft or check on behalf of an insured; (c) charge, agree to, or accept as compensation or reimbursement, a payment, commission, fee, or another thing of value equal to more than: (i) 10% for a catastrophic insurance claim settlement; or (ii) 20% for a non-catastrophic insurance claim settlement; or (d) require, demand, or accept a fee, retainer, compensation, deposit, or other thing of value before the settlement of a claim. Amended by Chapter 45, 2026 General Session

Utah Code § 31A-26-403.1 Assignment of property insurance policy rights and benefits.

31A-26-403.1. Assignment of property insurance policy rights and benefits. (1) A property insurance policy may prohibit the assignment of a right or benefit under the property insurance policy to a property repair contractor, roofing company, disaster clean up company, appraiser, inspector, or other person hired to remedy the damage that is the subject of an insured's claim. (2) A person may not circumvent the prohibition described in Subsection (1) by obtaining a power of attorney from an insured. (3) A property insurance policy may not prohibit the assignment of a right or benefit under the policy to a policy adjuster. Enacted by Chapter 45, 2026 General Session

Utah Code § 31A-26-404 Funds that a public adjuster holds.

31A-26-404. Funds that a public adjuster holds. A public adjuster that receives, accepts, or holds funds on behalf of an insured shall deposit the funds into a trust account within a federally insured depository institution that: (1) (a) has a branch in this state, if the public adjuster depositing the money is a resident licensee; (b) has a branch in the public adjuster's home state, if the public adjuster is a nonresident licensee; or (c) has a branch where the loss occurred; and (2) the depository institution's primary regulator authorizes to engage in trust business. Enacted by Chapter 45, 2026 General Session

Utah Code § 31A-26-405 Public adjuster standards of conduct.

31A-26-405. Public adjuster standards of conduct. A public adjuster may not: (1) solicit or attempt to solicit an insured during the progress of a loss-producing occurrence; (2) advertise or infer damage unless an inspection of the property has been completed; (3) offer to pay an insured's deductible, or claim that the public adjuster will waive the insured's deductible, as an inducement for the insured to use the public adjuster's services; (4) offer to conduct a free inspection of property other than property that is the subject of an insured's claim; (5) participate directly, indirectly, or through an affiliate, in the reconstruction, repair, or restoration of property that is the subject of the public adjuster's contract with an insured; (6) solicit, accept compensation from, or have an interest in a business that provides a product or service in connection with a claim that the public adjuster has a contract to adjust; (7) have a financial interest in, directly, indirectly, or through an affiliate, an aspect of an insured's claim except for: (a) a salary; (b) a fee; (c) a commission; or (d) other compensation established in the written contract with the insured; (8) collect compensation as provided in a contract without actually performing the service a licensed public adjuster customarily provides for the insured; (9) acquire an interest in a salvage of property except as authorized in a contract with the insured; (10) recommend or direct that the insured obtain a repair or service in connection with a loss from a person: (a) in whom the public adjuster has a financial interest; or (b) from whom the public adjuster may receive direct or indirect compensation for the referral; (11) accept, sign, or endorse a check or payment draft: (a) that does not name the insured as a payee; or (b) on behalf of the insured; (12) adjust a claim if the terms and conditions of the insurance coverage exceed the public adjuster's competence, knowledge, or expertise; (13) represent or act as a company adjuster or independent adjuster on the same claim; (14) enter into a contract or accept a power of attorney that vests in the public adjuster the authority to choose the persons that will perform repair work; (15) agree to a loss settlement without the insured's knowledge or consent; or (16) allow the following to obtain an insured's signature on the public adjuster's contract: (a) a home repair contractor; (b) a roofing company; (c) a disaster clean up company; (d) an appraiser; (e) an inspector; or (f) any other person hired to remedy the damage that is the subject of the insured's claim. Enacted by Chapter 45, 2026 General Session

Utah Code § 31A-26-406 Record retention requirements.

31A-26-406. Record retention requirements. (1) A public adjuster shall keep at the public adjuster's address that the public adjuster registers with the commissioner a record of each investigation, adjustment, or transaction the public adjuster undertakes or completes under the public adjuster's license. (2) For each investigation, adjustment, or transaction, a record described in Subsection (1) shall include: (a) the name of the insured; (b) the date, location, and amount of the loss the insured incurs; (c) a copy of the contract between the public adjuster and the insured; (d) for each policy an insured carries that relates to the loss the insured incurs: (i) the name of the insurer; (ii) the amount of the policy; (iii) the expiration date of the policy; and (iv) the number of the policy; (e) an itemized statement of each of the insured's recoveries; (f) an itemized statement of all compensation the public adjuster receives in connection with the investigation, adjustment, or transaction; (g) a register of all money the public adjuster receives, deposits, disburses, or withdraws in connection with a transaction with an insured, including: (i) a fee transfer; (ii) a disbursement from a trust account; or (iii) a transaction that involves an interest-bearing account; (h) the name of the public adjuster that executed the contract; (i) the name of the attorney that represents the insured, if applicable; (j) the name of the insurance company's claims representative; and (k) documentation that the public adjuster meets all applicable statutory financial responsibility requirements. Enacted by Chapter 45, 2026 General Session

Utah Code § 31A-26-407 Rulemaking.

31A-26-407. Rulemaking. The commissioner may make rules, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act: (1) addressing the forms required by this part; (2) providing for notice requirements in contracts; and (3) establishing the scope of a contract a public adjuster enters into with an insured that the public adjuster represents. Renumbered and Amended by Chapter 45, 2026 General Session

Source: Utah Office of Legislative Research and General Counsel (le.utah.gov)URL: https://le.utah.gov/xcode/Title31A/Chapter26/31A-26-P4.html?v=C31A-26-P4_2017050920170509Fetched: 10/26/2026